Ripple CEO Highlights XRP's Solid Performance, Applauds 'Brilliant' US Court Ruling

XRP holders are increasingly moving their assets from centralized exchanges to self-custody solutions like hardware wallets, according to recent on-chain data. This trend is being driven by the growing inflows into spot XRP ETFs, which have attracted over $1.24 billion since their launch in late 2025. As the supply of XRP on exchanges tightens, long-term holders continue to build positions while short-term speculators exit the market according to CoinPaper.

Institutional demand for XRP ETFs has remained steady for over 40 days, with cumulative positive inflows signaling a broader accumulation strategy. The shift to self-custody reflects a strategic, long-term approach by XRP holders rather than short-term speculative behavior. This movement is also being supported by platforms like Flare Networks, which provide yield opportunities for FXRP according to CoinPaper.

XRP's price has corrected significantly in the last month, trading at $1.29 as of March 1, 2026. However, the underlying demand for XRP ETFs and the shift to secure storage methods indicate growing confidence in the asset's long-term potential. The market is now watching whether this trend will continue and how it might affect liquidity dynamics on exchanges according to CoinPaper.

Why Did This Happen?

The growing inflows into XRP ETFs are largely attributed to institutional investors who see XRP's use case in financial services as a compelling value proposition. Ripple's development of decentralized asset markets and lending protocols is aligned with real-world asset (RWA) tokenization, a trend gaining traction in the financial sector. These features are designed to meet the specific needs of financial institutions, differentiating XRP from more generalized platforms like Ethereum according to The Motley Fool.

XRP's focus on financial infrastructure also explains its appeal to institutional buyers. Unlike Ethereum, which captures a significant share of transaction fees and network activity, XRP is positioned as a utility asset for cross-border payments and tokenization. This model is attracting a niche but growing set of financial institutions looking to integrate blockchain solutions into their operations according to The Motley Fool.

How Did Markets Respond?

Market data shows a surge in short interest in the XRP ETF (NASDAQ:XRPI), with shares shorted increasing by 61.7% in February 2026. Despite this, institutional investors have continued to accumulate shares, adding to their positions in the ETF. This suggests that while there is some bearish sentiment, the overall demand for XRP-related products remains strong according to MarketBeat.

The ETF's price has also shown resilience. As of March 1, the ETF opened at $7.70, with a 52-week low of $6.50 and a high of $23.53. Although the ETF cut its monthly dividend, institutional confidence and market demand continue to support the asset. This dynamic raises questions about whether the current short interest will be enough to pressure the ETF's price or if continued inflows will offset bearish speculation according to MarketBeat.

What Are Analysts Watching Next?

Analysts are closely watching the balance between institutional accumulation and short interest in the XRP ETF. While the ETF has remained in positive territory for over 40 consecutive days, the recent surge in short positions could create volatility in the short term. The market will also be watching whether the trend of shifting XRP to self-custody solutions continues to accelerate, as this could further tighten supply on exchanges according to CoinPaper.

The broader market is also monitoring XRP's role in the tokenization of real-world assets. Ripple's ongoing development of financial infrastructure solutions could provide a long-term tailwind for the asset, particularly if adoption in the financial services sector continues to grow. However, XRP's lack of a native value capture mechanism means that its success will depend on continued institutional demand and strategic partnerships according to The Motley Fool.

As XRP ETFs continue to attract large institutional inflows, the financial ecosystem is watching closely to see if this will translate into broader acceptance of XRP as a key player in the tokenized asset space. The next few months could determine whether XRP's current momentum is a short-term trend or a long-term shift in market sentiment.