XRP Supply Crisis Looms as Early ETFs Drain Liquidity Ahead of BlackRock’s Expected Entry
The race for XRP liquidity is intensifying faster than anyone anticipated, with Digital Ascension Group CEO Jake Claver sounding one of the starkest warnings yet. He says newly launched XRP ETFs are devouring available supply at record speed, long before giants like BlackRock, Vanguard, and Fidelity even step in.
As highlighted by market analyst Diana, Claver acknowledges that XRP ETFs are “eating through OTC desks and dark pools like a vacuum.” These private liquidity channels normally cater to institutions making large, discreet purchases, yet even they’re drying up. It’s a clear sign that institutional demand for XRP is accelerating far faster than expected.
Claver stressed that today’s XRP ETFs are just the opening act. “We still don’t have BlackRock, Vanguard, or Fidelity,” he noted, warning that the world’s biggest asset managers haven’t even entered the market yet.
Once they launch XRP-backed products, he argues, the market could face a seismic supply shock that reshapes liquidity and pricing dynamics.
Well, this scenario isn’t hypothetical. Earlier this year, Bitcoin ETFs saw billions in inflows within weeks, as major issuers absorbed massive amounts of BTC. If XRP mirrors that trajectory, and Claver argues demand could be even stronger given XRP’s utility-driven appeal, its available supply could contract far faster than the market expects.
If BlackRock, Vanguard, and Fidelity roll out XRP ETFs, the asset would instantly command more institutional fund tracking than Bitcoin, a historic turning point for the entire crypto market. Such a shift would elevate XRP into the ranks of the most institutionally supported digital assets worldwide.
The ripple effects would be profound: tighter supply, accelerating ETF accumulation, and intensifying competition among major buyers. This dynamic could propel XRP into an entirely new valuation era while boosting its liquidity, visibility, and legitimacy. In turn, previously cautious investors may be drawn in, reshaping XRP’s long-term market structure.
Conclusion
Claver highlights a critical turning point for XRP. Early ETFs are already consuming vast liquidity, and with BlackRock, Vanguard, and Fidelity yet to enter, the market edges toward a historic supply crunch. Should these giants launch XRP products, institutional demand could skyrocket, potentially transforming XRP’s valuation, market dynamics, and its role in the crypto ecosystem.