Canary Capital’s XRP ETF Makes a Fast Start, but the Market Isn’t Following Yet

Canary Capital’s launch of the first U.S. spot-XRP exchange-traded fund under the ticker XRPC has stirred up the crypto world, but not quite in the way some expected. The ETF opened with a headline-grabbing debut, only for the underlying token (XRP) to slip, raising questions about market timing, regulatory tailwinds and whether institutional investors are really ready to lead the next crypto leg.

The fund went live on Nov. 13 after Nasdaq certified its listing on Nov. 12, signalling regulatory doors opening for spot-crypto products beyond bitcoin and ether. Within 30 minutes it pulled in around $26 million in trading volume, and by end-day one reports ranged up to $58 million, making it arguably the strongest ETF debut of 2025 so far.

Yet despite that busy start, XRP itself fell—to about $2.22-$2.24 levels from prior highs near $2.30-$2.40. That drop came even as the ETF debut lit up headlines. One trader on a digital-asset desk put it simply: “You launch the vehicle but the car still needs fuel.” The “fuel” here appears to be broader market buy-in, not just the listing.

What makes this launch so interesting is the contrast between institutional entry and price reaction. On the one hand, Canary’s ability to push a spot XRP ETF through a U.S. listing process shows that the regulatory regime may be shifting. On the other, the underlying token’s lack of follow-through suggests that simply launching an ETF doesn’t guarantee a market move—not if sentiment, macro-factors and liquidity aren’t aligned.

Behind the scenes, institutional accumulation is already evident. Reports surfaced of around $245 million of XRP being bought ahead of the ETF launch by Canary Capital clients and affiliates, hinting that “smart money” is positioning for after the headlines fade. Coupled with the fact that the fund was the first single-asset spot XRP-fund under U.S. rules, the launching-gate advantage is clear.

Still, the risks are tangible. The broader crypto market remains under pressure. Macro headwinds, regulatory uncertainty and the classic “sell-the-news” reflex all played into XRP’s dip despite the ETF launch. The mismatch between vehicle launch and token performance raises questions about whether this is a trend onset or an optics event. As one analyst noted: “Volume is one thing. Adoption is another.”

For Canary Capital itself, the strategy appears to shift to product management rather than aggressive new filings. The company signalled it might hit “pause” on launching further crypto ETFs until additional regulatory clarity arrives, focusing now on building the XRPC product. That signals that the firm sees this launch as a platform, not just a one-off.

The next 7-30 days will be telling. If XRPC continues to draw inflows while XRP stabilises or rises, the launch may mark a structural shift in crypto investing. But if the token remains under pressure and flows taper off, this could become a cautionary tale about “ETF launch doesn’t equal bull run.”

In short: Canary Capital’s XRPC roll-out is a regulatory and institutional landmark, but the story isn’t yet about token upside—it’s about building the vehicle, and seeing whether the market catches on.