XRP Holders Warned of Institutional Shakeout Before ETF Rollout

Key Takeaways

• Institutional investors are reportedly shorting XRP to buy at lower prices ahead of the ETF rollout.
  
• Each ETF is expected to hold 20 XRP per unit, tightening market supply.
  
• Analysts believe institutions aim to accumulate before a major liquidity shift

XRP Analyst Warns of Institutional Shakeout Before ETF Debut

Crypto market commentator The Real Remi Relief has renewed his warning to XRP Holders ahead of next week’s anticipated launch of spot XRP exchange-traded funds (ETFs). He claims that major institutional players are deliberately shorting XRP to acquire the asset at discounted prices, taking advantage of thin liquidity and retail uncertainty.

Remi reiterated his stance, suggesting that “the big players are shaking out small holders” as they prepare for ETF allocations. He explained that each ETF will reportedly require 20 XRP per unit, amplifying the pressure on already-limited circulating supply.

According to Ripple’s official escrow activity report, over 40 billion XRP remains locked, restricting accessible tokens for trading. This tightening supply, Remi argued, leaves retail investors as the most immediate source of liquidity for institutions seeking large-scale acquisition.

ETF Demand May Reshape XRP’s Supply Landscape

Remi asserted that institutional interest is creating a temporary disconnect between XRP’s market value and its long-term potential. “Their mission is to shake you out and take your XRP,” he said, urging holders to maintain self-custody and avoid panic selling ahead of ETF inflows.

His warning aligns with previous cycles in which institutional accumulation preceded major liquidity events. Analysts note that limited OTC supply and increased ETF demand could reinforce XRP’s scarcity in secondary markets.

Data from CoinMarketCap indicates that XRP’s circulating supply stands at roughly 55 billion tokens, though much of it is held by long-term investors or in corporate reserves. The upcoming ETF structures, if approved, are expected to deepen institutional exposure, potentially driving speculative activity similar to early Bitcoin ETF phases.

Meanwhile, insights from CoinShares highlight that institutional crypto inflows remain concentrated around Bitcoin and Ethereum. However, emerging ETF frameworks are broadening investor appetite for other blockchain-based settlement assets, with XRP viewed as a bridge between digital assets and traditional finance.

Institutional Positioning and Market Psychology

Remi also cautioned that coordinated sentiment manipulation could be at play, citing comparisons to Stellar (XLM). He suggested that some investors are being misdirected by XLM’s price stagnation to distract attention from XRP’s institutional momentum.

Market data from TradingView shows XRP consolidating near $0.55, with modest volatility ahead of the ETF rollout window. The token’s resilience during broader market pullbacks has strengthened confidence among long-term holders, despite near-term uncertainty.

Industry observers note that ETF based accumulation could trigger short-term volatility but may ultimately strengthen XRP’s price stability by redistributing supply from short-term traders to long-term custodial structures.

“Their strategy is clear  buy fear, sell hype,” said a senior analyst from a digital asset firm. “Retail holders often underestimate how much institutional accumulation occurs during consolidation phases.”

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Remi’s comments have intensified debate ajcross the XRP community, as XRP Holders weigh whether upcoming ETF exposure will serve as a catalyst for sustained price growth or  another test of holder conviction.