Analyst Claims Escrow Is No Longer an Option for ETFs Looking to Purchase XRP

XRP Supply Concerns: Analysts are questioning the actual liquid supply of XRP, suggesting it may be significantly lower than the reported 60 billion circulating supply, with estimates indicating the effective float could be below 10 billion XRP.

ETF Demand vs. Available Supply: The growing demand for XRP ETFs is raising concerns about where issuers will source XRP, as much of the supply is locked up or held by exchanges, leading to fears of a potential supply crunch.

Ripple's Escrow Limitations: ETF issuers cannot purchase XRP directly from Ripple's escrow due to legal restrictions from a 2023 court ruling, which limits Ripple's ability to sell XRP directly to institutional buyers.

Market Reactions and Predictions: Analysts warn that as ETF demand increases and liquid supply decreases, XRP could experience significant price volatility, with the community closely monitoring the situation for signs of a supply shock.