The world’s first spot XRP exchange-traded fund (ETF), issued by Brazilian cryptocurrency asset manager Hashdex, has plunged sharply over the past month, which aligns with XRP’s broader market performance.
Trading under the ticker XRPH11 on Brazil’s B3 stock exchange, the ETF closed at 18.65 BRL ($3.37) on June 13, down 6.33% for the day and 6.75% from its all-time high. However, the more significant decline has come over the past month, with the product down a steep 20.6%.
Historically, the launch of a spot ETF tends to have a positive effect on the price of the underlying asset.
However, the fund has remained volatile since XRPH11’s debut in late April, closely mirroring XRP’s choppy price action. Despite brief rallies, XRP has struggled to break out above the $2 mark sustainably.
To this end, analysts suggest the ETF’s limited influence may stem from the relatively small size of Brazil’s capital markets compared to the United States.
U.S. spot XRP ETF
Now, attention is shifting to the U.S. Securities and Exchange Commission (SEC), which is reviewing multiple spot XRP ETF applications. Notably, one decision is expected on June 17 regarding Franklin Templeton’s proposed Franklin XRP Fund.
The regulator is also evaluating the WisdomTree XRP Trust, filed by the Cboe BZX Exchange. This application aims to offer investors direct exposure to XRP via traditional brokerage accounts.
The agency began its formal review in May, opening a public comment period to weigh whether the ETF design addresses key regulatory concerns.
Additionally, the SEC’s ultimate decision may hinge on the outcome of its ongoing legal battle with Ripple.
In a recent development, a joint motion filed on June 12 by both parties requests an indicative ruling from Judge Analisa Torres to vacate the injunction restricting XRP sales to institutional investors and reduce the $125 million penalty, potentially paving the way for a resolution to the years-long dispute.
XRP price analysis
At press time, XRP was trading at $2.17, up 0.1% on the day, though still down 4.4% over the past week.
In the short term, a green light from the SEC on June 17 regarding the spot ETF could boost investor confidence and drive XRP toward the $2.50 resistance level. However, a dip below the $2 support remains on the table without a clear bullish catalyst.
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