XRP News Today: Monica Long’s Vision for XRP-Spot ETFs in 2025; BTC at $95K

Ripple President Monica Long Talks RLUSD and XRP-Spot ETFs

On Wednesday, January 8, Ripple President Monica Long shared insights on Bloomberg about the RLUSD stablecoin and the potential for XRP-spot ETFs. Highlighting RLUSD’s growth, she stated:

“We are continuing to expand the distribution and availability of RLUSD on other exchanges. So, I think you can expect to see more availability and more announcements coming soon.”

Discussing RLUSD adoption, Long elaborated,

“If you look at the crypto landscape overall, the market has been growing in the past couple of quarters and we think that this year is going to be a big year for crypto overall. And so, demand for stablecoins, we think will grow along with that. […] We think the market’s going to grow tremendously over the course of the next year.  […[ Our business doubled within our payments last year. So we see a really strong growth trajectory for our payment solution, and with that RLUSD will have a premium role.”

Regarding XRP-spot ETFs, Long was optimistic:

“I think we will see one very soon. We will see various crypto spot ETFs this year coming out of the US, and I think XRP is likely to be next in line after BTC and ETH. There have already been a number of companies like Canary and others who have filed. So we think, especially with the administration change, the approval of those filings will accelerate.”

SEC vs. Ripple and XRP-Spot ETFs

In addition to Canary Funds, Bitwise applied for an XRP-spot ETF in late 2024, with Grayscale seeking permission to convert its Grayscale Digital Large Cap Fund (GDLC) into a crypto-spot ETF, holding BTC, ETH, AVAX, SOL, and XRP.

However, the SEC remains silent on the XRP-spot ETF applications amid regulatory uncertainty. An ongoing agency overhaul and a potential appeal in the SEC vs. Ripple case could be delay factors. SEC Chair Gary Gensler leaves the agency on January 20, making way for Trump-nominated former SEC Commissioner Paul Atkins.

Markets expect Atkins and the agency’s Commissioners to reverse course on crypto-enforcement efforts and withdraw its Ripple appeal, potentially clearing a path for XRP-spot ETF approvals. Nevertheless, SEC Chair Gensler could file its appeal-related opening brief by the deadline, which may delay an agency review of the applications.

XRP Price Trends

On Wednesday, January 8, XRP rallied 4.50%, partially reversing Tuesday’s 6.17% tumble to close at $2.3734. Significantly, XRP outperformed the broader crypto market, which dropped by 1.65%, taking the total market cap to $3.250 trillion. Hopes for an XRP-spot ETF market and an end to the Ripple case drove XRP demand.

XRP price trends depend on whether the SEC files its appeal-related opening brief. A filing could drag XRP below $2, potentially dropping to $0.50 if Ripple loses at the Second Circuit. Conversely, withdrawal could drive XRP past its 2018 record high of $3.5505.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin Slides to $92k Amid Fed Rate Cut Uncertainty

Meanwhile, bitcoin (BTC) continued to struggle on Wednesday, with US labor market data testing bets on an H1 2025 Fed rate cut. Initial jobless claims unexpectedly fell from 211k (week ending December 28) to 201k (week ending January 4), the lowest since 187k in January 2024.

Tighter labor market conditions could boost wage growth, fueling consumer spending and demand-driven inflation. A higher inflation outlook would support a more hawkish Fed rate path. 10-year US Treasury yields reflected sentiment toward the Fed rate path, climbing to a 4.730% high.

However, the ADP reported a softer-than-expected increase in employment, which limited the impact of the data on the markets. Wednesday’s data put a greater weight on Friday’s US Jobs Report, potentially dictating near-term Fed rate cut prospects.

US BTC-Spot ETF Market Flows Hinged on BlackRock’s IBIT

The US BTC-spot ETF market reported net inflows of $52.4 million on Tuesday, January 8. BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) had net inflows of $596.1 million, extending the US BTC-spot ETF market’s inflow streak to three sessions.

On Wednesday, January 8, the US BTC-spot ETF market flows hinge on IBIT for a second day. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $258.7 million on January 8.
• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $148.3 million.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net outflows of $444.8 million. Six issuers reported net outflows, leaving BTC at $95k early in the Thursday session.

Bitcoin Price Outlook

On Wednesday, January 8, BTC declined by 1.96%, following Tuesday’s 5.10% slide to close at $95,121. Significantly, BTC fell to a low of $92,554 before stabilizing.

BTC’s near-term trends depend on Friday’s US Jobs Report, BTC-spot ETF market flow trends, and Strategic Bitcoin Reserve (SBR) developments.

Tighter US labor market conditions could lower bets on an H1 2025 Fed rate cut. A more hawkish Fed may drag BTC below the 50-day EMA toward the $90,742 support level. Conversely, a higher unemployment rate and softer wage growth may retrigger bets on a March Fed rate, driving BTC toward its record high of $108,231.

However, progress toward a US SBR could be crucial for BTC to break new ground.

Market Outlook for XRP and BTC

Both XRP and BTC may face heightened volatility, dictated by regulatory developments and macroeconomic trends. XRP’s path depends on the SEC’s appeal decision, while BTC’s future could hinge on labor market data, ETF flows, and the Fed’s monetary policy. Broader initiatives, such as the Strategic Bitcoin Reserve, will also play a pivotal role in market sentiment.

Stay updated here with our expert insights for a deeper understanding of these pivotal developments.