Why Is XRP Falling Even After the Successful Launch of the XRP ETF?
Canary Capital’s XRP exchange-traded fund (ETF) has seen robust demand inside its first days of buying and selling. Yet, XRP’s value fell almost 11% since the ETF’s launch, as whale promoting and total market stress restricted the influence of institutional demand.
This disconnect between ETF inflows and XRP value efficiency raises questions on how shortly institutional capital can influence cryptocurrency markets, particularly during times of volatility.
XRP ETF Breaks Records, But Token Price Lags Behind
BeInCrypto reported that Canary Capital launched its Spot XRP ETF (XRPC) on Nasdaq final week. The fund saw nearly $59 million in first-day buying and selling quantity, the strongest debut amongst greater than 900 ETF launches in 2025.
According to SoSoValue data, the ETF introduced in $245 million in inflows on its first buying and selling day. Over the following two periods, cumulative inflows rose to greater than $268 million.
Despite these inflows, XRP’s value has declined round 11% since November 13. BeInCrypto Markets knowledge revealed that the altcoin was buying and selling at $2.14 at press time, down 5.22% over the previous day.
Glassnode famous that solely 58.5% of the XRP provide is presently in revenue. This marks the lowest studying since November 2024, when the token was priced round $0.53.
“Today, regardless of buying and selling ~4× greater ($2.15), 41.5% of provide (~26.5 billion XRP) sits in loss — a transparent signal of a top-heavy and structurally fragile market dominated by late patrons,” the post added.
This distinction reveals a notable disconnect between the ETF’s robust inflows and the underlying asset’s value efficiency — elevating the query of why such divergence has emerged.
Well, XRP whales contributed considerably to the latest value drop. Reports indicate whales bought round 200 million XRP inside 48 hours of the ETF launch.
This large-scale promoting offset the ETF’s impact, intensifying damaging sentiment. The timing of whale gross sales suggests profit-taking, as massive holders might have considered the ETF launch as a chance to exit.
Furthermore, broader market weak spot has put extra stress on XRP’s value. Over the previous 41 days, the cryptocurrency sector has misplaced a complete of $1.1 trillion in market worth, representing a mean day by day decline of approximately $27 billion.
“For these crying about the value motion, do me a favor and go have a look at Bitcoin, that’s your motive why the value sucks proper now,” an analyst noted.
Meanwhile, an professional additionally emphasised that liquidity from institutional funding usually takes time to have a major influence on costs. According to him, the lag between ETF inflows and value might persist.
He added that the noticeable results might not present up till 2026, opposite to retail expectations.
Notably, technical indicators recommend that XRP’s recent struggles may be nearing an finish. XRP’s Net Unrealized Profit and Loss (NUPL) dropped to 0.32 on November 16, its lowest degree in a 12 months. This may sign a possible market backside.
“Sentiment is now again in the concern/anxiousness zone, which has beforehand marked main bottoms,” STEPH IS CRYPTO said.
BeInCrypto highlighted that the final time NUPL reached a yearly low — 0.43 on April 8 — XRP climbed from $1.80 to $3.54 by July 22, representing a 96% improve.
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