- XRP supply tightens as 1.58 billion XRP remains on exchanges.
- Demand for XRP ETFs is clear and raises pump expectations.
- The Ripple altcoin could face a major supply shock in 2026.
As we enter the final week of the year 2025, analysts and traders continue to share their thoughts on what to expect for the coming New Year of 2026. So far, some of the most popular expectations lie between a new ATH for Bitcoin (BTC), the long-awaited bullish altseason phase, and a possible realisation of the 5-year supercycle phase. One altcoin stands out, XRP supply tightens as 1.58 billion XRP remains on exchanges, as ETFs soar, supply shock imminent.
XRP Supply Tightens as 1.58 Billion XRP Remains on Exchanges
This bull cycle saw the rise and success of ETFs in the form of BTC and ETH ETFs. As soon as Bitcoin and Ethereum ETFs launched, service providers saw the immediate success and continued rise in demand for the product. This success led to a spike in BTC and ETH prices, although the price of BTC saw a much higher price spike than ETH experienced. This success led to demand for altcoin ETFs as well.
To highlight, financial institutions saw great merit in crypto ETFs and went on to heavily accumulate both BTC and ETH. For instance, BlackRock went on to accumulate both, while a few only accumulated BTC and one, Bitmine Immersion, went on to accumulate ETH alone. Despite the fall in both price assets, institutions continue to buy the dip, showing long-term promise in these assets.
Meanwhile, hope for additional crypto ETFs continued to brew in the form of multiple filings for altcoin spot ETFs. These included filings for many popular altcoins, including NEAR, SOL, XRP, DOGE, and many more. So far, DOGE ETFs have already been approved, fueling high expectations for approval for the rest. What’s more, recent policies will allow bulk altcoin ETF approvals, meaning fast-tracking this process.
As we can see from the post above, anticipation for these ETFs is strong, with demand for certain assets growing much faster than the rest. To highlight, the post above mentions that XRP supply has been steadily tightening, leaving about 1.5 billion XRP on exchanges, following 750 million XRP being absorbed in recent weeks alone. This leads analysts to warn of a major supply shock to hit by early 2026.
XRP ETFs Interest Soar, Supply Shock Imminent
Similarly, Canary Capital CEO Stephen McClurg highlights in a video in the post above, the major bullish potential of XRP, only strengthened by the XRP ETF move. Specifically, McClurg goes on to highlight how global pension funds and insurance companies are showing a lot of interest in XRP ETFs and how XRP is the “rails for the financial system”. Additionally, he highlights Wall Street interest in XRP in particular.
