Institutional demand for XRP is surging, prompting a reassessment of the token’s supply dynamics. Multiple spot-XRP ETFs are actively absorbing millions of tokens daily, leading to concerns about a potential supply squeeze that may occur sooner than anticipated. 4 spot-XRP ETFs (Franklin Templeton, Bitwise, Canary Capital and Grayscale) alone absorbed over 79 million XRP in a single day on November 24th, with the total exceeding $60 million across those launches. This influx of institutional capital signifies serious market participation. The available supply is expected to run out faster than many predict. ETFs are effectively removing XRP from circulation by taking these tokens into custody. This reduces liquidity and puts upward pressure on price. As ETF holdings grow, exchanges will experience a decline in listed XRP balances. If this trend continues, a decrease in available XRP could accelerate demand from institutional investors or retail buyers who will be faced with limited supply. 2026 is projected to see a significant depletion of the circulating XRP supply as a result of sustained ETF activity.