Ripple: Two ETFs Launch on NYSE, Yet XRP Dips Below $2 – Is it Just Bad Timing?

Despite the launch of two Exchange-Traded Funds (ETFs) for Ripple (XRP) on the New York Stock Exchange (NYSE), the price of XRP has fallen below $2. This article explores the underlying market dynamics affecting XRP's performance and highlights the current sentiment among investors.

Key Takeaways

XRP is not lacking potential catalysts; instead, it is experiencing a lack of confidence from investors.
On-chain data shows that holders are more likely to sell rather than buy amid the news.
Compared to major cryptocurrencies like Ethereum, which has recovered well, Ripple is underperforming both technically and on-chain.
Despite the recent ETF launches and acquisitions, XRP is down 35% this quarter, leading some to consider if buying the “dip” might yield significant returns in the future.
On-chain metrics indicate a decline in profitability for XRP holders, with only 57% of the supply in profit, the lowest since November 2024.

Ripple

Source: Glassnode

Investor sentiment appears to be deteriorating as well. Data from Glassnode indicates that with XRP hovering around the $2 mark, the 30-day EMA of daily realized losses has surged to a notable $75 million per day, the highest since April 2025. This indicates that many holders are settling for losses instead of waiting for a rebound.

Simultaneously, both Franklin Templeton and Grayscale's XRP ETFs have successfully launched on the NYSE. Yet, this raises the question: Are these launches occurring at a particularly disadvantageous time for Ripple?

Ripple: Two ETFs Launch on NYSE, Yet XRP Dips Below $2 – Is it Just Bad Timing?

XRP’s Moment on Wall Street: Ripe or Unripe?

One key insight is that investors do not perceive Ripple as undervalued.

This observation is crucial because it indicates that the recent XRP ETF launches are not failing due to an overall market downturn. Instead, the underlying issue appears to be a diminishing confidence in Ripple's growth potential. Simply put, the excitement around the ETFs hasn't translated into actual buying activity.

The situation does not stem from “bad timing.” The recent ETF launches did not occur at an unfavorable moment; rather, the market as a whole is not responding positively to the narrative surrounding Ripple.

The on-chain weaknesses previously mentioned are reflected in XRP's current price, which remains below $2.

XRP

Source: TradingView (XRP/USDT)

While the broader cryptocurrency market is experiencing declines and many altcoins are losing their support, XRP's performance is comparatively worse. Unlike Ethereum (ETH), which successfully regained its previous highs before the October downturn, XRP has not approached a similar recovery since its peak of $3.60 back in July.

Overall, XRP finds itself lagging both technically and on-chain, and current ETF news does little to reverse the trend. Even in a more favorable macroeconomic environment, these ETFs are unlikely to significantly impact Ripple’s trajectory.