XRP ETF Launches Continue as Exchange Supply Plummets
New York, NY – A fifth exchange-traded fund (ETF) dedicated to XRP has launched amid a notable decline in teh cryptocurrency’s availability on trading platforms, signaling potential bullish momentum despite recent price corrections. Grayscale and Franklin Templeton’s XRP ETFs, launched last week, have already attracted over $666 million in inflows, surpassing initial investment in new Solana (SOL) ETFs.
The influx of capital into XRP ETFs arrives as the amount of XRP held on exchanges has dropped by approximately 45% over the past two months, falling from 3.95 billion to 2.6 billion tokens. Simultaneously, over 40,000 new XRP wallets were created during a recent weekend, suggesting activity from larger investors. Despite these developments, XRP’s price has lagged behind the ETF hype, experiencing an 18% correction since the beginning of November, influenced by broader macroeconomic uncertainty and a downturn in Bitcoin‘s value.
The recent ETF launches build on the success of previous XRP fund offerings, indicating growing institutional interest in the cryptocurrency. While Bitcoin and Ethereum have historically seen ample price increases following ETF approvals, XRP’s performance has been tempered by external market pressures. Currently trading around $2.05, XRP experienced a rebound last week, trading around $2.20, before being impacted by a 7% overnight Bitcoin price crash.
Analysts note a similarity between current market conditions and those of 2017, when XRP surged from under a cent to nearly $4 within 240 days, coinciding with a sharp decrease in XRP supply on exchanges. This past parallel fuels optimism among investors despite the current price stagnation.
