XRP Institutional Supply Shock & The Death Of Ripple Escrow Overhang

Added: 2026-05-11

[00:00:01]Hey everybody, this is the digital asset investor and yesterday I had to go get my my MacBook was crashing. So I had to go get this thing replaced. Um I've gotten a lot of requests to uh use OBS to so that you can see my screen while you can see me talking at the same time.

[00:00:20]That's in the works. I'll have that done probably either today or tomorrow. So, in the meantime, on my new MacBook, I was able to get this fancy background where I've got my logo and I got the X logo. I'm improving. Okay, so let's start here. This is um really impressive guy in my opinion that I met at XRP Las Vegas. This is Sal Gilbert talking about how he doesn't think it even matters that the Clarity Act passes. You know that April was the strongest month for crypto ETF inflows in 2026 so far. Spot Bitcoin ETFs pulled in roughly $2 billion. Ethereum ETFs broke a six-month outflow streak. What do you think happens from here?

[00:01:04]>> I think the inflows continue. I think Matthew's exactly right that it's a mega trend. And so the the adoption of crypto in general, the adoption of blockchain architecture into the traditional financial system is is accelerating at a pace that people don't understand how how big it is and how fast it is. And so there's there's a mega trend in terms of um useful crypto is going to be tokens with a use case with a very specific use case. They're they're going to be attractive to investors and continue to be attractive to investors. Bitcoin of course is is the the headliner. Um that will always investors always have a number one interest in Bitcoin. Um and so I think that index >> well not necessarily always it'll be declining as the utility assets start to rise >> that contain multiple um cryptos are going to become more popular as well. So I I think we're at the beginning of of this push and inflows. Not we're not even close to this.

[00:02:03]>> Interesting. Um, and of course, one of the big looming questions that's out there involves regulation. You both note the importance of the pending clarity act. So, I'll I'll start with you because you report that the regulatory backdrop has really shifted meaningfully over the past month or so. Uh, what do you mean by that? Why why do you feel like things have really changed in a big way?

[00:02:25]>> Well, I think that that again we have an administration that's crypto friendly.

[00:02:29]That's the number one help. I think that the regulators have have found themselves. There have been a lot of cuts inside the government. I think they've they've found their way. The the process that we as ETF issuers have to go through is unchanged. There's still um very uh deep scrutiny of the products that we want to list. There's a lot of push back from the government, but they're open to hearing uh new products and cryptoreated products and that's really really important. I think the Clarity Act whether it passes or not um is is just a matter of the speed of of institutional adoption in terms of investing in crypto. In terms of institutional adoption of the blockchain, whether the Clarity Act passes, it makes no difference that that will continue.

[00:03:11]>> Yep, that will continue. Let me tell you what I think is going to happen. What I think this all means is ultimately a supply issue. I think that we will have what, let's call it, the death of the escrow overhang, the XRP escrow, and then you'll have institutional supply shock. Um, and I think that the Clarity Act will accelerate it, but it's going to happen either way. But as you as as we start to have adoption, you're gonna see an acceleration of XRP being locked up in various ways and you're going to see I call it the death of the escrow overhang because I believe it'll become more and more irrelevant or it'll be relevant. it'll become more and more um it'll be less relevant in in the bigger picture in terms of all of the XRP supply that's being taken off the markets. So, go listen to my intro and then we'll go in. We've got stuff on the Clarity Act. We've got a lot more things to cover and things you can do to make sure this Clarity Act goes through. So, go listen to that intro. It's an old intro. It's eight years old now. It's a good one, though.

[00:04:23]Um, okay.

[00:04:26]>> Ignition sequence starts. 6 5 4 3 2 1 zero. Liftoff. We have a liftoff.

