XRP News Today: Ripple’s SEC Appeal Sparks Uncertainty as Spot ETF Inflows Slow

SEC vs. Ripple: Delays in Court Filings

On Tuesday, XRP investors continued monitoring updates relating to the SEC’s appeal in the Ripple case.

The United States Court of Appeals for the Second Circuit issued a notice about delays in the SEC’s filings. Significantly, the SEC’s Acknowledgment and Notice of Appearance Default Notice was due on October 18, 2024.

The US Court of Appeals for the 2nd Circuit warned it would not hear oral argument except by permission of the court if the SEC’s counsel does not file the Acknowledgement and Notice of Appearance within the prescribed 14 days.

The latest court notice highlighted the potential leniency the SEC may enjoy during the appeal, impacting XRP demand.

Uncertainty about the outcome of an appeal against the Programmatic Sales ruling remains an XRP headwind. In July 2023, XRP surged to a high of $0.9327 after Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

A successful SEC appeal could adversely impact the broader crypto market. If the US appellate courts overturn the ruling, the SEC could cite the SEC vs. Ripple case as a precedent in its actions against crypto firms, including Binance and Coinbase (COIN). Delisting of cryptos considered to be securities could impact adoption and prices.

XRP Price Action

On Tuesday, October 22, XRP declined by 2.24%, extending its 0.53% loss from the previous session, closing at $0.5329. XRP underperformed the broader crypto market, which slipped by 0.28%, taking the crypto market cap to $2.275 trillion.

Investor sentiment remains cautious amid the SEC’s appeal. XRP could hover below the crucial $0.55 level as investors await the SEC’s opening brief.

XRP may drop below $0.50 if the SEC offers convincing arguments to overturn the Programmatic Sales ruling. Conversely, XRP could retrace the July 2023 rally if the SEC withdraws its appeal or the appellate court refuses to hear testimony because of late filings.

Bitcoin Fails to Break $68,000 as Spot ETF Inflows Decelerate

While XRP extended its pullback from $0.55, BTC bucked the broader market trend on Tuesday.

On Monday, October 21, the US BTC-spot ETF market saw net inflows of $294.3 million, with iShares Bitcoin Trust (IBIT) reporting impressive net inflows of $329 million.

However, the US BTC-spot ETF market could end a seven-day inflow streak on Tuesday, October 22. According to Farside Investors:

• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $134.7million (Previous Day: -$6.1 million).
• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $8.8 million. (PD: +$5.9 million).
• VanEck Bitcoin Trust (HODL) reported net inflows of $3.8 million (PD: -$7.6 million).

Excluding flow data for IBIT, the US BTC-spot ETF market saw net outflows of $122.1 million.

Despite Tuesday’s flows, ETFStore President Nate Geraci remarked on the recent surge in demand for IBIT, stating,

“Becoming comical now… iShares Bitcoin ETF has taken in *$1.5bil* over past 6 trading days. That $1.5bil alone would make it a top 5 launch of 2024 (out of 570 ETFs). But of course… it’s taken in a total of *$23bil* since January. Are there really still naysayers out there?”

The Fed, the Presidential Election, and BTC Trends

In the near term, investor sentiment toward the US Presidential Election and the Fed rate path are key drivers.

According to the CME FedWatch Tool, the probability of a 25-basis point November Fed rate cut increased from 86.5 (October 21) to 91.0 (October 22). However, upbeat US economic indicators have tempered investor bets on a 25-basis point December Fed rate cut, dropping from 85.5% (October 15) to 68.3% (October 22).

Hopes of a soft US economic landing and expectations of Fed rate cuts in November and December could push BTC above $70,000. Conversely, robust US economic data and bets on a single Q4 2024 Fed rate cut could drive BTC below $65,000.

The upcoming US Presidential Election adds another layer of uncertainty. US Vice President Kamala Harris recently expressed support for the US digital asset space. However, crypto investors likely prefer Donald Trump. Trump could end the SEC’s reign of regulation through enforcement after pledging to fire Chair Gensler on day one in the office.

The SEC Chair’s removal could boost crypto adoption, potentially supporting a BTC move beyond its all-time high of $73,808.

Bitcoin (BTC) Price Action

On Tuesday, October 22, BTC gained 0.12%, partially recovering a 2.13% loss from the previous session, closing at $67,308.

On Wednesday, October 23, US politics, SEC activity, and US BTC-spot ETF market flow trends require consideration in the near term.