Mainstream Crypto Shift Gains Momentum with Altcoin ETFs

The U.S. cryptocurrency ETF market witnessed a significant milestone in September 2025 with the launch of the first exchange-traded funds (ETFs) tracking XRP and Dogecoin. The REX-Osprey XRP ETF (XRPR) and Dogecoin ETF (DOJE) generated combined first-day trading volumes of $54.7 million, far exceeding analyst expectations and signaling growing institutional and retail demand for alternative crypto assets. XRPR, the XRP-linked fund, led the charge with $37.7 million in volume—surpassing the previous year’s ETF debut record—while DOJE, the Dogecoin ETF, attracted $17 million, placing it among the top five ETF launches of 2025 XRP and Dogecoin ETFs Launch with Record-Breaking $54.7 Million First-Day Volume^[1].

The performance of both funds outpaced typical benchmarks for new ETFs, which often see less than $1 million in first-day trading. Eric Balchunas, a senior Bloomberg ETF analyst, initially estimated DOJE would attract around $2.5 million but described the actual $6 million in the first hour as “shockingly solid” First Dogecoin ETF Outperforms Expectations, Trading Nearly $6M in First Hour on Wall Street^[2]. XRPR similarly exceeded forecasts, with $24 million in trading volume within 90 minutes—five times higher than XRP futures ETFs on their debut days XRP and Dogecoin ETFs Rally as Debut Volumes Smash Expectations^[3]. The success of these funds highlights a shift in market sentiment, as investors increasingly seek regulated exposure to cryptocurrencies beyond Bitcoin and Ethereum.

Structurally, the XRP and Dogecoin ETFs differ from traditional crypto funds. Registered under the Investment Company Act of 1940 rather than the Securities Act of 1933, they bypassed the lengthy 240-day approval process, securing regulatory clearance in 75 days. This framework, however, imposes restrictions: the ETFs cannot directly hold the underlying cryptocurrencies but instead use Cayman Islands subsidiaries to purchase tokens and shares in foreign exchange-traded products. Despite these limitations, the funds attracted strong liquidity, suggesting investors prioritize accessibility and speed over structural nuances Dogecoin Jumps 8% as First U.S. DOGE ETF Doubles Forecast with $6M Debut^[4].

The launch coincided with broader regulatory developments. The U.S. Securities and Exchange Commission (SEC) approved new listing standards on September 18, 2025, streamlining the approval process for spot crypto ETFs and potentially accelerating the introduction of funds tied to altcoins like Solana and Shiba Inu. This regulatory shift, coupled with the successful debut of XRPR and DOJE, could catalyze a wave of new crypto ETFs, further legitimizing the asset class XRP and Dogecoin ETFs Surge in 2025 Market Debut^[5].

Market reactions underscored the impact of these developments. Dogecoin (DOGE) surged 8% to $0.281 within 24 hours of the ETF launch, driven by both retail enthusiasm and corporate adoption. CleanCore Solutions, a publicly traded cleaning company, announced a $170 million DOGE holding and plans to accumulate up to 5% of the coin’s circulating supply. Such moves indicate growing institutional confidence in meme coins, despite their speculative reputation Dogecoin Jumps 8% as First U.S. DOGE ETF Doubles Forecast with $6M Debut^[6].

The XRP-DOGE ETFs’ performance reflects a broader trend of crypto market diversification. While Bitcoin and Ethereum ETFs dominate headlines, altcoin funds are gaining traction as investors seek exposure to niche projects with utility-driven use cases. XRP’s focus on cross-border payments and Dogecoin’s community-driven momentum position them as viable candidates for ETF inclusion. Analysts note that these funds may pave the way for future products targeting tokens with hybrid utility and speculative appeal, particularly in a regulatory environment increasingly open to crypto innovation XRP and Dogecoin ETFs Surge in 2025 Market Debut^[7].