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.

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 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.

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