XRP ETFs (XRPI, XRPR) Drop Sharply as XRP Slides to $2.04 After 21Shares Launch Delay

Ripple ETFs (XRPI, XRPR) Fall as XRP Slips to $2.04 Amid 21Shares Launch Volatility

The XRP ETFs — XRPI (NASDAQ) and XRPR (BATS) — are both trading sharply lower as Ripple’s native token XRP (XRP-USD) slides to $2.04, down 6.87% in 24 hours. XRPI ETF closed at $11.73, recovering slightly to $11.89 after-hours (+1.36%), while XRPR ETF finished at $16.65 (-6.72%), holding flat after hours. The declines align with market-wide crypto pressure following Bitcoin’s fall below $85,000 and the delayed debut of the 21Shares XRP ETF (ticker TOXR), which triggered a liquidity shock across Ripple-linked instruments.

ETF Performance and Market Dislocation

Trading volumes in XRPI reached 590,000 shares, with intraday lows at $11.58 and a yearly range between $11.08–$23.53. The XRPR ETF posted lighter volume at 51,000 shares, ranging $16.41–$16.80. Despite strong $500 million combined inflows since mid-November, investor confidence wavered after 21Shares postponed its U.S. listing, citing “final administrative alignment.” That delay fueled risk-off sentiment across ETF-linked XRP markets, intensifying losses in already fragile crypto conditions. Analysts note that Franklin Templeton’s XRP ETF, with $3.31 million inflows Friday, now leads institutional participation, while Bitwise and Canary Capital contributed another $2.5 million combined, pushing cumulative XRP ETF inflows above $666 million.

XRP Price Structure and Technical Breakdown

XRP’s spot price oscillated between $2.01–$2.21, dropping below key support at $2.10 before touching $1.98 intraday. This marks the lowest level since August, erasing all November gains. The $2.00 zone now acts as a crucial pivot — a historically proven support area that halted major drawdowns during the 2022 and 2023 corrections. If broken, downside risk extends to $1.75, while resistance remains firm near $2.60, the pre-ETF launch ceiling. Liquidity on centralized exchanges has thinned dramatically, with exchange-held XRP balances down 29% since February — a structural signal of capital rotation from custodial venues to ETFs and self-custody wallets.

Institutional Rotation and ETF Momentum

The six-week streak of XRP ETF inflows — now representing 29% of total XRP AUM — underscores persistent institutional appetite despite volatile price action. The U.S. remains dominant in inflows with $994 million, followed by Canada ($97.6M) and Switzerland ($23.6M). While the market digests the 21Shares delay, sentiment remains optimistic as Franklin Templeton’s ETF, with a 0.19% management fee, outcompetes Grayscale’s 0.35% and Bitwise’s 0.34% offerings. Analysts note that the 21Shares ETF will list on Cboe BZX under ticker TOXR, tracking the CME CF XRP-Dollar Reference Rate with a 0.50% fee, expanding global ETF coverage of Ripple’s ecosystem.

Macro Headwinds and Market-Wide Volatility

The delay coincided with a broader crypto correction — the total digital asset market cap fell below $3 trillion after a two-week rebound. Bitcoin’s failure to hold $90,000 dragged correlated assets, while Ethereum slipped 7.47% to $2,795.96 and Solana dropped 8.18% to $125.86. The VIX volatility index rose 5.44% to 17.24, signaling heightened cross-asset stress. Analysts attribute part of XRP’s drawdown to ETF-driven leverage unwinds and algorithmic deleveraging across altcoin pairs.

Ripple’s Institutional Catalyst and Long-Term Outlook

Despite the short-term pain, Ripple’s institutional roadmap remains intact. The firm’s Evernorth digital asset treasury plans to raise $1 billion to accumulate XRP as part of its long-term balance sheet strategy, reinforcing underlying demand. Moreover, Ripple’s RLUSD stablecoin expansion in Singapore — approved by MAS under a Major Payment Institution license — strengthens XRP’s transactional utility across Asia-Pacific. This regulatory clarity provides a macro floor for institutional confidence, even as ETFs drive near-term volatility.

Comparative Performance vs Broader Market

While XRP dropped 6.8%, Bitcoin and Ethereum fell by 5.1% and 7.4%, respectively — proving XRP’s correlation remains high but not excessive. Among ETFs, XRP’s $289 million inflows last week were its largest on record, dwarfing Cardano’s $19.3M outflows, signaling rotation toward Ripple-backed assets. However, sentiment remains cautious as outflows from Germany and lower trading volumes in the U.S. post-Thanksgiving reduced liquidity depth from $56B to $24B week-over-week.

Technical Levels and Market Sentiment

Momentum indicators show XRP approaching oversold territory with RSI near 31, while MACD continues to diverge negatively. Should the $2.00 level hold, analysts expect a short-term rebound toward $2.45–$2.60, supported by ETF inflows resuming post-launch. A breakdown, however, exposes the $1.75–$1.80 zone, where institutional buying interest could re-emerge. Market sentiment has plunged back to “Extreme Fear”, reflecting both retail capitulation and derivative position unwinds.

Verdict: Hold with Bullish Bias

The XRP ETFs (XRPI and XRPR) face near-term volatility driven by ETF launch misalignment and broader crypto weakness. Yet, robust institutional inflows exceeding $666 million, Ripple’s expanding global footprint, and structural ETF demand position the asset for recovery once macro risk stabilizes. Maintaining the $2.00 support is essential — a rebound toward $2.60 remains achievable as the 21Shares ETF goes live and capital rotations resume.

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