XRP’s Institutional Surge: ETF-Driven Supply Squeeze Sets Stage for Price Discovery
The launch of 21Shares' XRP spot ETF on December 1, 2025, marks a pivotal moment in the digital asset's journey toward mainstream financial adoption. As the fifth such fund approved in the United States, its entry has catalyzed a significant supply-side dynamic that is rapidly reshaping XRP's market structure. This analysis delves into the mechanics of the ongoing institutional accumulation, the resulting liquidity crunch, and the bullish implications for XRP's valuation as demand from regulated investment vehicles begins to outpace the available circulating supply on exchanges.
XRP ETF Launch Sparks Supply Squeeze as Institutional Demand Rises
21Shares debuts its XRP spot ETF today, marking the fifth such fund approved in the US. The issuer, managing over $5 billion in assets, enters a market where ETF inflows have already absorbed 1% of XRP’s circulating supply within eight days of approvals. This demand surge is tightening liquidity: exchange reserves have plummeted 45% since September, from 3.95 billion to 2.6 billion XRP.
The drain mirrors ETF activity. Binance alone shed $640 million worth of XRP—precisely matching ETF purchases. Meanwhile, blockchain data reveals 40,000 new wallets created over a weekend, predominantly by custodians or institutions preparing for scaled usage. Analysts speculate this groundwork anticipates the 2026 Clarity Act, which could cement XRP’s regulatory standing.
Parallels to 2017’s bull run emerge. Then, XRP rocketed from fractions of a cent to nearly $4 amid similar supply constraints and institutional interest.
Ripple Approved to Expand Payments in Singapore
Ripple has secured an expanded Major Payment Institution license from Singapore’s Monetary Authority, enabling it to offer end-to-end payment services in the country. The approval allows Ripple to leverage its digital tokens, including XRP, for cross-border transfers and other regulated payment activities.
Singapore’s status as a leading fintech hub in the Asia-Pacific region makes this development particularly significant. Financial institutions in the jurisdiction can now access faster and more secure blockchain-based payment solutions through Ripple’s licensed infrastructure.
XRP Price Speculation Intensifies Amid SWIFT Integration Rumors
XRP holds above $2 despite broader market weakness, as speculation grows about SWIFT potentially adopting the token for cross-border liquidity. Such a MOVE could catalyze institutional demand, reshaping global payment rails.
The cryptocurrency's resilience contrasts with struggling peers, suggesting market-makers may be positioning for a structural shift. SWIFT's messaging network currently facilitates trillions in annual transactions—XRP integration WOULD represent a watershed moment for blockchain interoperability.
XRP Price Potential Soars as ETF Inflows Spark Market Speculation
The launch of Canary Capital's XRP ETF (XRPC) has ignited discussions about the cryptocurrency's price trajectory. The fund absorbed over 108.7 million XRP worth $245 million on its first trading day, setting a bullish precedent for similar products.
Market analysts are projecting hypothetical scenarios where sustained ETF demand could drive XRP to new highs. If all XRP ETFs collectively pulled in 11 million tokens daily for a year, the cumulative effect on price could be significant given the constrained supply dynamics.
