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The recent downturn in the crypto market has intensified XRP’s ongoing decline, and the launch of the Bitwise XRP ETF did little to stabilize sentiment. Despite a respectable debut, the fund significantly underperformed compared with Canary’s XRPC ETF, adding pressure during an already turbulent trading environment.
Bitwise’s XRP ETF Records a Modest Opening Day
The Bitwise XRP ETF closed its first trading session with 1,127,647 shares traded, generating approximately $25.93 million in volume. Under normal circumstances, this figure would be considered strong for a newly listed digital asset fund. However, the debut arrived during one of the most volatile market days of the year, making it difficult for the ETF to attract sustained inflows.
By comparison, Canary’s XRPC ETF, which launched just one week earlier, recorded $58.5 million in its first trading day—more than double Bitwise’s figure. This gap has become a talking point among market observers who were expecting the Bitwise product to enter the market with more momentum.
Despite the softer-than-expected start, Canary Capital CEO Steven McClurg congratulated Bitwise publicly. He noted that both firms are demonstrating that “you don’t have to be BlackRock to launch the top ETFs of 2025,” adding that Canary supports Bitwise’s goal of entering the top tier of crypto ETFs—so long as it doesn’t bump Canary out of the rankings.
Analysts Expect a Stronger Day 2 for Bitwise
Several ETF analysts believe that Bitwise may still record improved performance in its second trading session. Thursday’s market-wide turmoil created an unfavorable environment for all risk assets, limiting liquidity and sidelining potential inflows.
With volatility cooling and ETF trading conditions normalizing, some market watchers expect a rebound in activity—especially from institutions that paused orders during the rapid market decline. However, the strength of any recovery may depend heavily on broader macro trends and overall crypto market sentiment.
A Severe Market Meltdown Overshadows the Launch
Bitwise’s timing could not have been worse. The ETF launch landed on a day when global markets experienced one of their most aggressive sell-offs in months.
The S&P 500 shed roughly $1.5 trillion from its intraday high, shaking investor confidence and pushing many traders into risk-off mode. At the same time, Bitcoin tumbled to $87,000, triggering a wave of liquidations across derivatives markets.
The total cryptocurrency market capitalization fell below $2.95 trillion, creating widespread pressure on alternative assets. XRP was among the hardest hit, slipping below $2 only hours after the Bitwise ETF began trading. The simultaneous decline in price and ETF momentum created a difficult backdrop for XRP investors, many of whom were hoping the ETF launch might serve as a catalyst for renewed strength.
XRP Extends Its Multi-Month Downtrend
XRP’s price action has been weakening for several months, and the latest crash has accelerated its decline into a critical technical zone. Analysts had previously warned that XRP’s chart was beginning to mirror a bearish reversal pattern similar to the setup seen in late 2020—a structure that preceded a long and substantial correction.
On the weekly timeframe, XRP continues to display a pronounced bearish divergence. Momentum indicators have been trending lower, and the daily RSI has broken below previous lows, removing the possibility of forming a short-term bullish divergence that could have stabilized the price.
More concerning for traders, XRP closed below a major support area around $2.25, increasing the probability of a deeper retracement. Technical analysts note that XRP’s structure now reflects a pattern of lower highs and lower lows, signaling continued weakness unless buyers reclaim lost support levels.
Critical Support Levels to Watch
At present, $2 remains the final near-term support keeping XRP from revisiting lower price zones. A decisive daily close below this level could open the path to additional declines.
The next key areas analysts are watching include:
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$1.80 — a psychological support level that aligns with historical consolidation zones.
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$1.60 — the next major support that may come into play if selling pressure intensifies.
A break below $1.60 would signal a significant deterioration in market structure and could shift sentiment firmly in favor of sellers.
Market Outlook
While ETF launches have historically provided upside momentum for digital assets, the combination of macro volatility, declining liquidity, and technical weakness has overshadowed the Bitwise launch. XRP now sits at a pivotal moment, where price stability will depend on both broader market recovery and the ability of buyers to defend remaining support levels.
