Ripple’s XRP is once again at the center of institutional buzz following major withdrawals from top crypto exchanges and renewed interest surrounding a possible XRP ETF. On-chain data shows that large amounts of XRP have been moved off exchanges, particularly from South Korea’s Upbit, while other major platforms like Binance, Bybit, and Bitfinex have seen notable declines in XRP reserves.

This movement comes alongside new developments tied to VanEck’s MVDApp — a platform that some analysts believe could be laying the groundwork for a regulated XRP ETF product. The combination of declining exchange balances and institutional infrastructure growth is reigniting speculation that XRP may be on the verge of being inducted into the ETF landscape.

Billions in XRP Withdrawn from Exchanges

According to data from CryptoQuant, multiple exchanges recorded steep XRP outflows in recent days, with Upbit seeing the most dramatic change. The platform saw a temporary drop of approximately 5.5 billion XRP, which brought its reserves down to around 1.1 billion.

While this outflow was later partially reversed, the magnitude of the movement triggered speculation about possible institutional accumulation or reallocation to cold storage and custodial services.

Other platforms also showed significant reductions in XRP reserves:

• Binance dropped from 2.86 billion XRP to approximately 2.23 billion — a decrease of around 630 million tokens.

• Bybit reserves fell by 110 million XRP, from 340 million to 229.7 million.

• Bitfinex recorded a decline of 6 million XRP, going from 64.5 million to 58.5 million.

These movements have led analysts to believe that institutional entities — such as fund managers, payment platforms, or custodians — could be pulling XRP off exchanges in preparation for regulated storage or strategic use in cross-border settlement operations.

Is VanEck Preparing for an XRP ETF?

Adding to the intrigue is the growing activity around VanEck’s MVDApp, a digital asset platform that many consider an early signal of ETF infrastructure being established. The recent spike in XRP-related development and settlement interest around MVDApp is seen by market watchers as a potential precursor to an ETF application .

The concept of an XRP ETF has been floated in crypto circles for years, but recent trends — including regulatory clarity around XRP’s non-security status in the U.S. — have brought that possibility closer to reality.

VanEck, known for its Bitcoin and Ethereum ETF efforts, appears to be positioning itself to expand its offerings. While nothing has been confirmed, the company’s increased XRP engagement through MVDApp is being interpreted by many as a move to test infrastructure ahead of a possible regulatory filing.

XRP Futures and Micro Contracts Drive Institutional Interest

Meanwhile, XRP and Micro XRP Futures have gained traction following their introduction on May 19. The start has generated notable interest from both institutional and retail investors. Since then, the asset has become one of the more actively tracked cryptos on derivative exchanges.

The increased attention to XRP’s derivatives suggests growing demand for structured exposure — a key requirement for any asset being considered for ETF inclusion.

The CME Group, which oversees regulated crypto futures, has also highlighted a rise in XRP-related contracts. As more participants seek hedged or leveraged exposure through institutional-grade products, the ecosystem is aligning more closely with the tools needed for ETF approval.

Sentiment Remains Mixed Despite Institutional Cues

Despite the rising institutional activity, sentiment across the market is still divided. According to Market Prophit, a sentiment analytics platform, retail crowd sentiment for XRP remains optimistic, with a score of 1.94, indicating bullish expectations.

In contrast, the “smart money” sentiment — which reflects the mood of institutional and informed investors — remains in negative territory, with a reading of -1.30. This suggests that while some participants are preparing for a possible breakout, others remain cautious due to market volatility and the lack of official revealing regarding an ETF.

This disconnect could reflect differing time horizons: retail investors may be reacting to short-term news and price action, while institutional players are building positions more quietly in anticipation of longer-term developments.

Market Impact and What’s Next

Exchange outflows are often interpreted as bullish signals, particularly when they’re this large. Moving XRP off centralized platforms typically means those assets are being stored for longer-term use — whether for custody, institutional settlement, or inclusion in structured products like ETFs.

However, such withdrawals also reduce liquidity on exchanges, which can lead to increased volatility. If sentiment shifts or news breaks around an ETF, the low float could result in sharp price moves.

The rebalancing of reserves at Upbit — which saw some XRP return after the massive outflow — adds a layer of uncertainty. It’s possible the exchange was undergoing internal reallocation or simply shuffling cold storage assets, but the timing coinciding with VanEck’s MVDApp activity keeps the ETF rumor mill turning.

With Ripple continuing to expand its partnerships and the crypto industry leaning further into regulated financial products, XRP may soon have its turn in the ETF spotlight — especially if the derivatives and custodial ecosystems continue maturing.

Final Thoughts

While there has been no official filing or approval, institutional behavior suggests that something is brewing behind the scenes for XRP. From VanEck’s increasing involvement to the billions in XRP leaving centralized exchanges, all signs point to preparation for larger moves — possibly even an ETF.

For now, investors are watching the signals closely. Whether XRP becomes the next crypto to join the ETF club remains to be seen, but the groundwork appears to be quietly forming.