The launch of the first XRP ETF has not gone as expected, with prices falling and sparking worry among investors. The XRP price currently hovers around $1.81, despite the initial hype around the launch of the XXRP ETF. Teucrium Investment Advisors rolled out a leveraged XRP ETF, offering double exposure to XRP, but failed to rally the XRP price as expected.
The nature of the XRP ETF, which was launched without SEC approval, has contributed to the lukewarm market reaction. Market participants are puzzled by the odd nature of the leveraged ETF, with Bloomberg market analyst Eric Balchunas describing it as “very odd.” Historically, spot-based ETFs have had a significant impact on prices, but the approval of a spot-based XRP ETF is expected to trigger a stronger rally for the asset than the leveraged offering.
The broader cryptocurrency market is also experiencing a downturn, with Bitcoin and Ethereum prices falling, dragging down other altcoins including XRP. Increased selling pressure is attributed to the US-China trade war and reciprocal tariffs. The XRP price decline following the ETF launch is also linked to profit-taking, as investors who bought into the hype are now selling the news, causing a correction in the price despite positive fundamentals for the asset.
Despite Ripple’s acquisition of Hidden Road for $1.25 billion, the XRP price has failed to reverse its decline. The asset had experienced increased buying activity from investors in anticipation of an XRP ETF launch, leading to a speculative run-up in price. However, the reality of the launch did not meet expectations, leading to the current price decline. The approval of a spot-based XRP ETF is expected to trigger a stronger rally for the asset compared to the leveraged offering.
In conclusion, the launch of the first XRP ETF has not had the desired impact on XRP prices, with the asset experiencing a decline despite the initial hype. Market participants are puzzled by the odd nature of the leveraged XRP ETF and are now looking towards the approval of a spot-based ETF to potentially trigger a stronger rally for XRP. The broader cryptocurrency market is also experiencing a downturn, with Bitcoin and Ethereum prices falling and dragging down other altcoins, including XRP. Profit-taking and speculative trading strategies are also contributing to the decline in XRP prices following the ETF launch.
