XRP Price: Rebounds as Second Spot ETF Goes Live on NYSE Thursday

TLDR

• Bitwise’s spot XRP ETF launched Thursday on NYSE with ticker XRP and 0.34% management fee
• XRP price dropped 8% in 24 hours to below $2, extending a 12% weekly decline
• The launch triggered a “sell-the-news” effect with investors taking profits after $134 million in ETF inflows
• Trading volume fell 30% to $4.75 billion, showing reduced market interest
• XRP faces key support at $2 with technical indicators showing oversold conditions and bearish momentum

Bitwise Asset Management launched its spot XRP exchange-traded fund on Thursday, marking another entry in the growing list of altcoin ETFs in the United States. The fund trades on the New York Stock Exchange under ticker XRP with a management fee of 0.34%.

The launch comes after the SEC updated its guidance on crypto ETF procedures. Bitwise waived fees for the first month on the first $500 million in assets.

XRP holds the position as the world’s third-largest non-stablecoin cryptocurrency with a market capitalization of $127.3 billion. The network has processed over 4 billion transactions.

Bitwise CIO Matt Hougan said XRP has operated successfully for a long time at low cost and processes high transaction volumes. The cryptocurrency has a strong community of supporters.

Market Response to ETF Launches

The price of XRP dropped 8% in the past 24 hours, falling below the $2 mark. This decline extends a seven-day slide of 12%. The cryptocurrency briefly touched $2.16 after starting the day at $2.17.

Trading volume decreased 30% to $4.75 billion. Market capitalization currently stands at $130.02 billion. The reduced volume indicates less market interest in the cryptocurrency.

Bitwise’s fund is the second spot XRP product in the U.S. market. Canary Capital’s XRPC launched last week and has accumulated $276.8 million in net inflows. Bitwise previously launched the Bitwise Physical XRP ETP in Europe.

Additional ETF Products Coming

Grayscale announced Wednesday that its GXRP fund will launch soon. Bloomberg Analyst James Seyffart wrote on X that Grayscale’s spot XRP ETP will likely go live next Monday. The firm also plans to launch a Dogecoin ETF, which would be the first of its kind.

Franklin Templeton’s XRP ETF could also launch on Monday. This week saw $134 million in weekly ETF inflows across XRP products.

The launches triggered a “sell-the-news” reaction. Investors locked in profits after the ETF announcements, causing further price declines. This pattern is common when anticipated events finally occur.

Technical Indicators Show Weakness

The MACD indicator shows a bearish crossover with the MACD line below the signal line. This suggests bearish momentum is controlling the market.

The RSI sits at 28, below the 30 mark. This indicates XRP is in oversold conditions. A potential reversal or short-term bounce might occur once the market finds a bottom.

The immediate resistance level sits around $2.20. The next key support level is at $2.00. If bearish momentum continues, XRP could test this lower support level.

Market sentiment has shifted from optimism to caution. The NUPL chart reflects growing unease among investors. Long-term holders are showing signs of anxiety as the price struggles to maintain the $2 level.

The broader crypto market also experienced declines. Bitcoin fell below $90,000 while Ethereum dropped 8% in 24 hours, struggling to hold above $3,000. The overall crypto market fell 5.12%.

Franklin Templeton and Bitwise’s ETF launches brought institutional access to XRP. Grayscale and potentially Franklin Templeton will add more products next week.

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