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HomeCryptocurrencyPundit to XRP Investors: Liquidity Shock Incoming. Here's why

Pundit to XRP Investors: Liquidity Shock Incoming. Here’s why

The regulatory and financial landscape surrounding XRP has taken another decisive turn. The Depository Trust & Clearing Corporation (DTCC) has now moved five spot XRP exchange-traded funds (ETFs) into its active queue, signaling an advanced stage in the process toward potential approval and launch.

The move has intensified anticipation across the market. According to a recent post from crypto commentator 589bull (@589bull10000), this phase represents the calm before a significant shift in liquidity dynamics.

He stated that “five spot XRP ETFs have officially entered the DTCC active queue,” adding that each fund must “custody real XRP,” emphasizing the requirement for actual asset-backed holdings rather than synthetic exposure.

Real Asset Custody and Supply Constraints

The introduction of spot ETFs marks a fundamental change in how institutional exposure to XRP is managed. Unlike derivatives-based funds, spot ETFs must acquire and hold XRP directly.

This design removes a portion of circulating supply from the open market, concentrating liquidity in custodial vaults. As more institutional vehicles move toward approval, the availability of XRP on exchanges could diminish, producing conditions that naturally favor higher valuations.

589bull noted that “every ETF launched on XRP’s rails drains supply and deepens liquidity.” His statement reflects growing confidence among market participants that these products could significantly affect the asset’s underlying liquidity structure.

The DTCC recently listed nine ETF entries and later included a spot XRP ETF filing from Franklin Templeton. With several funds now progressing within the DTCC framework, traders and investors are beginning to reprice their expectations for XRP’s medium-term performance.

Macroeconomic Tailwinds Reinforcing Sentiment

Coinciding with these developments, reports indicate that the U.S. government shutdown may soon end. The prolonged deadlock has weighed on investor sentiment across the crypto space, and early signs of resolution have already triggered a sharp reaction in the crypto sector.

XRP surged significantly over the past 24 hours, reflecting renewed confidence as market participants anticipate both political stability and advancing institutional adoption.

The DTCC’s progression with ETF listings signals that institutional infrastructure is aligning with investor demand, while improving political conditions could sustain broader risk appetite in financial markets and give XRP a boost.

In his analysis, 589bull described the current phase as “the quiet part before the storm when the market still misprices what’s coming.” His assessment captures the growing perception that XRP’s market value may not yet reflect the potential impact of ETF-driven accumulation.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.


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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over seven years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
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