XRP’s Secret: Why Institutional Buyers Are Going Crazy

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On the 26th of February, Bitrue, that paragon of financial wisdom, declared that XRP’s spot buying had surged by 212%, a feat akin to convincing a cat to wear a hat while reciting Shakespeare. The exchange credited this miracle to “institutional investors,” who, it seems, have abandoned their previous occupation of sipping espresso and instead now allocate capital through “newly launched XRP exchange-traded funds (ETFs),” a term so convoluted it could double as a Russian novel.

The exchange linked the spike to roughly $1.1 billion in cumulative ETF inflows, arguing that “steady demand from funds and retail traders” would “tighten available supply.” One might wonder if these traders are also tightening their belts, but such questions are best left to the philosophers of the stock exchange.

Spot Buying Jumps as ETF Inflows Build

In a post on X, Bitrue claimed XRP buy orders outpaced sell orders by “more than two to one,” a ratio that would make even a mathematician question their life choices. “We recorded a 212% increase in XRP spot purchase volumes, outpacing the sell side by over 2x,” the exchange posted, as if announcing the discovery of a new galaxy.

“We recorded a 212% increase in XRP spot purchase volumes, outpacing the sell side by over 2x,” the exchange posted on X.

It attributed the imbalance to “sustained institutional accumulation since the debut of XRP ETFs,” which it claims have drawn $1.1 billion in net assets. Yet data from SoSoValue suggests these ETFs are as active as a sleep-deprived sloth, with “ muted ETF flows in recent days.” A paradox! A mystery! A tale of two markets, one dancing in the spotlight, the other hiding in the shadows, much like the devil and the archangel in a particularly chaotic tavern.

However, the derivatives market, that fickle lover, tells a different tale. According to CryptoQuant, XRP futures open interest has fallen across major platforms over the past 90 days, with Binance recording a decrease of 7.7 million XRP and Bybit showing a larger reduction of around 12 million tokens. Furthermore, the three-month moving average for XRP futures volume has dropped to its lowest level since November 2024, settling at approximately $87 billion. A decline so profound, it could make a funeral director weep.

Looking at XRP’s broader market structure, it was trading around $1.44 at the time of writing, up nearly 5% in the last 24 hours and about 2% during the week. Even so, the token is still down more than 23% over the past month and almost 38% across the past year, far below its July 2025 all-time high of $3.65. A descent so steep, it rivals the trajectory of a poorly aimed arrow.

Cooling Leverage Meets Steady Spot Demand

The divergence between spot accumulation and falling derivatives activity suggests a shift in market composition rather than uniform bullish momentum. Open interest now stands near $2.37 billion per CoinGlass figures, and the contraction in leveraged positions may reflect traders reducing risk after months of volatility. A prudent move, though one wonders if they’ve considered the alternative: investing in a circus.

From a price standpoint, XRP remains range-bound between $1.38 and $1.48 over the past 24 hours. One market watcher, CasiTrades, flagged resistance around $1.40 and $1.65, with support near $1.11 and $0.87. According to them, a sustained move above those resistance levels would likely require stronger follow-through from ETF inflows and broader market participation. A tall order, akin to convincing a ghost to sign a contract.

As such, considering the broader data, Bitrue’s reported spike in spot buying highlights firm exchange-level demand, but the wider data show a market that is rebalancing rather than accelerating. A delicate dance of supply and demand, where every step risks a stumble into oblivion.

Nonetheless, the crypto exchange is predicting that growing retail and corporate support could lead to a supply deficit that may push up the Ripple token’s performance enough to beat major rivals this year. “With support increasing from retail and institutional levels, Bitrue is forecasting a potential supply squeeze, which will likely result in XRP outperforming key competitors over Q2 2026,” wrote Bitrue. A prophecy so bold, it could make a prophet blush.

“With support increasing from retail and institutional levels, Bitrue is forecasting a potential supply squeeze, which will likely result in XRP outperforming key competitors over Q2 2026,” wrote Bitrue.

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2026-02-26 21:17