XRP Drops 3.27% Amid SEC ETF Approval, Whale Accumulation

XRP's latest price was $2.17, down 3.27% in the last 24 hours. The United States Securities and Exchange Commission (SEC) has officially approved the conversion of the Grayscale Digital Large Cap Fund into an Exchange-Traded Fund (ETF). This significant regulatory decision allows the fund to be publicly traded on traditional financial markets while offering exposure to a basket of digital assets. The ETF includes several prominent cryptocurrencies, notably XRP. The inclusion of XRP in this ETF has attracted considerable attention within the cryptocurrency community. The decision is particularly significant given XRP’s lengthy history of regulatory scrutiny in the United States. Many market observers interpret this as a major milestone for XRP, considering the asset has faced multiple legal and regulatory challenges over recent years. This development is especially important for XRP holders and the broader crypto ecosystem.

Several cryptocurrency commentators responded to the announcement. An X user named X Finance Bull remarked that while the list of assets in the ETF is strong, the presence of XRP holds special significance, especially in light of the hurdles it has faced. This sentiment underscores how the regulatory clarity around XRP evolves in the U.S. financial landscape. Another X user, FairyFrens, described the development as a pivotal moment for XRP. Their comment emphasized that fund conversions of this nature often reshape the structure and dynamics of the cryptocurrency market. They also questioned how other financial funds might respond following this approval, suggesting that it could influence broader trends in digital asset investment vehicles. Isabel, another participant in the discussion, emphasized the macroeconomic implications of the SEC’s approval. She noted that the U.S. economy is currently experiencing a downturn. In her view, this decision could serve as a catalyst to attract global capital inflows into the U.S. financial system. Isabel argued that the ETF, including XRP, has the potential to inject vitality into related industries, contribute to economic growth, and create employment opportunities within the digital economy.

The SEC’s decision to approve the conversion of Grayscale’s Digital Large Cap Fund into an ETF represents an important step in the continued integration of digital assets into traditional financial markets. This approval not only reinforces the growing acceptance of cryptocurrencies like Bitcoin and Ethereum but also elevates XRP’s standing in regulated investment products. The move could potentially pave the way for further adoption of cryptocurrency ETFs that incorporate a diversified range of assets. The regulatory validation also signals a shift in how U.S. authorities are approaching the crypto sector. By allowing XRP to be part of a publicly traded ETF, the SEC indirectly acknowledges its role as a legitimate asset in diversified investment portfolios.

Nasdaq-listed Webus International Limited announced it has signed a conditional Securities Purchase Agreement with Ripple Strategy Holdings to access up to $100 million in funding through a senior equity line of credit. There is limited public information about Ripple Strategy Holdings. However, its name suggests that it operates as a financial vehicle backing XRP-related ventures and blockchain-based companies. The entity has no official affiliation with Ripple Labs, the developer of the XRP Ledger and issuer of the XRP token. Under the agreement, which is still pending regulatory clearance and underwriter approval, Webus can draw between $250,000 and $3 million per tranche over 24 months, subject to market conditions and capital needs. The company stated it plans to use the proceeds to support its XRP treasury strategy, including crypto-enabled payments, blockchain-based loyalty programs, and global expansion initiatives. According to Nan Zheng, CEO of Webus, the $100 million commitment demonstrates Ripple Strategy Holdings’ confidence in its XRP-focused strategy. The deal, which enables Webus to raise capital efficiently and only as needed, allows the company to minimize shareholder dilution, he noted. “We believe this will help us accelerate growth across North America and Asia-Pacific, and strengthen our leadership in crypto-powered premium mobility,” said Zheng. The Nasdaq-listed company, which provides AI-driven mobility solutions and premium chauffeur services, has previously established a Delegated Digital-Asset Management Agreement with a mandate cap of up to $300 million for potential XRP treasury operations.

Market analyst Jungle Inc, “This chart shows the relationship between whale flows (in millions) and XRP price over time. From Aug–Dec 2024, whale flows shift from strongly negative to positive (+250M), coinciding with a steep XRP price rally from ~$0.50 to ~$3.00 — suggesting whales accumulate before price surge.” The analyst added, “May–June 2025: whale flows turn positive again (+300M), while price stabilizes around $2.00 — hinting at potential repeat of the prior rally cycle. In short: whales accumulate heavily before rallies and reduce positions as prices peak — their flows often precede major moves.” With whale flows turning positive, there is a high likelihood that large holders are anticipating an upward price movement and are positioning themselves early, with this move usually deemed smart money activity. Therefore, XRP whales are quietly but aggressively accumulating, signaling long-term conviction underpinned by growing on-chain utility and improved regulatory outlook. Their strategic moves are reshaping supply dynamics, and if sustained, may set the stage for a major breakout in the months ahead. In the past month alone, whales holding between 10–100M XRP scooped up more than 420M XRP worth a whopping $915M, while another cohort added at least 260 million XRP, illustrating robust diversified accumulation across different whale brackets. Combined with earlier Q2 accumulation of around 900M XRP, this reflects a sustained push higher.

On-chain analytics reveal a historic milestone: over 2,700 wallets now hold more than 1 million XRP, the highest ever in XRP’s 12-year existence. This scale of concentration indicates large players and institutions are injecting capital and confidence into XRP at an unprecedented pace. On the other hand, Daily active addresses on the XRP Ledger skyrocketed from 40K to an astonishing 295K, representing a 7-fold increase. Surging transaction volume driven by new use cases in decentralized finance (DeFi), tokenization, and cross-border flows is translating on-chain utility into credible long-term demand.

Speculation regarding a potential exchange-traded fund (ETF) linked to XRP persists within the market, influencing trader expectations and behavior. This interest coincides with Ripple's strategic shift towards developing institutional-grade products. Such a pivot underscores a broader institutional focus, though company executives have not publicly commented directly on the ETF rumors.

Market observers note significant activity where large quantities of XRP are being transferred out of exchange wallets. This movement signifies a trend where holders may be opting for long-term custody solutions rather than immediate trading. This behavioral pattern is often interpreted as a potential reduction in readily available supply for selling pressure. Concurrently, underlying network activity shows increased engagement, suggesting growth in practical usage and potential demand fundamentals.