New XRP Exchange-Traded Funds Launch Amidst Market Downturn
Ripple's native token, XRP, experienced the launch of its second exchange-traded fund (ETF) tracking its performance yesterday. The Bitwise XRP ETF commenced trading on the New York Stock Exchange, marking the second such product with 100% exposure to XRP to become available in US markets within a single week. However, both of these recent product launches have been met with immediate selling pressure, resulting in a notable price slump for XRP.
A significant portion of XRP's price decline can be attributed to prevailing broader market conditions. Bitcoin (BTC) recently fell to a new seven-month low of $85,000, while Ethereum (ETH) is trading well below $2,800. Both of these major cryptocurrencies have experienced a decline of 7-8% in the past 24 hours. Consequently, it is not surprising that XRP has also seen a similar percentage drop. However, its weekly losses are more pronounced compared to market leaders, a trend not mirrored by other altcoins such as Solana (SOL), Tron (TRX), and Binance Coin (BNB).
ETF Launches and Market Reaction
The simultaneous release of two spot XRP ETFs in the US within a seven-day period is particularly noteworthy. Last week, Canary Capital's XRPC ETF reportedly broke the 2025 trading volume record. Yesterday's launch of Bitwise's XRP ETF followed, securing the third position for the year in terms of trading volume, according to preliminary data from SoSoValue.
Following the conclusion of Ripple's legal proceedings against the US Securities and Exchange Commission (SEC), the potential approval of spot XRP ETFs in the United States emerged as a primary catalyst for a potential price surge. Investors had anticipated a substantial uptick in XRP's value once these investment products became accessible.
However, in a scenario that has become common in such market events, the launch days for both ETFs have effectively acted as "sell-the-news" events. This has led to XRP's price falling below $2.00, a level not seen since the market crash in early October.
Beyond this brief downturn, the last time XRP traded at this price point was in June, and prior to that, in April. This indicates that XRP has now erased all of its year-to-date gains and is currently trading significantly in negative territory for the year.
