Goldman Sachs has quietly built one of the largest known institutional positions in XRP, holding close to $154 million through various exchange-traded funds. This puts the Wall Street giant ahead of hedge funds and trading firms that have also started gaining exposure to the digital asset.
The Goldman position was disclosed alongside smaller holdings from Millennium Management, which reported about $23 million in XRP ETF exposure, and Citadel Advisors, which holds roughly $4.5 million. Companies including Jane Street and DRW Trading Group also reported positions. The range of firms involved points to growing institutional acceptance of XRP as a regulated investment, even as the coin’s price has fallen sharply since these funds launched.
XRP was trading near $2.50 when spot ETFs began trading in November 2025. It has since dropped to around $1.38—a decline of 44%. Despite that slide, cumulative inflows into XRP ETFs have reached $1.4 billion, according to Bloomberg ETF analyst James Seyffart. The continued buying raises questions about who is behind the money flowing in and what their investment timeline looks like.
On-chain data from CryptoQuant shows a spike in XRP withdrawals from Binance. Between February 21 and March 7, the exchange recorded between 12,500 and 20,000 withdrawal transactions. Each surge was followed by a sharp drop in activity before picking up again—a pattern analysts say may reflect investors moving coins off trading platforms and into longer-term storage.
When large amounts of an asset are pulled from exchanges, the pool available for immediate trading shrinks. Combined with steady ETF inflows, some market observers see this trend as a signal that available supply is being absorbed from multiple directions at once. Whether that will push prices higher remains to be seen. XRP has been consolidating between $1.31 and $1.42. Broader crypto market sentiment has stayed bearish, which analysts say is likely limiting any near-term price movement.
Away from price action, activity on the XRP Ledger has been increasing. Daily transactions on the network have reached roughly 2.7 million, driven in part by real-world asset tokenization projects building on the chain. The total value of tokenized assets on the network has approached $461 million.
The contrast between rising network usage and a stagnant price has been a recurring theme for XRP. Supporters point to the on-chain growth as evidence of real utility developing beneath the surface. Critics note that activity metrics and price do not always move together, at least not immediately.
Frequently Asked Questions
Frequently Asked Questions About XRP Supply
Beginner Questions
1 Is the total supply of XRP actually shrinking
No the total maximum supply of XRP is fixed at 100 billion tokens It is not shrinking in the sense of the total cap decreasing However the amount of XRP actively circulating and available on exchanges can fluctuate based on market activity
2 What does it mean when people say supply is shrinking on exchanges
This refers to a decrease in the amount of XRP held on centralized exchange wallets When users withdraw XRP to personal wallets the exchange supply goes down This doesnt destroy tokens it just moves them
3 Why are exchange withdrawals important
Largescale withdrawals from exchanges can signal that holders are moving tokens for longterm storage reducing the immediate selling pressure on the market This is often viewed as a bullish sign
4 What is an ETF and how could it affect XRP
An ETF is an investment fund that tracks an asset and is traded on stock exchanges An XRP ETF would allow traditional investors to gain exposure to XRP without directly buying and storing the cryptocurrency Approval could bring significant new demand and legitimacy
Intermediate Advanced Questions
5 Could an XRP ETF actually reduce the circulating supply
Potentially yes If an ETF is created the fund provider would need to purchase and hold a large amount of XRP to back the shares it issues This would lock up a substantial portion of the circulating supply in the ETFs custody making it less available on the open market
6 Besides ETFs what else could cause a supply squeeze
Increased utility is key If more financial institutions use XRP for crossborder payments they need to hold XRP in escrow or liquidity pools Major adoption in realworld use cases would tie up supply reducing liquid sellside volume
7 What about Ripples escrow Does that affect the shrinking supply narrative
Ripple holds a large portion of XRP in escrow releasing a programmed amount each month This escrow acts as a predictable controlled supply source The narrative focuses on