XRP reached a significant milestone on Friday, crossing the $2 mark for the first time since mid-December, signaling a robust start to 2026 in the cryptocurrency market. This surge is attributed to consistent inflows into U.S. spot ETFs and an improving sentiment regarding regulatory developments.
Data shared by SoSoValue indicated that U.S. spot XRP ETFs recorded an impressive $13.59 million in inflows on January 2, bringing the total to $1.18 billion since their inception. This sustained demand appears to have positively influenced XRP’s supply and demand dynamics, even amid a generally rangebound performance across broader cryptocurrency benchmarks.
Particularly noteworthy is the recalibration of the regulatory landscape following the exit of SEC Commissioner Caroline Crenshaw. Her departure has lowered resistance towards a more favorable approach to cryptocurrencies. Crenshaw had been a leading critic of crypto spot ETFs, opposing the SEC’s decision to drop its appeal in the case involving Ripple. Market participants are interpreting her exit as a potential precursor to a shift in policy that could benefit the cryptocurrency sector.
In addition to regulatory changes, speculation regarding forthcoming legislation has further fueled XRP’s momentum. Traders are anticipating a potential markup of the Market Structure Bill set for January 15, which has heightened expectations and contributed to XRP’s recent performance.
The strength of XRP is particularly noted against the backdrop of mixed inflows in other prominent crypto ETFs. Analysts highlight that while XRP is experiencing a notable rally driven by specific catalysts, demand for bitcoin funds during the same period has been weaker, suggesting that XRP’s gains are not simply a reflection of broader market enthusiasm.
At the close of trading, XRP was valued at just over $2, marking an increase of approximately 8%. In contrast, bitcoin remained stagnant just above $90,000, while ether traded around $3,000, reflecting only modest gains for these major cryptocurrencies.
