XRPL Board Director Decodes XRP Price Slump Post-ETF Launch: What’s Really Going On?
The launch of an XRP ETF was supposed to be a bullish catalyst—so why is the price tanking? A top XRPL Foundation director breaks down the market mechanics behind the paradox.
Market Realities vs. ETF Hype
"Liquidity shocks and arbitrage plays are dominating short-term action," explains the board member. Institutional flows take time to materialize—Wall Street's 'slow money' moves at bureaucratic speed.
OTC Overhang
Massive over-the-counter holdings continue suppressing spot prices. Until these positions unwind, ETF demand gets absorbed by shadow liquidity pools.
Derivatives Distortion
Futures open interest hit record highs ahead of the launch. Now traders are unwinding leveraged bets—because nothing makes crypto markets more rational than a flood of synthetic exposure.
The Bottom Line
Don't confuse product launches with price catalysts. As one cynical observer noted: 'ETFs don't move markets—they just give hedge funds new ways to front-run retail.'
The XRP community continues to discuss why XRP’s price failed to rally following the launch of the highly anticipated Canary Capital XRP ETF (XRPC). While the fund posted one of the strongest ETF debuts of 2025, pulling in $245 million on day one, XRP’s price continued drifting lower.
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