XRP News Today: XRP Eyes $2 as ETF Momentum Builds; BTC Revisits $97k

XRP-Spot ETF Applications Signal Seismic Demand Shift

On Wednesday, November 27, US ETF issuers remained in the spotlight amidst expectations of an SEC overhaul.

Bitwise Invest filed a request with the US Securities and Exchange Commission (SEC) to create the Bitwise 10 Crypto Index Fund. The Trust’s investment objective is to invest in a portfolio of digital assets, tracking the Bitwise 10 Large Cap Crypto Index.

According to the asset weightings as of October 31, 2024, BTC and ETH had a weighting of 75.1% and 16.5%, respectively, while SOL and XRP represented 4.30% and 1.50%. Additional holdings include ADA, AVAX, LINK, BCH, DOT, and UNI.

Wednesday’s filing followed Bitwise’s application for an XRP-spot ETF in September 2024, before Trump’s 2024 election victory.

Bitwise is no stranger to the crypto-spot ETF market after launching the Bitwise Bitcoin ETF (BITB) on January 11, 2024. Since its inception, BITB has recorded net inflows of $2,206 million, fourth among US-listed crypto ETFs by inflows.

Other issuers filing for XRP-spot or crypto-spot ETFs, including XRP, include:

• Canary Funds
• Grayscale
• WisdomTree

An XRP-spot ETF market could materially boost XRP demand, potentially driving it toward the January 2018 all-time high of $3.5505. The US BTC-spot ETF market offers a precedent, with BTC surging by 113%, advancing from $46,742 (January 11, 2024) to an all-time high of $99,318 (November 22, 2024).

XRP-Spot ETF Approvals Hinge on SEC Appeal Withdrawal

Speculation about President-elect Donald Trump potentially appointing a pro-crypto SEC Chair has fueled expectations for an XRP-spot ETF market.

Since SEC Chair Gensler’s resignation announcement, investors are also betting on the SEC withdrawing its appeal against rulings in the Ripple case.

Former SEC Commissioner Paul Atkins is reportedly the current favorite for the agency’s top spot. On Wednesday, Fox Business journalist Eleanor Terrett reported,

“He’s pro-crypto but perhaps more importantly, he’s got policy chops in other areas of the $100 trillion securities markets the SEC has oversight of. He is seen as being capable of establishing a pro-innovation agenda while returning the agency to the so-called “gold standard” many in the Republican Party feel was lost under Gensler.”

If the SEC withdraws its appeal, the Programmatic sales of XRP ruling would set a crucial legal precedent. This could pave the way to an XRP-spot ETF market. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

XRP Price Action

On Wednesday, November 27, XRP rallied 5.17% to close at $1.4711, reversing Tuesday’s 1.17% loss. Significantly, XRP ended a four-day losing streak while tracking the broader crypto market, which gained 4.89%.

Looking ahead, Trump’s nomination for the SEC Chair remains crucial. An SEC Chair favoring the end to ongoing legal battles with crypt firms could drive XRP toward $2. However, XRP must move through the November 23, 2024, high of $1.6299 to target the May 2021 high of $1.8171 and $2.

Conversely, XRP could drop below $1 if the SEC plans to pursue the Ripple appeal.

BTC Revisits $97k on Fed Rate Cut Expectations

On Wednesday, US economic indicators fueled bets on a December Fed rate cut. The Core PCE Price Index rose 0.3% month-on-month in October, mirroring September’s increase. However, year-on-year, the Core PCE Price Index increased to 2.8% in October, up from 2.7% in September.

The October figures suggested a sticky inflation environment. Nevertheless, the chances of a Fed rate cut increased on Wednesday, boosting demand for US BTC-spot ETFs and BTC. According to the CME FedWatch Tool, the probability of a Fed rate cut rose from 59.4% on November 26 to 64.8% on November 27.

US BTC-Spot ETF Market Ends Two-Day Outflow Streak

The US BTC-spot ETF market reported net outflows of $122.8 million on Tuesday, November 26. However, rising expectations for a December rate cut supported a pickup in demand for BTC-spot ETFs. According to Farside Investors:

• On Wednesday, Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $40.2 million.
• Bitwise Bitcoin ETF (BITB) saw net inflows of $48.0 million.
• Grayscale Bitcoin Mini Trust reported net inflows of $12.0 million.

Excluding flow data for iShares Bitcoin Trust (IBIT), net inflows totaled $103 million.

Supply-demand trends remain crucial for BTC. Expectations of the Trump administration making BTC a US strategic reserve asset remain a BTC tailwind.

US government demand for BTC could impact supply, supporting bullish BTC price trends. Significantly, the US government could become a BTC HODLER, mitigating oversupply risk. The US government currently holds 208,109 BTC, equivalent to $20.03 billion.

Julio Moreno, Head of Research at CryptoQuant remarked on recent BTC price trends, saying,

“Bitcoin demand growth is accelerating again after the recent price correction. Demand expansion is what will get Bitcoin higher.”

Bitcoin (BTC) Price Prediction

On Wednesday, BTC gained 4.32%, reversing a 1% loss from Tuesday, closing at $95,883.

BTC price trends hinge on Trump’s nominations and BTC-spot ETF market flows. Pro-crypto nominations for the SEC and CFTC Chairs bolster expectations of BTC becoming a strategic reserve asset, potentially boosting BTC demand.

Follow the latest on regulatory changes and their game-changing impact on crypto markets.