[00:04:48]We've had we've had XRP price movement yesterday. We had quite the bump. Um, and I'm going to talk about, let me see if I've got it here. You, if you remember, because I was telling you, if you remember the the fear and greed index, hold on, let me look at something here. If you remember, the fear and greed index had gotten as low, I want to say, is 15 and below. But now the fear and greed index is at um about 45 or no, 48. So back when it was 15, that's when I was buying. And I was telling you, be be greedy when others are fearful. That's the lesson. A lot of you that were too scared to to make buys back then, and by the way, I'm not a financial adviser, but those of you that were scared, um, it's natural to be scared, but it's not the correct way to invest. You buy when everybody thinks the world's coming to the end. And that's what I did. I've done it in almost every bare market.

[00:05:49]I've been just accumulating slowly. That doesn't mean I go crazy because what happens when the market gets gets uh really scary like that is you got to make make sure that you're watching your cash flows and that you can manage your day-to-day life. So that doesn't mean go just plop down tons of money in XRP or anything else when the markets are are really bad. It just means be consistent.

[00:06:13]Just buy a little bit of long. That's what I did.

[00:06:16]But again, I'm not a financial adviser.

[00:06:18]I don't know your situation. So, um, all right. This is a great tweet from Unknown Unknown DT. DTCC will use the XRP ledger. Swift will use the XRP ledger. Fed will use the XRP ledger. ECB will use the XRP ledger. IMF will use the XRP ledger. World Bank will use the XRP ledger. And to use the XRP ledger, you must use XRP LFG.

[00:06:45]Folks, this I've I've been saying it for eight years. This is the moment that we're in. What I've always compared what Ripple's been doing is to laying the railroad tracks just like Vanderbilt did. I think it was Vanderbilt, but laying the railroad tracks for the new financial system. They've been doing it when nobody else was. And what happened Vanderbilt um for years had to do go through all kinds of regulatory hurdles, borrow money, take tremendous risk, risk losing it all to lay these railroad tracks across the United States while making no money and going into debt. But what happened once those tracks were finally laid and that first car train car went on those tracks and then they started loading them up with I mean XRP is a great analogy but they started loading them up with product to move across the country and at that point money was being made hand overfist.

[00:07:52]That's how I've always thought of this thing. Here's Christian Carly Carlo talking about it. I I I think what's happening right now is is remarkable.

[00:08:01]Um uh historically um uh maybe the the the railroad technology of the 1880s had as much policyled support as this does. I I've never seen um as much you know policy um supported support for innovation even I you know I was around in the 1990s during the first wave of the internet when Congress passed some important legislation that was Republicanled and the White House Democratled under President Clinton um uh worked very very well together and together they developed a do no harm policy for the early internet and that was really important and yet as as forwardleaning as that was, this is even more so. Um, and so I think you're going to have a lot of building uh of infrastructure of of of L1's, L2s, L3s and the crypto as you listeners may know those are the base layers of these blockchain buildings and then the applications that are built upon that.

[00:09:11]Um but then also financing for this technology because it does require a lot of capital to build it. So all of that is going to take place. Now, um even with that policy-led support, uh that doesn't rule out there might be and there very well might be a bubble in prices and we could have a bubble bursting just as it did during every tech >> I was telling you the other day we we will have this stuff is going to take off. But when it takes off, yeah, there's going to be bubbles. There will be bubbles blow up and all of that stuff. I believe that over time because XRP is a utility asset that there will be enough usefulness in that to mitigate some of that. Um, but in the short run you're going to see some of that. I've said in 96 was the Telecommunications Act, I believe, and then you had the internet boom from 96 all the way to 99.

[00:10:09]Then you had a bust and then it slowly rose out of that. I think we've been already been through a lot of that kind of stuff in in crypto, but remember there's only $2.7 trillion dollars in this market. We this thing is hasn't even begun yet.

[00:10:25]>> Technology revolution, you know, the the railroad era of the 1880s ended in I think it was uh 1897 with a major uh crash as big as the depression. Um and the same could happen. But interestingly, when that crash happened, nobody tore up the railroads, >> right?

[00:10:44]>> Nobody said, "That's it. We're done with railroads." And railroad innovation went on. And and railroads, you know, we don't use them much anymore. So, we don't realize how important it was. The United States was a series of regional economies until the railroad came. We were not a national economy and we were not a national society because it was the railroad that brought the telegraph that we could first read about things happening outside of our regional area.

