XRP climbed more than 8% to trade above $2 on Friday, marking its first move above the level since mid-December, as traders positioned for a potentially more crypto-friendly regulatory environment in the United States and continued inflows into spot XRP exchange-traded funds.The rally comes as market participants reassess the regulatory outlook following the departure of Caroline Crenshaw from the U.S. Securities and Exchange Commission, a development some traders view as lowering resistance to digital-asset-friendly policy shifts.ETF inflows support XRP’s moveU.S. spot XRP ETFs recorded $13.59 million in net inflows on Jan. 2, bringing cumulative inflows since launch to approximately $1.18 billion, according to market data cited by analysts. The steady capital inflows have helped underpin XRP’s price action, even as flows into other major crypto ETFs remained mixed.Analysts noted that demand for bitcoin-linked ETFs was comparatively weaker over the same period, reinforcing the view that XRP’s rally has been driven primarily by token-specific catalysts, rather than a broad risk-on move across crypto markets.Regulatory expectations shift after Crenshaw’s exitCrenshaw had been among the most vocal skeptics of crypto spot ETFs during her tenure at the SEC and was publicly opposed to the agency dropping its appeal in the long-running case involving Ripple, according to market commentary.Her departure has fueled speculation that the SEC’s stance toward crypto assets — particularly exchange-traded products — could soften under a rebalanced commission, encouraging traders to price in a more constructive regulatory environment.Legislative speculation adds momentumSentiment around XRP was also supported by renewed focus on potential U.S. crypto legislation. Traders pointed to a possible Market Structure Bill markup on Jan. 15, which has kept regulatory expectations elevated into the first quarter and contributed to XRP’s recent outperformance.While the legislative timeline remains uncertain, anticipation around clearer market structure rules has become a recurring catalyst for XRP, given its history at the center of U.S. regulatory debates.XRP outperforms as majors trade mixedXRP’s strength stood out against relatively muted moves in other large cryptocurrencies. At last check, XRP was trading just above $2, up roughly 8% on the day.Meanwhile, Bitcoin hovered just above $90,000, while Ether traded near $3,000, both posting only modest gains over the same period.The divergence highlights how regulatory developments and ETF-related flows continue to act as powerful, asset-specific drivers in the current market — even as broader crypto sentiment remains mixed.
Weiliang
