Ripple’s cryptocurrency, XRP, recently experienced a notable drop in its value, falling below $2, a level it hasn’t seen since the market crash in early October. This decline comes in the wake of two newly launched exchange-traded funds (ETFs) that track XRP performance, specifically Bitwise’s XRP ETF that began trading on the New York Stock Exchange yesterday.

These funds, while showcasing 100% exposure to the asset, were both met with strong selling pressure from the start, pushing prices down. A significant contributing factor to XRP’s woes is the broader market environment; major cryptocurrency assets such as Bitcoin (BTC) and Ethereum (ETH) have also suffered losses, with Bitcoin dipping to a new low of $85,000, and Ethereum struggling under $2,800.

Reports indicate that XRP has mirrored this downturn, suffering approximately the same percentage losses as these leading assets. Notably, investors have been vigilant about the substantial potential of XRP following the conclusion of Ripple’s legal battle with the SEC, which fueled expectations for positive price movements with the anticipated approval of ETF products.

However, the launch of both ETFs has turned into a classic ‘sell-the-news’ scenario, leading to XRP’s decline beneath the $2 mark for the first time post-October crash. In recent weeks, XRP has faced a notable drop, wiping out previous gains from the year and placing it deep in negative territory.

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• XRP ETF Debut Battle: How Bitwise’s Launch Day Matched Up Against Canary’s XRPC
• The Second XRP ETF Hits US Markets Today: Here’s How It’s Going So Far
• $180M Liquidated in 1 Hour as BTC, ETH, and XRP Crash Harder

In conclusion, despite the recent excitement surrounding the potential of XRP ETFs, the present market conditions have negatively impacted the price of XRP, raising concerns about its future performance.