First XRP and DOGE ETFs Face Market Test After Strong Debuts

Key Insights:

• DOJE and XRPR spot ETFs of DOGE and XRP launched Sept. 18 with $37.7M and $17M first-day volumes, respectively.
• Grayscale’s GDLC basket ETF recorded $22 million in debut volume on Sept. 19, following approval of its generic listing.
• Market downturn with $1.7B liquidations on Sept. 22 will test institutional appetite for altcoin ETF exposure.

Three major altcoin exchange-traded funds (ETFs) launched last week with strong debuts, but their ability to maintain momentum faced an immediate test as crypto markets entered a sharp downturn.

The US Securities and Exchange Commission (SEC) approved generic listing standards for crypto ETFs on Sept. 17, clearing regulatory hurdles that had blocked over 100 pending filings.

This framework enabled the Sept. 19 launch of Grayscale’s diversified Digital Large Cap Fund ETF (GDLC), following the launch of the first DOGE spot ETF (DOJE) and XRP spot ETF (XRPR) in the US under the 33 Act.

Record-Breaking Launch Volumes Signal Strong Initial Demand

Bloomberg senior ETF analyst Eric Balchunas reported that XRPR captured $37.7 million in first-day trading volume, surpassing all other 2025 ETF launches in terms of volume.

The performance edged out the Avantis Emerging Markets Value ETF (IVES) for the year’s strongest debut.

DOJE recorded $17 million in opening-day volume, placing it among the top five ETF launches of 2025 out of 710 total debuts.

Balchunas noted the volumes represented exceptional performance compared to typical ETF launches, which average less than $1 million in first-day trading.

GDLC posted $22 million in debut volume with 381,298 shares changing hands during its Sept. 19 launch on NYSE Arca.

The basket ETF provides exposure to five major digital assets: 72% Bitcoin, 17% Ethereum, 6% XRP, 4% Solana, and 1% Cardano, managing over $931 million in total assets.

The strong initial performance continued into the second day of trading. DOJE maintained $12 million in volume while XRPR recorded $15 million, demonstrating sustained investor interest beyond the typical first-day surge.

Generic Standards Streamline Approval Process

The SEC’s approval of generic listing standards represented a fundamental shift in crypto ETF regulation.

The new framework eliminates individual Rule 19b-4 filings for each product, instead requiring only Form S-1 submissions with 75-day review periods.

However, not all crypto products will immediately qualify under the new framework.

Tushar Jain of Multicoin Capital observed that the standards don’t apply universally to every crypto ETP type, with threshold requirements remaining in place. He anticipated further SEC iterations on these standards as the market develops.

The regulatory clarity enabled exchanges to compete more aggressively for crypto ETF listings. According to Balchunas, CBOE currently leads with 41 crypto ETFs, followed by NYSE, while Nasdaq trails despite hosting IBIT, considered the top launch of 2024.

Market Downturn Tests Institutional Appetite

The promising debuts faced an immediate challenge as crypto markets experienced significant turbulence.

According to CoinGlass, the sector experienced a major downturn, with $1.7 billion in liquidations over 24 hours on Sept. 22, marking 2025’s largest liquidation event.

This market stress will provide crucial data on institutional commitment to altcoin exposure through regulated vehicles.

Previous crypto ETF launches occurred during more stable market conditions, making current circumstances a unique test of investor resolve.

Bloomberg analyst James Seyffart projected that basket-style crypto ETFs could become the second or third-largest category of digital asset products, following single-asset Bitcoin funds that now manage over $100 billion.

Multiple issuers, including Bitwise, Hashdex, and Franklin Templeton, have submitted applications for similar multi-asset crypto funds currently awaiting SEC approval.

The generic listing standards could accelerate this approval process, potentially creating a new wave of diversified crypto investment products if current ETFs demonstrate sustained institutional demand during market volatility.

The coming weeks will determine whether institutional investors maintain trading activity in these altcoin ETFs during market downturns.

Sustained volume would validate theories that institutions were genuinely waiting for regulated access to altcoins, rather than simply participating in launch-day speculation.