Coinbase’s XRP reserves have witnessed one of the strongest collapses among major crypto exchanges, and this has caused questions as to where the tokens are going. According to on-chain data, the exchange’s cold wallets now hold only a fraction of the XRP they once did, and the decline is now more than 90%.
This comes at a time when the XRP community has been closely monitoring institutional activity, with growing rumors of BlackRock and other heavyweight firms quietly building exposure to XRP.
Coinbase’s XRP Holdings Crash By 90%
Recent moves by Coinbase with its XRP holdings have taken most crypto investors by surprise. Previous data showed that Coinbase, which was once the fifth-largest holder of XRP, has trimmed its XRP reserve balance from approximately 780.13 million XRP to 199.47 million. This was a cutback of about 69% in its holdings since the second quarter of 2025.
However, on-chain data tracked by the @XRPwallets account on the social media platform X shows that Coinbase hasn’t stepped back from slashing its XRP holdings. As recently revealed by @XRPwallets, Coinbase now has just six cold wallets holding about 16.5 million XRP each. This leaves the US-based exchange with an estimated 99 million XRP in total.
By comparison, the exchange had 52 cold wallets as recently as June 9, with 10 wallets holding 26.8 million XRP each and another 42 wallets holding 16.8 million XRP each. Combined, that amounted to nearly 970 million XRP under Coinbase’s control. In other words, the most recent numbers mean that Coinbase has shed about 90% of its XRP reserves within the past three months.
Such a strong reduction in the movement of XRP away from Coinbase has been linked to accumulation into institutional wallets in anticipation of the launch of a Spot XRP ETF in the US. It also corresponds with previous reports about BlackRock’s indirect involvement with XRP through Coinbase’s custodial services.
What Does This Mean For XRP?
The scale of outflows from Coinbase’s XRP reserves has taken many crypto investors by surprise, as seen by comments on social media platforms. For instance, XRPwallets hinted at the possibility of these huge movements being linked to BlackRock.
An account on the social media platform X, known as Stern Drew, suggested that Coinbase’s sell-offs go with a deliberate strategy to suppress XRP’s price. This was met with a firm rejection by pro-XRP lawyer Bill Morgan, who was quick to push back on the manipulation claims.
Although there has been no official confirmation, the most plausible explanation of these large XRP exits is mostly linked to the eventual launch of an XRP ETF. The odds of the SEC accepting an XRP ETF in 2025 are now at a 94% chance on Polymarket. Bloomberg analysts also place the odds at a 90% chance or higher.
Large institutions could be accumulating XRP in anticipation of such a product, and the reduced supply on exchanges could contribute to buying pressure even before it is launched. At the time of writing, XRP is trading at $3, down by 2.9% in the past 24 hours.
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