Morgan Stanley’s filings for the second quarter of 2026 reveal the financial institution holds exposure to XRP through several exchange-traded funds (ETFs). This disclosure occurs as XRP faces significant price depreciation and exhibits indicators in the derivatives market.
According to the filings, Morgan Stanley’s XRP-linked ETF positions include holdings in the Franklin, REX-Osprey, and Bitwise ETFs. The largest of these positions was in the Franklin fund, with 6,715 shares. The filing also reported 255 shares of the REX-Osprey ETF and 67 shares of the Bitwise ETF. Additionally, the filing noted a position in Armada Acquisition Corp II, the SPAC partner of Ripple-backed Evernorth Holdings.
Institutional participation, even through indirect means like ETFs, suggests a continued, albeit cautious, interest in XRP from certain financial entities. However, the broader market picture for XRP appears less encouraging.
Market Performance and Derivatives Data
XRP has shed more than 10% of its value over the past week, contributing to yearly losses that are approaching 70%. This downward pressure highlights the challenges the cryptocurrency has faced. Analysis of XRP’s derivatives market reveals further signs of sentiment. The Taker Buy/Sell Ratio is currently around 0.86, its lowest level since May of the previous year. As reported by CryptoPotato, this ratio remaining below 1 indicates that sellers have generally been more aggressive than buyers in the derivatives market, suggesting a lack of strong buying momentum.
Futures open interest for XRP remains elevated at 435.1 million units, above the 30-day average of 403.6 million units. This is further underscored by a Z-score of +1.20 sigma, a metric that suggests leverage is still significantly present in the market. Elevated leverage, combined with a downward price trend, can increase the risk of a liquidation cascade if the price experiences further declines, according to the article.
Analyst Outlook and Potential Scenarios
Analyst commentary offers potential scenarios for XRP’s future price action, though these are presented with inherent uncertainty. ChartNerd highlighted $1.24 as a key level for XRP to reclaim. If this level is not regained, the analyst identified a potential accumulation zone between $0.90 and $0.70. Additionally, the analyst anticipates a retest of the 3-month 40 Exponential Moving Average (EMA) as a factor that could help XRP form a stronger base, noting that similar market setups have occurred in 2023 and 2024.
Conclusion
Despite the signals from derivatives data and the ongoing price struggles, the disclosure of institutional exposure through ETFs by a firm like Morgan Stanley provides a point of interest. However, the prevailing market conditions and analyst commentary suggest a period of uncertainty for XRP, with potential for both further downside and eventual recovery, depending on market dynamics and the asset’s ability to reclaim key price levels.
Why This Matters
Morgan Stanley’s Q2 2026 filing indicates indirect institutional interest in XRP through ETFs, occurring alongside significant price declines and bearish derivatives signals. This highlights the ongoing tension between institutional participation and market sentiment for XRP, underscoring the uncertainty surrounding its future price trajectory.
Broader Context
Morgan Stanley’s disclosure of XRP exposure through exchange-traded funds in its Q2 2026 filing places the event within the context of XRP’s price struggles and the broader market’s reaction to such institutional involvement.
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