The price of XRP continued to fall, trading sideways, which impacted the price of US spot ETFs that provide exposure to the altcoin. Canary Capital’s XRP fund has collapsed by 20% since its launch, although this fund remains the largest in terms of assets under management (AuM).
XRP Sideways Price Action Leads to Spotting ETF Crash
XRP price continued to trade in a tight range, just above the psychological $2 level, sparking bearish sentiment among investors. The altcoin is down more than 10% over the past month, around the time the first spot was recorded. XRP ETFthe Canary Islands fund, was launched. This downward price action notably contributed to a crash in the prices of the Canary Islands XRPC fund.
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TradingView data shows Canary’s XRP ETF is down 20% since its launch on November 13. XRPC also fell almost 10% last week amid volatile prices. Canary’s fund also likely collapsed due to increased competition from three other cash funds that launched after it. This has led to a slowdown in revenues since the launch of these funds.
Meanwhile, these funds follow the spot price of XRP, which also explains the XRPC crash in the Canary Islands. XRP has mirrored Bitcoin’s price action amid concerns that the crypto market is already in dire straits. bear market. XRP whales also look bearish at the moment, as Health data shows a decline in whale transactions from the recent high recorded in November.
However, despite this bearish sentiment, with the crypto market currently in a state of fear, XRP ETFs have continued to see daily net inflows. SoSo Value data show that these funds have seen a 16-day net inflow streak since the Canary XRP fund launched on November 13, and have yet to record a net outflow day.
Canary’s XRP ETF, whose prices have fallen 20%, is currently the largest spot XRP fund with $364 million in assets under management. Grayscale’s GXRP is second with $211 million, while Bitwise and Franklin Templeton are third and fourth. In a group, these XRP funds are on track to reach $1 billion in assets under management, with $861 million in total net assets.
Some positives for Altcoin
Health data show that XRP exchange outflows have exceeded inflows lately. This is a positive because it indicates that more investors are accumulating than selling. Foreign exchange outflows generally represent long-term holding movements, particularly in anticipation of higher prices.
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In a MessageSantiment mentioned that the XRP Ledger is seeing a fascinating trend where the number of whale and shark wallets is decreasing but continues to increase the number of coins held. The on-chain analytics platform noted that there were 20.6% under 100 million XRP Walletsbut that these wallets, as a group, still own a 7-year high of 48 billion coins. Thus, the 100 million existing XRP wallets redouble their accumulation efforts and compensate for the decrease in the number of wallets.
At the time of writing, the altcoin price is trading at around $2.07, up over the past 24 hours, according to data from CoinMarketCap.
Featured image from Freepik, graphic from Tradingview.com
