A recent commentary by XRP researcher Ripple Bull Winkle has raised alarms regarding the upcoming demand for XRP following the introduction of new exchange-traded funds (ETFs). He emphasized that these ETFs will necessitate substantial amounts of XRP, and warned that the public might not grasp the implications until it is too late.
Bull Winkle”s insights come amid a growing trend where large institutional investors are rapidly acquiring XRP, outpacing the awareness of everyday traders. He posits that the emergence of additional XRP ETFs could already be initiating a supply crunch.
In a recent video, Bull Winkle highlighted the “pressure” building under the price of XRP. He noted that the asset typically thrives not during sharp upswings in Bitcoin, but rather when Bitcoin stabilizes. While retail investors have largely vacated the market following periods of volatility, institutional players continue their accumulation strategy. This divergence contributes to the unique feel of the XRP chart, despite short-term price declines.
One of the most compelling data points he shared came from Canary Capital, which reported that its XRP ETF has amassed $342 million in XRP since its launch in November, with inflows occurring consistently every trading day. However, Canary Capital is not alone in this endeavor; other asset managers such as Grayscale, Bitwise, and Franklin Templeton have also reported significant inflows. Specifically, Grayscale has recorded $211 million in inflows for its GXRP ETF, while Bitwise has accumulated $184.87 million. Franklin Templeton follows with $132.3 million in inflows since its launch.
As of now, the total investments into XRP ETFs have reached $887.12 million, with total assets exceeding $881.25 million. To Bull Winkle, this accumulation reflects a strong belief among institutions that the market is considerably undervaluing XRP.
Looking ahead, two additional XRP ETFs, from 21Shares and WisdomTree, are set to launch this month. The increasing number of ETF launches will provide more opportunities for issuers to acquire large quantities of XRP to meet demand, and this accumulation is occurring discreetly, off-exchange, before it is visible in the market”s liquidity.
Bull Winkle advises that retail investors are misdirecting their focus by asking, “Why isn”t XRP“s price moving?” He asserts that significant activity is occurring behind the scenes, with institutions accumulating assets, ETFs gearing up, and liquidity diminishing. Once ETF filings compete for XRP, a substantial price increase is likely to follow. Historically, this scenario leads to a surge of retail interest, often referred to as FOMO, occurring after much of the upward movement has already transpired.
Other analysts echo Bull Winkle”s concerns regarding XRP“s supply constraints. Zach Rector pointed out that the tradable supply of XRP may be below 10 billion, which is significantly lower than the approximately 60 billion circulating supply reported by various trackers. Analyst Jake Claver has indicated that the ETFs are rapidly depleting over-the-counter (OTC) and dark pool reserves, which previously had only 1–2 billion XRP available privately. Claver believes this limited supply could lead to a dramatic price surge as demand eclipses available liquidity.
