- XRP has struggled to maintain momentum, with its Brazil-based spot ETF XRPH11 dropping over 20% since launch due to market volatility and limited investor interest.
- XRP could see renewed bullish sentiment if the U.S. SEC approves pending ETF applications, with a decision expected by June 17.
XRP ETF Debut Meets Harsh Reality in Brazil
The world’s first spot Ripple ETF, launched under the ticker XRPH11 on Brazil’s B3 stock exchange, is facing a rocky start. Issued by asset manager Hashdex, the ETF has declined over 20% since its late-April debut, falling in tandem with XRP’s own market volatility. On June 13, XRPH11 closed at 18.65 BRL (approx. $3.37), recording a 6.33% daily loss and showing no signs of stable upward momentum.
Despite initial excitement, XRPH11’s value has mirrored XRP’s struggle to hold above the $2 threshold, limiting the fund’s appeal among both institutional and retail investors.
Why XRPH11 Is Struggling
While spot ETFs are generally seen as bullish catalysts, XRPH11 is being constrained by two main factors: XRP’s erratic price action and Brazil’s limited market scope. Analysts point out that Brazil’s smaller capital markets don’t offer the liquidity or reach needed to support large-scale ETF success. As a result, XRPH11 has seen muted trading activity and tepid investor interest.
This early underperformance underscores how jurisdictional limitations and market sentiment can heavily influence even groundbreaking financial products.
All Eyes on the U.S. SEC
With the Brazilian XRP ETF faltering, investor attention is shifting to the United States, where the SEC is reviewing multiple spot XRP ETF proposals. Leading the charge is the Franklin XRP Fund by Franklin Templeton, with a decision expected by June 17. Another proposal, the WisdomTree XRP Trust, is also under evaluation by the SEC, potentially paving the way for mainstream XRP access via U.S. brokerage platforms.
Legal developments could influence these approvals. A June 12 court filing in the Ripple vs. SEC case requested easing restrictions on XRP institutional sales and a reduced civil penalty—outcomes that may sway the SEC’s ETF stance.
What’s Next for XRP?
Currently priced at $2.16, XRP has seen slight 24-hour gains but remains down 4.3% on the week. Technical analysts suggest a successful U.S. ETF approval could lift XRP toward $2.50, though a lack of regulatory clarity still threatens a dip below the $2 support.
As the countdown to June 17 continues, the crypto world is watching closely to see if U.S. approval can revive the momentum that Brazil’s XRPH11 failed to deliver.
