Canary Capital’s Spot XRP ETF: A Promising Launch
On Thursday, November 13, Canary Capital unveiled its much-anticipated spot XRP ETF, dubbed XRPC, to an enthusiastic market. Within the initial 30 minutes of trading, the fund witnessed a trading volume surge, reaching an impressive $26 million. By the closing bell, the total trading volume had climbed to over $58.5 million, with net inflows amounting to a substantial $245 million.
XRPC’s Performance Compared to Bitcoin and Ethereum ETFs
Despite the promising start, XRPC’s debut volume pales in comparison to the launches of Bitcoin (BTC) and Ethereum (ETH) spot ETFs, which achieved remarkable day-one trading volumes of $4.1 billion and $1.1 billion, respectively. However, according to Bloomberg’s Senior ETF Analyst, Eric Balchunas, XRPC has outshone all other ETFs introduced this year, a group that numbers around 900.
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XRP’s Market Dynamics Post-ETF Launch
The Impact of Broader Market Trends on XRP
In spite of a robust ETF launch, XRP experienced a decline on Friday, influenced by a broader downturn in the cryptocurrency market. At the time of writing, XRP was valued at $2.27, marking a nearly 9% drop on the daily chart and resulting in a $13 billion reduction in its market capitalization.
Cryptocurrency Market Overview
The overall cryptocurrency market cap took a significant hit, shedding approximately 6% in just one day, which equates to a loss of around $160 billion. Bitcoin also faced substantial declines, falling to a six-month low under $96,000. Additionally, the crypto market witnessed over $1.1 billion in liquidations within derivatives markets, further exacerbating the downturn affecting major altcoins.
Institutional Movements and Technical Indicators
XRP, which holds a 0.82 correlation with Bitcoin, was significantly affected by institutional moves towards a risk-off strategy. Notably, approximately 1.4 billion XRP was transferred to exchanges in the days leading up to the Canary Capital listing, suggesting that large holders were positioning themselves to take profits.
From a technical analysis perspective, XRP is currently trading below its 30-day simple moving average (SMA) of $2.42 and the critical pivot point at $2.38. Additionally, the 14-day relative strength index (RSI) has dipped to 44.71, indicating an increase in bearish momentum.
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