Massive $1,120,000,000 Worth of XRP Zapped From Market in 5 Weeks – Here’s What’s Happening

• Over $1.12B XRP quietly moved off exchanges through sustained institutional ETF demand.
• ETF accumulation reduced circulating XRP supply, tightening liquidity across major trading platforms.
• Franklin Templeton emerged as a key player in XRP’s growing institutional ownership shift.

XRP market dynamics shifted noticeably after a significant portion of supply moved away from active trading environments. The development reflects institutional positioning rather than short-term speculative behavior across exchanges.

According to Ash Crypto, XRP spot exchange-traded funds absorbed $1,120,000,000 ($1.12 billion) worth of XRP over five weeks. That statement immediately reframed discussions around XRP liquidity conditions.

Data from SoSoValue provides measurable context to that claim. Total net assets held by XRP spot ETFs climbed to approximately $1,250,000,000 during the same period. Moreover, daily inflow data showed consistent net buying activity rather than isolated accumulation events.

Also Read: Arizona Lawmakers Move to Strip State Taxes From Cryptocurrency Activities

Instead of sudden spikes, ETF inflows appeared repeatedly across trading sessions. Consequently, cumulative holdings followed a steady upward trajectory. This pattern indicates deliberate capital allocation rather than reactive trading behavior.

Notably, the absorbed XRP did not remain accessible on open markets. ETF structures require underlying assets to remain in custody. Hence, the XRP purchase effectively exited the circulating supply.

Additionally, this accumulation differed from typical retail participation. Authorized participants source XRP directly to support ETF share issuance. That mechanism redirected liquidity into longer-term holding structures.

Further insight emerged from another market update. According to Cointelegraph, Franklin Templeton’s XRP spot ETF surpassed 100,000,000 XRP in holdings. The fund now controls approximately 101,550,000 XRP valued at $192,700,000.

That position represents a substantial share of total ETF-held XRP. Moreover, it highlights the growing role of traditional asset managers within the XRP ecosystem. Such firms typically operate with structured allocation strategies.

ETF accumulation reshapes XRP supply behavior

ETF-driven demand alters market supply differently than conventional spot trading. Each ETF share requires XRP held in reserve. As a result, acquired tokens move into custodial storage. Furthermore, ETF-held XRP generally remains locked unless redemptions occur. This behavior limits immediate selling pressure across exchanges. Consequently, the circulating supply tightens without sudden volume disruptions.

However, reduced supply does not automatically translate into price movement. XRP remains influenced by broader digital asset market trends. Still, sustained institutional accumulation introduces a measurable structural factor.

Transparency also supports market confidence, as ETF asset growth closely mirrors reported inflows. This alignment reduces uncertainty surrounding the accumulation scale. Additionally, ETF access expands XRP exposure to regulated investment portfolios. That shift attracts capital beyond traditional crypto-native participants. Hence, ownership distribution continues to evolve steadily.

The scale of recent absorption signals a transition in XRP market structure. Tokens increasingly sit with institutional custodians rather than short-term traders. This trend continues to influence liquidity conditions across the XRP market.

Also Read: CertiK Flags $2.3M Crypto Theft as Hackers Vanish Funds Through Tornado Cash

The post Massive $1,120,000,000 Worth of XRP Zapped From Market in 5 Weeks – Here’s What’s Happening appeared first on 36Crypto.