XRP Dips After First U.S. Spot ETF Launch as Retail and Whale Activity Diverge

XRP Faces Divergence Between Retail Excitement And Whale Activity After U.S. Spot ETF Launch

XRP is experiencing a sharp split between retail enthusiasm and institutional behaviour just days after the debut of the first U.S. spot XRP ETF.

The token, now the fourth-largest cryptocurrency with a market capitalisation of roughly $136 billion, has long been positioned as a payments-focused alternative to slow, expensive international transfers, attracting a loyal community despite years of regulatory scrutiny.

Regulatory Battles Shape XRP’s Journey

Regulatory pressure peaked in December 2020 when the U.S. Securities and Exchange Commission filed a lawsuit claiming Ripple had sold XRP as an unregistered security.

After a protracted legal battle, a federal court ruled in July 2023 that XRP was not a security when traded on exchanges.

The decision was widely welcomed across the crypto industry and seen as a blow to the SEC’s aggressive enforcement approach.

ETF Launch Sparks Immediate Price Drop

Despite this milestone, XRP’s price has stumbled in the days following the launch of the XRPC fund by Canary Capital.

The token fell roughly 7%, a move attributed by traders to short-term liquidity rotation rather than a lack of long-term interest.

A trader at a U.S. digital-asset desk said,

“ETF debut happened, price went down — that’s liquidity rotation, not immediate strength.”

Early trading volume was impressive, with more than $26 million in transactions within the first 30 minutes, while spot flows for XRP surged 2,490% in an eight-hour window.

Institutional Appetite May Be Rising Behind The Scenes

On-chain data shows long-term holders have been trimming positions, with outflows rising 77% in under two weeks.

While this might normally raise alarm bells, the ETF launch and speculation around major players such as BlackRock entering the XRP space suggest institutions could be quietly preparing for further exposure.

Technical levels show XRP falling through support near $2.30, hesitating to reclaim the $2.38 resistance zone.

Traders are left questioning whether the pullback signals consolidation or a deeper slide.

ETF Access Brings A New Dynamic To XRP

The debut of a regulated XRP ETF signals that investors can now gain exposure to the token in a formalised product, a development many assumed was years away.

This structural shift means XRP is no longer just a token traded on exchanges but part of a regulated investment framework.

Analysts suggest that the real test will be whether ETFs continue to accumulate XRP or primarily trade it, how much unlocked supply enters the market, and broader market sentiment, which currently leans risk-off.

Crypto Market Pullback Adds Pressure

XRP extended its losing streak to six sessions, its longest since September 2025, as Bitcoin dipped below $93,000 for the first time since April 2025.

Broader market declines were fuelled by falling expectations of a December Fed rate cut and US BTC-spot ETF net outflows of $1.11 billion in the week ending 14 November.

This broader risk-off environment compounded pressure on XRP despite Canary Capital’s ETF launch.

Institutional ETF Competition Could Shape XRP’s Path

The focus now shifts to the arrival of larger XRP-spot ETFs.

Franklin Templeton’s XRP ETF (EZRP) is set to launch on 18 November, followed by Bitwise on 20 November.

Franklin Templeton ranks 19th among ETF issuers by assets under management at $43.16 billion, while Bitwise holds $5.74 billion.

In contrast, Canary Capital, first to market, manages $71.17 million.

Analysts expect Franklin Templeton and Bitwise to attract greater institutional demand, with their flow trends likely determining XRP’s near-term trajectory.

Day two trading of XRPC saw volumes fall from $59 million to $26 million, highlighting ongoing uncertainty around sustained institutional interest.

Is XRP Poised For Structural Gains Despite Short-Term Weakness

While retail traders grapple with short-term losses, the ETF market could offer a path for XRP to decouple from broader crypto trends.

With upcoming launches from high-profile issuers and continued institutional speculation, the token stands at a pivotal point where structural positioning may strengthen even as price action remains volatile.