XRP ETF Launch Met With Unexpected Market Reaction

The debut of the first XRP spot ETF in the United States on November 14, 2025, marked a watershed moment for the digital asset, yet the occasion concluded with prices declining more than 7%. This downturn occurred despite the new fund, the XRPC-ETF from Canary Capital, attracting approximately $58 million in inflows on its first trading day—a record-breaking figure for any altcoin ETF launched this year.

Canary Capital's XRPC-ETF received its regulatory green light on November 12, commencing trading just two days later. This development elevates XRP into an exclusive category, making it one of the few cryptocurrencies alongside Bitcoin and Ethereum to have a regulated U.S. investment vehicle. The move is seen as a significant endorsement following years of legal uncertainty surrounding Ripple.

The institutional framework established for the ETF is substantial. Custody duties are handled by Gemini Trust Company and BitGo Trust Company, while the CoinDesk XRP CCIXber index serves as the pricing benchmark. This infrastructure is explicitly designed to appeal to institutional investors who had previously avoided XRP due to regulatory concerns.

"Sell the News" Dynamics and Market Data

The market response to the landmark event followed a classic "sell the news" pattern. XRP's price oscillated between $2.30 and $2.48, briefly touching $2.52 before profit-taking drove the value downward. Trading volume surged to nearly 158 million tokens, indicating heightened interest but also significant position unwinding.

On-chain metrics present a mixed picture. In the week preceding the ETF's launch, around 216 million XRP (valued at roughly $556 million) were moved off exchanges, suggesting long-term accumulation. Conversely, large holders, or "whales," reduced their balances by approximately 10 million tokens in the two days before the launch. Furthermore, long-term holders have increased their selling activity by 32% since the beginning of November.

Should investors sell immediately? Or is it worth buying XRP?

Ripple's Strategic Expansion Amid Price Volatility

While XRP faces short-term price weakness, its parent company, Ripple Labs, is aggressively building out its financial ecosystem. In 2025 alone, the company has completed acquisitions worth nearly $4 billion. These include the $1.25 billion purchase of prime broker Hidden Road and the acquisition of GTreasury for over one billion dollars.

The introduction of Ripple Prime, an institutional OTC desk, coupled with a $500 million funding round that valued the company at $40 billion, underscores a strategic pivot. Ripple is repositioning itself from a pure cryptocurrency player to a comprehensive provider of blockchain-based financial services.

A notable development is the creation of over 21,000 new XRP wallets within the 48-hour period surrounding the ETF launch. This represents the most substantial network growth the asset has seen in eight months, indicating grassroots expansion even as larger investors proceed with caution.

Pipeline of Future Funds and Market Outlook

The launch of the XRPC-ETF is likely just the beginning. Eleven additional applications for XRP ETFs are currently filed with the Depository Trust & Clearing Corporation. The list of applicants includes major industry players such as Bitwise, Franklin Templeton, 21Shares, and CoinShares. Market experts project that these funds could draw between $3 billion and $8 billion in inflows during their first year. Given that only 3 to 5 billion tokens are readily available on exchanges, this demand could create significant supply constraints.

The open interest for XRP futures contracts has declined noticeably since the start of November, pointing to reduced leverage in the market. However, the Cumulative Volume Delta is flashing bullish signals, indicating more buyers than sellers in the underlying spot market. From a technical analysis perspective, the $2.30 level is acting as a key support zone, while resistance at $2.50 continues to pose a challenge for further advances.