Why is Ripple (XRP) Down Today? Price Slides Below $2.20 as Spot ETF Approval Remains Elusive – CryptoMode
XRP dropped from $ 2.16 to $ 2.16 in the last 24 hours, reflecting a wider wave of feeling of risk on the cryptocurrency market, despite the regulatory stages that should have played in its favor. He managed to recover land during the day but remains less than $ 2.20, according to Coingecko data.
Barely a few weeks ago, the director of assets based in Vermont, Teucrium, launched the first ETF linked to XRP in the United States – the daily TeUcrium ETF XRP (Ticker: XXRP). The leverage product allows investors to bet on the daily movements of XRP through term contracts.
He made his debut on the Arca NYSE with around 5 million dollars in volume of negotiation during his first day. A few days later, Proshares received regulatory approval to deploy three other ETF XRP, which should be launched on May 14.
But the market response was disappointing. These products do not hold real XRP, and this is a point of collision for many investors. An ETF Spot – which would require buying and storing the token directly – rests the ultimate price for companies like Franklin Templeton, Grayscale and 21Shares, which applied to Securities and Exchange American Commission to list such a product.
A decision at the request of Franklin Templeton was pushed to June 17, despite the hope that the new management of the dry under President Paul Atkins could accelerate the adoption of cryptography.
This delay probably fueled frustration and sales pressure among investors who banish on a faster path to an ETF spot. Bloomberg analyst Eric Balchunas, always sees an 85% chance approval in 2025, while polymarket traders Place the chances of 78%.
The XRP price is increased by economic contraction
A wave of negative macroeconomic data affecting XRP and the wider cryptography market.
US economy unexpectedly contracted From 0.3% in the first quarter – the first drop since 2022 – is mainly made on an increase in imports before the expected prices. Inflation has also arrived warmer than expected, which aroused concerns about the next decision of the Federal Reserve. The shares have dropped sharply, the S&P 500 down 1.4% and the NASDAQ lowering more than 2% at the time of the drafting.
The main cryptocurrencies have also experienced low performance, Bitcoin lowering 1.3% in the last 24 hours, while Ethereum ether has lost 3.5% of its value. The wider market of cryptocurrencies is down approximately 2.1%.
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