Investors are closely monitoring XRP as the market reacts to the debut of the first spot XRP ETF. Despite high expectations for a bullish surge, derivatives traders faced a harsh reality. Data from Coinglass reveals that $9.09 million in long positions were liquidated in just four hours, highlighting intense short-term volatility.

Approximately $10 million in XRP derivatives were wiped out during this period, with longs bearing the overwhelming majority of losses. Only $271,060 in shorts were liquidated, resulting in an unprecedented 3,254% liquidation imbalance favoring bearish traders. This sharp, one-sided correction underscores how speculative positions can be drastically affected during high-profile ETF events.

The market response crushed optimism following the Canary XRP ETF launch. XRP’s price retested the $2.30 level, reflecting a stark correction instead of the anticipated rally. Traders who had positioned for a post-ETF surge were left on the losing end, demonstrating the risk of intense hype-driven speculation.

Market commentators describe this episode as a classic “buy-the-rumor, sell-the-news” scenario. Traders anticipating an immediate breakout were caught off guard by the rapid selling pressure that followed the ETF debut. Experts had anticipated this potential outcome, citing historical patterns around major ETF launches.

According to Bloomberg analyst Eric Balchunas, Canary Capital’s XRPC ETF recorded a staggering $58 million in day-one trading volume, surpassing Bitwise’s Solana Staking ETF (BSOL), which launched on October 28. XRPC offers investors direct exposure to XRP without the need to hold tokens, marking it as the largest XRP-related ETF debut of 2025.

Additional spot XRP ETFs are also in development, with issuers including Bitwise, Canary Capital, 21Shares, and Franklin Templeton among those preparing to launch products. Despite the record-breaking ETF debut, XRP’s price fell 8% over 24 hours to $2.30. Prominent cryptocurrency trader DonAlt reported exiting his XRP position after the initial momentum faded.