A fresh ETF filing with the U.S. Securities and Exchange Commission (SEC) has flagged whale manipulation as a clear risk in the XRP market. The Cyber Hornet S&P500/XRP ETF prospectus notes that a small number of large holders control much of XRP’s supply. Their trades could sway prices and reduce market stability.
Attorney Bill Morgan said the filing is significant because an institutional applicant has acknowledged a risk often brushed aside in crypto circles. Many traders point to broader market forces or speculation to explain sharp moves. But Morgan argued that if an ETF sponsor shows whale activity in a formal SEC document, it should be treated as a genuine concern.
The prospectus filed with the SEC for the Cyber Hornet S&P500/XRP ETF gives an assessment of the risk to investors in the ETF in respect of the XRP component.
One of the risks mentioned is manipulation by XRP whales
It is surprising that often when people raise the issue of… pic.twitter.com/twdpkCGoo8
— bill morgan (@Belisarius2020) September 27, 2025
The filing also detailed XRP’s structural risks. Since its entire supply was created at launch, XRP cannot expand