XRP News Today: XRP ETF's Record Inflows Clash with Token's 4.3% Drop

XRP's price declined nearly 4.3% to $2.22 in the 24 hours following the launch of the first U.S. spot XRP ETF, despite the product's record-breaking debut. Canary Capital's XRPC ETF attracted $245 million in net inflows and $58.6 million in trading volume on its first day, outperforming all other 2025 ETF launches. Yet XRP's market reaction defied expectations, with analysts pointing to delayed settlement mechanics, broader macroeconomic pressures, and institutional selling as key factors behind the divergence. The ETF's launch, hailed as a milestone for XRP adoption, failed to stabilize the token's price. XRP's 24-hour low of $2.22 came after a sharp selloff, triggered by heavy derivatives liquidations-$28 million in XRP positions were wiped out within 24 hours, with longs accounting for 89% of the losses. The token's decline mirrored a broader crypto market downturn, as Bitcoin fell below $100,000 and total crypto market capitalization dipped 4% to $3.2 trillion.

Fabio Marzella, Founding and Board Director of the XRPL Foundation, explained that ETF trading mechanics delayed the impact on spot prices. "ETF shares settle on the stock market via a T+1 cycle, meaning issuers receive cash only the next business day. Only then can they begin purchasing XRP," he said, this lag, combined with over-the-counter (OTC) asset sourcing by ETF providers, obscured immediate buying pressure on public exchanges. Marzella added that similar patterns emerged during Bitcoin's 2024 ETF debut, where price effects materialized weeks after launch.

While XRPC's inflows signaled strong institutional interest, broader market conditions offset its impact. XRP's large circulating supply-over 49 billion tokens made it vulnerable to selling by major holders. In the 24 hours after the ETF launch, $336 million worth of XRP was withdrawn from exchanges, a sign of accumulation by large investors. However, this activity did not counteract broader risk-off sentiment, with XRP futures open interest dropping 3% to $3.71 billion.

The ETF's success also highlighted shifting institutional preferences. XRPC outperformed Bitcoin and Solana ETFs, with $245 million in inflows surpassing BlackRock's IBIT ($111.7 million) and Bitwise's BITB ($237.9 million). Yet Bitcoin ETFs saw $866 million in outflows on the same day, the second-worst daily exodus on record, the second-worst daily exodus on record. Analysts attributed this to macroeconomic uncertainty and crypto-native whale selling.

Despite the near-term slump, experts see long-term potential for XRPC-driven demand. "The ETF's inflows will eventually translate into XRP purchases, but the effect will be gradual," said Nate Geraci of the ETF Store, he noted that XRPC's in-kind creation model-allowing ETF shares to be exchanged directly for XRP-could amplify buying pressure as settlement flows accumulate.

For now, XRP remains in a critical support zone around $2. Analysts warn that a breakdown below this level could expose the token to further declines, while a rebound above $2.30 might signal renewed buyer confidence.