XRP (XRP) fell 8% to 9% within a day of the Canary Capital ETF launch despite the fund pulling in nearly $250M in first-day inflows.
The XRP ETF’s in-kind creation structure let holders deposit tokens directly instead of buying on exchanges, which reduced immediate spot price impact.
Derivative markets saw $28M in XRP liquidations within 24 hours as traders unwound leveraged long positions during a broader crypto selloff.
If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here
The launch of the first U.S. spot XRP exchange-traded fund was supposed to be a defining moment for Ripple’s native cryptocurrency. Canary Capital’s ETF debuted on November 13, 2025 and pulled in nearly $250 million in inflows on its first day, beating every other 2025 ETF launch. The new product also posted a record $58 million in day-one trading volume.
Yet instead of a sustained rally, XRP (CRYPTO: XRP) slumped. Within a day, the token fell around 8% to 9%, dropping from roughly $2.31 toward the $2.20 area. That contrast tells you everything about the complex dynamics at play.
Here’s what happened, why the price fell despite the fund’s success, what the ETF structure means for spot markets, and whether this pullback signals deeper issues or just a temporary setback.
Thinkstock
The Canary XRP ETF, trading under the XRPC ticker, is the first U.S. spot ETF backed by XRP. It uses an in-kind creation and redemption mechanism, which lets authorized participants deposit XRP with the fund rather than cash. That reduces tracking error and attracts institutional players.
On its November 13, 2025 launch day, investors poured nearly $250 million into the fund. ETF Institute president Nate Geraci pointed out that the launch generated the highest day-one trading volume among more than 900 ETFs introduced in 2025. Bloomberg analyst Eric Balchunas added on X that the XRPC fund logged $58 million in turnover, beating the debut volumes of Bitcoin and Ethereum ETFs earlier in the year.
The inflow strength reflects pent-up demand for regulated XRP exposure. Until 2025, U.S. investors could only get indirect exposure through trust products or offshore vehicles. With the SEC lawsuit against Ripple largely wrapped up, the XRPC launch signaled renewed institutional appetite.
Canary CEO Steven McClurg said in August he expects up to $5 billion to flow into XRP ETFs within their first month. The ETF’s in-kind mechanism also encourages XRP holders to contribute tokens directly, cutting down on cash conversions and slippage. Against this backdrop, plenty of people expected the spot price to surge.
TopMicrobialStock / Shutterstock.com
Reality didn’t meet those expectations. Within 24 hours of the ETF launch, XRP fell roughly 8%, sliding from around $2.31 to about $2.22. Even with $243 million moving into the fund over two days, XRP dropped about 9% instead of rallying.
These declines came during heavy trading volumes. CoinDesk reported that derivative markets saw about $28 million in liquidations within 24 hours, with long positions taking most of the hit. Traders unwound leveraged bets even as ETF inflows surged.
The selloff meant XRP lagged other major cryptocurrencies despite strong year-to-date gains. DL News noted that XRP had climbed over 200% in 2025 but was still 37% below its July all-time high.
After the ETF debut, XRP traded near $2.23, down 4.3% from its launch-day peak. XRP struggled to break above the $2.23 to $2.24 resistance zone after falling from $2.31 to $2.22. These data points show the drop wasn’t a minor blip but a meaningful pullback.
Tamisclao / Shutterstock.com
Several factors combined to overwhelm the ETF’s strong debut. Here’s what drove the decline.
The ETF launch hit right as a broader crypto slump was unfolding. DL News reported that the market shed roughly $1 trillion in value in October and early November, with Bitcoin and Ethereum ETFs seeing $870 million and $260 million in outflows respectively. XRP didn’t escape this risk-off wave.
CoinDesk noted that derivatives markets flashed stress signals. Nearly $28 million in XRP positions got liquidated within 24 hours. Those liquidations drove selling pressure that overwhelmed ETF-driven demand.
Another reason the ETF’s inflows didn’t boost the spot price comes down to structure. Issuers usually accumulate XRP gradually when creating shares and often spread purchases to avoid slippage.
Because the Canary fund allows in-kind deposits, large holders could exchange tokens for shares without buying on exchanges. That reduced direct spot demand. Analysts compared this to early Bitcoin ETF flows, which took weeks to translate into price moves.
XRP’s supply is also concentrated. Ripple Labs holds a significant portion, so new flows might have limited effect on market liquidity.
Profit-taking played a big role. Despite major announcements at Ripple’s Swell conference, including a $500 million fundraising round and partnerships with Mastercard, the token fell 9% over the week. That suggests traders sold into strength.
Realized profits surged 240% since late September, jumping from $65 million to about $220 million per day. XRP’s “supply in profit” metric has fallen to a one-year low of 44 million tokens, showing many holders were underwater and more likely to sell.
Ripple’s expanding stablecoin plans might also weigh on sentiment. The firm’s pivot toward its dollar-backed stablecoin RLUSD, and the pursuit of a bank charter, could diminish XRP’s role in cross-border settlement.
Analysts worry that if large banks prefer RLUSD for on-ledger payments, demand for XRP as a bridge asset could stagnate. Meanwhile, Ripple’s Treasury holds more than 34 billion XRP. Some investors believe recent fundraising rounds hinge more on access to these reserves than on the company’s underlying business.
The first XRP ETF isn’t the end of the story. More products are coming. Franklin Templeton, one of the largest asset managers with $1.5 trillion under management, has an ETF scheduled to launch on November 20, 2025. Analysts expect $150 million to $250 million in first-day trading.
Additional filings from Fidelity, Invesco, and Bitwise point to a growing pipeline. Each launch could improve liquidity and broaden the investor base. Here’s the thing though: the Canary launch shows that flows alone don’t guarantee price appreciation. Broader market conditions and token economics remain critical.
On the technical side, some analysts see potential for a near-term rebound. Analysts noted that a four-hour buy signal emerged on the charts after a 2.11% drop, hinting that the recent shake-out might precede a structural reversal.
Yet bearish signals persist. Some experts also warn that a death cross, where the 50-day moving average falls below the 200-day average, has formed on XRP’s chart. The Relative Strength Index hovers around 40, showing weakness. A sustained recovery probably depends on improving macro sentiment and fresh catalysts.
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. See even great investments can be a liability in retirement. The difference comes down to a simple: accumulation vs distribution. The difference is causing millions to rethink their plans.
The good news? After answering three quick questions many Americans are finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.
