The amount of XRP held on centralized exchanges has seen a sharp decline in recent days, marking a significant shift in the asset’s on-chain dynamics as it approaches a notable milestone. Recent data indicates that over 149 million XRP, valued at approximately $336 million, exited exchanges in just a 24-hour span.
This substantial movement occurs amidst somewhat volatile market conditions, yet accumulation trends appear to be strengthening. Analysts suggest that investors may be adjusting their positions in anticipation of a potential new demand source, specifically the upcoming launch of a Spot XRP ETF in the United States this week.
Massive XRP Outflows from Crypto Exchanges
The most recent exchange-reserve data reveals a remarkable decrease of millions of XRP on crypto exchanges over the past few days, bringing total reserves across tracked platforms to around $6.63 billion as of November 13. Such sudden outflows indicate that investors are transitioning tokens into private storage rather than preparing to liquidate.
The recent withdrawals, exceeding two percent of the available exchange supply, stand out as one of the most notable single-day reductions seen in recent months, raising questions about the ultimate destination of this liquidity.
This reserve contraction coincides with an increasing anticipation surrounding a possible Spot XRP ETF debuting this week. Canary Capital’s Form 8-A filing has set the stage for Nasdaq to list the fund as early as November 13, pending the finalization of regulatory procedures.
The potential ETF has become a pivotal focus among traders. Historical parallels can be drawn to developments in the Bitcoin and Ethereum markets, where similar ETF approvals led to significant inflows and heightened demand. Even in the absence of a definitive green light, the mere setup is influencing on-chain behavior as whales and long-term holders position themselves in anticipation of a new wave of institutional interest.
Can the Price React Positively?
Such a considerable drop in exchange reserves limits the XRP supply available for immediate trading, setting the stage to create the buying pressure necessary for price increases. Investors moving their tokens off exchanges often exhibit a longer time horizon, which inherently reduces short-term selling pressure.
If the ETF launches as scheduled and attracts substantial capital, the diminished supply on exchanges could amplify price reactions. However, whether this will result in a sustained price uptrend largely depends on the level of demand that the ETF launch produces.
Recent market occurrences illustrate this phenomenon, with the two Spot Solana ETFs in the U.S. experiencing steady capital inflows since their introduction. Nevertheless, many market observers posit that a Spot XRP ETF could potentially generate even greater liquidity than its Solana counterparts, propelled by the asset’s broader global reach and institutional investor interest.
At the time of writing, XRP is trading at $2.50, reflecting a 3.8% increase over the past twenty-four hours. The landscape ahead looks promising as traders keep a close eye on the upcoming ETF developments.
