41.5% of XRP Supply at a Loss Signals 'Structurally Fragile' Market Amidst Record ETF Debuts

Recent data from blockchain analytics firm Glassnode reveals that approximately 41.5% of XRP's circulating supply is currently held at a loss, indicating a "structurally fragile" market dominated by late buyers. This development comes as the cryptocurrency market grapples with broader instability, even as the first spot XRP Exchange-Traded Fund (ETF) has seen a record-breaking debut. The significant portion of XRP holders underwater raises questions about the token's immediate future despite new institutional investment vehicles entering the scene.

Glassnode's analysis, widely cited across crypto news outlets, indicates that the share of XRP supply in profit has fallen to 58.5%, its lowest level since November 2024 when the token was priced at $0.53. This suggests that a substantial number of investors acquired XRP at prices significantly higher than its current trading value of around $2.15, creating a top-heavy market susceptible to further downward pressure if these holders opt to sell. The firm's report highlighted that roughly 26.5 billion XRP tokens are currently held at a loss.

Adding a layer of complexity to the market, Canary Capital launched the first U.S. spot XRP ETF (XRPC) on Nasdaq, achieving a record $58 million in trading volume on its debut day. This figure surpassed all other ETF launches in 2025, demonstrating strong institutional interest and demand for regulated exposure to altcoins. Bloomberg senior ETF analyst Eric Balchunas noted the impressive performance, stating that XRPC "barely" edged out Bitwise’s Solana staking ETF.

Despite the initial success and substantial inflows into Canary Capital's ETF, XRP's price has experienced a decline of approximately 11% since the ETF's launch. This disconnect is attributed to significant whale selling, with reports indicating large holders offloaded around 200 million XRP within 48 hours of the ETF's debut. Analysts suggest this profit-taking, combined with a broader cryptocurrency market downturn that has seen a $1.1 trillion loss in market value over recent weeks, has overshadowed the positive impact of ETF inflows.

Looking ahead, several other major asset managers, including Franklin Templeton, Bitwise, 21Shares, and CoinShares, are poised to launch their own spot XRP ETFs in the coming days. Market observers hope these additional institutional products could eventually stabilize sentiment and attract further capital, potentially providing a much-needed boost to XRP's price and helping to alleviate the current state of widespread unrealized losses among its holders.