XRP’s Price Stalls Despite Massive ETF Inflows - Here’s Why
Billions pour into XRP exchange-traded funds, yet the digital asset's price chart flatlines. The disconnect between capital flows and price action has traders scratching their heads and analysts digging deeper.
The Liquidity Sinkhole
New ETF shares create synthetic demand, but that capital often gets trapped in institutional vehicles—never touching the spot markets where price discovery happens. It's like watching a reservoir fill up through a diverted river; the main channel stays dry.
Derivative Overhang
Futures and options markets siphon off speculative energy. Heavy institutional positioning in derivatives creates a ceiling, with arbitrage desks mechanically capping rallies to pocket risk-free spreads—a classic case of Wall Street's machinery eating its own tail.
The Supply Ghost
Remember those escrowed billions? The market prices in potential releases like a sword of Damocles. Every rally faces the whispered question: what if more supply hits the market? It's the psychological discount that never leaves the tape.
Regulatory Static
Even with legal clarity, institutional adoption moves at a glacial pace. Compliance departments treat every new asset class like a biohazard—slow to greenlight, quick to red-tape. The paperwork backlog alone could sink a bull market.
So the money flows in, the charts go sideways, and the Street collects its fees regardless. Sometimes the most efficient market is the one that best monetizes frustration. The old guard always finds a way to get paid—even when you're not.
The Bitwise CIO has recently explained how his company's spot ETF purchases XRP, stressing that each buy removes XRP from the open market. After Canary Capital launched the first pure spot XRP ETF on Nov.
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