Inaugural Spot XRP ETF Faces Early Market Headwinds
The first exchange-traded fund (ETF) globally to directly track the price of XRP has experienced a rocky debut, shedding almost 10% in value during its initial week of trading, amid broad market fluctuations.
This fund, identified as XRPH11, is listed on Brazil’s B3 stock exchange.
Although its introduction showed promise, the ETF has encountered difficulties in achieving sustainable momentum, encountering obstacles tied to the relatively modest size of the Brazilian market and considerable selling pressure specifically on the XRP token.
Presently, the value of XRP stands at $2.10, reflecting a drop exceeding 4% during the last 24-hour period.
Its price performance every week, marking an 8.75% decline, closely mirrors the performance seen in the Brazilian-listed ETF.
Further study of this ETF will be required, particularly as XRP either finds market recovery or as various US regulatory agencies consider the potential endorsement of comparable investment instruments.
US Regulatory Landscape: SEC Delays and Ripple Case Connection
The U.S. Securities and Exchange Commission (SEC) recently announced the postponement of its decision concerning Franklin Templeton’s request to launch a spot XRP ETF, shifting the decision deadline to June 17, 2025.
This extended date appears significant, as it closely follows, by two days, the SEC’s deadline to deliver an update in the ongoing legal dispute involving Ripple, after a favorable ruling by the court back in 2023.
Several legal specialists are considering the SEC‘s decision timeline.
It’s theorized that the timing allows them space to complete and resolve their proceedings regarding the lawsuit with Ripple, which they might factor into a future verdict on an ETF investment vehicle.
Additionally, the SEC is engaged in reviews of other applications concerning XRP spot ETFs, with expectations for final judgments slated for mid-October 2025.
Market Sentiment and Development of XRP Futures Products
Nonetheless, there’s widespread confidence from industry investors that approval for this offering could potentially materialize within this calendar year.
Polymarket’s assessment from May 6 highlighted that the possibility of securing a US-based XRP ETF’s endorsement stood at approximately 74%.
In the absence of a U.S. spot XRP ETF as of the time of this writing, the SEC has, conversely, already approved three XRP futures ETFs, created by ProShares.
Although an early launch was proposed to coincide with the date of April 30, the company clarified a postponement.
Tentatively scheduled for the 14th of May, pending final clearance from the SEC.
Also Read: XRP Price Predictions Surface as First Spot ETF Launches Globally
