Grayscale Executive Says XRP ETFs Could Absorb Up to 6% of Circulating Supply

Grayscale - ETF XRP
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Grayscale’s Head of Research, Zach Pandl, stated on The XRP Pod that spot XRP ETFs could absorb between 5% and 6% of the cryptocurrency’s circulating supply. The executive noted that this phenomenon would replicate the institutional behavior seen in Bitcoin and Ethereum, where issuers purchase and custody the actual asset, effectively removing it from the open market. 

This action reflects a key structural shift for XRP, as reduced liquidity on exchanges could amplify price movements in the face of rising demand. Institutional interest is already tangible: weekly inflows into XRP-linked products hit a record high in 2026, and financial giants like Morgan Stanley have already reported exposure to these funds to the SEC. 

As asset managers and pension funds increase their exposure through regulated products, the XRP market will experience a continuous supply shock. Moving forward, investors will be watching closely to see if the remaining liquidity on exchanges is sufficient to absorb the upcoming waves of institutional buying.


Source: https://x.com/Xaif_Crypto/status/2062179714631090397


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