XRP Reclaims $2 Level as ETF Assets Cross $1 Billion Milestone

Institutional Flows Meet Regulatory Thaw

XRP pierced the $2.00 threshold early Saturday, initiating a technical breakout that pushed the token to $2.03 (+8%) by the European open. The move coincides with spot XRP ETFs surpassing $1 billion in assets under management, a metric that validates the “institutional settlement” thesis initially floated by Standard Chartered analysts last year.

Trading volume across derivatives markets spiked 40% in the last 12 hours, signaling that this is not merely a retail impulse. Market makers appear to be front-running a widely anticipated clarification from the SEC regarding asset classification under the new administration. The specific catalyst remains the growing consensus that the agency will formally sunset its aggressive enforcement stance following the $50 million settlement Ripple reached in August 2025.

The valuation gap between XRP’s price action and its on-chain utility remains the primary risk vector, yet the $1.25 billion in ETF net inflows suggests Wall Street is betting on the asset’s legal clarity rather than its current transaction volume.

The Valuation Disconnect

While price action is bullish, on-chain realities paint a divergent picture. Network activity is down significantly from 2024 highs, yet the token is pricing in a future where it serves as a primary liquidity bridge for regulated banks. The current $2.03 price point sits at a critical psychological level; a weekly close above this line would invalidate the bearish structure that has capped gains since late 2025.

Traders should watch the $1.85 support level. If the breakout is rejected here, the $1 billion ETF inflow narrative may be dismissed as “passive capital” rather than active demand. However, with the SEC’s litigation risk effectively neutralized, the market is repricing XRP as a legitimate financial instrument rather than a distressed asset.