The world’s first spot XRP exchange-traded fund, XRPH11, has plunged more than 20 percent since its highly anticipated launch in Brazil. Issued by Hashdex and listed on the B3 stock exchange, the ETF has failed to maintain investor momentum following a sharp decline in XRP’s market value.
On June 13, XRPH11 closed trading at 18.65 BRL, or approximately $3.37, marking a 6.33 percent single-day drop. The fund has dipped 20.6 percent in the last month despite the euphoria that prevailed when it broke into the scene in late April.
Investor expectations that the ETF would drive XRP demand have not materialized. Instead, the fund has mirrored XRP’s erratic price movements, offering no signs of sustained growth or support from major investors.
Source: Tradingview
The asset is met with so much opposition, and right now, the existing prices languish around 2 dollars. As much as XRP has occasionally gained, those gains have not been sustained to enhance the worth of the ETF.
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Local Market Limitations and Weak XRP Price Stall Fund Growth
Market watchers believe XRPH11’s limited impact stems partly from Brazil’s smaller financial market. Compared to larger economies like the United States, Brazil offers lower liquidity and reduced institutional participation, which restricts ETF growth potential.
Additionally, XRP’s weak performance has made it difficult for the ETF to retain investor interest. The lack of consistent price gains has discouraged both retail and institutional holders from increasing exposure to the asset.
U.S. Regulatory Outlook May Influence Future XRP ETF Demand
As attention drifts from Brazil, market focus is shifting toward the United States. The U.S. Securities and Exchange Commission is expected to make a regulatory decision soon regarding pending spot XRP ETF proposals from Franklin Templeton and WisdomTree.
Both submissions are undergoing a public review, and investors will be keen to see whether the U.S. move may revive XRP in the market. Its result might also affect investor sentiment towards related products worldwide, such as XRPH11.
Elsewhere, Ripple and the SEC sought a court decision reducing the scope of restraints on institutional XRP sales. The ruling may affect the regulator’s outlook for future ETF applications.
Meanwhile, XRP is trading at $2.16, with a small gain of 0.6 percent in the 24 hours and an adverse change of 4.3 percent in the weekly period. Market experts explain that unless there are regulatory advancements or market triggers, either XRP or XRPH11 can continue to struggle.
Conclusion
The steep decline in XRPH11’s value underscores the challenges of launching crypto ETFs in emerging markets. As hype fades, real momentum may depend on regulatory clarity and broader global participation.
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