This week was seen as a “big moment” for XRP, which is linked to Ripple. After years of filings, a dedicated spot XRP exchange-traded fund (ETF) began trading in the U.S. for the first time on Thursday. Ripple CEO Brad Garlinghouse celebrated the launch by saying, “It’s finally happening!” On paper, the new spot XRP ETF launched by Canary Capital is off to a strong start. It attracted nearly $250 million in investments on its first day, and analysts predicted the ETF could generate a trading frenzy reaching $5 billion in its first few months. This demand was expected to push the XRP price higher. However, contrary to expectations, the XRP price has fallen by nearly 3% in the last 24 hours. It is still trading 37% below its all-time high of $3.65, set in July. Analysts believe the root of the problem lies in a broader market turmoil. On October 7th, the cryptocurrency market peaked at $4.3 trillion. But a few days later, the situation reversed completely. Related News: RWA Altcoins Developers Have Been Focusing On Most Recently Have Been Revealed - Here's the List On October 10, $19 billion worth of leveraged positions were liquidated in just one day. This decline led to the subsequent month of wiping out nearly $1 trillion in total market capitalization, or one-fifth of all crypto assets, according to CoinGecko data. While a brief recovery was seen at the beginning of the week following the end of the US government shutdown, the $870 million sell-off from Bitcoin ETFs on Thursday added to the pressure. The same day Bitcoin fell below $100,000 for the third time this month. Max Gokhman, vice president of Franklin Templeton Investment Solutions, told Bloomberg: The current sell-off is fully correlated with riskier assets. However, the magnitude of the move is sharper because volatility is higher in the crypto market. Until there is broader institutional participation beyond Bitcoin and ETH, crypto's sensitivity to macro risks will remain high. Some market experts are warning that the crypto market could see a resurgence, barring any new negative developments. However, the XRP ETF's first week has shown how quickly launch expectations can be eclipsed by market realities. *This is not investment advice. Continue Reading: XRP Spot ETF Approved, So Why Is the Price Falling? Here Are the Opinions
