One of the more persistent questions in digital asset markets concerns the apparent disconnect between institutional inflows and short-term price movement. A recent post shared by the crypto news page CryptosRus revisits this issue in the context of XRP-linked exchange-traded products , addressing why reported inflows do not always result in immediate upward price action. IF THERE ARE STRONG $XRP ETF INFLOWS, WHY DOESN'T THE PRICE GO UP? This is a frequently asked question about various cryptos and their corresponding ETFs. Matt Hougan of Bitwise explains how his company purchases its cryptocurrencies. The purchases are done via an "OTC"… pic.twitter.com/HxdN2ecbQS — CryptosRus (@CryptosR_Us) December 29, 2025 How Institutional XRP Purchases Are Executed According to the explanation highlighted by CryptosRus, Bitwise Chief Investment Officer Matt Hougan has previously detailed how his firm acquires digital assets for its products. Instead of purchasing directly on public exchanges in a visible manner, Bitwise typically relies on over-the-counter transactions. These OTC trades are structured to limit market disruption and avoid sudden price movements that could occur if large buy orders were placed openly. Once a market maker is selected, that intermediary is responsible for sourcing XRP from the open market. The buying activity does occur on exchanges, but it is carried out gradually and strategically by the market maker rather than through a single, transparent order tied directly to the ETF provider. After the acquisition, the XRP is transferred to Bitwise’s designated custodian. As a result, the demand generated by ETF inflows is distributed in a way that minimizes immediate price volatility. Why the Market Reaction Can Appear Muted This process helps explain why strong inflow data does not always coincide with rapid price increases. The structure of OTC execution reduces visible buying pressure, even when substantial amounts of XRP are being accumulated . In practical terms, ETF inflows reflect demand at the product level, but that demand is absorbed by the market in a controlled manner that prioritizes price stability over immediate impact. CryptosRus emphasizes that this approach is standard practice among institutional managers seeking efficient execution rather than short-term market influence. The absence of sharp price movement, therefore, does not indicate a lack of demand, but rather the effectiveness of the purchasing strategy. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Exchange Supply as a Key Variable An additional perspective was offered through a comment highlighted in the post, which shifted attention away from inflows alone and toward exchange balances. The view presented is that the more critical factor for price sustainability is how much XRP remains readily available for sale on trading platforms. Historical data showing a significant reduction in exchange-held XRP was cited as an example of conditions that can place upward pressure on price over time. From this standpoint, declining exchange balances could tighten supply even in the absence of major announcements, making it increasingly difficult for prices to remain suppressed. The general implication is that patience and structural market changes may matter more than short-term reactions to inflow figures when assessing XRP’s longer-term price behavior. 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. Follow us on X , Facebook , Telegram , and Google News The post Why XRP Price Doesn’t Rally Despite Strong ETF Inflows appeared first on Times Tabloid .
