XRP Whales Dump Nearly 200M Tokens Following Major ETF Launch

XRP whales have sold off close to 200 million tokens just 48 hours after the launch of the first US spot XRP ETF, overshadowing the excitement surrounding this significant event in the asset’s history.

Key Takeaways:

XRP whales offloaded nearly 200 million tokens within two days of the ETF launch, indicating significant selling pressure.
Despite a strong ETF debut, XRP’s price has declined as whale selling continues and technical indicators point to a bearish trend.
The contrast between whale selling and institutional buying reflects a general risk-off sentiment in the cryptocurrency market.

According to a recent analysis shared on X, on-chain expert Ali reported that large XRP holders “dumped nearly 200 million XRP in just 48 hours,” indicating that those with the biggest wallets are taking profits instead of accumulating more tokens in the post-ETF rally.

XRP Whales Offload Nearly 200M Tokens After Splashy ETF Debut

XRP’s Legal Victory Opens Doors for Groundbreaking ETF Launch on Nasdaq

The selling activity coincides with a crucial period for XRP, which has now become the fourth-largest cryptocurrency with a market capitalization of about $136 billion.

The XRP community has been celebrating a significant legal triumph against the US Securities and Exchange Commission (SEC). In 2023, a federal court ruled that XRP is not a security when traded on exchanges, which rejuvenated interest from institutional investors and set the stage for the launch of the Canary Capital XRP ETF on Nasdaq. This ETF recorded an impressive debut with $58 million in trading volume on its first day and over $250 million in total inflows.

Despite this success, whales seem undeterred. XRP's price has dropped 4.3% within 24 hours, decreasing from $2.31 to $2.22. This decline has created a clear pattern of lower highs, suggesting imminent bearish pressure.

Crypto trader Tara cautioned that XRP is approaching critical buying zones around the $2 mark and could fall further to $2.05 or even $1.88 unless Bitcoin manages to stabilize. Increased volatility is expected as XRP approaches these levels.

Although the ETF attracted strong inflows, the trading volume did not reflect this because the ETF operates using in-kind creations. This allows institutions to swap ETF shares directly for XRP, which does not show up on public order books.

ETF analyst Nate Geraci explained this phenomenon, noting that while the ETF displayed low visible trading volume, it still experienced high inflows.

In contrast, data from Nansen revealed that top-performing “smart money” wallets have accumulated $44 million in long positions over the last day.

The discrepancy between whale selling and institutional interest may stem from the broader market environment.

The cryptocurrency market is currently in a risk-off phase, as evidenced by Bitcoin ETFs, which suffered $866 million in outflows on the same day, marking one of their worst trading sessions on record.

Ripple Welcomes Federal Reserve Proposal for Enhanced Access to Payment Systems

Recently, Ripple's chief legal officer, Stu Alderoty, praised a proposal from Federal Reserve Governor Christopher Waller advocating for crypto firms to gain access to “skinny” Fed accounts. This change could significantly alter the landscape for digital assets in the United States.

Waller proposed that stablecoin issuers and other crypto companies should be able to engage directly with the Federal Reserve’s payment systems, minimizing their dependence on traditional banks that are often reluctant to serve the crypto sector.

He encouraged regulators to “embrace the disruption — don’t avoid it,” indicating a more welcoming approach towards decentralized finance.

Ripple had previously applied for a Fed master account to support its RLUSD stablecoin and sees Waller’s proposal as transformative.

Alderoty mentioned to Reuters that having direct access to the Federal Reserve could enhance settlement speeds, reduce costs, and help RLUSD thrive in a competitive market dominated by Tether and Circle.

He added that direct access to the Fed would bolster stability and redeemability, allowing firms to navigate quickly between U.S. Treasuries and dollars without needing bank intermediaries.