- XRP ETF launch breaks records, raising $37.7 million on debut.
- Ripple’s controlled token release strategy aims to prevent market shocks.
- Despite growth, XRP faces concerns over increasing circulating token supply.
XRP’s price has been relatively stagnant, holding at around $3.03, with a 3% drop in the last 24 hours. Although there has been positive news recently, including the introduction of the XRP ETF and XRP futures options, these actions have not led to a major price rise. One of the most important issues weighing down on the value of XRP is the rising supply of the currency.
Bill Morgan acknowledges the concerns surrounding XRP’s growing supply. While XRP has a fixed maximum supply of 100 billion tokens, a large portion remains locked in escrow, with about 35.9 billion XRP still under Ripple’s control. As of mid-2025, approximately 59.77 billion XRP are in circulation, and this gradual increase in supply could potentially dilute the token’s value over time.
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XRP’s Controlled Release and Its Impact on Market Perception
Morgan argues that Ripple’s structured release of tokens is not the same as uncontrolled inflation. The planned release will eliminate market shocks, which would result from gradual supply increments in a transitionally predictable way. So far, this strategy has been helpful in ensuring the price remains stable amid the increasing supply in circulation.
Ripple has also hinted at future mechanisms like token burns to counter inflationary pressures. These measures could help sustain XRP’s value by reducing the circulating supply once all escrowed tokens are released.
Though the fear of inflation remains, XRP has been growing steadily over the years. The market does not respond to the slow rise in supply, and XRP continues to gain value as time goes on.
XRP ETF Launch Breaks Records, Raising $37.7M on Day One
The launch of the REX-Osprey XRP ETF on September 18, 2025, marked a significant milestone, raising $37.7 million on its first day. This became a historical mark of U.S. altcoin ETFs and signifies that the investment products targeted at altcoins are in significant demand. Also, the DOGE Dogecoin ETF raised $17 million, which, combined with the previous first-day trading, amounted to more than $54 million.
The XRPR ETF is organised under the Investment Company Act of 1940 with controlled access to XRP with the help of a hybrid structure of direct ownership, foreign exchange-traded products, and derivatives. While the structure adds credibility, it also introduces risks like tracking errors due to limited direct custody of the cryptocurrency.
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