Another "historic moment" for XRP: Bitwise XRP ETF logs in to NYSE Arca today.

On November 20, 2025, Bitwise, a cryptocurrency asset management company with a management scale of $15 billion, officially launched the Spot XRP ETF on NYSE Arca, trading under the code “XRP”, and announced a waiver of the 0.34% management fee for the first $500 million in managed assets. This listing follows closely behind the Canary XRP ETF, becoming the second approved XRP exchange-traded fund, while similar products from Grayscale and Franklin Templeton are also set to debut next week.

In terms of market reaction, the price of XRP experienced a 9% drop to $2 following the news of the ETF approval, then rebounded 5% to $2.12, with trading volume surging by 30%. Industry analysts pointed out that the centralized listing of the XRP ETF marks a new phase in the institutionalization process of cryptocurrency in the traditional financial sector, which will have a profound impact on capital allocation in the global payments space.

Bitwise XRP ETF Product Structure and Listing Details

Bitwise, as a leading cryptocurrency asset management company in the United States, has demonstrated the deep integration of traditional finance and the digital asset space through the listing process of its XRP ETF. The product received listing approval from NYSE Arca by submitting Form 8-A and CERT documents to the U.S. Securities and Exchange Commission, becoming the third cryptocurrency ETF recognized by mainstream exchanges after Bitcoin and Ethereum ETFs. The trading code is directly “XRP”, simplifying the identification and trading process for investors, while also showcasing the project's confidence in brand value.

In terms of fee structure, Bitwise has adopted a highly competitive pricing strategy. The 0.34% management fee is lower than many actively managed encryption funds, and it offers a full fee waiver for the first $500 million in assets, a promotional approach that is quite common in the traditional ETF market but is considered innovative in the encryption field. Analysts believe that this pricing strategy is aimed at quickly attracting early capital inflows and establishing a scale advantage to respond to upcoming competitive products. Industry estimates suggest that if the $500 million asset threshold is reached, Bitwise will save investors about $1.4 million in management fees in the first month.

To support the product launch, Bitwise has also planned a series of market education activities. Among them, the most notable is a joint live broadcast with Ripple's Chief Technology Officer David Schwartz and Bitwise's Chief Investment Officer Matt Hougan, discussing topics covering the development history of XRP, the impact of ETFs on the community, and the future landscape of digital assets. This cross-industry dialogue not only enhances product visibility but also provides a professional perspective for traditional investors to understand the technical value of XRP.

Market Response and XRP Price Dynamics Analysis

XRP's price movement before and after the ETF listing vividly illustrates the market psychology of “buy the expectation, sell the fact.” Within 24 hours before Bitwise officially announced its approval, the price of XRP quickly dropped from around $2.2 to the $2 mark, with a daily decline of over 9%. On-chain data shows that this selling pressure primarily came from long-term holders and whale addresses, who chose to take profits when the good news was realized. This pattern also appeared during the early days of Bitcoin and Ethereum ETF listings, reflecting the typical event-driven trading behavior in the encryption market.

However, the selling pressure quickly eased after the ETF officially began trading. The XRP price rebounded strongly from an intraday low of $2.01 to $2.17, ultimately closing at $2.12, with an intraday fluctuation of 8%. Behind this V-shaped recovery is a significant expansion of spot trading volume—24-hour trading volume increased by 30%, indicating that new funds are supporting at lower levels. From a technical analysis perspective, the $2 mark has become an important short-term support level. If it can stabilize above $2.15, it may open a new upward channel.

The data from the derivatives market provides a more complex picture. According to CoinGlass statistics, the total open interest for XRP futures increased slightly by 0.30% to $3.38 billion, but performance varied across different exchanges. CME's institutional-dominated market saw a growth of 0.56%, while mainstream CEXs declined by 1.17%. This difference reflects the varying interpretations of the ETF event by institutional and retail investors. Most analysts believe that as the ETF brings more stable spot demand, XRP's volatility may gradually converge, aligning more closely with the characteristics of more mature assets.

