XRP is undergoing one of the largest coordinated withdrawals from major exchanges in recent memory, with on-chain data revealing significant outflows just days before the 21Shares U.S. spot XRP ETF is set to trade on Monday under the ticker TOXR. Nearly every leading platform reported substantial reductions in XRP balances, suggesting either mass migrations to self-custody wallets, internal rebalancing, or preparation for institutional investment strategies. Total XRP held on exchanges dropped to 15.86 billion, representing a 29% decline or 6.5 billion XRP since February.
Major outflows included 6.22 billion XRP leaving Upbit, 2.56 billion XRP withdrawn from Binance, and 1.77 billion XRP exiting Bithumb. Other platforms such as Uphold, eToro, Bybit, and Bitbank saw roughly half of their XRP holdings leave their books. Interestingly, a few exchanges recorded inflows, with Evernorth gaining 13.36%, Coincheck adding 550 million XRP, and OKX reporting a striking 10,107% increase, likely driven by internal address reclassification rather than actual market demand. Some exchanges faced extreme reductions, with Coinbase losing 99.97% of its XRP and KuCoin, Paribu, and SwissBorg recording near-total exits. This massive reshuffling underscores a transformative period for XRP liquidity and could have long-term effects on market dynamics.
The surge in withdrawals coincides with growing anticipation for the 21Shares XRP ETF, which will allow U.S. investors to gain exposure to XRP’s spot price without directly holding the asset. The ETF will track the CME CF XRP-Dollar Reference Rate, offering a new avenue for both institutional and retail investors. Recent XRP ETF launches, including products from Grayscale and Franklin Templeton, demonstrated robust investor appetite, with GXRP and XRPZ capturing $67.36 million and $62.59 million in flows during their initial trading days.
On the technical front, XRP is trading at $2.19, up 0.75% in the last 24 hours and 13.61% over the past week, holding a market cap of $132 billion. Analysts highlight that a close above $2.60 could signal bullish momentum, while breaking $3.40 might confirm a stronger upward trend. Conversely, a drop below the 21-day EMA could indicate a potential bearish reversal. These levels are crucial for traders navigating this period of heightened activity and liquidity shifts.
Overall, XRP’s dramatic exchange outflows combined with the imminent launch of the 21Shares ETF mark a pivotal moment for the cryptocurrency. The current trend suggests both risk and opportunity, emphasizing the importance of monitoring exchange balances, ETF inflows, and technical signals. As XRP navigates this transformative phase, market participants will likely see increased volatility, with liquidity and institutional interest shaping its near-term trajectory.
