Institutional interest around Ripple [XRP] gradually strengthened again after ETF demand recovered during early May.
Earlier March outflows had reflected cautious positioning as broader market weakness reduced risk appetite across crypto markets. However, sentiment steadily improved once regulated XRP exposure began attracting fresh capital again.
That shift accelerated on the 11th of May after XRP ETFs recorded nearly $25.8 million in net inflows, marking the strongest daily intake since January. Franklin Templeton’s XRPZ contributed roughly $13.6 million, while total ETF holdings climbed beyond 860 million XRP.
Source: SoSoValueMeanwhile, XRP traded between $1.42 and $1.48, showing firm support despite lacking an aggressive breakout. That stability increasingly suggests institutions are accumulating strategically, although weaker macro conditions could still limit stronger upside momentum.
XRP wallet growth signals conviction
That growing institutional participation increasingly aligned with on-chain behavior as XRP whale wallets climbed to a new all-time high. At press time, the XRP Ledger held 332,230 wallets containing at least 10,000 XRP, extending a steady accumulation trend that has strengthened since June 2024.
Source: SantimentEarlier volatility briefly interrupted that structure after the February crypto market crash erased more than 4,500 large wallets within two days, according to Santiment data.
However, accumulation steadily recovered afterward, while wallet growth eventually surpassed previous highs. That rebound increasingly reflected stronger long-term conviction instead of short-term speculative positioning.
Rather than aggressively rotating out during uncertainty, larger holders continued expanding exposure beneath the surface. That behavior increasingly reinforced expectations that regulatory clarity and expanding ETF access could strengthen XRP’s longer-term adoption narrative while supporting future capital inflows.
XRP conviction shifts into derivatives markets
Rising whale accumulation has increasingly reshaped XRP’s market behavior, accelerating speculative demand alongside improving regulatory sentiment. At press time, Futures activity climbed toward $3 billion in the past 24 hours, while spot volumes held near $656 million.
That widening imbalance showed traders increasingly chasing policy-driven momentum through leveraged positioning instead of direct accumulation.
Meanwhile, Exchange Reserves steadily declined toward 2.7 billion XRP, reducing immediate sell-side liquidity across the market. That reserve contraction suggested larger holders were gradually shifting coins toward longer-term storage and operational utility instead of preparing immediate exits.
Final Summary
- XRP’s record whale growth and strongest ETF inflows since January reinforce rising institutional and long-term conviction around the asset.
- However, the durability of the move depends on whether regulatory clarity translates into lasting adoption or simply fuels another speculation-driven XRP cycle.
Source: https://ambcrypto.com/xrp-etfs-rebound-with-25-8m-inflows-can-falling-supply-fuel-a-rally/
