The First Spot ETF on XRP in the US Is imminent, but the Price Falls Early

The long-awaited ETF spot on XRP is finally one step closer to debut, but the market does not seem to be celebrating. The price of XRP has slipped almost 7% in the past 24 hours, settling at around $2.40, down from a weekly high of $2.57, as investors prepare for the imminent launch of the fund run by Canary Capital.

Although a historic milestone, the token's weakness highlights a recurring theme in crypto markets: buy the rumor, sell the news.

Hype for Ripple ETF Clashes with Market Reality

Technical charts show clear rejection near short-term resistance zones, signalling hesitation even as anticipation grows for the debut.

Canary Capital's Form 8-A filing with the SEC - the last step before trading begins - indicates the ETF is ready to launch on the Nasdaq under the ticker XRPC. The fund will offer direct exposure to XRP currencies, allowing institutional investors to hold the asset through a regulated vehicle for the first time.

However, enthusiasm has been dampened by headwinds in the broader market. Bitcoin's drop around $102,000 and the slowdown of momentum on altcoins have weighed on sentiment, while many investors fear that the hype about the ETF has already been discounted in prices.

Tokens such as Solana, Litecoin and Hedera, whose ETFs were recently launched, have also seen sharp declines after the first few days of trading. This reinforces fears that XRP may be experiencing a similar "post-listing hangover" - a correction phase immediately following the listing.

Decreasing Leverage, Cooling Futures, Prudent Traders

Part of XRP's decline stems from the reduction of leverage in the derivatives market. A recent wave of liquidations wiped out about $600 million from bullish positions, wiping out more than a million traders in a single week.

Since then, open interest on XRP futures has plummeted to $3.3 billion, well below the $10.9 billion peak recorded in July. Funding rates have also flattened, a sign of dwindling speculative appetite.

"The scenario looks like a classic sell the news event," commented Riccardo Curatolo, founder and managing partner of Spazio Crypto, adding that not even significant inflows into the ETF would be enough to immediately solve the problem of low short-term liquidity.

A sentiment that echoes dynamics we've seen before: assets often rise in anticipation of a major catalyst, only to fall when the event materialises.

Outlook: A Structural Milestone, Not an Immediate Rally

The arrival of the ETF represents a turning point for XRP and the entire altcoin market, however. It could channel billions in institutional capital, offering the liquidity and legitimacy that XRP has sought for years.

Some analysts call it "a huge step towards mainstream adoption," while others argue that it could trigger a broader altcoin rally if the first few trading days go well. Sceptics, however, warn that ETFs do not change the real utility of the token: the real test remains sustained on-chain growth.

For now, XRP's price chart suggests a consolidation phase between $2.30 and $2.50, unless strong post-launch buying pressure emerges. A strong close above $2.60 could change sentiment, while a break below $2.20 would confirm fears that the peak has already been reached before the event.

In the end, the first spot ETF on XRP in the US represents a structural win, but not necessarily an immediate catalyst. The pre-launch token drop suggests that optimism may already be discounted.

What happens next will depend on one thing: whether institutional investors respond to the opening bell.