The new XRP ETF: What it means and how it could impact the market
On November 13, 2025, the first spot XRP ETF in the United States began trading on Nasdaq, marking a historic milestone for the crypto ecosystem. Canary Capital’s XRPC fund recorded $58.6 million in trading volume during its first day, becoming the most successful ETF launch of 2025 among over 900 products launched this year.
With inflows exceeding $245 million, the XRP ETF debut outperformed even the Solana ETF and signals a significant shift in institutional adoption of cryptocurrencies beyond Bitcoin and Ethereum.
For XRP holders, this launch represents regulated access to the token through traditional investment platforms, potentially expanding the liquidity base and attracting institutional capital that previously avoided direct crypto exposure.
What is an ETF and how does the XRP ETF Work?
An ETF (Exchange-Traded Fund) is a financial product that allows investors to gain exposure to an asset without directly purchasing it. In the case of the XRP ETF, investors buy shares of the fund that represent a certain amount of XRP tokens, without needing to create a crypto wallet or use specialized exchange platforms.
Canary Capital’s XRPC is a spot ETF, meaning it holds actual XRP as its underlying asset—not futures contracts or derivatives. The fund custodies XRP tokens through Gemini Trust Company and BitGo Trust Company, and uses the CoinDesk XRP CCIXber Index as its price reference. Investors can buy and sell ETF shares through traditional brokers like E*Trade or Fidelity, with an annual management fee of 0.5%.
A key feature of XRPC is its “in-kind” creation and redemption model. This allows ETF shares to be created and redeemed directly with XRP tokens, rather than cash only. This mechanism reduces transaction costs and improves the fund’s tax efficiency, which explains the high inflows of $245 million with “only” $58.6 million in visible trading volume.
The historic debut: numbers that made a difference
The XRP ETF launch exceeded all market expectations. With $58.6 million in trading volume during its first day, XRPC set the record for any ETF launched in 2025, narrowly surpassing Bitwise’s Solana ETF (BSOL), which recorded $58 million at its debut.
Market data shows the fund attracted $26 million in volume during its first 30 minutes of trading, doubling initial estimates of $17 million. Eric Balchunas, Bloomberg’s senior ETF analyst, noted that this performance positions XRPC as one of the most successful launches in recent crypto ETF history.
Total inflows reached approximately $245 million, a figure that includes in-kind creations that don’t appear in traditional trading volume. This level of immediate adoption suggests strong institutional interest in XRP as a regulated investment asset.
The ETF was developed under the Securities Act of 1933, a regulatory process that allows automatic approval after 20 days if certain requirements are met. This accelerated structure allowed the launch to occur even during a partial U.S. government shutdown.
Impact on XRP price: reality vs. expectations
Despite the successful ETF launch, XRP’s price experienced a 5.2% drop in the 24 hours following the debut, trading around $2.30. This decline occurred against a backdrop of general crypto market pullback, with Bitcoin falling below $99,000 for the first time since May.
Before the launch, XRP’s price had risen 3.28% to $2.48 as traders positioned themselves for the event. On-chain data showed the creation of over 21,000 new XRP wallets within 48 hours, the largest network expansion in eight months. However, wallets holding between 1 and 10 million XRP sold approximately 90 million tokens before the launch.
Analysts had projected that XRP could reach price targets between $3.31 and $12.30 based on Fibonacci models, with more conservative predictions pointing to $5 by the end of 2025. JPMorgan estimated that an XRP ETF could attract up to $8 billion in capital flows.
What does this mean for XRP investors and holders?
For current XRP holders, the ETF launch represents institutional validation of the token and a significant expansion of its accessibility. The product is designed primarily for institutional investors such as pension funds, family offices, and hedge funds that face regulatory barriers to holding cryptocurrencies directly.
ETF analyst Nate Geraci noted that virtually all spot crypto ETF launches have “significantly exceeded” traditional finance expectations. The presence of multiple XRP ETFs in preparation (including funds from Bitwise, Franklin Templeton, 21Shares and others) suggests that competition will increase liquidity and could reduce management fees over time.
For retail investors, the ETF offers a way to gain XRP exposure without managing private keys, wallets, or crypto exchange accounts. However, this convenience comes at a cost, the 0.5% annual fee and the inability to use the tokens for transactions or staking.
Future outlook and upcoming XRP ETFs
The launch of XRPC is just the beginning. Multiple asset managers have filed applications for XRP ETFs, with several additional products scheduled to hit the market during the first half of 2026. ProShares, known for launching the first Bitcoin futures ETF in the United States, is among the managers with pending applications.
Other major issuers include Franklin Templeton, Bitwise, 21Shares, and CoinShares, all with applications registered at the Depository Trust & Clearing Corporation (DTCC). The presence of these top-tier financial institutions signals a shift in XRP’s perception within traditional finance.
Analyst The Great Mattsby highlighted that XRP is building an “unprecedented” technical base on its 3-month chart with the Ichimoku cloud, suggesting an advanced institutional accumulation phase. This technical structure, combined with ETF flows, could mark XRP’s transition from a speculative asset to a recognized financial instrument.
Experts anticipate that the ETF’s true influence will be seen as institutional flows stabilize and other similar products enter the market. Competition among multiple XRP ETFs could improve market efficiency and reduce costs for investors.
The launch of the first spot XRP ETF in the United States marks a defining moment for Ripple’s token and the broader crypto market. With $245 million in inflows and $58.6 million in trading volume during its first day, Canary Capital’s XRPC demonstrated significant institutional appetite for regulated XRP exposure.
With multiple additional ETFs in preparation and growing institutional interest, the full impact of the XRP ETF launch will likely unfold over the coming months. Investors will need to monitor capital flows, price behavior, and regulatory evolution to fully assess the long-term implications of this historic milestone.