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Spot XRP ETFs in the United States are creating a "vacuum cleaner effect," absorbing over 1% of the total supply like a black hole, thereby intensifying the supply shortage in the market.
According to U.Today, a cryptocurrency specialized media outlet, on April 24 (local time), spot XRP ETFs in the U.S. have accumulated 1.23% of the total XRP supply as of the end of April 2026, setting a new all-time high. Data compiled by the crypto data analytics platform SoSoValue shows that the value of this volume amounts to $1.08 billion, with a net inflow of $3.89 million observed in the last 24 hours alone.
The primary driver of this capital inflow is identified as the XRPZ fund managed by Franklin Templeton, which absorbed the entire net inflow that occurred during the day. The trend throughout April completely offset the outflows seen in March, successfully marking a clear turnaround in sentiment. A structural change is being observed as tokens previously held on exchanges are largely moving to institutional custody, reducing the circulating supply in the market.
In less than a month recently, over $71 million in new capital has flowed into spot XRP ETFs. As institutional investors show a strong tendency for long-term holding, a supply squeeze is forming behind the scenes in the market. The amount of XRP currently managed by institutional funds is approaching 787 million XRP, which is a factor continuously shrinking the available supply in the circulating market.
This large-scale institutional accumulation contrasts with the cautious stance of retail investors, maintaining a delicate balance at current price levels. However, experts analyze that if positive news, such as progress related to U.S. cryptocurrency market structure legislation, emerges amid deepening supply shortages, explosive price volatility could occur. Favorable news in a state of dried-up circulating supply acts as a catalyst, further amplifying price increases.
As institutional funds rapidly absorb XRP, the market faces an invisible state of supply deficiency. With over 787 million XRP being incorporated into long-term investment vehicles like ETFs, the supply-demand imbalance due to future legislative environment changes or market liquidity supply conditions is expected to accelerate further.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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