XRP Faces Institutional Demand Test as Shareholder Vote and Escrow Release Loom

XRP is heading into its final days of September with two significant events that could test institutional demand for the token.

The first event is a shareholder vote on Armada Acquisition Corp. II's proposed business combination with Evernorth, which aims to create a Nasdaq-listed XRP treasury company under the XRPN ticker if the transaction closes.

If approved, this could give investors an entry point into the XRP ecosystem and potentially attract more institutional demand.

Evidence of increasing interest in regulated XRP investment products is also building, with US spot XRP ETFs drawing $75.59 million of net inflows during the September 21-25 trading week, taking cumulative inflows to about $1.79 billion.

However, a counterpoint argues that stronger network activity does not necessarily translate into equivalent value for token holders.

The second event is Ripple's monthly escrow mechanism, which will make up to 1 billion XRP available on October 1.

This mechanism sets an upper limit on newly available XRP and returns unused tokens to new escrow contracts for later release, rather than automatically increasing circulating supply.