XRP News Today: XRP ETF in Brazil Drops 20.6% in a Month Amid Market Volatility

The world’s first spot XRP exchange-traded fund (ETF), issued by a Brazilian cryptocurrency asset manager, has experienced a significant decline of 20.6% over the past month. Trading under the ticker XRPH11 on Brazil’s B3 stock exchange, the ETF closed at 18.65 BRL ($3.37) on June 13, down 6.33% for the day and 6.75% from its all-time high. This sharp drop aligns with the broader market performance of XRP, which has struggled to break out above the $2 mark sustainably despite brief rallies.

Historically, the launch of a spot ETF tends to have a positive effect on the price of the underlying asset. However, the XRPH11 ETF has remained volatile since its debut in late April, closely mirroring XRP’s choppy price action. Analysts suggest that the ETF’s limited influence may stem from the relatively small size of Brazil’s capital markets compared to the United States. This volatility has raised concerns among investors and analysts, as the ETF was initially seen as a promising vehicle for gaining exposure to the XRP cryptocurrency.

Now, attention is shifting to the U.S. Securities and Exchange Commission (SEC), which is reviewing multiple spot XRP ETF applications. Notably, one decision is expected on June 17 regarding Franklin Templeton’s proposed Franklin XRP Fund. The regulator is also evaluating the WisdomTree XRP Trust, filed by the Cboe BZX Exchange. This application aims to offer investors direct exposure to XRP via traditional brokerage accounts. The agency began its formal review in May, opening a public comment period to weigh whether the ETF design addresses key regulatory concerns. The SEC’s ultimate decision may hinge on the outcome of its ongoing legal battle with Ripple. In a recent development, a joint motion filed on June 12 by both parties requests an indicative ruling from Judge Analisa Torres to vacate the injunction restricting XRP sales to institutional investors and reduce the $125 million penalty, potentially paving the way for a resolution to the years-long dispute.

At press time, XRP was trading at $2.17, up 0.1% on the day, though still down 4.4% over the past week. In the short term, a green light from the SEC on June 17 regarding the spot ETF could boost investor confidence and drive XRP toward the $2.50 resistance level. However, a dip below the $2 support remains on the table without a clear bullish catalyst. The recent performance of the Brazilian spot XRP ETF may add to these concerns, as it demonstrates the potential for significant price volatility in cryptocurrency-based financial products.

Despite the recent decline in the spot XRP ETF's value, some analysts remain optimistic about the prospects for cryptocurrency-based financial products. They point to the growing demand for digital assets and the potential for cryptocurrency ETFs to provide investors with a more accessible and convenient way to gain exposure to the market. However, they also caution that investors should be prepared for significant price volatility and that regulatory uncertainty remains a key risk factor. The broader regulatory environment for cryptocurrency-based financial products also remains a critical factor, with some jurisdictions being more open to the idea of cryptocurrency ETFs while others remain cautious.