Goldman Sachs Holds, JP Morgan Discards… Institutions Divided in the XRP Market

▲ XRP, Goldman Sachs/AI Generated Image ©

Although $1.3 billion flowed into the XRP (Ripple) spot ETF market, JP Morgan completely withdrew from XRP investment. With regulatory tailwinds and institutional buying emerging simultaneously, the market is now focused on whether it will break through $1.50.

According to the investment media outlet TradingNews on May 14 (local time), the cumulative inflow of funds into XRP spot ETFs increased to $1.35 billion to $1.36 billion, reaching an all-time high. XRPI surged 6.93% to $8.49 in one day, and XRPR also rose 6.71%. Leveraged products XRPT and UXRP soared 13-14%, strongly reflecting expectations for the U.S. cryptocurrency market structure bill, the CLARITY Act. However, daily net inflows slowed to $0 as of May 13, and total net assets also decreased from $1.16 billion to $1.14 billion, according to analysis.

The market shock was more pronounced in JP Morgan's movements. According to the media, JP Morgan completely liquidated its XRP investment position by selling all 3,870 shares of its Bitwise XRP ETF holdings. In contrast, during the same period, BlackRock expanded its IBIT holdings by 174% and significantly increased its exposure to FBTC, BITB, and BITO. With new investments in Bitwise Solana Staking ETF (BSOL) and an increased allocation to Ethereum spot ETFs, it is effectively assessed that institutional funds have been reallocated to focus on Bitcoin, Ethereum, and Solana instead of XRP.

However, not all institutions turned their backs on XRP. Nasdaq-listed financial services firm Marex Group established new positions totaling approximately $9.4 million by combining Canary Capital XRP ETF (XRPC) and Bitwise XRP ETF, entering the top ranks of major institutional holders of XRP ETFs. Goldman Sachs currently holds $152.16 million worth of XRP ETFs, and Millennium Management also maintains over $27 million, the media reported. This indicates that the outlook for XRP is sharply divided even among institutional investors.

In the derivatives market, speculative funds are also increasing again. XRP open interest on Binance increased to approximately $475.4 million, and the Z-score recorded 1.65. Santiment data showed that the number of wallets holding more than 10,000 XRP reached an all-time high of 332,230. The market interprets this as a quiet accumulation trend continuing among medium-to-long-term investors. However, the XRP price remains below the $1.45-$1.50 resistance zone, and the media analyzed that “a close above $1.50 is necessary to open up scenarios for $1.90 and $2.”

The media cited the expansion of XRP Ledger (XRPL)'s tokenization and lending markets, and the Chicago Mercantile Exchange (CME)'s plan to introduce XRP index futures, as long-term positive factors. However, it also diagnosed that high U.S. inflation and a tightening environment continue to burden risk assets. It specifically warned that if the XRP ETF's strength does not translate into actual fund inflows and price breakthroughs despite regulatory expectations, it could end as a short-term overheated rally. The market anticipates that breaking through $1.50 will be a critical turning point determining XRP's medium-to-long-term direction.

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