A staggering 29% of XRP’s circulating supply has been withdrawn from major trading platforms over the past week,
marking one of the most aggressive exchange balance draws in recent memory. This mass exodus comes as investors
prepare for the debut of a new U.S. spot XRP exchange-traded fund (ETF) by 21Shares, which is scheduled to begin
trading this Monday.
Exchange Balances Plunge
On-chain data reveals that XRP wallets associated with centralized exchanges have seen a net outflow of
hundreds of millions of tokens. The drop in exchange reserves has been driven by institutional and retail
buyers alike, who are shifting their holdings off-platform in anticipation of ETF allocations.
Analysts note that such substantial withdrawals typically indicate long-term bullish sentiment, as market
participants move assets to self-custody or into fund structures rather than keeping them available for spot
trading.
Strong Early ETF Demand
The 21Shares spot XRP ETF is poised to tap into a wave of investor demand that has already propelled similar
products for other major cryptocurrencies. Pre-launch subscriptions suggest heavy interest among wealth
managers, family offices, and crypto-focused asset allocators.
Traders expect the ETF’s entry to bolster XRP’s market capitalization by funneling fresh capital into the
token. Compared to previous launches, the XRP fund has seen some of the fastest initial inflows, reflecting
confidence in the token’s regulatory clarity and technical fundamentals.
Liquidity and Price Dynamics
With fewer tokens sitting idle on exchanges, order book liquidity has tightened, leading to wider bid-ask
spreads in some markets. Despite this, XRP’s price action has remained orderly, trading within a defined range
as volume shifts to over-the-counter desks and ETF channels.
Market makers are adjusting their strategies to accommodate the changing landscape, deploying capital on
alternative venues and using derivatives to hedge large positions.
Looking Ahead
As the new ETF begins trading on Monday, observers will be closely watching net inflows, secondary market
spreads, and the broader impact on XRP’s on-chain activity. If early demand holds steady, it could kickstart
a longer-term accumulation phase for the token and reinforce its role as a liquid bridge asset in global
payment corridors.
For now, the combination of dwindling exchange inventories and strong institutional appetite paints a
bullish picture for XRP’s near-term outlook.