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XRP News Today: Institutional XRP ETFs Create Rarity, Yet Market Downturn Restricts Price Growth

XRP News Today: Institutional XRP ETFs Create Rarity, Yet Market Downturn Restricts Price Growth

Bitget-RWA2025/11/26 10:14
By:Bitget-RWA

- Jake Claver highlights ETF-driven depletion of XRP's OTC supply, potentially triggering sharp price surges via liquidity constraints. - SEC's Project Crypto prioritizing disclosure enabled XRP ETF approvals (e.g., Grayscale GXRP), offering institutional access through regulated platforms. - Analysts note ETFs' structural advantages over futures but warn XRP's $2.11 price faces headwinds from broader crypto market weakness (-25% since October). - FeFe's model predicts $47 price target if $10B ETF inflows

Market expert Jake Claver has identified a significant transformation in the

sector, noting that institutional interest through recently introduced exchange-traded funds (ETFs) is swiftly draining the asset’s over-the-counter (OTC) reserves. He believes this trend could trigger a rapid price escalation if liquidity issues continue. This situation is reminiscent of Bitcoin’s ETF-fueled rally earlier this year, but with a notable difference: .

Regulatory conditions in the U.S. have evolved under SEC Chair Gary Gensler’s “Project Crypto,” which emphasizes transparency rather than strict enforcement. This shift has paved the way for a series of XRP ETF approvals, such as Grayscale’s

and Bitwise’s XRP ETFs, both of which started trading on the NYSE in November. These ETFs allow investors to gain direct access to XRP without dealing with custody or wallet logistics, a setup that has historically attracted massive capital inflows to and ETFs .

XRP News Today: Institutional XRP ETFs Create Rarity, Yet Market Downturn Restricts Price Growth image 0
Financial analysts point out the inherent benefits of spot ETFs. Unlike those based on futures, spot ETFs grant direct ownership of the asset, boosting both liquidity and transparency. For XRP, this means institutional investors can now purchase the token through regulated brokers, sidestepping the fragmented OTC market. Canary Capital’s , for example, on its first day, yet XRP’s value still dropped by 4.3% due to overall market selling. This contradiction highlights the difficulty in balancing ETF-driven demand with current market forces.

The liquidity shortage theory, put forward by analyst FeFe, suggests that $10 billion flowing into ETFs could deplete XRP’s available supply, pushing prices higher. FeFe claims that ETFs will need to acquire large amounts of tokens to support their shares, leading to an artificial shortage. At present, XRP is priced at $2.11, but

if inflows cause a supply crunch. Still, critics point out that the overall crypto sector remains sluggish, with Bitcoin falling 25% since October and over $1 trillion in market value wiped out from major cryptocurrencies.

The uneven results of XRP ETFs add further uncertainty. While Bitwise’s XRP ETF has seen $22 million in trading, XRP’s price has remained flat. Franklin Templeton’s XRPZ ETF, which launched in mid-November, briefly lifted XRP by 8% but couldn’t maintain the momentum. These trends illustrate the ongoing tug-of-war between institutional buying and broader economic challenges.

Looking forward, the increasingly competitive ETF market could alter XRP’s future. With ten spot XRP ETFs now available, including those from Grayscale, Bitwise, and 21Shares, the asset is gaining more acceptance in mainstream finance. However, the abundance of products might lessen the influence of any single ETF.

— a 103% increase over twelve months — but most forecasts limit the price to between $6 and $11, well below the $168 high predicted by more extreme scenarios.

Regulatory factors remain unpredictable. Although the SEC’s latest approvals suggest a more open stance, continued vigilance over market manipulation could temper optimism. XRP’s special role as a cross-border payments solution may provide long-term stability, but short-term price swings are expected to continue.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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