The Enigmatic Silence of XRP: Why Did It Not Dance to the ETF’s Tune? đŸ€”

by

Behold, the grand spectacle of the Canary XRPC ETF’s debut! A veritable tempest of enthusiasm swept the XRP community, as the fund’s first-day trading volume soared to 58 million dollars, accompanied by a torrent of net inflows. Yet, lo! The XRP price remained as stagnant as a puddle on a rainy day, leaving investors to ponder, “Wherefore art thou, surge?” đŸ€·â€â™€ïž

XRP’s price, lingering near 2.30 after a 7% descent, has languished between 2.40 and 2.50 for weeks, despite the ruckus surrounding the ETF and Ripple’s latest shenanigans. One might think the market had forgotten its manners. 🧐

Why the XRP Price Stayed Flat on Day One of the ETF Trading

Pray, allow me to elucidate: the ETF’s antics unfold on the stock market, not the crypto exchanges. When investors purchase ETF shares, they do not immediately spark a frenzy of XRP buying. The stock market, in its quaint T+1 settlement cycle, delays the ETF issuer’s receipt of funds until the next business day. Only then may the issuer commence their quest to acquire XRP. Thus, the delay is the root of our bewilderment. 😂

XRP, oft hailed as a savior for cross-border payments, finds itself in a quandary. The broader crypto market, in a fit of pique, has turned risk-off, with traders abandoning altcoins like yesterday’s fashion. XRP, alas, tumbles alongside its peers, rendering the ETF’s debut a yawn-worthy affair. đŸ„±

Moreover, Ripple’s 300 banking partners, though numerous, employ the network sans XRP in many cases. Only when On-Demand Liquidity is summoned does XRP grace the scene. Adoption grows, yet not swiftly enough to stir the price from its slumber. 🛌

And let us not overlook XRP’s ample supply, a veritable feast for big holders who savor rallies with a side of sales. Thus, short-term news dances to the tune of selling, not soaring. 🎭

How Inflows Turn Into Real XRP Buying

Once the issuer receives their funds, they embark on a quest to purchase XRP, either from exchanges or via over-the-counter desks. These acquisitions, like a slow waltz, back the ETF and ensure each share is tethered to the asset. đŸ•ș

If inflows persist daily, these steadfast buy orders may gradually reduce XRP’s supply, akin to a tortoise racing a hare. Over time, this could nudge the price upward, but not in a single day’s dash. 🐱

Analysts, with their magnifying glasses, note that sustained inflows over weeks or months hold more promise than a fleeting burst of volume. Patience, they whisper, is key. đŸ•°ïž

What to Expect Next For Ripple (XRP)?

The ETF’s launch, though momentous, is but the first note in a symphony. Its impact will unfold as a slow crescendo. Should inflows endure, the issuer’s daily purchases may eventually lift XRP’s spirits. For now, the flat reaction is but a testament to the ETF’s settlement quirks and the market’s fickle temperament. đŸŽ¶

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

FAQs

Why didn’t XRP’s price rise on the first day of the XRPC ETF launch?

ETF trades settle the next day, so issuers buy XRP only after receiving funds. This delay prevents immediate impact on the crypto market.

When does an ETF actually start buying XRP?

The issuer buys XRP after T+1 settlement, using inflow capital received the following business day to back the fund with real assets.

Why is XRP staying flat despite strong ETF demand?

Market-wide risk-off sentiment, large supply, and selling from major holders are keeping XRP range-bound even with positive ETF activity.

How can ETF inflows affect XRP’s price over time?

Steady inflows lead to repeated issuer purchases, slowly reducing available supply. This gradual demand can support long-term price strength.

Read More

2025-11-15 22:24