Key Highlights
- XRP fell below $2 on the same day Bitwise’s new XRP ETF launched on the NYSE amid a sharp crypto market sell-off.
- Despite the price drop, the Bitwise XRP ETF recorded an impressive first-day volume of $22 million.
- Whales sold 200 million XRP as on-chain data showed profitability dropping to its lowest level since late 2024.
The XRP market opened to heavy volatility as the cryptocurrency fell more than 7% on the same day Bitwise Asset Management launched its new spot XRP exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).
The token dropped back under the key $2.00 psychological level, revisiting price zones last seen during the sharp October 10 market correction.
The drop surprised the Ripple community, who expected the new ETF launch to boost sentiment, but a weak market and heavy whale selling overshadowed the excitement.
Market turns red as bitcoin sell-off drags XRP lower
At the time of writing, XRP was trading at approximately $1.98, which is approximately 7% lower than it was in the last 24 hours and nearly 18% lower on the weekly chart, according to CoinMarketCap data.
The fall came after a broader drop in the crypto market after Bitcoin dropped to below $86,000, triggering over $220 million in long liquidations in an hour. This sudden correction broke the bullish momentum building around Ripple’s ecosystem in recent weeks.
The XRP community was hoping the Bitwise ETF debut would lift sentiment, especially after Ripple CEO Brad Garlinghouse described the launch as a “pre-Thanksgiving rush” earlier in the day. Instead, the market delivered the opposite outcome.
Bitwise XRP ETF launches with strong trading debut
Despite the price decline, the new Bitwise XRP ETF recorded a notable first-day performance. According to ETF analyst James Seyffart, the product had already generated $22 million in trading volume with three hours remaining before the market close on November 20.
He called the debut “impressive,” especially considering it arrived one week after Canary Capital’s XRPC ETF, which still holds the top spot for the strongest ETF launch of the year by volume.
Bitwise’s ETF carries a 0.34% management fee, though the firm will waive it for the first month on the initial $500 million in assets.
At launch, the fund opened with $2.3 million in seed capital, contributed by market makers and authorized participants. The ETF gives investors direct exposure to spot XRP by holding the cryptocurrency in a custodial trust.
The launch follows months of regulatory progress. Once the NYSE certified the product and the SEC cleared operational requirements, Bitwise confirmed the ETF was ready for live trading.
Whales sell 200 million XRP as profitability declines
The XRP price weakness also reflects internal market dynamics. On-chain analytics platform Glassnode reported a sharp drop in the supply of XRP currently held in profit. The share fell to 58.5%, the lowest level since November 2024, even though the token trades roughly four times higher than it did at that time.
Glassnode also highlighted an unusual trend, from late September, XRP slid from $3.09 to the $2.30 range, yet the daily volume of realized profits surged from $65 million to more than $220 million, signaling that traders were selling into weakness rather than strength.
This trend indicates that it is taking profits of late-stage buyers who stocked XRP at a higher price.
Adding to the pressure, whale wallets are reportedly to have sold approximately 200 million XRP in 48 hours after the launch of the ETF. Massive liquidations by significant holders tend to increase the volatility of the market in the short term.
Why the XRP ETF matters and what comes next
The launch of a spot XRP ETF is generally regarded as a big milestone. It is the first time that U.S. investors will be able to acquire a regulated exposure to XRP in a conventional investment product.
Its launch is also an indication of trust in the XRP Ledger ecosystem, which has increased by over 80% in value in the last one year and enables quick and low-cost payments and the tokenization of assets.
However, analysts warn that it might be slow to see meaningful institutional inflows. Others anticipate that the adoption will not be significant until 2026 when advisors, pension funds, and large institutions are comfortable including XRP exposure in their portfolios.
For now, demand of ETFs seems to be robust so far but not sufficient to absorb the wider market decline.
This slow-burn dynamic mirrors earlier ETF cycles. The first spot ETFs of Bitcoin had a low inflow initially and, however, were later able to draw billions. Ethereum ETFs followed a similar trajectory earlier this year.
A volatile start to a long-term shift
The XRP price drop on the very day of Bitwise’s ETF launch highlights how crypto markets can move independently of headline news. Although the ETF is a move towards mainstream adoption of XRP, the short-term price movement is still dependent on macro sentiment, whale activity, and the volatility of Bitcoin.
In the meantime, XRP investors are simultaneously following two plots, the immediate stress due to the uncertainty in the market and the long-term prospect due to the new institutional access to the Ripple ecosystem.
As the first wave of ETF excitement settles, the coming months will determine whether these forces balance out, or widen further, as the crypto market moves toward 2026.
Also Read: OG Bitcoin Whale Owen Gunden Sells All 11K BTC from 2011 Wallet
