Canary Capital’s XRP exchange-traded fund (ETF) has seen strong demand within its first days of trading. Yet, XRP’s price fell nearly 11% since the ETF’s launch, as whale selling and overall market pressure limited the impact of institutional demand.
This disconnect between ETF inflows and XRP price performance raises questions about how quickly institutional capital can impact cryptocurrency markets, especially during periods of volatility.
XRP ETF Breaks Records, But Token Price Lags Behind
BeInCrypto reported that Canary Capital launched its Spot XRP ETF (XRPC) on Nasdaq last week. The fund saw nearly $59 million in first-day trading volume, the strongest debut among more than 900 ETF launches in 2025.
According to SoSoValue data, the ETF brought in $245 million in inflows on its first trading day. Over the following two sessions, cumulative inflows rose to more than $268 million.
Despite these inflows, XRP’s price has declined around 11% since November 13. BeInCrypto Markets data revealed that the altcoin was trading at $2.14 at press time, down 5.22% over the past day.
XRP Price Performance. Source: BeInCrypto Markets
Glassnode noted that only 58.5% of the XRP supply is currently in profit. This marks the lowest reading since November 2024, when the token was priced around $0.53.
“Today, despite trading ~4× higher ($2.15), 41.5% of supply (~26.5 billion XRP) sits in loss — a clear sign of a top-heavy and structurally fragile market dominated by late buyers,” the post added.
This contrast reveals a notable disconnect between the ETF’s strong inflows and the underlying asset’s price performance — raising the question of why such divergence has emerged.
Well, XRP whales contributed significantly to the recent price drop. Reports indicate whales sold around 200 million XRP within 48 hours of the ETF launch.
This large-scale selling offset the ETF’s effect, intensifying negative sentiment. The timing of whale sales suggests profit-taking, as large holders may have viewed the ETF launch as an opportunity to exit.
Furthermore, broader market weakness has put additional pressure on XRP’s price. Over the past 41 days, the cryptocurrency sector has lost a total of $1.1 trillion in market value, representing an average daily decline of approximately $27 billion.
“For those crying about the price action, do me a favor and go look at Bitcoin, that’s your reason why the price sucks right now,” an analyst noted.
Meanwhile, an expert also emphasized that liquidity from institutional investment often takes time to have a significant impact on prices. According to him, the lag between ETF inflows and price may persist.
He added that the noticeable effects may not show up until 2026, contrary to retail expectations.
Notably, technical indicators suggest that XRP’s recent struggles may be nearing an end. XRP’s Net Unrealized Profit and Loss (NUPL) dropped to 0.32 on November 16, its lowest level in a year. This could signal a potential market bottom.
“Sentiment is now back in the fear/anxiety zone, which has previously marked major bottoms,” STEPH IS CRYPTO said.
BeInCrypto highlighted that the last time NUPL reached a yearly low — 0.43 on April 8 — XRP climbed from $1.80 to $3.54 by July 22, representing a 96% increase.
