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Institutional acknowledgment confirms the potential risks of XRP whale-driven manipulation

Institutional acknowledgment confirms the potential risks of XRP whale-driven manipulation

Bitget-RWA2025/09/28 04:46
By:Coin World

- SEC's Cyber Hornet XRP ETF filing highlights whale manipulation risks, a rare institutional acknowledgment of crypto market vulnerabilities. - XRP's pre-mined supply and lack of staking rewards exacerbate liquidity challenges and volatility, unlike Bitcoin or Ethereum. - Recent whale transfers, like 160 million XRP movements, have pushed prices below key support levels, signaling short-term instability. - Pending XRP ETF approvals and institutional inflows may stabilize the market, but regulatory clarity

The recent submission to the U.S. Securities and Exchange Commission (SEC) for the Cyber Hornet S&P500/XRP ETF has spotlighted the dangers associated with major

holders, often referred to as "whales," whose significant trades have the potential to unsettle the market. The ETF prospectus directly points to whale-driven manipulation as a substantial risk for investors, which is an uncommon admission from a crypto-focused institutional applicant New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ]. Legal expert Bill Morgan highlighted the importance of this transparency, suggesting that such institutional acknowledgment validates concerns in a sector frequently labeled as speculative New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ]. The document notes that a handful of large holders possess a considerable share of XRP’s total supply, giving them the ability to influence prices and disrupt market equilibrium through concentrated trading New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ].

The inherent structure of XRP amplifies these vulnerabilities. In contrast to

or , XRP’s entire token supply was created at inception, with no ongoing issuance to support network security. This fixed-supply approach, coupled with the lack of mining or staking incentives, results in liquidity constraints and increased price swings New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ]. Market observers have pointed out that whale actions—such as the recent movement of 160 million XRP—have already driven the price below key support thresholds, fueling worries about short-term instability XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ]. The Cyber Hornet ETF application could prompt more regulatory attention, encouraging open dialogue about the realities of crypto market behavior New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ].

Latest blockchain data shows a surge in whale accumulation. Wallets with balances between 10 million and 100 million XRP collectively added 880 million tokens from April to early May 2025, indicating strong long-term faith in XRP Opportunity to Invest in XRP Despite Market Manipulation and Whale Accumulation [ 4 ]. Still, large transfers to exchanges—such as a 30 million XRP

to Coinbase—have coincided with price drops, demonstrating how whale actions can directly sway market sentiment XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ]. Such moves are often seen as strategic positioning ahead of possible regulatory changes, including the anticipated approval of 16 XRP ETFs XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ].

The SEC’s postponement of a decision on 21Shares’ spot XRP ETF, now expected by the end of 2025, has introduced further unpredictability. Although institutional interest in XRP has grown following regulatory developments in 2025—as shown by $1.2 billion flowing into the ProShares Ultra XRP ETF—wider adoption still depends on effectively addressing manipulation concerns XRP Price Risks Further Loss: Ripple Whales Dump Millions [ 2 ]. Some critics warn that without adequate protections, XRP’s role in international payments (for example, Ripple’s $1.3 trillion in processed transactions) could be undermined by ongoing volatility XRP Price Risks Further Loss: Ripple Whales Dump Millions [ 2 ].

Experts forecast that XRP could trade between $10 and $25 by the end of 2025, provided ETF approvals come through and whale-driven volatility diminishes XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ]. Data from derivatives markets and improved liquidity on major trading platforms point to the possibility of a sustained price rebound if institutional investments continue XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ]. Nevertheless, the future of XRP as a mainstream investment will depend on the interplay between regulatory advances, whale behavior, and broader economic trends Opportunity to Invest in XRP Despite Market Manipulation and Whale Accumulation [ 4 ].

The Cyber Hornet ETF submission marks a significant development in the evolution of the crypto market. By formally addressing the threat of whale manipulation, the filing could shape how both regulators and investors evaluate XRP’s prospects. With 16 XRP ETF applications awaiting decisions, the outcome will hinge on balancing speculative interest with practical uses—such as Ripple’s On-Demand Liquidity (ODL) platform New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ]. Morgan’s statement that “recognizing manipulation risks is essential for responsible crypto investing” New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ] highlights the ongoing need for transparency in markets still facing foundational issues New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ].

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