XRP supply suddenly dropped sharply on many exchanges, of which Upbit recorded the largest withdrawal of about 5.5 billion XRP.
Trading activity heats up, hinting at the possibility of an XRP ETF backed by VanEck’s MVDAPP.
According to data from CryptoQuant, Ripple [XRP] reserves on major exchanges recorded a significant drop. Upbit saw the sharpest drop, falling to around 1.1 billion XRP.
Upbit drops 5.5 billion XRP, but the withdrawal suddenly reverses, increasing uncertainty surrounding Ripple's cryptocurrency.
Binance also dropped from 2.86 billion to about 2.23 billion XRP, equivalent to a shortage of 630 million XRP. On Bybit, XRP reserves decreased by 110 million.
The corresponding decrease was from 340 million to 229.7 million tokens. Bitfinex also recorded a slight decrease from 64.5 million to 58.5 million XRP, equivalent to a decrease of 6 million tokens.
Source: CryptoQuant
These withdrawals show that institutions like ETFs, dividend funds, and payment companies are withdrawing XRP to move to custody services or for payment operations.
Notably, Upbit’s reserves have begun to recover slightly, suggesting that positions may be readjusting after the major volatility.
While this may be a sign of institutional accumulation, it also creates temporary liquidity fluctuations on the exchange, potentially increasing price sensitivity.
XRP ETF Approval Prospects Are Very Near
In addition to the withdrawal of funds from the exchange, the launch of VanEck's MVDApp has increased expectations for an XRP ETF, demonstrating strong participation from institutional investors.
Seen as a step towards preparing the infrastructure for an ETF, MVDApp could facilitate Ripple’s entry into a more strictly regulated asset class.
Notably, both XRP Futures and Micro XRP Futures have been buzzing since their launch on May 19.
CME Group notes that XRP has become one of the most closely monitored crypto assets during this time.
The increased interest from both institutional and retail investors demonstrates that the demand for managed derivatives products with structured exposure mechanisms is growing.
However, according to data from Market Prophit, investor sentiment remains mixed. The community index is optimistic with a score of 1.94, indicating a bullish trend.
Source: Market Prophit
Meanwhile, smart money remains cautious with a score of -1.30, indicating that amateur investors are cautious about volatility.
This apparent split suggests that Ripple’s short-term future remains uncertain, despite the ETF story heating up with signs of institutional activity and increased demand in futures.
Source: https://tintucbitcoin.com/xrp-etf-vaneck-bi-thao-chay-dot-ngot/
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