Why XRP Price Didn’t Surge After the ETF Launch?

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XRP Price

The post Why XRP Price Didn’t Surge After the ETF Launch? appeared first on Coinpedia Fintech News

The launch of the Canary XRPC ETF created a wave of excitement across the XRP community as the fund recorded more than 58 million dollars in first-day trading volume, along with strong net inflows. Yet the XRP price stayed almost unchanged, leaving many investors wondering why there was no immediate reaction. 

XRP price is trading around 2.30 after a 7 percent dip today, and it has been stuck between 2.40 and 2.50 for weeks despite the buzz around the ETF and Ripple-related developments.

Why the XRP Price Stayed Flat on Day One of the ETF Trading

ETF activity takes place on the stock market, not on crypto exchanges. When investors buy shares of an ETF, it does not instantly trigger the real buying of XRP on the crypto market. The stock market follows a T plus 1 settlement cycle, which means the ETF issuer receives the inflow money only on the next business day. Only after that can the issuer begin purchasing XRP to back the fund.

This delay is the main reason XRP did not show an immediate price jump on the day of the ETF launch. The actual buying of XRP happens later, not at the moment the ETF shares are traded.

XRP often gets promoted as a game-changer for cross-border payments, yet the price does not climb in a straight line. The broader crypto market has turned risk-off in recent days, with traders selling altcoins as global markets show signs of stress. XRP fell along with the rest of the market, which added to the flat reaction on ETF launch day.

Another factor is real-world usage. Ripple has more than 300 banking and financial partners, but many of them use the network without using XRP itself. XRP is used only when institutions choose On-Demand Liquidity for fast settlement. That means adoption is growing, but not at a scale that forces the price higher right away.

XRP also has a large circulating supply, and big holders often sell into rallies. These sales limit the impact of short-term positive news unless there is sustained new demand.

How Inflows Turn Into Real XRP Buying

Once the issuer receives the inflow capital, it begins purchasing XRP from exchanges or through over-the-counter desks. These purchases are used to back the ETF and ensure that each share is supported by the real asset. 

If inflows continue every day, these consistent buy orders may slowly reduce the available supply of XRP. Over time, this can create upward pressure on the price, but it does not happen in one day.

Analysts note that inflows spread across weeks or months have a better chance of affecting the price than a single day of strong volume.

What to Expect Next For Ripple (XRP)?

The ETF launch is still a major step for XRP, but its impact will unfold gradually. If inflows stay steady, the issuer will continue buying XRP in the background, and that repeated daily demand could eventually lift the price. For now, the flat reaction simply reflects how ETF settlement works and how the broader crypto market is behaving.

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FAQs

Why didn’t XRP’s price rise on the first day of the XRPC ETF launch?

ETF trades settle the next day, so issuers buy XRP only after receiving funds. This delay prevents immediate impact on the crypto market.

When does an ETF actually start buying XRP?

The issuer buys XRP after T+1 settlement, using inflow capital received the following business day to back the fund with real assets.

Why is XRP staying flat despite strong ETF demand?

Market-wide risk-off sentiment, large supply, and selling from major holders are keeping XRP range-bound even with positive ETF activity.

How can ETF inflows affect XRP’s price over time?

Steady inflows lead to repeated issuer purchases, slowly reducing available supply. This gradual demand can support long-term price strength.

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