Institutions Pour Billions into XRP Despite Declining Exchange Supplies

Large financial institutions are increasingly investing in XRP through investment products as the token's supply on cryptocurrency exchanges continues to decline. According to recent data from Glassnode, XRP reserves across the top 10 exchanges have fallen from around 4 billion XRP to approximately 1.6-1.7 billion XRP.

The report also shows that XRP withdrawals from exchanges have reached a five-year high, indicating that more investors are moving their holdings into private wallets rather than keeping them on trading platforms. This trend suggests growing institutional interest in XRP and its potential for long-term growth.

Italy's largest bank, Intesa Sanpaolo, has disclosed ownership of 712,000 shares of the Grayscale XRP Trust in its latest SEC Form 13F filing. Based on current market prices, this investment is worth around $18 million and represents about 6% to 7% of the bank's digital asset portfolio.

Several financial firms, including Goldman Sachs, Morgan Stanley, Millennium, and Citadel, have reported XRP exposure through exchange-traded products. Many institutions prefer XRP ETFs instead of directly holding XRP because they simplify custody, compliance, accounting, and regulatory requirements.