XRP News Today: Institutional ETFs May Exhaust XRP Reserves Earlier Than Expected

XRP Market Evolves with Institutional ETF Adoption

The XRP market is experiencing significant changes as institutional investors now have greater regulated access through the introduction of new exchange-traded funds (ETFs). This development has led some analysts to caution that the available supply of XRP could diminish more quickly than previously expected.

Market analyst Zach Rector has conducted an in-depth analysis, suggesting that consistent investments into XRP ETFs may substantially elevate the token’s price. Drawing parallels to the surge in Bitcoin’s value following ETF inflows, Rector’s projections indicate that XRP could potentially surpass $168 if it attracts similar levels of institutional capital over time. Although XRP’s current inflows are smaller than Bitcoin’s, the analysis points to the possibility of growing institutional interest in the future.

Spot XRP ETFs Signal a Turning Point

The recent approval and rollout of spot XRP ETFs have marked a major milestone for the cryptocurrency. Franklin Templeton’s XRPZ, which began trading on NYSE Arca on November 24, 2025, saw robust investor interest from the outset. On its first day, XRP’s price climbed by 8.25% as the fund recorded 768,692 shares traded. This launch followed similar offerings from Bitwise and Canary Capital, with Grayscale preparing to introduce its own GXRP fund—demonstrating rising confidence among institutional players.

These ETFs provide a regulated avenue for traditional investors to gain exposure to XRP, helping to lower entry barriers and potentially boosting both liquidity and price stability. David Mann of Franklin Templeton highlighted the fund’s importance in offering “convenient and regulated access to a digital asset” that is integral to global settlement systems.

Potential for Rapid Supply Shortages

Rector’s models emphasize the need for XRP holders to be prepared for the possibility of swift supply exhaustion. By analyzing Bitcoin’s $62.25 billion net ETF inflows over an 11-month period and applying a 200-fold market capitalization multiplier, Rector estimates that $50 billion in XRP ETF inflows could propel the token’s price to $168. This projection is based on a circulating supply of 60.25 billion tokens and a current market capitalization of $117.5 billion. While Rector notes that these are not formal price predictions, his data-driven approach highlights how sensitive XRP’s value could be to institutional investment, especially since outflows remain relatively low compared to Bitcoin’s volatility.

Wider Impact on Businesses and Risks

The implications of these developments extend beyond price movements. For small and medium-sized enterprises (SMEs) in Europe, increased liquidity from XRP ETFs could help stabilize the token’s value, making it a more practical option for international payments and treasury operations. In Asia, fintech startups are navigating evolving regulatory landscapes, which may foster innovation in crypto-based payroll and cross-border payment solutions. However, risks remain—particularly the potential for market manipulation by large XRP holders, or “whales,” which could impact ETF valuations and undermine investor trust.

Looking Ahead: XRP’s Role in Global Finance

As the ecosystem for XRP ETFs continues to develop, the token’s integration into mainstream financial systems seems increasingly likely. With products like Franklin Templeton’s XRPZ gaining momentum, XRP’s influence within global financial infrastructure could grow, especially if institutional inflows follow a path similar to Bitcoin’s. Nevertheless, as Rector’s research indicates, competition for XRP’s finite supply may intensify, presenting both opportunities and challenges for investors navigating this rapidly changing landscape.