Grayscale Research Head Zach Pandl drew attention to a development that may affect the supply balance and long-term price structure in the XRP market. In his evaluation in The XRP Pod broadcast, Pandl said that if spot XRP ETFs follow a similar path to the adoption process in Bitcoin and Ethereum, they could absorb approximately 5% to 6% of the circulating supply.
The emphasis on the contraction in supply came to the fore
The point Pandl points out is not the valuation, but the direct purchase of XRP. As investments in ETF shares come in, issuers must purchase and hold actual XRP from the market to back these products. As these assets are held in depository institutions, the amount freely traded on stock exchanges decreases. As inflows increase, the locked supply is also expected to grow.
Pandl noted that if spot XRP ETFs follow the pattern of adoption in Bitcoin and Ethereum, 5% to 6% of circulating supply could move into ETF custody.
Considering XRP’s large circulating supply, this rate means billions of tokens are being withdrawn from the open market. The contraction of liquid supply may make price movements sharper in periods when demand increases. More limited liquidity can create a backdrop for increased volatility even with relatively modest inflows.
Signs of corporate interest are growing stronger
According to the evaluation conveyed in the news, XRP ETFs are not only seen as a new investment tool. These products serve as a regulated channel for pension funds, asset managers, and registered investment advisors to access XRP without directly holding assets. This structure can create a more stable institutional demand, unlike individual investor-dominated periods. Grayscale stands out as a US-based asset management company known for its digital asset investment products.
Mini-dictionary: A 13F filing is a regular filing by large U.S. institutional investment managers with the SEC in which they disclose certain securities positions. RIA stands for registered investment advisor and refers to institutions that provide licensed portfolio advice to clients.
It was stated that preliminary data also supported this view. It was reported that institutional interest in XRP-related investment products has accelerated and weekly inflows have recently reached the highest level of 2026. This picture has strengthened expectations that XRP is starting to find its way into institutional portfolios through more regulated financial products.
On the other hand, Morgan Stanley announced its exposure to XRP-focused exchange-traded funds in its latest 13F filing with the US Securities and Exchange Commission. In the notification, it was seen that there was a position in the Volatility Shares XRP ETF and Grayscale’s GXRP product.
The inclusion of Volatility Shares
The main question followed in the market may change
This outlook points to a familiar institutional pattern in the market: the gradual absorption of supply into regulated financial products. If the process continues, the main question for XRP may be how much tradable supply will remain in the market when large-scale institutional purchases accelerate, rather than whether demand will grow.
