The emergence of U.S. XRP spot Exchange Traded Funds (ETFs) is profoundly altering the digital asset's market dynamics, drawing a significant portion of its supply into institutional holdings. This shift is redefining what it means for XRP to be "gone" from the market, moving beyond concepts of burning or loss to absorption within these structured investment vehicles.
XRP's Growing ETF Footprint
A notable 1.12% of XRP's market capitalization, valued at $1.24 billion as of December 31st, has been absorbed into U.S. spot ETF holdings. This figure represents approximately 668 million XRP tokens now residing within these products. Rather than being "burned" or permanently removed, these tokens are encapsulated within ETF wrappers, effectively reducing the "available float" in the open market. This reduction in accessible supply can lead to tighter market conditions, potentially influencing price action when demand surges, even with the understanding that these assets can eventually be redeemed and re-enter circulation.
Sustained Inflows and Market Implications
The sustained interest in XRP ETFs is underscored by continuous capital inflows. Recent data indicates a daily net inflow of $5.58 million, contributing to a robust cumulative net inflow of $1.17 billion. These substantial assets are diversified across several key ETFs, with Canary's XRCP leading at $319.18 million, followed by 21Shares' TOXR ($246.37 million), Bitwise's XRP ($240.13 million), Grayscale's GXRP ($223.40 million), and Franklin's XRPZ ($215.20 million). Should these positive flow trends persist, the "gone" footprint—the proportion of XRP held within ETFs—is set to expand further, potentially amplifying its impact on the token's market price through increased holdings or a scarcity-driven appreciation.
