XRP Institutional Demand Rises as Exchange Supply Hits Multi-Year Low
Major banks are increasing exposure to XRP as exchange-held supply declines sharply. Intesa Sanpaolo disclosed via an SEC 13F that it owns 712,000 shares of the Grayscale XRP Trust, valued at about $18 million. The filing also shows nearly $235 million in crypto-related investments, with XRP making up roughly 6%–7% of its digital-asset allocation. Other financial firms including Goldman Sachs, Morgan Stanley, Millennium, and Citadel have also reported XRP exposure through exchange-traded products, which are often favored for custody, compliance, and accounting simplicity.
Exchange data highlights the supply squeeze. Glassnode reports XRP reserves across the top 10 exchanges have fallen from around 4 billion XRP to roughly 1.6–1.7 billion XRP. XRP withdrawals from exchanges reached a five-year high, suggesting investors are moving holdings to private wallets.
ETF and derivatives signals add to the institutional narrative. U.S. spot XRP ETFs recorded nearly $6 million in net inflows on July 30, with Bitwise and Franklin Templeton leading. Total U.S. spot ETF assets are approaching $1 billion, with cumulative inflows around $1.5 billion. CME continues expanding XRP derivatives through futures and options.
On the ecosystem side, Ripple’s RLUSD stablecoin is now available on South Korea’s four largest exchanges (Upbit, Bithumb, Coinone, Korbit), supporting broader market access.
For XRP traders, the combination of lower exchange supply and higher institutional participation in XRP ETFs and derivatives typically supports a constructive market backdrop, though near-term price moves may still be volatile.
Bullish
The report links two commonly bullish drivers for XRP: (1) lower XRP available on exchanges and (2) rising institutional exposure via ETFs/derivatives. When exchange supply falls and withdrawals accelerate, it can reduce immediate sell-side liquidity and support price resilience, similar to past “supply squeeze” periods seen in other major coins where sustained off-exchange accumulation preceded stronger spot demand.
Short term, the $6M daily net inflow into U.S. spot XRP ETFs and CME derivatives activity may increase momentum and attract tactical flows from traders tracking ETF headlines and on-exchange positioning. However, ETF inflows do not guarantee immediate rallies; liquidity and market-wide risk sentiment can still override token-specific narratives.
Long term, the SEC 13F disclosure by Intesa Sanpaolo and the broader bank/asset-manager participation through XRP ETPs suggest a normalization of XRP as an institutional “product,” which can stabilize demand over cycles. If exchange reserves continue shrinking while RLUSD expands access in South Korea, it could reinforce both utility-driven and capital-driven narratives for XRP.
Overall, the balance of evidence favors a bullish tilt for XRP market structure, with the main risk being near-term volatility around macro conditions and fund flow fluctuations.