Why XRP Price Remains Flat Despite Strong ETF Inflows
Institutional inflows into XRP-linked ETFs do not always produce immediate price rallies because purchases are typically executed over-the-counter (OTC) and routed through market makers. According to Bitwise CIO Matt Hougan (cited by CryptosRus), ETF providers direct market makers to source XRP gradually on exchanges to avoid market disruption. Acquired XRP is then moved to custodians, so visible on-exchange buying pressure is muted even when ETF inflows are strong. Another key factor is exchange supply: declining XRP balances on exchanges can tighten available float and apply upward pressure over time, whereas stable or ample exchange inventories can limit price moves. In short, ETF inflows reflect demand at the product level but are absorbed strategically to prioritise execution efficiency and price stability rather than immediate price impact. (Keywords: XRP, XRP ETF, ETF inflows, OTC execution, exchange supply)
Neutral
The article points to execution methods and exchange supply as primary drivers that mute price reaction to ETF inflows. OTC purchases and market-maker sourcing reduce visible buying pressure, so inflows don’t translate into sudden demand spikes on public order books. This tends to limit short-term volatility — a neutral effect for traders who might have expected immediate rallies. Historically, similar dynamics occurred with Bitcoin and ETF products where heavy institutional demand was absorbed by OTC channels and custodianship, delaying on-chain or on-exchange price impact. However, reduced exchange balances (lower float) can produce sustained upward pressure over weeks to months if the float remains constrained, creating a bullish structural tailwind over the medium-to-long term. For traders: expect muted short-term responses to ETF inflow headlines, watch exchange-listed XRP balances and large OTC fills reports for leading indicators, and consider position sizing for potential gradual appreciation rather than fast pump moves.