[00:11:07]The railroad was was fundamentally transformative technology that turned the United States from a series of regional economies into the greatest unified economy the world has ever known. Europe is still trying to get the type of economic unity that we achieve a century and a half ago. And so um the railroad was very very important to to the United States and it came with bubbles and busts and I believe we will have bubbles and busts in this innovation.

[00:11:35]>> Yes, we will. You'll see it.

[00:11:37]>> And when when the inevitable bubble happens, there's going to people people out there saying, "See, I told you this crypto stuff is bad." No, it's not the crypto stuff is bad. This technology is as important as we believe.

[00:11:48]>> Yep. It's the nature of markets. You're you're going to have that kind of stuff.

[00:11:52]And when it happens, he's right. The Senator Warren of the world will come out and they'll say, "Oh, see, I told you we shouldn't have passed that legislation."

[00:12:01]And she'll be wrong. And uh the good news is many of us will be watching Senator Warren complain from really nice homes, really nice places because we were here early. So kiss it, Senator Warren. Um ETF flows, Bitcoin, Ethereum, Salana, XRP, spot ETF saw net inflows over the week. That doesn't surprise me. Um now this is important because I want you to listen to this and then I'm going to read you something.

[00:12:31]That's >> Ral Paul.

[00:12:33]>> I was with Kostas who's the co-founder and head of cryptography um in Athens.

[00:12:38]He was at the GMI round table event and you know that's coming too. I mean he's they've kind of cracked it and just figuring out because no financial institution will use chains at scale without obscuring who it is. But it's permissioned privacy. So therefore if regulators or anybody need it. So it's not like Zcash privacy. uh Zcash privacy is you know at individual level to hide from state which is as we know can be used for nefarious needs means or really important means >> and it's difficult to separate out it's like gold.

[00:13:15]>> That's right. Yeah. I mean look at a core foundation of you know western liberal democracies is is is privacy.

[00:13:24]>> Um I know it doesn't feel like that right now.

[00:13:26]>> It's privacy. So, when I saw this, basically they're saying the institutions aren't going to come in unless there's privacy. Well, he reminded me, I I've never forgotten, there was a a vet tweet, and he said this. I asked Brad Garlinghouse. Um, here, what's the path to get more institutional adoption on the XRP ledger so that institutions are comfortable with sharing transaction hashes with us?

[00:13:51]He said, privacy, fast forward, it all makes sense nicely together. Um, we passed many compliance amendments like like did credentials soon permission permissionless domain decks. We also got MPTs, multi-purpose tokens for more efficient tokenization of assets. We have a combined DEX AMM with high performance order book native onchain.

[00:14:13]What's missing is privacy and lending borrowing XLS66, but that's coming.

[00:14:20]It's very obvious, folks. Ripple Ripple always seems to know what's coming and and have have things figured out. It's part that's one of the many reasons I've been here for a long time. Okay, I wanted to uh mention this because many of you may not know this. Um so you know it capital is my sponsor. You know that uh I have IAS with them. The best thing I ever did was open a Roth IRA. You also know that they have premium custody accounts and you know that they just started treasury accounts where if you have a c an LLC or a trust, you can have an account at iTrust Capital. Well, here's what you may may not know. If you have a trust, which I do, um, and if you have a trust, once you have the trust account set up at iTrust Capital, what you do is you then you then if you have IAS, you go and you make the trust the beneficiary of the the IRA. No longer are you, your kids, or whoever your beneficiaries.

[00:15:22]Now, your trust is the beneficiary because the trust most likely is set up.

[00:15:26]And by the way, I'm not an accountant.

[00:15:28]I'm not an attorney. I'm not a financial advisor, but I have access to them and you should get access for yourself.

[00:15:37]Those are the people you talk to about this. I'm just telling you what I did.

