U.S. first spot XRP ETF crashes 40%

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Key takeaways

Canary Capital's spot XRP ETF has fallen 40 percent from its peak.
U.S. spot XRP ETFs have accumulated roughly 1.79 billion dollars in net inflows.
XRP struggles to sustain price gains due to modest inflows compared to Bitcoin.

Performance of the first spot XRP fund

The first U.S. spot XRP ETF has fallen more than 40% from its peak despite attracting significant institutional capital since launch.

In this vein, Canary Capital’s Canary XRP ETF (NASDAQ: XRPC), the first U.S. exchange-traded fund holding spot XRP, is currently trading at $15.94, down 40.1% from its peak after debuting in late 2025.

The fund is also down 21.24% year-to-date, making it one of the weakest-performing crypto ETFs since launch.

However, it has shown signs of stabilization, gaining 6.7% over the past month after bottoming near the $11 to $12 range during the summer.

The decline comes despite a strong debut. When the fund launched in November 2025, it generated approximately $58 million in first-day trading volume, the strongest opening-day performance among nearly 900 ETFs introduced that year.

Growth across regulated investment products

Since launching in late 2025, the seven U.S. spot XRP ETFs have accumulated roughly $1.79 billion in net inflows and currently manage between $1.66 billion and $1.77 billion in assets. Collectively, the funds hold about 1.18 billion XRP, equivalent to roughly 1.2% of the token’s total supply and nearly 1.9% of circulating supply.

Canary’s XRPC was followed by competing products from Bitwise, Franklin Templeton, Grayscale, 21Shares, and REX-Osprey, creating a growing market for regulated XRP exposure in the United States.

Notably, the United States was not the first country to launch a spot XRP ETF. Brazil led the way in April 2025 with Hashdex’s XRPH11, followed by Canada in June 2025 with Purpose Investments’ XRP ETF and competing products from Evolve and 3iQ.

Factors limiting broader price gains

However, the influx of capital has not translated into sustained gains for XRP. The cryptocurrency trades around $1.50, far below its 2025 peak near $3.65.

Several factors have limited the impact of ETF demand on XRP’s price. Unlike Bitcoin ETFs, which have attracted tens of billions of dollars in inflows, XRP ETF demand remains relatively modest.

Bitcoin spot ETFs have accumulated roughly $57 billion to $58 billion in net inflows and now control well over $100 billion in assets.

ETF mechanics have also reduced the direct impact on spot prices. New ETF shares can be created through over-the-counter transactions or in-kind transfers rather than aggressive buying on public exchanges. Market-maker hedging and periodic redemptions can further offset buying pressure.

At the same time, long-term XRP holders have continued selling into rallies, creating overhead supply that has absorbed fresh institutional demand.

XRP’s strong correlation with Bitcoin (BTC) has also weighed on performance. While Bitcoin remains the preferred digital asset allocation for many institutions, XRP has struggled to attract similar levels of capital, particularly with BlackRock opting not to launch an XRP ETF due to what it views as insufficient client demand compared to Bitcoin and Ethereum (ETH) products.

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