Coinbase's XRP Reserves Plummet 90%: Is an XRP ETF on the Horizon?
🏛️ Coinbase's XRP reserves have experienced a dramatic reduction, raising questions about the destination of these tokens and fueling speculation about an impending XRP ETF. On-chain data reveals a significant decline in the exchange's cold wallet holdings, with a reduction exceeding 90%. This activity coincides with increased institutional interest in XRP, sparking rumors of major firms like BlackRock quietly accumulating the asset.
📌 📉 Coinbase's XRP Holdings Suffer a Major Drop
⚖️ Coinbase's recent activity involving its XRP holdings has caught the attention of many crypto investors. Previously, Coinbase held a substantial amount of XRP and was considered the fifth-largest holder. However, its XRP reserve balance decreased from approximately 780.13 million XRP to 199.47 million XRP – a roughly 69% reduction observed since the second quarter of 2025.
🏛️ Data from the @XRPwallets X (formerly Twitter) account indicates that Coinbase has continued to reduce its XRP holdings. Currently, Coinbase maintains just six cold wallets, each holding about 16.5 million XRP, totaling an estimated 99 million XRP overall.
🏛️ In comparison, as of June 9, Coinbase operated 52 cold wallets, including 10 wallets holding 26.8 million XRP each and 42 wallets holding 16.8 million XRP each. At that time, Coinbase controlled nearly 970 million XRP. This means Coinbase has reduced its XRP reserves by approximately 90% in the last three months.
🏛️ The significant outflow of XRP from Coinbase has been associated with institutional accumulation in anticipation of a spot XRP ETF launch in the US. This also aligns with earlier reports concerning BlackRock's indirect involvement with XRP through Coinbase's custodial services.
📌 🤔 Implications for XRP Investors
🏛️ The substantial reduction in Coinbase’s XRP reserves has generated considerable discussion among crypto investors, as seen on various social media platforms. For example, @XRPwallets has suggested that these large movements could be connected to BlackRock's activities.
🏛️ On X, user Stern Drew proposed that Coinbase’s sell-offs are part of a strategy to deliberately lower XRP’s price. Pro-XRP lawyer Bill Morgan quickly refuted these manipulation claims.
⚖️ Although unconfirmed, the most likely explanation for these substantial XRP exits is linked to the potential launch of an XRP ETF. Polymarket estimates the odds of the SEC approving an XRP ETF in 2025 at 94%. Bloomberg analysts also assess the likelihood at 90% or higher.
🚀 Institutional investors may be accumulating XRP in anticipation of such a product. The decreased supply on exchanges could create buying pressure even before the ETF's launch. At the time of writing, XRP is trading at $3, down by 2.9% in the last 24 hours.
📌 ⚖️ Key Stakeholder Positions
Here's a summary of the key stakeholders' positions regarding the XRP situation:
| Stakeholder |
Position |
Impact on Investors |
| Coinbase |
🏛️ Reducing XRP reserves; likely facilitating institutional accumulation. |
📈 Potential price increase due to reduced supply. |
| BlackRock (Rumored) |
Allegedly accumulating XRP indirectly via Coinbase. |
🏛️ 📈 Increased institutional interest can drive demand. |
| XRP Community |
Varying views: some see ETF potential, others suggest price manipulation. |
⚡ 💰 Highlights need for critical evaluation of market narratives. |
| Bloomberg Analysts |
✅ Estimating high probability of XRP ETF approval in 2025. |
👥 Boosts investor confidence, supports long positions. |
📌 🔑 Key Takeaways
- Coinbase’s XRP reserves have dropped significantly, with a 90% reduction in the last three months, signaling a major shift in holdings.
- Speculation is growing that institutional investors, possibly including BlackRock, are accumulating XRP in anticipation of a spot XRP ETF.
- The probability of an XRP ETF approval in 2025 is estimated at over 90% by both Polymarket and Bloomberg analysts, increasing market optimism.
- Conflicting narratives exist, with some suggesting price manipulation, highlighting the importance of critical analysis and caution.
- Reduced XRP supply on exchanges could lead to increased buying pressure, potentially driving up the price even before an ETF launch.
🔮 Thoughts & Predictions
The drastic reduction in Coinbase's XRP reserves coupled with persistent rumors of institutional accumulation points toward a pivotal moment for XRP. While a spot XRP ETF approval is not yet guaranteed, the current market dynamics and high probability estimates suggest significant upward price potential if the ETF materializes. Investors should be prepared for increased volatility in the short term as market sentiment reacts to ETF-related news and regulatory updates. However, the long-term prospects for XRP appear increasingly bullish, especially if institutional adoption continues to accelerate. Don't underestimate the power of narrative in this market – an ETF approval could be the catalyst that pushes XRP to new all-time highs.
🎯 Investor Action Tips
- Closely monitor official announcements from Coinbase and BlackRock (if any) regarding XRP holdings and ETF plans to confirm or refute rumors.
- Consider scaling into XRP positions gradually to mitigate the impact of short-term volatility while capitalizing on potential long-term gains from ETF anticipation.
- Set price alerts around key support and resistance levels for XRP to manage risk and identify potential entry or exit points based on market reactions to ETF news.
- Diversify your crypto portfolio beyond XRP to reduce exposure to single-asset risks, particularly given the speculative nature of ETF approval outcomes.
🧭 Context of the Day
Today's XRP market dynamic is fundamentally shaped by ETF speculation, making institutional accumulation and regulatory approvals key determinants of near-term price action.
