Expert Reveals How XRP ETF Will Trigger Supply Shock
2025-12-04 22:15

A spot XRP ETF can reshape market liquidity . Institutional funds require large amounts of the underlying asset, and that demand often arrives faster than the market can supply it. When this happens, liquidity tightens, and price reactions become sharper. This creates an environment where even moderate buying pressure can generate major market shifts. Common Sense Crypto highlighted this issue on X, noting widespread confusion about where ETF issuers will obtain the XRP they need. Their clarification sparked renewed attention to the mechanics of supply, demand, and liquidity within the XRP ecosystem. The discussion is timely, especially as institutional interest in digital assets continues to grow. How ETF Issuers Acquire XRP ETF issuers must hold actual XRP to back investor shares. They begin with OTC desks because these channels offer deep liquidity with minimal market slippage. However, OTC supply is not infinite. Once large blocks are absorbed, issuers must turn...
https://timestabloid.com/expert-reveals-how-xrp-etf-will-trigger-supply-shock/