XRP Withdrawals From Binance Spike as ETFs Absorb $1.4B

On-chain data shows a notable shift in XRP supply dynamics, with large amounts of the asset moving off exchanges while inflows into ETFs continue to grow.

Recent data from CryptoQuant indicates that XRP withdrawal transactions from Binance have surged sharply in recent weeks. The surge coincided with strong capital inflows into spot XRP exchange-traded funds.

Key Points

XRP Withdrawal Transactions

Notably, the market saw between 12,500 and 20,000 withdrawal transactions between February 21 and March 7 on Binance. The trend suggests investors may be moving tokens away from trading platforms and into long-term storage.

Meanwhile, each spike in withdrawal transactions was followed by a sharp drop in the metric.

Rising Withdrawals Hint at Supply Tightening

XRP commentator John Squire described the development as an “interesting signal” for the market. According to Squire, rising withdrawals from exchanges while ETFs accumulate billions in capital often indicate that investors are shifting coins into long-term holdings.

When assets leave exchanges, the amount of readily tradable supply decreases. Combined with continued inflows into ETFs, XRP supporters believe the dynamic could create a tightening supply environment that may impact XRP’s price.

XRP ETFs Continue to Attract Capital

Indeed, demand for regulated XRP exposure has remained strong even during a market pullback. Bloomberg analyst James Seyffart recently confirmed that XRP ETFs have collectively recorded about $1.4 billion in cumulative inflows since their launch in November 2025.

The steady inflows are particularly notable given that XRP’s price has declined over the same period. The asset has fallen 44% from around $2.5 at the time of the ETF launch to roughly $1.38. Despite this significant price drawdown, the funds have continued to attract new capital.

Seyffart noted that the data raises questions about the identity of many investors accumulating the funds.

Institutional Investors Reveal Early Positions

Among investors, Goldman Sachs emerged as the largest institutional holder of XRP ETF exposure. The firm reported roughly $153.8 million in XRP, equivalent to about 83.63 million XRP through various ETF products.

Other institutions have also taken positions, including:

• Millennium Management with roughly $23 million in exposure
• Citadel Advisors with about $4.52 million
• Smaller allocations from firms such as Jane Street and DRW Trading Group

Several wealth managers and advisory firms also reported smaller positions, suggesting a broad mix of institutional interest.

Network Activity on the XRP Ledger Climbs

Meanwhile, activity on the XRP Ledger has been increasing. Daily transactions on the network have climbed to around 2.7 million. The surge reflects rising usage, partly driven by real-world asset tokenization initiatives building on the chain.

The total value of tokenized assets on the network has approached $461 million, highlighting expanding ecosystem activity.

Despite the improving on-chain metrics and ETF demand, XRP’s price has remained relatively stable in the short term. XRP has been consolidating between $1.30 and $1.44. Analysts believe a breakout may be delayed due to continued bearish sentiment across the broader crypto market.