A new exchange-traded fund (ETF) for XRP is launching in the United States today, issued by 21Shares. Trading under the ticker TOXR, it becomes the fifth XRP ETF to launch in the US.
While the new ETFs for Ripple’s cryptocurrency have had a successful start, the price of XRP has so far lagged behind.
Fifth XRP ETF on the Horizon #
The launches of the XRP ETFs may have been slightly delayed, but they have proven to be highly successful so far. Last week, the XRP ETFs from Grayscale and Franklin Templeton launched, with both seeing immediate inflows of millions of dollars.
The total inflow into XRP ETFs has already surpassed $666 million, allowing XRP to overtake the new Solana ETFs.
Notably, there has also been a sharp decline in the available XRP supply on trading platforms. In the past two months, the amount of XRP on exchanges has fallen by approximately 45%, from 3.95 billion to 2.6 billion tokens.
Additionally, more than 40,000 new XRP wallets were created over a single weekend. According to analysts, these are likely wallets being set up by larger entities.
Price of Ripple’s Cryptocurrency Lags Despite ETF Hype #
Despite all the hype surrounding the new funds, we have not yet seen this interest reflected in the price. Whereas ETFs for tokens like Bitcoin or Ethereum previously caused significant price increases, XRP has actually undergone a correction since the beginning of November.
The price fell by more than 18%. This was largely due to pressure on the broader crypto market from macro uncertainty and a falling Bitcoin price, but the launch of the ETFs has not been able to offset this correction.
XRP, like the broader crypto market, saw recovery last week, with the token trading around the $2.20 price point. But when Bitcoin crashed by 7% overnight, it pulled many other coins down with it, including XRP.
Currently, XRP is back around the $2 mark, now trading at $2.05. However, there is hope: the current market pattern strongly resembles that of 2017, when XRP rose from less than one cent to nearly $4 in just 240 days. At that time, the supply of XRP on exchanges plummeted just before the price exploded.