Is XRP’s Supply Tightening? Exchange Outflows, ETF Demand Suggest It Might Be

Goldman Sachs has quietly built one of the largest known institutional positions in XRP, holding close to $154 million through various exchange-traded fund products — a figure that places the Wall Street giant ahead of hedge funds and trading firms that have also begun staking out exposure to the digital asset.

The Goldman position was disclosed alongside smaller holdings from Millennium Management, which reported about $23 million in XRP ETF exposure, and Citadel Advisors, which holds roughly $4.50 million.

Companies including Jane Street and DRW Trading Group also reported positions. The breadth of names involved points to growing institutional acceptance of XRP as a regulated investment vehicle, even as the coin’s price has declined sharply since the funds launched.

The XRP ETFs have actually held up pretty well despite the massive pullback in price. They’ve taken in a cumulative $1.4 billion since launch. pic.twitter.com/Bjtmb0y40D

— James Seyffart (@JSeyff) March 10, 2026

XRP was trading near $2.50 when spot ETFs began trading in November 2025. It has since dropped to around $1.38 — a fall of 44%.

Despite that slide, cumulative inflows into XRP ETFs have reached $1.4 billion, according to Bloomberg ETF analyst James Seyffart.

The continued buying has raised questions about who exactly is behind the money flowing in and what their time horizon looks like.

On-chain data from CryptoQuant shows a spike in XRP withdrawals from Binance. Between February 21 and March 7, the exchange recorded between 12,500 and 20,000 withdrawal transactions. Each surge was followed by a sharp drop in activity before picking back up again — a pattern analysts say may reflect investors moving coins off trading platforms and into longer-term storage.

When large amounts of any asset are pulled from exchanges, the pool of coins available for immediate trading shrinks. Combined with steady ETF inflows, some market observers see the trend as a signal that available supply is being absorbed from multiple directions at once. Whether that dynamic will push prices higher remains to be seen.

XRP has been consolidating between $1.31 and $1.42. Broader crypto market sentiment has stayed bearish, and analysts say that is likely keeping a lid on any near-term price movement.

Away from price action, activity on the XRP Ledger has been climbing. Daily transactions on the network have reached roughly 2.7 million, driven in part by real-world asset tokenization projects building on the chain. The total value of tokenized assets on the network has approached $461 million.

The contrast between rising network usage and a stagnant price has been a recurring theme for XRP. Supporters point to the on-chain growth as evidence of real utility developing beneath the surface. Critics note that activity metrics and price do not always move in the same direction, at least not right away.

Featured image from Vecteezy, chart from TradingView