XRP ETFs registered a trade of 63.86 million dollars at the same time Binance reserves fell to a low not seen in many months, signaling a potential supply crunch of the token.
On Thursday, institutional interest in XRP ETFs was high, with trading volumes totaling $63.86 million across all the participating funds. The session further propelled the trend of digital asset products.
Xaif_Crypto on X claims that institutional demand remained stable. The funds ended with strong closing levels of participation, and market analysts reported steady purchasing during the day.
๐จ $XRP ETF Volume: $63.86M Session Closed
Strong close to the day with solid participation across funds.
Institutional demand remains stead https://t.co/2AkaMHoHpF pic.twitter.com/PZmNgzWt1Q
โ Xaif Crypto๐ฎ๐ณ|๐บ๐ธ (@Xaif_Crypto) December 19, 2025
Source: Xaif_Cryptoย
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Binance Reserves Hit Critical Low Point
The amount of XRP in Binance dropped to its lowest in months, indicating more withdrawal behavior. Traders are offloading tokens at an increasing rate.
InvestWithD has pointed out this trend on X. Exchange reserves are decreasing rapidly, and with fewer tokens to trade instantly. These outflows are usually indicative of long-term holding policies.
๐จ๐๐๐๐๐๐๐๐: ๐๐๐ ๐๐ฌ ๐๐๐ง๐ข๐ฌ๐ก๐ข๐ง๐ ๐ ๐ซ๐จ๐ฆ ๐๐ข๐ง๐๐ง๐๐ โ ๐๐๐ฌ๐๐ซ๐ฏ๐๐ฌ ๐๐ฎ๐ฌ๐ญ ๐๐ข๐ญ ๐ ๐๐ฎ๐ฅ๐ญ๐ข-๐๐จ๐ง๐ญ๐ก ๐๐จ๐ฐ ๐ณ๐
Okay this is not a normal chart.
๐๐ข๐ง๐๐ง๐๐โ๐ฌ ๐๐๐ ๐ซ๐๐ฌ๐๐ซ๐ฏ๐๐ฌ just dropped to a multi-month low โ meaning XRP isโฆ pic.twitter.com/Kk0vQP3B3p
โ Diana (@InvestWithD) December 18, 2025
Source: InvestWithDย
The exchange supply is being absorbed by cold-wallet transfers. The supply of XRP that is capable of being sold keeps decreasing, turning the market dynamics when tokens are leaving trading platforms. Supply constraints increase when exchange inventories decrease.
Supply Dynamics Create Pressure Point
The tension comes as a result of the combination of the ETF demand and decreased exchange supply. Price volatility may escalate due to the scarcity of tokens that buyers need to buy.
Past records indicate that such large-scale reserve withdrawals were followed by major price actions. XRP has been responsive to supply constraints in the past, and the current readings can be compared to previous periods of scarcity.
The exchange data support the further reduction. The holdings of Binance symbolize the prominent liquidity in the market, and the decreasing reserves lower the probability of immediate selling pressure. The trend indicates toward accumulation and not distribution.
Institutional capital continues to flow into ETF inflows. Product volumes indicate a lasting professional interest, and with the exchange outflows, the market organization alters significantly.
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