XRP Supply Wipe Out Begins. Here’s What Is Happening

In a post on X, crypto analyst Ripple Bull Winkle highlighted the rapid acceleration of XRP accumulation among newly launched exchange-traded products, drawing attention to the scale and pace of institutional absorption now underway. His latest commentary presents a data-driven assessment of how rapidly institutional vehicles are absorbing circulating supply and why he views the trend as an early indication of a tightening market structure. The analyst outlines these points in a video accompanying his post, focusing on the pace, scale, and potential implications of ongoing ETF inflows.

Rising ETF Demand Within Days of Launch

According to his breakdown, more than 205 million units of XRP have already been absorbed across the ETF products within seven trading days. He emphasizes that this level of demand is not tied to retail flows and instead originates from only two institutional issuers. In his view, this early activity demonstrates how quickly structured investment vehicles can remove supply from open markets, especially when operating under daily accumulation mandates. He further notes that five additional products are scheduled to go live next week, indicating that the current figures may represent only the opening phase of a broader institutional expansion. The analyst highlights specific accumulation numbers to illustrate the pace at which these products are growing. He states that Canary’s XRPC product is positioned to hold over 146 million XRP, while Bitwise has already accumulated approximately 59 million within just two days of trading. He describes these developments as examples of institutional products steadily drawing liquidity out of the market, rather than entering and exiting positions in a manner associated with speculative trading.

Analyst Projects Significant Supply Tightening by 2026

Ripple Bull Winkle argues that, if the current rate persists, the liquid supply of XRP available on exchanges may experience a meaningful contraction heading into 2026. In his assessment, ETF structures are designed to accumulate and maintain positions rather than distribute or rebalance in a way that returns large quantities of XRP to the market. Because of this, he believes the ongoing absorption functions as a continuous reduction of accessible supply. He characterizes the present moment as the early stage of a significant supply reduction event, in which institutional accumulation steadily removes liquidity from circulation. He adds that this trend could accelerate as more ETF issuers enter the market over the coming months.

The analyst uses the example of more than 200 million XRP being absorbed within two days across two issuers to underscore the potential scale when a larger set of products becomes active.

Outlook Based on Expanding Institutional Participation

In concluding his analysis, the commentator suggests that the next six months may present a markedly different liquidity environment if multiple issuers continue to accumulate XRP each trading day. His projection is rooted in the idea that consistent buying from a growing number of institutional products may compress the amount of XRP available on public exchanges. This forms the basis of his broader view that the current developments represent a meaningful shift in the asset’s supply dynamics as institutional participation accelerates.