Banks buy XRP as exchange supply falls

TLDR

Major banks and ETFs are increasing their XRP exposure while exchange-held XRP has dropped to multi-year lows, shifting supply away from trading venues into longer-term custody.

1. Major banks like Intesa Sanpaolo and several US institutions hold XRP via trusts and ETFs, while top-exchange reserves fell from about 4 billion to roughly 1.61.7 billion XRP.
2. On-chain data shows record-low XRP inflows and rising withdrawals from exchanges, easing sell pressure, but ETF and bank demand is still small versus XRPs 66 billion dollar market cap.
3. The next phase depends on ETF flows, execution of large accumulation plans, and macro catalysts that could move XRP out of its historically weak August range around the 1 dollar level.

Deep Dive

1. Banks And ETFs Accumulating

XRP (XRP) is seeing growing institutional-style exposure. Italys largest bank, Intesa Sanpaolo, reported 712,000 shares of Grayscale XRP Trust, about 18 million dollars of XRP, in its latest 13F filing, making XRP roughly 6 to 7 percent of its disclosed crypto portfolio. Other firms such as Goldman Sachs, Morgan Stanley, Millennium, and Citadel also report XRP exposure through exchange-traded products, preferring ETF-style vehicles for custody and compliance.

US spot XRP ETFs are nearing 1 billion dollars in assets with cumulative inflows around 1.5 billion dollars, and recent data showed a single day of almost 6 million dollars in net inflows, according to a recent institutional flow overview. This is meaningful for market structure, even if still small relative to total XRP capitalization.

2. Falling Exchange Supply And Price

Glassnode and CryptoQuant data cited in the same report indicate XRP reserves on the top 10 exchanges have dropped from about 4 billion XRP to roughly 1.61.7 billion, a multi-year low. Binance inflows have collapsed from prior peaks near 583 million XRP to about 25.3 million XRP, with average monthly deposits around 3.6 million, while withdrawals dominate activity.

This points to seller exhaustion and more XRP moving into private wallets or institutional custody. Still, ETF desks have been quiet for much of July, and analysts stress that reduced sell pressure alone does not guarantee a rally. XRP trades near 1.06 dollars with a market cap around 66 billion dollars, and August has historically been its flattest, often negative, month.

3. Signals To Watch Next

Several forward triggers could decide whether bank buying and lower exchange supply translate into price strength. On the flow side, watch daily net inflows into spot XRP ETFs and any progress on large plans like Evernorths proposal to accumulate roughly 473 million XRP via a Nasdaq-listed vehicle.

On the fundamentals side, Ripples RLUSD stablecoin expansion, EU MiCA authorization, and upcoming XRP Ledger upgrades aimed at institutional users may gradually increase bank and fintech engagement. Technically, key levels are support around 1.00 dollars and resistance in the 1.10 to 1.22 dollar area highlighted by recent analyses; macro events such as inflation data and Fed meetings could push XRP out of this range in either direction.

Conclusion

Banks and ETFs are genuinely adding XRP exposure while exchange reserves fall, indicating a structural shift from short-term trading supply into longer-term custody. For now, this mainly reduces sell pressure rather than proving a strong new demand wave, so XRPs path will be shaped by how ETF flows, institutional products, and macro conditions evolve around its current 1 dollar range.