XRP’s First ETF Launches With $250M But Price Drops 9%

Core Insights - The launch of the first U.S. spot XRP exchange-traded fund (ETF) by Canary Capital on November 13, 2025, was anticipated to be a significant event for Ripple's cryptocurrency, attracting nearly $250 million in inflows on its first day and achieving a record $58 million in trading volume [2][7]. Group 1: ETF Launch and Performance - The Canary XRP ETF, trading under the XRPC ticker, is the first U.S. spot ETF backed by XRP, utilizing an in-kind creation and redemption mechanism that allows authorized participants to deposit XRP directly with the fund, reducing tracking error and appealing to institutional investors [6]. - The ETF's debut generated the highest day-one trading volume among over 900 ETFs launched in 2025, indicating strong market interest [7]. - Despite the strong inflows, XRP experienced a decline of approximately 8% to 9% within a day, dropping from around $2.31 to the $2.20 range, highlighting the complex dynamics affecting the cryptocurrency market [3][4]. Group 2: Market Dynamics and Investor Sentiment - The in-kind creation structure of the ETF allowed holders to deposit tokens directly, which mitigated immediate impacts on the spot price, contributing to the price decline despite the ETF's success [4]. - A broader selloff in the cryptocurrency market led to $28 million in XRP liquidations within 24 hours as traders unwound leveraged long positions, further influencing the price drop [4]. - The strong inflow into the ETF reflects pent-up demand for regulated XRP exposure, as U.S. investors previously had limited access to XRP through trust products or offshore vehicles [8].