XRP ETF Launches with Impressive Trading Volume, but Prices Show Decline

XRP ETF trading volume

Summary: The Canary Capital XRP (XRPC) exchange-traded fund, which directly holds spot XRP, attracted over $46 million in trading volume during its initial hours on Thursday. Despite this promising launch, both the ETF and XRP's price experienced a decline.

Key Takeaways:

The XRP ETF launched with over $46 million in trading volume shortly after its debut.
The price of XRP fell by 2.7%, from around $2.50 to $2.28, following the ETF's launch.
Analysts had anticipated the ETF's introduction since 2024, expecting it to be a catalyst for XRP’s price growth.
Future predictions suggest XRP may reach $5 by the end of 2025, driven by the ETF's launch and the resolution of a US government shutdown.

Strong Start for XRP ETF, Yet Prices Lag Behind

The Canary Capital XRP (XRPC) exchange-traded fund has officially launched, amassing over $46 million in trading volume within the first few hours on Thursday. Unfortunately, the prices of both the ETF and the XRP token have experienced a decline despite the strong initial trading activity.

According to Eric Balchunas, a senior ETF analyst at Bloomberg, XRPC saw $26 million in trading volume within just the first 30 minutes of its launch. James Seyffart, another Bloomberg ETF analyst, noted the rapid activity surrounding this highly anticipated ETF, which has been on the radar of market analysts since 2024. The hopeful outlook for XRP investment vehicles gained momentum following the reelection of US President Donald Trump and subsequent favorable regulatory developments for cryptocurrency.

Investors generally view ETFs as positive indicators for the price of the underlying assets, as they help transfer funds from conventional financial markets into the cryptocurrency space. However, in a typical "sell-the-news" phenomenon, the price of XRP saw a slight decrease following the ETF's debut.

Trading Volume Insights

Price Movement Post-ETF Launch

Following the introduction of the XRPC, XRP's price fell by 2.7% in the last 24 hours, dipping from approximately $2.50 to $2.28. Currently, the price holds just above its 365-day moving average, which serves as a crucial support level. Yahoo Finance reported that XRPC experienced an 8% decline from an intra-day high of nearly $27, settling around $24.50 on launch day.

XRP Price Fluctuation

In January, market analysts predicted that the price of XRP could rise above $10 with the introduction of an XRP ETF in the US.

Analysts at JPMorgan have estimated that the new ETF could attract as much as $8 billion in capital investment. Current projections for XRP suggest it could reach $5 by the end of 2025, spurred on by the successful ETF launch and the anticipated end of a federal government shutdown.

Magazine Insight: The XRP ETF launch has led to mixed feelings, with current sentiment describing the initial market response as a disappointment. Meanwhile, forecasts for Bitcoin suggest it could end 2025 at an impressive $173,000.