- Institutional funds are quietly accumulating XRP, with millions absorbed even during low-volume trading periods.
- Steady, modest inflows could compound into billions of XRP annually, potentially overwhelming exchange-held supply.
- If large asset managers fully enter, exchange liquidity could tighten rapidly, increasing the risk of a supply-driven repricing.
ETF analyst Chad Steingraber has sparked renewed debate around XRP supply dynamics after claiming that institutional demand is quietly accelerating. In a series of tweets, Steingraber pointed to recent fund activity as evidence that available XRP on exchanges may be insufficient once large asset managers fully enter the market.
According to his remarks, even modest inflows during a slow holiday trading period are already absorbing meaningful amounts of liquidity.
Funds Absorb Millions of XRP During Low-Volume Trading
Steingraber noted that three funds collectively acquired 10 million XRP in a single day at prices below $1.90. While the figure may appear small in isolation, he emphasized that this occurred during a low-activity session, making it more notable from a flow perspective.
He then extrapolated the numbers to illustrate how quickly demand could compound:
- 10 million XRP per day over a five-day trading week equals 50 million XRP
- Over four weeks, that figure rises to 200 million XRP
- Over a year, the total reaches approximately 2.4 billion XRP
Steingraber stressed that these projections assume slow, conservative accumulation and do not account for additional funds entering the market.
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Today, three funds on a slow holiday trading day took 10 Million XRP at less than $1.90
10M x 5 Days (1 Trading Week) – 50M XRP
50M x 4 Weeks – 200M XRP
200M x 12 Months – 2.4Billion XRP
These are slow, low numbers. More funds are coming. Every asset manager on earth……
— Chad Steingraber (@ChadSteingraber) December 31, 2025
More Asset Managers Expected to Enter the Market
The analyst argued that current demand represents only the early stages of a broader institutional shift. He claimed that more funds are being allocated to XRP and suggested that major global asset managers, including BlackRock, are expected to participate over time.
In that context, Steingraber questioned whether the commonly cited figure of 15 billion XRP held on exchanges could realistically satisfy sustained institutional inflows.“If you think 15 billion XRP sitting on exchanges is enough to satisfy a global asset monster,” he wrote, adding a sarcastic remark to underline his skepticism.
Exchange Supply Could Be ‘Vaporized’
In a follow-up post, Steingraber downplayed debates around the precise amount of XRP available on exchanges. According to him, the exact number is largely irrelevant if institutional demand accelerates as expected. “It doesn’t matter what the ‘real’ XRP amount on exchanges is,” he said. “It’ll be vaporized all the same.”
He further emphasized that this potential supply crunch is not being driven by retail investors, but by professional asset managers accumulating positions for longer-term exposure.
Implications for XRP Market Structure
Steingraber’s comments highlight growing discussion around a possible XRP supply shock, where sustained institutional buying could strain liquid supply and reshape price dynamics.
If exchange balances decline while demand rises, analysts suggest price discovery could become more aggressive. While his projections remain speculative, they add to a broader narrative that XRP is increasingly being viewed through an institutional lens rather than as a retail-driven asset.
As ETF-related conversations continue to gain traction, market participants will be watching closely to see whether on-exchange XRP supply begins to reflect the pressures Steingraber anticipates.
Also Read: XRP Becomes 2025’s Most Traded Token in This Top Crypto Exchange
