Ripple’s plan to raise $1 billion via a SPAC to seed an XRP treasury could boost institutional XRP holdings over time, but a swift price surge is unlikely; market reaction has been muted and structural treasury deployment will likely influence liquidity gradually rather than cause an immediate rally.
Published: 2025-10-17 | Updated: 2025-10-17 | Author: COINOTAG
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SPAC to create an XRP treasury: Ripple aims to raise $1 billion and will contribute tokens to a new treasury vehicle.
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Market response has been muted so far — XRP traded down nearly 3% in the 24 hours after the report.
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Institutional adoption is limited; a handful of public companies hold XRP as a treasury asset, while digital-asset-treasury (DAT) enthusiasm has cooled.
Will XRP price surge? COINOTAG investigates Ripple’s $1B SPAC treasury plan, token contribution and market reaction — data-driven analysis and next steps.
Will XRP price surge?
Will XRP price surge? Ripple’s plan to raise $1 billion via a SPAC and seed an XRP treasury will increase institutional holdings potential, but it does not guarantee an immediate price surge. Market data shows a muted short-term reaction, indicating structural treasury moves may affect liquidity over months rather than days.
How will Ripple’s SPAC-backed XRP treasury affect market liquidity and price action?
Ripple’s SPAC initiative, reported by Bloomberg as a route to establish a dedicated XRP treasury, involves a mix of new capital and token contributions from the company. Such a mechanism can increase institutional access to XRP and provide a managed source of supply for corporate use or balance-sheet strategies. Analyst Bill Morgan has observed that “Ripple announcements rarely have an immediate or short-term impact on the price of the token,” particularly when market participants must assess how token allocations will be managed.
Short-term price movements can be driven more by exchange flows and trader sentiment than by strategic corporate treasury actions. The immediate reaction after the report was subdued — XRP was down nearly 3% in the 24-hour window following the news — underscoring that investors may be waiting for clearer operational details and regulatory context. Historical precedents in digital-asset-treasury strategies show that deployment cadence, lock-up schedules, and transparent governance determine eventual market effects.
Too late to the party?
The wave of enthusiasm for digital-asset-treasury (DAT) strategies peaked earlier in the market cycle, with prominent figures and firms spotlighting treasury allocations to Bitcoin and other major tokens. Industry participants such as Michael Saylor (Strategy), and later institutional conversions like BitMine’s transformation into an Ethereum treasury firm, helped establish the model. But sentiment has cooled: even some high-profile DAT firms and corporate adopters now trade below net asset value, and several market commentators, including Tom Lee, have signaled that the initial euphoria has diminished.
Ripple’s entry into the DAT space is therefore a late but strategic move. Rather than chasing speculative upside, the initiative appears aimed at formalizing XRP access for corporates and institutional balance sheets. That objective is distinct from triggering rapid price appreciation; it focuses on long-term liquidity, utility for payments and settlement, and predictable treasury management.
Other XRP treasury players
Compared with Bitcoin and Ethereum, XRP has attracted relatively limited attention from companies adopting digital-asset treasury models. Publicly disclosed or reported corporate holders who have adopted XRP as a treasury asset include VivoPower International, Webus International, Wellgistics Health, and Trident Digital Tech, among smaller players. Coverage by outlets such as COINOTAG has also noted that some observers, including Bitwise CEO Hunter Horsley, predicted Ripple itself could be positioned or perceived as an XRP treasury company if it formalizes token allocations and custodial governance.
These holdings remain modest relative to institutional allocations seen in BTC- or ETH-focused treasuries. The implications are straightforward: limited institutional XRP holdings mean any concentrated sell or buy program can have outsized local market impact, reinforcing the importance of transparent treasury rules and staggered implementation to avoid market disruption.
Frequently Asked Questions
Is Ripple creating an XRP treasury through a SPAC?
Yes. According to reporting by Bloomberg, Ripple is pursuing a $1 billion SPAC to establish an XRP treasury and will contribute some of its own tokens to the vehicle. The structure aims to centralize institutional access and treasury management without guaranteeing immediate price appreciation.
Why didn’t XRP price react strongly to Ripple’s treasury news?
Market participants often require operational details — such as lock-up terms, deployment cadence, and custodial arrangements — before re-pricing assets. Analyst Bill Morgan noted that company announcements from Ripple typically lack immediate short-term price impact when their market effects are unclear, which helps explain the muted response.
Key Takeaways
- Strategic treasury vs. short-term rally: Ripple’s SPAC-backed treasury is designed to manage institutional XRP supply, not to force an immediate price surge.
- Muted market reaction: XRP trading down nearly 3% in 24 hours shows investors are waiting for clearer governance, timing, and deployment details.
- Limited institutional adoption: Only a small set of public companies hold XRP as treasury; broader institutional uptake will be necessary to materially shift market dynamics.
Conclusion
Ripple’s $1 billion SPAC plan to create an XRP treasury signals a deliberate push to expand institutional access and formalize token management, but it does not equate to an immediate price surge. The market’s muted short-term response, combined with limited current institutional XRP holdings, suggests changes will be gradual. Watch for published governance details, lock-up schedules, and custodial arrangements for clearer indicators of long-term market impact. For ongoing coverage and analysis, COINOTAG will monitor developments and report updates.
