The price of XRP continues to decline with sideways movements, which has impacted the price of US spot ETFs providing exposure to the altcoin. Canary Capital’s XRP Fund it has collapsed by 20% since launch, although the fund remains the largest in terms of assets under management (AuM).
XRP Sideways Price Action Leads to ETF Crash Spotting
The price of XRP continues to oscillate in a narrow range just above the psychological level of $2, sparking bearish sentiment among investors. Last month, the altcoin dropped over 10% around the time of the first spot XRP ETFsCanary’s Fund, launched. This bearish price action notably contributed to the price collapse of Canary’s XRPC fund.
TradingView data shows that Canary’s XRP ETF is down 20% since its November 13 launch. XRPC also fell by almost 10% last week amid volatile price movements. The Canary fund also likely collapsed due to increased competition from three other spot funds that launched after it. This has led to a slowdown in the inflow of funds since the launch of these funds.
Meanwhile, these funds track the XRP spot price, which also explains the XRPC Canary crash. XRP mirrored Bitcoin’s price action amid concerns that the cryptocurrency market may already be in distress bear market. XRP whales also seem bearish at the moment because Santiment data shows a decline in whaling transactions from the recent high recorded in November.
However, despite this bearish sentiment, with the cryptocurrency market currently in a state of fear, XRP ETFs continue to see net daily inflows. SoSo value data show that these funds are on a 16-day net inflow streak since the XRP Canary fund launched on November 13 and have yet to record a day of net outflow.
Canary’s XRP ETF, which experienced a 20% price crash, 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. As a group, these XRP funds will soon reach $1 billion in assets under management, with total net assets of $861 million.
Some positive sides of Altcoin
Santiment data show that XRP exchange outflows have recently exceeded inflows. This is positive because it indicates that more investors are accumulating than selling. Exchange outflows they typically represent moves towards long-term holding, especially in anticipation of higher prices.
In Post XSantiment mentioned that there is a fascinating trend in the XRP Ledger where the number of whale and shark wallets is decreasing while the number of coins being held continues to enhance. The on-chain analytics platform noted that 100 million is down 20.6%. XRP walletsbut these wallets, as a group, still hold a seven-year high of 48 billion coins. Therefore, the existing 100 million XRP wallets double down on accumulation efforts and make up for the withering number of wallets.
At the time of writing, the altcoin is trading at around $2.07, having risen over the past 24 hours, according to data from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com
