XRP Withdrawals Rise as Spot XRP ETFs Top $1.2B, Boosting Self-Custody Demand
XRP holders are withdrawing coins from centralized exchanges as U.S. spot XRP ETFs record cumulative net inflows above $1.24 billion since their late‑2025 launch. XRP trades near $1.29 (down ~10% week, ~31% month) and remains well below its all‑time high, but ETF-driven institutional buying has produced sustained demand — over 40 consecutive days of net inflows — tightening exchange liquidity. On‑chain metrics show 7.6 million holders globally, growing long‑term holder positions, balanced perpetual futures leverage, and reduced short‑term speculator activity. The combination of ETF accumulation and expanding DeFi use cases (e.g., Flare Networks’ FXRP and multi‑strategy vaults) is driving a shift toward long‑term conviction and self‑custody solutions; hardware wallets like Ledger Nano X are seeing renewed interest. The article highlights a potential supply squeeze on exchanges, questions whether the shift is structural or speculative, and notes retail promotions (Ledger BTC credit) that may be amplifying hardware wallet demand.
Bullish
Net inflows into spot XRP ETFs exceeding $1.24B and 40+ consecutive days of positive flows indicate sustained institutional demand, which removes supply from exchanges and can create a liquidity squeeze that supports higher price floors. On‑chain indicators — growing long‑term holder positions, balanced perp leverage, and reduced short‑term speculation — further reduce downside risk from forced liquidations. DeFi integrations (FXRP, multi‑strategy vaults) and increased self‑custody adoption (Ledger interest) signal strategic accumulation rather than purely speculative moves. Historically, similar ETF-driven outflows (e.g., early Bitcoin ETF inflows) tightened exchange supply and contributed to multi‑month bullish trends. Short term, price volatility may persist as markets digest position shifts and profit‑taking; but medium‑to‑long term, sustained institutional buying and reduced circulating supply are bullish drivers. Risks: if inflows reverse or ETFs experience outflows, the supply dynamic would weaken; macro shocks or regulatory changes could also dampen demand.