XRP key market data and capital flow

• Spot Price: Rebouncing from a low of 2.01 USD to 2.17 USD, currently trading at 2.12 USD
• Volume Change: Increased by 30% in 24 hours, indicating a significant rise in market participation.
• Futures Open Interest: Total amount of 3.38 billion USD, CME growth while mainstream CEX declines.
• Funding Rate: The perpetual contract maintains a slight positive funding rate, with leveraged long positions still dominating.
• Support and Resistance: 2 dollars is a key psychological support, 2.3 dollars is recent resistance.

From the perspective of capital flow, the first-day performance of the Canary XRP ETF provides important reference. The product recorded a trading volume of $59 million and a net inflow of $245 million on its first day of listing, surpassing the first-day performance of all Bitcoin Spot ETFs and even exceeding the initial results of Bitwise's own Solana staking ETF. This strong start suggests that the XRP ETF may attract a new group of investors different from traditional encryption investors, particularly those institutional funds focusing on payment tracks and cross-border settlement.

XRP ETF Competitive Landscape and Product Differentiation

With the addition of Bitwise products, the XRP ETF market has initially formed a diversified competitive landscape. Currently, the products with a clear timeline include the already listed Canary XRP ETF (XRPC), the upcoming Grayscale XRP Trust ETF (GXRP), and Franklin Templeton's XRP ETF (XRPZ). This intensive listing pace is similar to the wave of Bitcoin ETF launches in early 2024, but the approval speed has clearly accelerated, reflecting regulatory agencies' shift in attitude towards mature encryption assets.

Different products exhibit varying strategic focuses in their architectural design. As the first product launched, Canary has attracted early attention due to its first-mover advantage; Grayscale may attract traditional Grayscale holders' migration by leveraging its brand recognition and existing trust conversion foundation; Franklin Templeton, as a well-established asset management giant, provides significant endorsement to the XRP asset class simply by its participation. Bitwise differentiates itself with its professional encryption background and proactive fee strategy, which may create a unique appeal in the early stages of competition.

From a historical perspective, the “winner takes all” effect of the ETF market is equally evident in the encryption field. In the Bitcoin ETF market, BlackRock and Fidelity together account for over 70% of the market share. Analysts predict that the XRP ETF may present a more diversified pattern, as investors' allocation logic for payment-type assets differs from that for value storage assets. However, in the long run, products with lower fees, stronger liquidity, and better market maker support will still dominate.

XRP ETF Regulatory Environment and Legal Background Evolution

The smooth listing of the XRP ETF is inseparable from the subtle changes in the regulatory environment. In July 2024, the U.S. Securities and Exchange Commission officially ended its long-standing lawsuit against Ripple, clarifying that XRP does not constitute a securities offering in programmatic sales. This key ruling has cleared the biggest obstacle for institutions to launch related products and has created regulatory certainty that is distinctly different from other altcoins. Legal experts point out that this clarity is the core reason why the SEC was able to quickly approve the XRP ETF while remaining cautious towards other competing coins.

From the application process, the XRP ETF adopts a legal framework similar to that of Bitcoin and Ethereum ETFs, based on the Securities Act of 1933 rather than the Investment Company Act of 1940. This structure avoids direct disputes over the determination of securities characteristics while providing sufficient disclosure protection for investors. It is worth noting that all approved products clearly outline custody solutions, using qualified third-party custodians instead of self-custody by the exchange, which further reduces regulatory concerns.

The global regulatory trend also provides a favorable environment for the XRP ETF. The MiCA framework passed by the EU in early 2024 clearly classifies XRP as a “utility token,” and the Monetary Authority of Singapore subsequently updated its payment service guidelines, including XRP as a compliant payment token. This formation of international consensus puts greater coordination pressure on U.S. regulators and accelerates the approval process for related products.

Ripple Ecosystem Development and Use Case Expansion

The listing of the XRP ETF coincides with a critical juncture in the development of the Ripple ecosystem. According to Ripple's Q3 2024 report, its XRP-based cross-border payment solution, On-Demand Liquidity (ODL), has achieved a quarterly processing volume exceeding $10 billion, representing a year-on-year growth of 150%. Major partners include financial giants such as American Express, Santander Bank, and Japan's SBI Remit, with network coverage expanded to over 40 countries.

