XRP, with Record-Breaking Supply Locked and an ETF Accumulation Frenzy... Is a Supply Shock Rally Coming?

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Spot XRP ETFs in the U.S. are exacerbating the supply shortage in the market by creating a "vacuum cleaner effect," sucking in over 1% of the total supply like a black hole.

According to crypto media outlet U.Today on April 24 (local time), U.S. spot XRP ETFs have accumulated 1.23% of the total XRP supply as of late April 2026, setting a new record high. Data compiled by 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 main driver of this capital inflow is identified as the XRPZ fund managed by Franklin Templeton, which absorbed the entire net inflow for the day. The trend throughout April completely offset the outflow observed in March, successfully reversing the 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' tendency for long-term holding strengthens, a supply squeeze is forming behind the scenes in the market. The current amount of XRP managed by institutional funds is close to 787 million XRP, a factor that continuously shrinks the available supply in the circulating market.

This large-scale accumulation by institutions 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. crypto market structure legislation, emerges amid a deepening supply shortage, explosive price volatility could occur. Favorable developments occurring when the circulating supply is scarce act as a catalyst, further amplifying price increases.

As institutional funds rapidly absorb XRP, the market faces an invisible state of supply deficit. With over 787 million XRP incorporated into long-term investment vehicles like ETFs, the supply-demand imbalance is expected to accelerate further in the future, depending on changes in the legislative environment or market liquidity conditions.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*