XRP Supply Shock and Why ETFs Will Buy Up All

Ripple Van Winkle (@RipBullWinkle), a crypto expert and YouTuber, recently shared an analysis on X detailing why XRP may soon face a significant supply shock. His commentary centers on the convergence of limited XRP availability and growing institutional interest, particularly from the highly anticipated approval of spot XRP exchange-traded funds (ETFs). According to Van Winkle, the XRP supply available to the open market is much smaller than its total issuance. While XRP has a fixed supply of 100 billion tokens, a significant portion is held in Ripple’s escrow. This structure has long limited the volume of XRP circulating on exchanges. He expects at least half of the total supply to be held by Ripple and insiders like whales. This could cause a massive supply shock. THREAD: XRP Supply Shock & Why ETFs Will Buy Up All the XRP The XRP market is gearing up for a massive supply shock. Why? Because the available XRP for trading is shrinking rapidly — and that’s about to create serious scarcity. Let’s dive into why this matters for YOU. — Ripple Van Winkle | Crypto Researcher (@RipBullWinkle) May 24, 2025 Institutional Interest and the Role of ETFs Van Winkle argues that XRP ETFs are poised to play a major role in reshaping the asset’s market dynamics. ETFs, which allow traditional investors to gain exposure to digital assets without direct custody, would require large-scale purchases of XRP to back their fund offerings. This buying activity could place significant pressure on the already limited circulating supply. ETFs are an accessible on-ramp for institutional capital, including pension funds, hedge funds, and asset managers. By removing the complexities, they offer a simplified path to participate in XRP’s market. As Van Winkle notes , this “flood of new demand will gobble up the XRP supply fast.” The financial world is interested in these products, as Teucrium’s recently launched leveraged XRP ETF was the most successful launch in the company’s history. Meanwhile, over 10 spot ETFs await SEC approval and could shake the market after approval. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Market Impact of Constrained Supply and Increased Demand The underlying economic principle at play is straightforward. When demand rises while supply remains constrained or even contracts, upward price pressure tends to follow. Van Winkle frames this situation as a “bullish setup that can’t be ignored,” emphasizing the role of ETFs in accelerating market tightening. He also points to regulatory developments as a contributing factor. With Ripple’s ongoing legal proceedings against the U.S. Securities and Exchange Commission (SEC) moving toward resolution , greater regulatory clarity could open more doors for XRP. Strategic Positioning Ahead of ETF Launches The post highlights the importance of early positioning for existing and prospective XRP holders, asking investors to invest where possible. He stresses that the supply shock is supported by structural and historical precedents in other markets, and demand for ETFs could send XRP to new heights. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post XRP Supply Shock and Why ETFs Will Buy Up All appeared first on Times Tabloid .

Source: TimesTabloid