On the technical level, the XRP Ledger completed several important upgrades in 2024. The activation of the AMM (Automated Market Maker) function has introduced native DeFi capabilities to the ecosystem, with over 200 million XRP currently deposited in various liquidity pools. Meanwhile, the highly anticipated Hooks smart contract functionality has entered the testing phase, which will upgrade the XRP Ledger from a blockchain focused on payments to a full-featured smart contract platform, directly competing with Ethereum and Solana at the application layer.

From the perspective of adoption, Ripple's CBDC platform pilot scope continues to expand. In October 2024, the Republic of Montenegro announced the issuance of a pilot digital currency based on this platform, becoming the third publicly cooperating country after Colombia and Bhutan. These government-level collaborations not only bring substantial demand to the XRP ecosystem but also strengthen its market positioning as a “compliant encryption asset,” which has special appeal to institutional investors.

XRP Investment Strategies and Asset Allocation Recommendations

For investors considering allocating XRP through an ETF, it is necessary to formulate corresponding strategies based on investment goals and risk preferences. Short-term traders should pay attention to liquidity changes and price fluctuation patterns during the initial listing phase of the ETF. Historical data shows that new ETF products typically experience higher volatility in the first two weeks, followed by gradual stabilization. It is recommended to set a stop-loss below 2 dollars and monitor the breakthrough of the 2.3 dollar resistance level.

The considerations for medium to long-term investors are more complex. From a valuation perspective, XRP currently has a market capitalization of approximately 110 billion USD, which is significantly lower than Bitcoin and Ethereum but higher than most competing coins. This intermediate position gives it both growth potential and relative stability. In a portfolio, it is recommended to allocate XRP in a proportion of 5-15%, depending on the outlook for the payment sector and personal risk tolerance.

Tax optimization is another important dimension. When investing in XRP ETF within taxable accounts, one must pay attention to capital gains tax, while in retirement accounts such as IRAs, tax benefits can be enjoyed. Especially for Roth IRA holders, the combination of XRP's high growth potential and tax-exempt characteristics may generate significant long-term value. Investors should consult a professional tax advisor to choose the most suitable account type based on their individual circumstances.

Bitwise Chief Investment Officer Matt Hougan called the listing of the XRP ETF a “historic moment.” He is not only describing the birth of a product but also marking a key turning point in the institutionalization process of cryptocurrency. From the smoke of the courtroom confrontation between Ripple and the SEC to the smooth landing of institutional asset management products on traditional exchanges, XRP's journey encapsulates all the struggles and glories of the crypto industry transitioning from the margins to the mainstream. As more institutional funds flow in through the ETF channel, the transformation of the global payment system may be accelerating, and the outcome of this transformation may redefine the boundaries and efficiency of currency flow.

FAQ

What is the difference between XRP ETF and directly holding XRP?

XRP ETF trades on traditional securities exchanges, providing a regulated exposure channel without the need to manage private keys, suitable for investors who prefer traditional investment processes; directly holding it grants users complete control but requires them to bear security responsibilities.

What are the main costs of investing in the Bitwise XRP ETF?

In addition to the 0.34% annual management fee, investors also need to consider brokerage commissions and the bid-ask spread, but the first $500 million in assets enjoy a management fee waiver.

What impact does the approval of the XRP ETF have on other competing coins?

It has set a precedent for the approval of ETFs for similar asset classes (such as payment-oriented tokens), but regulators will still review each project's degree of decentralization and practical value on a case-by-case basis.

How does ETF capital inflow affect XRP price?

By creating stable Spot demand to support prices, but in the short term, it is more affected by market sentiment and the overall encryption market, while in the long term, it depends on ecological development and adoption progress.

How do ordinary investors choose different XRP ETF products?

It is necessary to compare management fee rates, liquidity levels, market maker strength, and issuer credibility. Bitwise currently offers fee discounts and has a professional encryption background, making it one of the options worth considering.