- XRP ETF holdings soar, tightening market supply and driving growth.
- $1.01 billion XRP locked by institutions could trigger price surge.
- Institutional interest in XRP strengthens, impacting supply and liquidity dynamics.
Institutional investors have locked up approximately $1.01 billion worth of XRP through exchange-traded products (ETFs), significantly tightening the available supply of the token in the open market. This move, as seen on SoSoValue data, reflects a strong institutional presence in XRP, with the total net assets of XRP spot ETFs now exceeding $1 billion.
According to Pumpius, about 800 million XRP are currently held by institutional investment vehicles, including ETFs managed by firms like Canary, Bitwise, Franklin, 21Shares, and Grayscale. Collectively, these issuers control a large portion of XRP’s circulating supply, which has generated significant interest in the market.
Also Read: Top Analyst: XRP to $50 Is a ‘Natural Looking Chart’ – Here’s Why
Institutional XRP Holdings Grow: ETF Issuers Lead the Way
According to SoSoValue’s data, total net inflows to these XRP ETFs have surpassed $1.23 billion, with daily net inflows recently reaching $4.50 million as of February 16. The total value traded across these products has also been impressive, with over $19.69 million in trading volume in the most recent session.
These ETF products are demonstrating strong growth, with individual funds, such as XRPC on Nasdaq, posting substantial assets—around $269.64 million in net assets, while Bitwise’s product holds $259.62 million.
Source: SoSovalue
Market prices for these ETFs have experienced positive movement, with daily gains of around 4%, signaling robust institutional confidence in XRP. This rise in exposure is contributing to the growing institutional interest in the cryptocurrency market.
Locked XRP Creates Supply Pressure: What It Means for the Market
The growing accumulation of XRP by ETF issuers could lead to supply constraints. When institutions lock up large amounts of XRP, those tokens are not available for active trading. This reduces market liquidity, which can contribute to a rise in prices due to scarcity. However, changes in market sentiment could influence these inflows or outflows, potentially altering the supply-demand balance.
In conclusion, the $1.01 billion worth of XRP locked in ETFs highlights the increasing role of institutional investors in shaping the market, with potential implications for XRP’s future price movements.
Also Read: XRP Network Activity Sees a 26% Decline in Just One Week
