XRP registered a significant drop despite its first spot ETF in the U.S. debuting with substantial inflows, a move that defies the logic of an apparently purely bullish catalyst. The article examines the main reasons behind the decline: pre-event profit-taking, sales from large positions, macro pressure and structural market fragility.
Before the funds’ debut, XRP had accumulated a speculative rise: in the days prior there was a 3.28% uptick to $2.48, driven by anticipatory purchases from retail and institutional buyers. This pattern favored a classic “buy the rumor, sell the news” market phenomenon, where expectations drive demand and the event’s confirmation triggers profit distribution.
The focus is on the interaction between speculative positioning, institutional flows and market structure, showing how even strong initial demand can be outweighed by distribution and systemic risk.
The launch of the first spot ETF —XRPC designed by Canary Capital— arrived around November 13, 2025 and attracted an initial inflow close to $250 million, with nearly $60 million in trading volume on the first day; despite this, the product’s reference price fell 4.3%, from $2.31 to $2.22 in 24 hours, according to data from the fund’s debut.
Factors that pressured XRP after the ETF
At the same time, on-chain data showed massive sales by large holders: about 200 million XRP flowed into the market within 48 hours, which absorbed much of the fresh capital entering and amplified selling pressure.
Simultaneously, the crypto market faced a broader risk-off environment. Over a 41-day period the ecosystem lost approximately $1.1 trillion in market capitalization, with an average daily decline close to $27 billion, according to a market report; negative flows in Bitcoin and Ether ETFs —including a one-day withdrawal of $866 million for the former and more than $1.4 billion in outflows for the latter since October— contributed to a general bearish bias that dragged assets like XRP down.
The internal supply structure added fragility: about 41.5% of the circulating supply (roughly 26.5 billion XRP) is at losses at recent prices, creating an overhang of potential sellers willing to liquidate positions at any rebound. That distribution of losses made the asset particularly vulnerable to corrections even in the face of significant institutional inflows.
The combination of profit-taking, distribution by large holders, macro deterioration and a base of holders at losses explains why XRP fell despite the ETF’s successful debut. The market will closely watch the wave of launches scheduled between November 18 and 25, 2025 and the funds’ ability to absorb an estimated more than $8 billion without reigniting volatility. Related: upcoming XRP ETF launches between Nov. 18–25, 2025.
