XRP Whales Dump 200M Tokens Following ETF Launch

XRP Whales Sell 200 Million Tokens Amidst ETF Debut, Analysts Point to Strategic Rebalancing

Large XRP holders sold approximately 200 million tokens shortly after the first US spot ETF began trading, creating significant selling pressure despite strong institutional inflows. The ETF accumulated over $250 million in assets through in-kind creation, while whale activity showed a reduction in exposure. Analysts note that this contrast signals strategic rebalancing by long-term players while professional funds continue more stable accumulation.

The sale of nearly 200 million XRP by major wallets coincided with the debut of the new US spot ETF, prompting a moderate price pullback even as institutions increased exposure. This move followed several weeks of regulatory attention and a stricter environment for flows into large-cap crypto assets. Additional reports indicate that liquidity conditions across Asian and European desks remained stable, suggesting that the downturn stemmed primarily from large-wallet activity rather than a broad investor exit.

Whale Activity Shapes XRP Trading Dynamics

On-chain data reveals that wallets holding more than 1 million XRP reduced their positions during the ETF’s opening hours. This pattern is often observed when prices reach profit-taking zones. Market analysts suggest that this behavior does not undermine XRP’s medium-term structure, especially since institutions continue to build exposure through in-kind creation mechanisms that leave minimal trace in public order books.

The ETF launched with assets under management exceeding $250 million, which is considered a solid outcome for a first-day listing. Professional traders highlight that these products offer regulated access for managers seeking crypto exposure without the direct burden of custody. XRP’s established role in cross-border settlements remains one of its strongest fundamental pillars, attracting funds that prioritize assets with demonstrable operational use and proven efficiency.

XRP ETF Drives New Institutional Framework

The debut of the XRP ETF arrives at a time when US regulators are considering adjustments to integrate digital assets more seamlessly into established payment systems. Proposals currently under review may grant stablecoin issuers and crypto firms more efficient access to settlement infrastructure, thereby reducing their dependence on traditional intermediaries. Ripple has expressed support for these developments, viewing them as an opportunity to strengthen services linked to RLUSD and broaden adoption across financial institutions.

Analysts argue that if regulatory shifts continue in this direction, assets like XRP could benefit from steadier institutional inflows. While whale-driven volatility can impact short-term momentum, institutional demand provides a crucial buffer that helps absorb selling waves. Market strategists also point to the expanding partnerships between fintech companies and regional banks as another factor boosting XRP’s long-term utility, particularly in regions where transaction speed and cost efficiency are paramount.

In conclusion, the launch of the XRP ETF and the subsequent market reaction suggest that XRP is reinforcing its position within the digital finance landscape. This reinforcement is supported by its real-world infrastructure, growing institutional participation, and increasing corporate alignment.