The First Spot XRP ETF Faces Turbulence in Its Debut Week
The pioneering spot XRP exchange-traded fund (ETF), trading under the ticker XRPH11 on Brazil’s B3 stock exchange, experienced a challenging start, plummeting almost 10% in its initial week. This decline occurred amid the general volatility affecting the broader cryptocurrency market.
Performance of XRPH11: A Closer Look
The XRP HASH CI ETF concluded its trading on May 5 at R$19.30 (approximately $3.47), marking a 3.5% decrease for the day. Over the previous five trading days, the ETF saw a decline of 8.70%, reflective of the tumultuous conditions within the cryptocurrency realm.
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Despite its initial promising entry into the market, the ETF has encountered hurdles, particularly due to the relatively limited size of the Brazilian market and the increasing selling pressure on XRP. As of the latest analysis, XRP was valued at $2.10, reflecting a drop of over 4% within a 24-hour period. On a weekly scale, XRP’s decline of 8.75% closely aligns with the ETF’s performance.
Prospects for Recovery
Although the spot ETF has yet to gain substantial traction, it remains crucial to observe its performance in the event of an XRP recovery. This is particularly pertinent if the United States eventually decides to approve a similar financial product.
Spot XRP ETF Approval in the U.S.
The United States Securities and Exchange Commission (SEC) recently postponed its decision on Franklin Templeton’s proposed spot XRP ETF, setting a new date for June 17, 2025. This delay appears strategically timed, coinciding with the SEC’s obligation to provide a status update on its appeal concerning Ripple’s partial legal victory in 2023.
Legal experts speculate that the SEC’s timing may be deliberate, potentially allowing for a settlement of the lawsuit before finalizing the ETF decision. Additionally, the SEC is in the process of reviewing other XRP spot ETF applications, with outcomes anticipated by mid-October 2025.
Market Sentiment and Future Outlook
Despite the current lack of approval for a U.S. spot XRP ETF, market sentiments remain optimistic. According to Polymarket, as of May 6, the likelihood of an XRP ETF approval stood at 74%, signaling rising confidence among market participants that an approval could occur before the year’s end.
While a spot XRP ETF in the U.S. is pending approval, the SEC has given the green light to three XRP futures ETFs from ProShares. Initially expected to launch on April 30, these were postponed, with a tentative rollout date now set for May 14, pending the final go-ahead from the SEC.
With the evolving landscape of cryptocurrency regulations and market dynamics, the potential approval and subsequent performance of XRP ETFs will be pivotal in shaping future investment opportunities.
