Recently, there has been a growing interest in launching special financial products called spot ETFs for various cryptocurrencies. XRP, a cryptocurrency created by Ripple Labs, has been one of the most awaited digital assets to have a spot ETF on Wall Street. A spot ETF is a type of investment fund that lets people invest in an asset directly, such as a cryptocurrency, by tracking its market performance. You can learn more about spot ETFs here.
About a month ago, the first XRP spot ETF launched in the United States. It was introduced by Canary Capital under the name XRPC. In the weeks following, four more XRP spot ETFs were introduced, including the latest one by 21Shares, called TOXR. Let’s take a look at how these ETFs performed during their first month and their impact on the XRP market overall.
How Did Spot XRP ETFs Perform in Their First Month?
The very first XRP spot ETF, XRPC by Canary Capital, made a strong start. On its launch day, it set a 2025 record for trading volume, reaching almost $60 million. This was higher than the record previously held by another crypto ETF by Bitwise. Additionally, the overall investments (called inflows) during that time hit $243 million, as people poured money into these funds.
Since then, more XRP ETFs have entered the game. One notable release came from Grayscale, a company that converted its GXRP fund into an official XRP ETF. Another significant addition came from Bitwise, which launched its XRP ETF, and one more from Franklin Templeton named XRPZ. Among them, the most recent launch was the 21Shares TOXR ETF.
Over the past month, inflows into all these funds have been steadily growing. While the debut XRPC launch record of $243 million wasn’t beaten, the combined total inflows reached $974.50 million by the close of last Friday. The overall value of the assets in these funds has also grown, crossing $1 billion to reach $1.18 billion, according to data from SoSoValue, a financial data platform.
Impact on XRP’s Price
With such strong interest in XRP ETFs, one might expect the price of XRP to go up. A higher demand for ETFs usually indicates more people buying the underlying asset—in this case, XRP. Additionally, Ripple, which launched XRP, has been actively building partnerships and getting regulatory approvals, which is usually a good sign for investors.
However, the reality has been somewhat disappointing. On the day of the XRPC ETF launch, XRP’s price was trading above $2.50, even nearing $2.60. But after that, its value started falling. It dropped below $2.00 several times and hit a low of $1.85 during a late November market crash. While XRP has since climbed back above $2.00, it’s only barely holding on and has still declined by 20% compared to its price a month ago, even though these funds have attracted nearly $1 billion in investments.
Here’s a quick snapshot of XRP’s recent price performance using charts from TradingView, a platform that provides tools for analyzing market trends.
Despite the mixed performance of XRP’s price, the introduction of new ETFs shows growing mainstream interest in cryptocurrencies as investment options. While there are both ups and downs, experts and investors are closely watching how XRP’s ETFs will perform in the coming months.
The original article was published on CryptoPotato.