Institutional interest around Ripple (XRP) gradually strengthened after ETF demand resumed in early May.
Fund outflows in early March reflected cautious positioning, as broader market weakness reduced risk appetite in crypto markets. However, sentiment gradually improved once regulated exposure to XRP started attracting new capital again.
This shift accelerated on May 11 after XRP ETFs recorded nearly $25.8 million in net inflows, marking the strongest daily inflow since January. Franklin Templeton’s XRPZ contributed around $13.6 million, while total ETF holdings exceeded 860 million XRP.
Meanwhile, XRP is trading between $1.42 and $1.48, showing firm support despite the lack of an aggressive breakout. This stability increasingly suggests that institutions are accumulating strategically, although weaker macroeconomic conditions could still limit stronger upward momentum.
XRP Wallet Growth Signals Conviction
This growing institutional participation increasingly aligned with on-chain behavior as XRP whale wallets reached a new all-time high. At press time, the XRP Ledger held 332,230 wallets containing at least 10,000 XRP, continuing a steady accumulation trend that has strengthened since June 2024.
According to Santiment data, earlier volatility briefly interrupted this structure after the February crypto market crash wiped out more than 4,500 large wallets in two days.
However, accumulation gradually recovered thereafter, while portfolio growth eventually surpassed previous highs. This rebound increasingly reflects a stronger long-term conviction than short-term speculative positioning.
Rather than retreating aggressively in times of uncertainty, large holders have continued to increase their exposure below the surface. This behavior has increasingly reinforced expectations that regulatory clarity and expanded access to ETFs could strengthen XRP’s long-term adoption narrative while supporting future capital inflows.
XRP conviction shifts to derivatives markets
Growing whale accumulation has increasingly reshaped XRP market behavior, accelerating speculative demand while improving regulatory sentiment. At press time, futures activity surged to $3 billion in the past 24 hours, while spot volumes held steady at nearly $656 million.
This growing imbalance showed that traders were increasingly seeking political momentum through leveraged positioning rather than direct accumulation.
Meanwhile, foreign exchange reserves have steadily declined to 2.7 billion XRP, reducing immediate liquidity on the selling side of the market. This contraction in reserves suggests that larger holders are gradually moving coins toward longer-term storage and operational utility instead of preparing for immediate releases.
Final summary
- Record XRP whale growth and the largest ETF inflows since January reinforce growing institutional and long-term conviction around the asset.
- However, the sustainability of this move depends on whether regulatory clarity translates into sustainable adoption or simply fuels another speculation-driven XRP cycle.
