XRP Sinks Below $2 as Bitwise ETF Debut Collides With Market Sell-Off

XRP has slipped sharply despite the debut of Bitwise Asset Management’s new spot XRP exchange-traded fund on the New York Stock Exchange. Instead of the positive sentiment many in the Ripple community anticipated, the token extended its downturn, falling more than 7% in 24 hours and dropping below the closely watched $2 mark. The broader market turbulence—triggered by Bitcoin’s slide beneath $87,000 and a wave of forced liquidations—overshadowed what could have been a milestone moment for XRP.

At the time of reporting, XRP was trading around $1.98, extending its weekly loss to nearly 18%, according to CoinMarketCap. The renewed pressure arrived just weeks after the market’s October correction, putting XRP back into a zone traders hoped it had left behind. The day had begun with optimism, with Ripple CEO Brad Garlinghouse calling the ETF debut a “pre-Thanksgiving rush,” but sentiment quickly reversed as Bitcoin’s sudden drop wiped out over $220 million in long positions within an hour. The shock pulled the entire altcoin market down, leaving little room for isolated bullish reactions.

Despite the red market, Bitwise’s XRP ETF posted an unexpectedly strong debut. ETF analyst James Seyffart reported that the fund had already surpassed $22 million in trading volume with hours left before the close, calling the launch noteworthy given last week’s introduction of Canary Capital’s XRPC ETF, which still holds the year’s top volume record. Bitwise is waiving its 0.34% fee for the first month on the initial $500 million in assets, and the product opened with $2.3 million in seed capital from market makers. The ETF provides U.S. investors with direct regulated exposure to XRP, marking a significant step toward mainstream access to the Ripple ecosystem.

However, internal market data hints at deeper structural pressure. Glassnode reported that the share of XRP held in profit has fallen to its lowest level since late 2024, now at 58.5%. The analytics platform also pointed to a recent pattern in which XRP’s price slid from above $3 to the low $2 range while realised profit-taking surged, indicating that traders were offloading holdings into weakness. This trend was reinforced this week as whale wallets appeared to shed roughly 200 million XRP within 48 hours of the ETF launch, amplifying volatility in the process.

Even so, the long-term importance of the ETF is hard to dismiss. For the first time, U.S. investors can buy regulated spot XRP exposure—a signal of growing institutional trust in the XRP Ledger, which has seen its ecosystem value rise significantly over the past year. Analysts believe meaningful inflows may take time, much like the early phases of Bitcoin and Ethereum ETFs, which started quietly before attracting billions. For now, however, the market’s macro mood continues to dictate short-term price movements.

The coming months will reveal whether XRP’s new ETF era provides lasting support or whether the token remains tied to the broader crypto market’s instability as investors look toward 2026.