XRP Breaches $2.38 as ETF Inflows Top $1B; SEC Leadership Shift Ignites Rally
XRP targets $2.40 as U.S. spot ETFs cross $1 billion in AUM and the SEC’s last crypto hawk departs.
XRP shattered a multi-week resistance band early Tuesday, surging 11% to trade near $2.40 as institutional demand collided with a supply shock. The rally follows the confirmed exit of SEC Commissioner Caroline Crenshaw, the agency’s last remaining crypto skeptic, and a record-breaking $48 million daily inflow into U.S. spot XRP ETFs.
The Institutional Bid
Spot XRP products have now absorbed over $1 billion in cumulative inflows since their November launch, validating the thesis that traditional finance would allocate capital once regulatory clouds cleared. Data from the trading session shows a $48 million net inflow across funds managed by issuers like Bitwise and Canary Capital, one of the highest single-day prints since inception.
This demand is hitting a market with thinning liquidity. On-chain analysis reveals XRP exchange reserves have dropped to multi-year lows, indicating that long-term holders are moving assets into custody rather than leaving them on order books. The result? A supply squeeze where even moderate buy pressure forces outsized price expansion.
The regulatory overhang that suppressed XRP for years has effectively evaporated with the new 3-0 GOP commission structure.
Regulatory “Clear Skies”
Traders are pricing in a definitive shift in the U.S. regulatory environment. The SEC confirmed the departure of Commissioner Caroline Crenshaw this week, leaving the agency under the control of a 3-0 Republican majority led by Chair Paul Atkins. Crenshaw was widely viewed as the final obstacle to a more lenient market structure framework.
With the “security” classification debate largely settled by the courts and the current Commission unlikely to pursue legacy enforcement actions, the risk premium on XRP is rapidly repricing. Volume on the XRP Ledger (XRPL) has mirrored this optimism, reclaiming the 1 million daily transaction mark for the first time since mid-December. This uptick is driven not just by speculation, but by a resurgence in remittance volume and settlement utility.
