The first-ever US XRP spot ETF has plunged 20%

The first-ever US XRP exchange-traded fund (ETF), known as the Canary XRP ETF (XRPC), has suffered a sharp decline just weeks after its long-awaited debut on the Nasdaq. This incident highlights the ongoing volatility in the cryptocurrency market and raises questions about the future of such financial instruments.

XRPC Launch and Initial Success

Launched on November 13, 2025, XRPC became the first US ETF to offer direct exposure to XRP. The fund's debut was met with great interest, with volumes reaching tens of millions of dollars in the first hour of trading, making it one of the most successful ETF launches this year. However, despite this initial success, the fund has faced significant challenges.

Sharp Price Drop

At the close of the last session, XRPC was trading at $21.55, down 4% from the previous day and nearly 20% below its opening price of $26-$27. The price chart shows a steady decline in late November and early December, indicating increasing selling pressure.

Reasons for the Crash

The decline in XRPC prices can be explained by several factors:

1. General weakness in the cryptocurrency market: Investors began to shift away from risky assets amid renewed macroeconomic uncertainty, which negatively impacted all cryptocurrencies, including XRP.

2. Profit-taking by large holders: Following the ETF launch, many large investors began taking profits, increasing selling pressure and quickly outweighing the initial inflows.

3. ETF Creation Structure: The ETF creation process slowed the transfer of new investments into spot XRP purchases, delaying price support and creating a gap between expectations and market reality.

Market Reaction and the Future of XRPC

The market reacted to the XRPC price drop, reflecting past "selling the news" patterns seen with the launches of other cryptocurrency ETFs. However, some analysts believe that institutional inflows could stabilize the fund if overall market conditions improve.

XRP Price Analysis

XRPC's performance is closely tied to that of XRP itself, which has shown significant volatility in recent sessions. The token is struggling to maintain support at $2 and, at press time, was trading at $... (data needs to be updated).

In Conclusion

The first XRP spot ETF, despite its promising start, faced significant challenges that led to a significant price drop. This event highlights the importance of understanding market conditions and cryptocurrency dynamics, as well as the need for a cautious approach when investing in such high-risk assets. In the future, if the market stabilizes and institutional investors begin to return, XRPC may be able to regain its position.