A newly filed prospectus for the Cyber Hornet S&P500/XRP ETF with the U.S. Securities and Exchange Commission flags whale manipulation as a material risk for investors exposed to XRP. The filing notes that a relatively small number of large holders control a substantial portion of XRP’s supply, and that concentrated trades from those wallets could sway prices and reduce market stability for the ETF’s XRP component.

The prospectus goes beyond market rhetoric to outline structural characteristics that compound that risk. Unlike Bitcoin and Ethereum, XRP’s entire supply was created at launch and cannot expand to meet rising demand. There is no mining or staking issuance; validators secure the network without new-token rewards. That fixed-supply design, the filing says, can contribute to tighter liquidity and greater price volatility when large holders move funds.

The filing’s formal acknowledgment of whale activity has drawn attention from legal and institutional observers. An attorney familiar with the document described the development as noteworthy because an institutional applicant is publicly recognizing a market dynamic that is often dismissed in casual commentary. While many traders attribute sharp price moves to broad market forces or speculation, the prospectus treats concentrated holder behavior as a concrete factor investors should weigh.

By explicitly listing whale manipulation and XRP’s supply structure among investor risks, the ETF filing could shape how regulators, asset managers and investors approach crypto ETFs, due diligence and risk disclosures. The move may also prompt more transparent conversations about liquidity, volatility and governance across crypto markets as institutions consider product approvals and custody arrangements.