[00:15:40]And so what you do is you once you have have an IRA and you have a trust set up, you make the trust the beneficiary of the IRA. And I the guy that that formed my trust is Nick McDaniel of Wyoming Trust Attorneys. and to go. I worked a deal for everybody listening to me. Um, what the way they work is if you want to open a Wyoming trust, which I I used AI and I studied what are the best states in the country to open a trust. Wyoming comes to the top. Okay? And what you do is when you go you go to XRP attorney.com that forwards you to their website. I told them to that that would be genius to create that domain. Then on the top right of their website, you can read the their whole website talks about crypto having a trust and crypto trust planning and all this. It's really great. Um, in fact, they just set a lot of this up. This guy's an XRP guy, too, by the way, Nick McDaniel. Um, he was at XRP Las Vegas. But anyway, you go to XRP attorney.com and in the top right you click the word book. And what they do is they book a consultation. Those consultations used to be like $800 and something dollars, but what what they did is they made the consultation $589 for people listening to my show and Brad Khan's show. And so when you spend that $589 to do your trust consultation, that that $589 is applied to your trust. So you don't lose the money when you go forward with the trust. It's not some cost. you you get to apply it to the trust and he's got very very reasonable prices on trust. That's why I did one with them. So, go check that out. And they are a sponsor. I think I told you that. Um, let me see. Um, okay. Now, we've got banking groups are pushing last minute changes to stable coin yield compromise as the Senate takes up landmark digital asset bill. Now, this is where the real drama starts is in this markup. You're going to see here.

[00:17:45]Here's I saw this tweet. Senate banking Democrats are split heading into Thursday's Clarity Act markup. Galaxy Research has mapped out where every key banking Democrat stands on the crypto bill. Um they estimate the odds of Clarity Act being signed into law are roughly 5050. That's Galaxy. Um and then but but this is important. Um Crypto Law, John Deon's law firm has put out an action alert connect to Congress. Um, they've got a just like they did during Ethgate, you could go and they have a form on the website. So, go to, let me pull it up here. Let me I got this out of order. Okay. Go to crypto-law.

[00:18:29]us and then you'll see the connect to Congress button. Let me go to his homepage and see if I can see it. Yeah, there's a there's a red button or maroon buttons down on the right in the middle.

[00:18:42]connect to Congress and then it's it's got you can fill out the form and it will let your congressman know to pass the Clarity Act. Everybody should do that. Let me say it again. Crypto-Law US and um then here's Senator Tim Scott on the Clarity Act.

[00:19:02]>> Clarity Act is moving slowly. It's getting through. Where are we going to see that?

[00:19:06]>> Yeah, it's it's becoming clear which is good news. Uh I think we are sitting on the on on the cusp of of seeing the actual markup happen sometime in the next few weeks. So uh three to five weeks I think we'll be on the other side of it. We in my opinion for us to have a successful passage of the Clarity Act, we have to first make sure that all Republicans are on the right pace because until we have that, we do we won't get it done because Democrats today want to do nothing to help Donald Trump.

[00:19:39]>> And he, as you know, they're holding some of this up. I mean, they just got some clarity on this moving slow. How about >> they may not want to help Donald Trump, but they better want to help their own elections because all of us out here are going to let them have a feeling we're going to let them know here in the that uh about their elections if they don't pass it. Um and by the way, I don't know what happened overnight, but I'm looking at Poly Market and Poly Market yesterday was at like 74 to 76% chance of Clariac passing. Today it's down. It dropped down to 63%.

[00:20:17]So, we'll see where all of that lands, but I've got my money on it passing.

[00:20:22]Okay, we're going to go into dixrp.com.

[00:20:25]Now, that's the Patreon. If you'd rather join through YouTube, you can click join below any of these videos. If you'd rather join through X, hit subscribe.

[00:20:31]I'm the digital asset investor. I'm not an investment advisor. This is for entertainment purposes only. Please subscribe, hit the like button, tell your friends and family. I'm I'm sitting here trying to keep an eye on time. Tell your friends and family. I think it's on like Donkey Kong in this whole space. I think it's passing.