The cryptocurrency market witnessed a major milestone with the launch of the first U.S. spot XRP exchange-traded fund (ETF), Canary XRP ETF, trading under the ticker symbol XRPC on Nasdaq. Despite an initial surge driven by strong institutional demand, the fund has faced a volatile decline, underscoring the unpredictable nature of the crypto industry.
Canary XRP ETF: A Promising Start
At its launch, the Canary XRP ETF captured investor interest by offering regulated exposure to XRP, eliminating the need for direct ownership of the token. With $483 million in institutional inflows during December 2025, the ETF’s total assets reached $1.3 billion within weeks—a groundbreaking accomplishment amid ongoing regulatory hurdles in the crypto market.
Initially, the fund saw a strong rally, quickly climbing into the mid-$26 range. However, it couldn’t sustain the momentum, closing the latest trading session at $20.26, down nearly 23.9% from its peak. Year-to-date returns remain flat, and the ETF’s performance signals challenges tied to the broader cryptocurrency sentiment and the underlying asset’s volatility.
Understanding the Volatility
The ETF’s decline reflects larger market trends, with XRP itself struggling under bearish pressure. Falling below key support levels, XRP is trading at $1.91, marking a 10% drop over the last week. Technical indicators such as the 50-day and 200-day simple moving averages remain bearish, signaling limited chances of a rebound in the short term. Additionally, the Relative Strength Index (RSI) sits just above neutral territory at 42, suggesting weak momentum for buyers to regain control.
This downturn in XRP reflects widespread risk aversion across the cryptocurrency market, where shifting investor behavior has affected previously robust institutional inflows. As a result, even innovative funds like the Canary XRP ETF are experiencing challenges in maintaining strong performance post-launch.
Invest Wisely in Crypto ETFs
For those looking to invest in cryptocurrency ETFs, understanding the risks associated with market volatility is crucial. Comprehensive platforms like eToro allow users to invest in crypto assets, stocks, and ETFs with 0% commission on stocks. Beginners and intermediate traders can also benefit from features such as automated copying of top traders in real time. As always, ensure your investment strategy aligns with your risk tolerance and financial goals.
The introduction of the Canary XRP ETF represents a step forward for crypto funds, but its recent performance highlights the unpredictable nature of the market. As investors reassess their strategies, the key takeaway is to stay informed, monitor technical trends, and tread cautiously when approaching high-risk investments like cryptocurrency ETFs.
