XRP rallies 40% to $1.31 as Goldman returns to XRP ETFs

Goldman Sachs re-entered XRP ETFs with $86.5 million in Q2 as a Treasury buyback expansion compressed yields and lifted the token 40%.

XRP rose 39.7% to $1.31 this week as Treasury buybacks eased conditions and Goldman Sachs returned to XRP ETFs with $86.5 million.

"The easing in longer-dated Treasuries provided a more supportive backdrop for risk-taking and short-term speculation in crypto," Paul Howard, senior director at Wincent, said.

Goldman's Q2 filing shows $25.76 million in the Bitwise XRP ETF, $25.41 million in Franklin XRP Trust, $19.49 million in Canary XRP ETF, $8.21 million in 21Shares XRP ETF and $7.66 million in Grayscale XRP Trust. The bank, which oversees more than $4 trillion in assets, had reported no XRP ETF holdings in its prior filing after exiting a $153 million position. U.S. spot XRP ETFs recorded $13.24 million in net inflows on Aug. 20, while XRP trading volume rose 116.85% to more than $10.2 billion, according to SoSoValue.

XRP needs to hold above $1.26 to keep the current momentum intact, with a break above $1.42 opening the way toward $1.51. Losing $1.22 could weaken the rally and push XRP toward the $1.08 area, while the relative strength index near 65 shows momentum without deeply overbought conditions.

Goldman Sachs Spreads $86.5 Million Across Five XRP Funds

The return is notable because Goldman had reported no XRP ETF holdings in its previous filing. When XRP ETFs launched, Goldman helped as an authorized participant, a role that helps create and manage ETF shares, which may explain why holdings appeared and later disappeared. The Q1 exit may have been linked to moving ETF holdings after the funds became active, making the latest positions fresh exposure to XRP.

Treasury Buyback Sets the Macro Stage

The U.S. Treasury said on Aug. 19 it would at least double the size of its long-end liquidity support buybacks to $4 billion per operation, effective Sept. 9 through Nov. 4. The 30-year yield fell from a 19-year high of 5.34% to about 5.19%, loosening financial conditions across risk assets. Bitcoin rallied 8.2% to $69,500 in the same session, while Ethereum jumped roughly 10% and briefly cleared $2,000.

XRP's rally has also been supported by a new partnership involving Ripple, Clearpool and Cicada Credit to build an institutional lending platform on the XRP Ledger. The project targets the $10 billion-plus private credit market, potentially bringing more financial activity to XRPL.

The macro backdrop and institutional flows now hinge on whether XRP can sustain above $1.26. A break above $1.42 would open the path toward $1.51, while a slide below $1.22 risks a pullback toward $1.08. With the Treasury buyback window running through Nov. 4, the liquidity tailwind could persist into the fourth quarter, though the short-squeeze dynamics that drove the initial move are unlikely to repeat.

This article is for informational purposes only and does not constitute investment advice.