Grayscale Research Head Says XRP ETFs Could Capture 5-6% of XRP Supply

Grayscale’s Head of Research, Zach Pandl, recently suggested that XRP ETFs could take up about 5% to 6% of XRP’s circulating supply in the near future. 

He made this projection during a recent appearance on the Paul Barron Podcast, where both speakers discussed the impressive rise of XRP-based investment products.

Key Points

• Grayscale’s Zach Pandl says ETFs could hold 5-6% of XRP’s circulating supply over time.
• XRP ETFs have attracted $1.42 billion in total cumulative inflows since launching in Q4 2025.
• Current ETF holdings represent about 1.4% of XRP’s $71.2 billion market cap.
• If these products capture 5-6% of the circulating XRP supply, it could push their holdings to $3.5-$4.2 billion.

ETF Inflows and Market Standing

During the podcast, Paul Barron pointed out that XRP ETFs are gaining momentum in the market. He mentioned that Bitwise currently holds the largest XRP ETF position, while Grayscale ranks fourth among issuers. 

Barron also called attention to the continued growth in the sector, mentioning that the ETF products have since hit $1.1 billion in net assets. Current data shows that this figure has dropped to $1.03 billion due to XRP’s recent price drop to $1.15 at press time.

Despite the decline, XRP ETFs have recorded a combined net inflow of $1.42 billion since they launched in the fourth quarter of 2025. 

Of this figure, Bitwise leads with $467.3 million in net inflows. Canary Capital’s XRPC follows closely with $458 million, while Franklin Templeton’s XRPZ holds the third position with $392.18 million. Grayscale’s GXRP comes in fourth, with $129 million in inflows.

Considering the impressive momentum, Barron asked Pandl where he believes these ETF holdings could reach by the end of the year and how much XRP these funds might eventually control.

Pandl’s 5–6% Supply Outlook

In response, Pandl said XRP ETFs have recently attracted strong interest from investors, especially at a time when some other crypto products are seeing outflows. Notably, earlier this week, the products saw the largest inflows for any crypto asset, while Bitcoin and Ethereum ETFs recorded outflows.

Pandl explained that one of XRP’s key strengths is its ability to add balance to a crypto portfolio, since its price movement often differs from that of Bitcoin and Ethereum, which tend to move in similar ways. According to him, XRP moves differently, which makes it useful for diversification. 

Pandl then compared XRP ETFs with Bitcoin and Ethereum ETFs, saying those products hold around 5% to 6% of their respective assets at any given time. Considering this, he said XRP ETFs could move in a similar direction in the short term, with room for more growth over time.

Barron asked whether the 5% to 6% estimate applies to each ETF or the total across all funds. Pandl clarified that he was referring to the combined holdings of all XRP ETFs. He explained that, as a starting estimate, these funds could together hold about 5% to 6% of XRP’s circulating supply.

However, the Grayscale executive clarified that this figure is a broad estimate, not a fixed target. According to him, current demand suggests this level is achievable, and possibly even higher, depending on how investor interest develops.

What This Means for XRP ETFs

Right now, XRP ETFs hold about $1.03 billion in total net assets. This represents roughly 1.4% of XRP’s circulating market cap, which stands at $71.2 billion. These figures show that ETF exposure is still at an early stage compared to Pandl’s projection.

If XRP ETFs grow to hold 5% to 6% of the circulating supply, which is currently 61.97 billion XRP tokens, their holdings would increase sharply. In this case, ETF holdings would rise to between 3.1 billion and 3.7 billion XRP tokens. At current prices, this would be worth between $3.5 billion and $4.2 billion.