The New York Stock Exchange has officially certified the start of operations for the Grayscale ETFs for Dogecoin and XRP, allowing their immediate public trading. Eric Balchunas, senior analyst at Bloomberg, confirmed that NYSE Arca filed the necessary regulatory forms with the Securities and Exchange Commission last Friday. Therefore, these investment vehicles will begin trading in the markets starting this Monday, marking a milestone in accessibility.
The financial products will operate under the tickers GXRP and GDOG, representing a significant expansion for the world’s largest digital asset manager. In the specific case of Dogecoin, it is a conversion of the existing trust of the firm into an exchange-traded fund that directly tracks the price.
Balchunas estimates that trading volume for the first day of the DOGE fund could be around 11 million dollars. Likewise, it is anticipated that the product linked to Chainlink will follow this path and be available to the public in the next week or so.
This move does not happen in isolation but responds to a broader and more competitive regulatory opening in the United States recently. On the other hand, the arrival of these funds floods the market at a time when the Securities and Exchange Commission has loosened its previous controls.
The launch of the Canary Capital ETF on November 13, which captured over 250 million dollars in its debut, set a solid precedent. Furthermore, managers like Bitwise and 21Shares have also launched similar products this month, seeking to capture accumulated institutional demand for regulated exposures to alternative assets.
Will these products manage to reverse the recent negative trend of XRP price?
Although the approval of exchange-traded funds is usually interpreted as a bullish catalyst, market behavior has been counterintuitive. However, XRP has registered a drop close to 18% since the beginning of November, challenging the traditional logic of these massive institutional adoption announcements.
This divergence suggests that investors might be “selling the news” or that external macroeconomic factors are weighing more on the current valuation. Thus, price reaction will depend on real flow of capital that these new vehicles manage to attract during their first trading sessions.
The availability of these financial instruments facilitates a safer entry for traditional capital seeking diversification in cryptocurrencies without direct custody. Competition is expected among providers like Franklin Templeton and WisdomTree, who are also preparing their own offers, to reduce fees and improve general liquidity. Finally, attention will now focus on the performance of the initial trading volumes this Monday and the imminent approval of the Chainlink fund.
