Crypto: XRP falls below $2 despite the launch of two ETFs on the New York Stock Exchange

Two ETFs backed by XRP have just been listed on the NYSE, a first expected to propel Ripple to the rank of institutionalized crypto assets. However, the market is sending the opposite signal. The crypto collapsed below $2, down 35% over the quarter. Far from a bullish turning point, this regulatory advance reveals a persistent lack of interest. The ETF effect, expected as a driving force, seems to have had no tangible impact.

A launch without echo on the markets

Two XRP-backed ETFs, issued by Grayscale and Franklin Templeton, were launched this week on the New York Stock Exchange, a first for the Ripple ecosystem.

These exchange-traded funds are designed to provide traditional investors with regulated exposure to XRP without having to hold the crypto directly. In a market that is usually very reactive to this type of announcement, we could have expected a clear upward movement. However, the expected effect did not materialize.

The context is all the more revealing as other major projects like Ethereum have capitalized on similar announcements in the recent past. In the case of XRP, no indicator responded positively to the strong institutional signal represented by these ETFs. The market remained deaf to this opening from Wall Street, and the price reaction was clearly bearish. Here is the key elements to remember:

• Two XRP ETF products have been approved and listed on the NYSE by Grayscale and Franklin Templeton, providing regulated exposure to the asset;

• No price increase was observed, on the contrary XRP fell below $2, down 35% over the quarter;

• Trading volumes have not shown a significant uptick in interest;

• XRP remains far from its highs, having failed to regain its July level at $3.60.

Despite considerable regulatory progress, Ripple has not been able to trigger a buying dynamic or attract significant institutional flows. The crypto community is now wondering: is this a simple delay in effect, or a lasting lack of interest in an asset long supported by promises that are struggling to materialize?

Confidence crumbling among XRP holders

Beyond the silence of the markets, it is on-chain data that reveals the extent of this critical situation.

Indeed, only 57% of the XRP supply in circulation is currently in profit, a historic low that has not been reached since November 2024, when the token was trading around $0.53.

Thus, the majority of long-term holders of XRP are now in loss. Even more worrying, the 30-day moving average of daily losses has now reached $75 million, the highest level since last April. This trend reveals a form of gradual capitulation, where investors prefer to take their losses rather than wait for a hypothetical reversal.

This on-chain dropout doubles as a worrying technical signal. Unlike Ethereum, which was able to rebound and regain its previous levels, XRP remains stuck below $2. The lack of bullish momentum, even in the presence of objectively positive news like the ETF launch, speaks to an erosion of fundamental trust in the Ripple ecosystem.

The launch of ETFs was not enough to reverse the trend. Thus, the price of XRP is still stuck below $2. Between investor skepticism and degraded technical signals, Ripple is entering a phase where regulation no longer guarantees performance. The market demands concrete proof.