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Why Is XRP Down Today?

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XRP slipped as ETF momentum built, with traders staying cautious ahead of looming legal rulings and potential market-shifting approvals.

Why Is XRP Down Today?

XRP (XRP-USD) slipped 0.86% to $2.0652 on April 18 despite increasing optimism over upcoming ETF launches and growing crypto adoption in Asia. While ETF excitement has fired up parts of the market, traders aren’t fully convinced — and legal overhangs are still casting a long shadow.

ETF Announcements Lift Hopes for Institutional Demand

First up, the ETF action. ProShares is set to launch three XRP Futures ETFs on April 30. These include the Ultra XRP and UltraShort XRP ETFs, aimed at giving institutional investors exposure without holding the token directly.

At the same time, firms like Bitwise, 21Shares, and Grayscale have all submitted applications for XRP spot ETFs. A Grayscale spokesperson told The Block they expect “heightened interest” if approval is granted, with a decision on their filing due May 22.

ETF fans argue this could finally bring more legitimacy and liquidity to XRP. “It’s about time we see a real gateway for institutional capital into the asset,” said a digital asset strategist in a CryptoNews briefing.

Traders Hedge Positions as Legal Risks Linger

But despite the ETF excitement, traders are treading lightly. According to Kaiko, there’s been a sharp skew toward put options expiring April 18. That means traders are paying up to protect against downside — not exactly a vote of confidence.

Much of the hesitation is tied to Ripple’s legal battle with the U.S. Securities and Exchange Commission. While Ripple won key arguments last year, unresolved issues remain. Ongoing litigation still clouds XRP’s regulatory clarity.

Asia Expansion Adds Long-Term Support

Meanwhile, XRP is picking up traction in Asia. HashKey Capital launched the region’s first XRP Tracker Fund — a big move for institutional access. Ripple seeded the fund, backing it directly to signal confidence.

This follows Hong Kong’s push to become a crypto hub, after it approved Bitcoin and Ethereum ETFs last year. With XRP joining the lineup, the region is quickly becoming a launchpad for next-gen asset exposure.

At the time of writing, XRP is sitting at $2.08.

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