XRP News Today: XRP ETF's In-Kind Model Fuels Inflows But Fails to Stem Price Drop

The launch of the first U.S. spot XRP exchange-traded fund (ETF) on Nasdaq failed to reverse the cryptocurrency's downward spiral, as XRP dropped 7.3% to $2.30 amid a broader crypto market selloff. The Canary Capital XRPC ETF, which debuted with record inflows of $250 million and $58 million in trading volume, became the year's most successful ETF launch, yet institutional and retail demand for XRP and other major digital assets remained weak.

The ETF's in-kind creation model-where investors exchange XRP tokens for shares instead of cash-allowed for high inflows without boosting spot prices according to market analysis. Analysts attributed XRP's decline to macroeconomic pressures, including a flight from risk assets and uncertainty around Federal Reserve policy. Bitcoin, Ethereum, and Solana also slumped, with Bitcoin ETFs losing $866 million in outflows on Thursday, the second-worst day on record.

Technical indicators painted a bearish picture for XRP. The token broke through key support levels at $2.46 and $2.40, signaling a shift to lower trading ranges. On-chain data showed over 157.9 million XRP tokens changing hands in a four-minute liquidation wave, exacerbating volatility. Ryan Lee of Bitget noted that XRP's stability near $2.30 was fragile, with further declines toward $2.00–$2.20 a real risk if the $2.29 support level fails.

The XRPC ETF's success contrasted with broader market weakness. While the fund outperformed the recent Solana ETF launch, Bitcoin and Ethereum ETFs continued to hemorrhage assets, reflecting a rotation away from "blue-chip" crypto holdings. BlackRock's iShares Bitcoin Trust (IBIT) alone saw $257 million in outflows, as investors sought defensive assets amid U.S. fiscal uncertainty and a government shutdown that delayed critical economic data according to market analysis.

Market participants pointed to liquidity crunches and crowded positions in tech and AI stocks as compounding factors. The S&P 500 fell 1.8%, led by declines in mega-cap tech names, while crypto derivatives markets lost $1.3 billion in leveraged positions. Alex Kuptsikevich of FxPro emphasized that "crypto conditions still look like a short-term rebound inside a broader decline," with weak order-book depth amplifying risks.

Despite the sell-off, some analysts saw potential for a rebound. Smart money traders added $44 million in net long XRP positions post-ETF launch, while on-chain data revealed 21,000 new XRP wallets created in 48 hours according to trading data. However, institutional demand for Bitcoin and Ethereum remained tepid, with ETF outflows underscoring a shift toward altcoin exposure as a high-risk bet.

The Federal Reserve's delayed release of October inflation and jobs data further muddied the macro outlook, with rate-cut expectations softening to 50% odds for December. Traders now watch whether XRP can stabilize near $2.30 or if continued macro pressure will force a retest of the $2.00 level. For now, the XRPC ETF's record debut remains a footnote in a market struggling to find direction.

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