According to recent reports, the value of XRP held by Coinbase has significantly plummeted by nearly 90%, indicating a surge in investors hoarding the cryptocurrency.
In a surprising move, Coinbase, one of the world's largest cryptocurrency exchanges, has significantly reduced its XRP holdings. Previously, the exchange held 52 cold wallets, each containing approximately 16.8 million XRP, totalling over 888 million XRP. However, recent on-chain data reveals that Coinbase now only has six cold wallets, each holding about 16.5 million XRP, amounting to approximately 99 million XRP - a decline of more than 90% over the past three months.
This reduction in Coinbase's XRP holdings has caused concern among some investors, as it could potentially be bearish for the XRP price. An account on the social media platform X, known as Stern Drew, suggested that Coinbase's sell-offs could be part of a deliberate strategy to suppress the XRP price. However, pro-XRP lawyer Bill Morgan rejected these manipulation claims.
The destination of the tokens withdrawn from Coinbase's reserves has been a topic of speculation. The large movements of XRP from Coinbase's reserves have been speculated to be linked to BlackRock by an account on X, known as XRPwallets. There have been reports about BlackRock's indirect involvement with XRP through Coinbase's custodial services.
Despite the uncertainty, the XRP community has been closely monitoring institutional activity, with growing rumors of BlackRock and other heavyweight firms building exposure to XRP. Market speculation often points to institutional investors, crypto-focused banks, or asset managers as potential recipients of the withdrawn XRP reserves. However, as of September 2025, no official confirmations exist regarding specific institutions taking over the XRP reserves.
The reduced supply of XRP on exchanges could contribute to buying pressure even before the launch of an XRP ETF. The odds of the SEC accepting an XRP ETF in 2025 are at a 94% chance on Polymarket, and Bloomberg analysts also place the odds of an XRP ETF launch at a 90% chance or higher. The reduction in XRP movement from Coinbase has been linked to accumulation into institutional wallets in anticipation of the launch of a Spot XRP ETF in the US.
At the time of writing, XRP is trading at $3, down by 2.9% in the past 24 hours. The recent moves by Coinbase with its XRP holdings have taken most crypto investors by surprise, adding an element of intrigue to the ongoing XRP saga. As the crypto market continues to evolve, the future of XRP and its relationship with institutions remains a fascinating subject of discussion.
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