XRP Sinks 8% After CLARITY Act Failure Despite Massive Institutional Holdings

XRP saw an 8% drop in value after the Senate failed to advance the CLARITY Act, but institutional funds still hold a substantial amount of tokens.

The bill's failure led to a broad crypto selloff, with XRP being one of the biggest casualties. However, Ripple emphasized that the failed vote does not change XRP's existing legal status, as its established legal clarity remains intact.

Seven U.S. spot XRP ETFs currently hold around 1.1 billion tokens, representing approximately 1.13% of XRP supply according to XRP Insights. This significant institutional exposure hasn't disappeared despite the decline in value.