XRP Support May Weaken as ETF Inflows Slow and LTHs Exit

• ETF inflows tapering despite elevated assets at $1.24 billion.

• Long-term holders (2-3 years) sharply cut exposure in one month.

• Open interest hits $450 million low since November 2024, per CryptoQuant data.

XRP ETF inflows slowing as long-term holders sell and open interest plummets to $450M. Key metrics reveal eroding price support—monitor for shifts in demand and volatility today.

What do slowing XRP ETF inflows signal for the market?

XRP ETF inflows began strongly, driving total net assets to around $1.24 billion following recent launches. However, daily inflows have since tapered, with multiple sessions showing minimal new capital entering the market. This slowdown suggests the initial wave of institutional demand via ETFs is fading, even as price stability holds temporarily, potentially exposing XRP to reduced buying pressure.

Source: SoSoValue

Assets under management remain high, signaling no mass exodus, but the deceleration in fresh inflows highlights a cooling accumulation phase. Earlier data from market trackers indicated quiet institutional buying through larger wallets stabilized price amid inflows. Now, this backing appears to be thinning, altering the demand landscape.

What are XRP HODL waves showing about long-term holders?

Glassnode’s HODL Waves metric tracks XRP held by age cohorts, revealing that wallets dormant for 2-3 years—regarded as committed long-term holders—dropped their supply share from 14.26% in late November to 5.66% by late December. This 60%-plus reduction over one month points to profit realization or strategic repositioning by these steadfast investors.

Source: Glassnode

Such a rapid shift from this cohort undermines foundational support. Long-term holders provide market ballast during volatility. Their exit, paired with ETF slowdowns, increases exposure to short-term sentiment swings. Market observers note this dynamic often precedes range-bound or corrective price action until new buyers step in.

Compounding this, XRP derivatives activity reflects broader caution. Open interest on Binance futures has declined to about $450 million, the lowest since November 2024.

Source: CryptoQuant

This drop correlates with position closures, mainly leveraged longs, signaling traders reducing bets amid uncertainty. Lower open interest dampens volatility from speculation, but it also highlights fragile participation levels. Rebuilding leverage would require fresh catalysts.

Frequently Asked Questions

What impact does declining long-term holder supply have on XRP ETF inflows?

The drop in 2-3 year holder supply from 14.26% to 5.66% erodes base demand, amplifying the effect of slowing XRP ETF inflows. This reduces overall market support, increasing sensitivity to external factors like macroeconomic shifts or regulatory news.

Why has XRP open interest reached its lowest level since November 2024?

XRP open interest on Binance has fallen to $450 million due to traders closing leveraged positions amid fading ETF momentum and holder distribution. This reflects caution, leading to less speculative activity and potentially quieter price movements until confidence returns.

Key Takeaways

• Slowing XRP ETF inflows: Total net assets at $1.24 billion, but daily gains minimal—initial demand wave cooling.
• LTH supply reduction: 2-3 year holders’ share plunged 60% in a month per Glassnode, thinning support base.
• Open interest decline: $450 million low signals de-leveraging—watch for renewed trader entry.

Conclusion

XRP ETF inflows and long-term holder dynamics, alongside plummeting open interest, underscore shifting market support despite high net assets. These trends highlight vulnerability until demand rebounds. Track on-chain metrics closely for signals of stabilization or further adjustment in the XRP landscape.