All eyes are currently fixed on XRP as investors monitor its price movements amidst the growing buzz surrounding the recent launch of the first spot XRP ETF. However, the XRP derivatives market has disappointed bullish traders who had predicted a surge immediately following the ETF launch. Data from Coinglass reveals a massive $9.09 million in long positions were liquidated in a mere four hours.

Approximately $10 million was wiped out in the XRP derivatives market within the last four hours, with long traders bearing the brunt of these liquidations. Specifically, $9.09 million of the total liquidations were from long positions, compared to only $271,060 in shorts during the same period. This one-sided liquidation resulted in XRP recording a staggering 3,254% liquidation imbalance, significantly favoring bearish traders.

This four-hour XRP liquidation trend has garnered considerable investor interest, effectively crushing the hopes of traders who had bet on an asset price surge fueled by the hype surrounding the Canary XRP ETF launch. Instead of the anticipated bullish trajectory, XRP experienced a sharp price correction, retesting the $2.3 level and leaving bullish traders in a disadvantaged position. This price action, which dashed hopes post-XRPC launch, highlights how aggressively bullish sentiment had built up around the Canary XRP ETF.

Speculators have characterized the XRP futures activity as a classic “buy-the-rumor, sell-the-news” event. Traders heavily positioned for an upside breakout were caught off guard by immediate selling pressure that followed the XRP ETF debut. Consequently, this liquidation event was not entirely unforeseen, as market experts had previously predicted such an outcome.

According to Bloomberg analyst Eric Balchunas, XRPC, a spot cryptocurrency ETF offered by Canary Capital, has emerged as the biggest ETF launch of 2025, boasting an impressive $58 million in day-one trading volume. This performance slightly surpassed that of the Bitwise Solana Staking ETF (BSOL), which began trading on October 28. XRPC is the first US-based product offering investors pure direct exposure to XRP, eliminating the need for them to directly hold the tokens.

Beyond XRPC, multiple other spot XRP ETFs are currently in the pipeline. These prospective offerings include products from issuers such as Bitwise, Canary Capital, 21Shares, Franklin Templeton, and other market players. Despite the significant ETF launch, XRP's price has plunged, trading at $2.30, an 8% decrease over the past 24 hours. Popular pseudonymous cryptocurrency trader, DonAlt, reported exiting his XRP position after its initial strength dissipated.