XRP News Today: XRP ETFs Launch as Price Falls: Institutional Confidence vs. Market Downturn

The XRP market is poised for a transformative week as multiple major asset managers prepare to debut spot XRP exchange-traded funds (ETFs), signaling growing institutional confidence in the asset. With four firms-Franklin Templeton, Bitwise, 21Shares, and CoinShares-scheduled to launch their products between November 18 and 22, the cryptocurrency is entering what analysts call an "ETF supercycle". This surge in institutional adoption comes amid a broader crypto market downturn, with XRP's price slipping below $2 as of November 21.

Franklin Templeton, one of the world's largest asset managers with $1.5 trillion in assets under management (AUM), is set to lead the charge with its XRP ETF on November 18. The firm's entry is seen as a validation of XRP's legitimacy in traditional finance, with early models suggesting significant institutional participation could follow. Bitwise, which already has experience with Bitcoin and Ethereum ETFs, followed suit by launching its XRP ETF on November 20, seeding it with 1.11 million XRP worth $2.27 million. The fund attracted $22 million in trading volume within hours and over $105 million in inflows, despite the broader market selloff.

21Shares, a key player in crypto ETFs with $7 billion in global AUM, is expected to launch its product on Cboe BZX between November 20 and 22. The firm's product, like others in the space, aims to capitalize on XRP's growing regulatory clarity in the U.S. and its potential to attract institutional capital. CoinShares, another major player, is also targeting the same window, with its XRP ETF already approved by the DTCC and projected to add to the asset's liquidity.

However, the market's response has been mixed. While the ETF launches have drawn strong early interest, XRP's price has fallen to as low as $1.85 amid a broader crypto market crash, with Bitcoin and Ethereum also experiencing sharp declines. Analysts attribute the disconnect to several factors, including whale selling-200 million XRP were reportedly offloaded within 48 hours of the first ETF launch-and the lag between institutional inflows and price adjustments. "The effects of ETF demand may take time to materialize," noted one expert, citing historical patterns where liquidity gains eventually translated to price recovery.

Despite the short-term volatility, the long-term outlook for XRP remains cautiously optimistic. The asset's fully diluted valuation of $213 billion and recent technical indicators-such as a drop in XRP's Net Unrealized Profit and Loss (NUPL) to a yearly low-suggest potential for a rebound. Ripple CEO Brad Garlinghouse has welcomed the ETF momentum, calling it a "positive phase" for the asset. Meanwhile, 21Shares and other firms continue to position XRP as a regulated investment vehicle, with more ETFs expected to follow in the coming months according to recent analysis.