XRP Spot ETF Breaks Record

The first XRP Spot ETF launched on Thursday 13th November and broke the record for most capital inflow on day one for an ETF with $58 million. The second XRP Spot ETF is being launched today (18th November) by Franklyn Templeton with analysts predicting capital inflows of between $150 - $250 million on the first day as Franklyn Templeton control 1500 times more assets under management than Canary Capital. After Franklyn Templeton we have Bitwise, 21 Shares, Coinshares, Grayscale and Wisdom Tree, all releasing their XRP ETF’s in the next week. AND still no sign of BlackRock. Yet.

This is how the process works: ETFs are traded like shares AKA securities so basically paper contracts. But the institution selling the ETFs needs to hold an equal number or more of the underlying asset (XRP) in reserve so at the end of the days trading if the number of ETF shares sold exceed the amount of XRP they have in AUM (assets under management) then they have to buy more.

So far Canary Capital have taken around 130 million XRP into their AUM holdings.

Now imagine with all the other XRP ETFs going live how many XRP will be taken off the market in the next week. Now imagine that number over the next month / quarter / year and you will soon see how we are going to experience a supply shock very soon. This is not speculation, it’s maths.

The XRP price has closed every day above $2 for over a year now with the exception of the freak flash crash a couple of months ago. And with price at $2.22 at the time of writing I will continue buying XRP.

I’m going to leave it here for now and will provide more frequent shorter updates as things begin to move faster. Expect to see more ETF updates, the Yen reverse carry trade, news on the Clarity Act, ISO20022 launch, and Ripple’s banking licence application.