XRP Exchange Traded Funds now hold about 930 million tokens, which are all locked away in custody and out of reach of the market.
XRP holders have been expecting the inflows to impact the coin’s value, since fewer tokens shrinking supply creates a squeeze that triggers price appreciation. However, XRP (CRYPTO:XRP) trades at $1.01 today, down 6.3% over the past week and 8.2% over the past month.
Despite XRP ETFs taking nearly a billion coins off the market, why hasn’t all that locked-up supply squeezed the XRP price?
XRP ETFs Hold Just 1.5% of the Supply
XRP ETFs launched in November 2025 and have pulled in $1.51 billion since then, which has taken about 930 million coins off the market. However, that comes to just 1.49% of the 62.5 billion XRP in circulation, leaving 61.5 billion in everyone else’s hands. A squeeze needs buyers taking coins off the market faster than holders will part with them, and at that ratio there are always sellers willing to meet a bid.
Bitwise runs the biggest of the five XRP ETFs at $302.39 million, followed by Franklin Templeton’s XRPZ at $244.54 million and Canary’s XRPC at $236.64 million. 21Shares holds $110.39 million and Grayscale $56.08 million, which brings the five funds to $950.05 million in net assets on August 10, according to SoSoValue.
For context on how small that share is, spot Bitcoin ETFs own 6.10% of Bitcoin’s supply, or four times what the XRP funds hold of theirs. Matching that would take the XRP ETFs to roughly 3.8 billion tokens, so they would have to buy almost three billion more than they own today.
Notice also that those funds took in $1.51 billion but hold only $950 million now, and that’s due to XRP’s performance since the funds launched. The XRP price kept falling underneath the money as it arrived, so what investors put in is worth a third less than they paid.
Ripple’s Escrow Keeps Adding What the ETFs Take Out
Ripple has been releasing tokens the whole time people have been buying XRP ETFs. On the first day of every month since December 2017, the company unlocks 1 billion XRP from escrow, and August’s release came in three transactions worth roughly $1.08 billion.
However, most of it goes straight back, because Ripple re-locks around 700 million tokens into fresh escrow contracts every month, which leaves about 300 million entering circulation to cover operations, liquidity and partnerships. On August 1, the company re-locked its routine 700 million first, in tranches of 200 million and 500 million, before releasing the rest of the billion coins.
