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14 hour ago
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XRP ETFs May Absorb Entire Supply With Continued High Inflows

A new analysis highlights the potential impact of large spot ETF inflows on the availability of XRP tokens.

Potential Impact of ETF Inflows on XRP Supply

  • An analyst projects that a single XRP ETF could see daily inflows averaging $90 million.
  • If 12 ETFs operate at this level, daily inflows could reach $1.08 billion.
  • Assuming half of these flows create demand for XRP, issuers might need to purchase around 229 million XRP daily.
  • This pace could lead to the acquisition of nearly 27.49 billion XRP in six months, approaching half of the current supply.

Current Fund Flows and Market Reaction

  • Canary Capital's XRPC ETF started with $245 million in day-one inflows.
  • Franklin Templeton’s EZRP is launching soon, with expected first-day demand between $150–$250 million.
  • Market reaction has been muted; purchases often occur over-the-counter, delaying their effect on public exchanges.

Price Dynamics and Technical Analysis

  • The price of XRP remains volatile, recently slipping over 14% from last week to near $2.14.
  • Technical analysts warn of potential downside, with targets near $1.50 due to a failed breakout pattern.
  • The token reached a high of $3.66 in July but has since struggled to maintain upward momentum.

Featured image from Gemini, chart from TradingView