XRP Reclassified as Commodity Amid ETF Flows and Reserve Declines
On March 17, 2026, regulators reclassified XRP as a digital commodity, shifting oversight of the XRPUSD spot contracts for difference (CFDs) to the Commodity Futures Trading Commission (CFTC). This move marks a significant change in the regulatory landscape for Ripple’s cryptocurrency.
Despite regulatory shifts, XRPUSD continued to see spot ETF buying, with weekly net inflows of $4.74 million, down from $75.6 million the prior week. Bitwise added $2.11 million, bringing cumulative spot ETF inflows to over $678.4 million. Meanwhile, exchange reserves for XRPUSD fell due to large withdrawals, driven by whale activity and notable outflows from major exchanges.
Evernorth, ticker XRPN, is set to hold about 473 million XRP at its merger close and will begin trading around October 8. The holding value at signing exceeded the projected closing value by approximately 37%. On-chain data revealed that addresses holding 10-100 million XRP increased their combined balance from 12.48 billion on September 6 to 13.8 billion on October 6, peaking around September 24.
Trader Peter Brandt identified a daily cup-and-handle pattern and a nested inverse head-and-shoulders on XRPUSD, with measured targets at $2.16 and approximately $2.00. He cautioned about heavy overhead supply. Open interest on Binance rose to $516.6 million from recent lows, though it remains well below the October 2025 peak of around $1.3 billion, indicating a divergence between futures and spot markets.
In South Korea, a margin trading ban pushed retail investors into spot markets, raising local turnover for XRPUSD. Additionally, banks are testing fiat settlement solutions that bypass XRP, while low AI gas fees were noted.