Rich by Coin

XRP holders have been debating why the price failed to rally after the Canary Capital XRP ETF (XRPC) began trading. Marzella explained in a post that many expected an immediate jump, but ETF settlement dynamics prevented an instant move. He noted that ETF trades occur on the stock market, not on crypto exchanges, where spot XRP is bought and sold. Under a T+1 settlement system, when an XRP ETF share is purchased, the issuer does not receive the cash right away; funds settle the next business day, enabling the provider to back the fund with XRP only then. This delay means early inflows don’t immediately translate into spot market demand, and, as Marzella emphasized, an ETF does not pump the price on day one. The real impact, he said, tends to come later, sometimes quietly at first, then all at once. On debut day, XRPC posted $26 million in volume in the first 30 minutes, $58.5 million by close, and $245 million in net inflows, making it the year’s top ETF debut. Despite strong debut metrics, XRP declined from $2.52 to about $2.28, and has since traded around $2.16, before a slight rebound to $2.25 at press time, down 8.63% over the past week. Marzella noted a bear market in the broader crypto space, with Bitcoin sliding to $92,900 and dragging altcoins lower, which XRP followed. Even after settlement, issuers rarely buy directly from public exchanges. Large funds like Canary Capital often source assets from over-the-counter liquidity providers, meaning purchases are not visible on spot price charts. ETF-driven price effects typically lag behind launch-day hype, as seen with Bitcoin’s ETF debut in January 2024, which showed little price reaction initially before a rally weeks later.