A concerning trend has emerged in the XRP market: approximately 41.5% of circulating XRP supply is currently underwater, meaning investors bought tokens at higher prices than current market value. This figure suggests many are holding unrealized losses and dampening sentiment while limiting short-term price movements. Despite positive developments regarding Ripple’s legal battles and ecosystem growth, XRP has struggled to regain momentum since its last rally. 41.5% underwater reflects a broader pattern in the asset’s performance over recent months. The introduction of spot XRP ETFs could be crucial for XRP’s recovery, as they offer a path towards increased demand and potential price stability. Unlike futures-based funds, spot ETFs directly hold the underlying asset, potentially leading to stronger market impact if approved. If approved, XRP ETFs could introduce fresh capital into the market, potentially offsetting current bearish pressure and boosting prices. However, it’s important to remember that ETFs alone may not be a solution to all of XRP’s challenges, as broader market conditions, regulatory clarity, and Ripple’s continued growth will also play vital roles in determining the asset’s future trajectory. Will upcoming spot-XRP ETFs help alleviate this bearish pressure and potentially shift sentiment for the better? The community is watching eagerly for any positive news in this regard. With a significant portion of XRP holders currently underwater, the crypto community awaits a catalyst that could reverse this trend. If ETF-related news breaks positively, it might not just lift prices but also reduce the amount of XRP supply currently at a loss, restoring confidence in its long-term prospects.