At each ETF launch, the crypto market anticipates a price jump. For XRP, backed by the new XRPC fund from Canary Capital, the expected effect did not occur. Despite solid opening volume, the price remained frozen before dropping by 7 %. A striking contrast with previous surges triggered by similar announcements. Why hasn’t XRP, despite being in the spotlight, benefited from this institutional momentum?
In brief
- •The launch of the Canary XRPC ETF did not trigger the expected rise in XRP, despite $58M in volume on the first day.
- •ETF operations, with T+1 settlement, partly explain the absence of an immediate reaction in the crypto market.
- •XRP purchases by the issuer are delayed, often OTC, limiting their visible impact on the spot price.
- •The unfavorable macroeconomic context and the market’s risk-off trend are currently weighing on altcoins, including XRP.
An ETF, but no immediate purchase of XRP
The launch of the Canary XRPC ETF triggered palpable anticipation within the XRP ecosystem, with hopes that this new institutional exposure would propel the crypto upwards.
On the first trading day, the fund recorded a transaction volume exceeding 58 million dollars, supported by significant net inflows. Yet, the price remained almost unchanged. Worse, it dropped 7 % during the day, defying the bullish expectations of many holders.
This lack of reaction is primarily explained by the technical operation of ETFs, which fundamentally differs from that of the traditional crypto market. Indeed, contrary to what some investors expected, buying an ETF does not mechanically trigger buying pressure on the token itself. Here are the key points to understand:
- •ETFs are traded on stock markets, not crypto exchanges.
- •Settlements follow a T+1 cycle, meaning the issuer receives funds the next business day.
- •Only after this delay can the issuer buy XRP, to back the ETF shares with the actual asset.
- •These XRP purchases can take place OTC (Over-the-Counter), thus outside public markets, further reducing their effect on the price.
- •The potential impact is therefore delayed, or even diluted over time, rather than immediate as many assumed.
Thus, the contrast between media buzz and market reality is more related to a lack of understanding of technical time frames related to ETF structures than to an absence of demand or product success.
Waiting Catalysts and Deferred Prospects
Beyond technical settlement times, other factors explain the stagnation of Ripple’s crypto price.
The crypto market is currently adopting a cautious climate, meaning investors avoid volatile assets, especially altcoins. XRP has therefore not escaped the overall bearish trend, despite news perceived as positive. This conjunctural reality weighed on the token, nullifying any immediate rally potential linked to the ETF.
Moreover, the link between Ripple and the actual use of XRP remains partial. Even if the company now counts more than 300 banking and financial partners, many of them use the network without using XRP itself.
Crypto is involved only when an institution chooses the On-Demand Liquidity (ODL) product to speed up settlements. In other words, institutional adoption growth does not necessarily imply increased demand for XRP. Added to this is a significant circulating supply, often reinforced by sales from major holders during price rises, which limits the short-term impact of good news.
In the medium term, however, the ETF launch could play a structuring role if inflows persist over time. Regular inflows imply repeated purchases by the issuer. This could, slowly but surely, reduce the available XRP supply on the markets, creating progressive upward pressure. The XRP price has not yet found its catalyst, but institutional foundations continue to lay.