$XRP Supply Declines as Institutional Investors Flock to ETFs

Major financial institutions are increasing their exposure to XRP through investment products as the token's supply on cryptocurrency exchanges continues to decline.

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, worth around $18 million based on current market prices. The investment 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, with many institutions preferring XRP ETFs instead of directly holding XRP due to simplified custody, compliance, accounting, and regulatory requirements.

The supply of XRP on top 10 cryptocurrency exchanges has fallen from around 4 billion XRP to approximately 1.6-1.7 billion XRP, while 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.

The CME Group is also expanding its derivatives market for XRP, offering futures and options alongside traditional markets such as commodities, foreign exchange, and equities. This reflects growing institutional infrastructure for XRP, although it does not necessarily signal immediate price gains.