XRP Price Boosted by BTC-Spot ETFs and SEC Pressure
XRP, the native token of the Ripple network, gained 2.48% on Wednesday, closing the session at $0.5378. The price increase was driven by the positive market sentiment fueled by the BTC-spot ETF market inflows. However, XRP still faces challenges from the ongoing SEC v Ripple case and the scrutiny over SEC Chair Gary Gensler.
BTC-Spot ETF Market Inflows Boost XRP
On Tuesday, the BTC-spot ETF market registered net inflows of $631.2 million, indicating a strong demand for crypto exposure from Wall Street investors. The iShares Bitcoin Trust (IBIT), the first and largest BTC-spot ETF in the U.S., saw net inflows of $493.1 million, its highest since launching on January 11.
The BTC-spot ETF market inflows boosted the price of bitcoin (BTC), which rallied 3.92% on Wednesday, ending the session at $51,795. BTC reached $51,000 for the first time since 2021, bringing the total crypto market cap to $1,729 billion, up by 3.35% ($56.03 billion) on Wednesday.
XRP, as one of the top cryptocurrencies by market cap, also benefited from the BTC-spot ETF market inflows. XRP rose to $0.5286 on Wednesday, breaking above the $0.52 resistance level. However, XRP remains below the 50-day and 200-day EMAs, signaling a bearish trend. XRP needs to break above the $0.5470 resistance level and the 50-day EMA to confirm a bullish reversal.
SEC Chair Gary Gensler Faces Criticism
While the BTC-spot ETF market inflows boosted the crypto market, SEC Chair Gary Gensler remained under fire from the crypto community and U.S. lawmakers. Gensler has been accused of being hostile and unclear towards the crypto industry, especially in the SEC v Ripple and SEC v Coinbase cases.
On Wednesday, Ripple Chief Legal Officer Stuart Alderoty reacted to a speech by Gensler to Yale law students, saying, “On Tuesday, Gensler told an audience of Yale law students that the SEC is following the law, but his challenge is with Courts that “shift their interpretations” of the law. Was Tuesday Opposite Day?”
Alderoty was referring to the fact that the SEC has faced several setbacks in the SEC v Ripple case, where the court ruled that XRP is not a security in programmatic sales and that the SEC must produce documents related to its views on Bitcoin and Ethereum.
Moreover, on February 8, five U.S. Senators co-signed a letter to Gensler, expressing their concern over the SEC dropping charges against Debt Box, a crypto lending platform, possibly to avoid further court scrutiny. The letter stated, “Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests other enforcement cases brought by the Commission may be deserving of scrutiny.”
Sm Blurb: Despite the heightened scrutiny from the SEC, XRP’s value has continued to rise, possibly due to market speculation regarding Gensler’s focus on Bitcoin and Ethereum, which may be interpreted as a potential leniency towards other cryptocurrencies like XRP.
