XRP ETF Launch Imminent as Whales Sell Off Holdings

The path to a spot XRP ETF appears increasingly clear as multiple applications advance through regulatory channels. 21Shares has filed an 8(a) application that notably excludes the ‘delay amendment,’ meaning the product could automatically go live around November 27 unless the US Securities and Exchange Commission intervenes. This development follows recent amendments filed by Canary Capital and represents one of several active XRP ETF applications currently under consideration.

Franklin Templeton has also progressed significantly with its XRPZ application, updating its S-1 filing and achieving positioning with the Depository Trust & Clearing Corporation (DTCC). The DTCC inclusion represents a crucial infrastructure step for ETF operations, indicating that regulatory and operational hurdles are being systematically addressed. Current data from prediction platform Polymarket reflects overwhelming market confidence, showing expectations above 99% for a spot XRP ETF reaching US markets this year.

Industry experts cited in the source material suggest the first XRP ETF could launch as soon as next week, creating a compressed timeline for what would represent a landmark moment for cryptocurrency adoption. The convergence of multiple applications from established financial firms like 21Shares and Franklin Templeton signals growing institutional acceptance of XRP as a legitimate asset class worthy of regulated investment products.

Despite the positive regulatory developments, substantial selling pressure from large XRP holders presents a concerning counter-narrative. Data from analyst Ali Martinez reveals that XRP whales have disposed of an additional 500,000 tokens in the last 48 hours alone, continuing a pattern of significant offloads that predates the current ETF optimism. This persistent selling by major market participants suggests underlying skepticism about XRP’s near-term price prospects.

The whale activity occurs despite positive news beyond the ETF front, including investment rounds and new acquisitions by the company behind the token. This divergence between fundamental developments and market behavior indicates that large holders may be using the ETF optimism as an exit opportunity rather than a reason to accumulate additional positions. The sustained selling pressure raises questions about whether institutional adoption through ETFs will be sufficient to absorb the supply being released into the market.

Martinez’s analysis suggests that the whale selling could foreshadow further price weakness despite XRP’s recent bounce from $2.10 lows and current 5% daily gains. The pattern of distribution by large holders typically precedes broader market downturns, as retail investors often follow whale movements, either consciously through sentiment analysis or unconsciously as selling pressure eventually overwhelms buying interest.

Market analysts are expressing caution about XRP’s price trajectory despite the bullish ETF developments. Ali Martinez has noted that further pain could be on the horizon, with potential declines to and below the $2.00 level. This bearish technical outlook suggests that the ETF news may already be priced into current valuations, leaving the asset vulnerable to profit-taking and further distribution.

IncomeSharks has echoed similar concerns, predicting that investors seeking to buy XRP below $2.00 might soon have their opportunity. The convergence of analyst predictions around the $1.90-$2.00 range as a potential support zone indicates technical and sentiment-based analysis pointing toward near-term weakness. Martinez specifically described this price range as acting like a ‘magnet’ for XRP, suggesting strong gravitational pull toward these lower levels.

The current market dynamic presents a classic ‘buy the rumor, sell the news’ scenario, where anticipation of ETF approval has driven recent gains, but actual approval could trigger profit-taking. For XRP investors, this creates a challenging environment where regulatory success doesn’t necessarily translate to price appreciation, particularly when large holders are actively reducing their positions during the optimism phase.