XRP has gained 5% on Monday following a significant announcement by US President Donald Trump, appointing Mark Uyeda as the new acting Chair of the Securities and Exchange Commission (SEC). The news has ignited rising bullish sentiment among the crypto community, with many speculating that this shift in leadership may pave the way for Ripple (XRP) to finally resolve its long-standing legal battles with the SEC.
The Uyeda Impact on XRP
Uyeda, who was appointed by President Trump on his first day in office, has a history of advocating for clear and consistent regulation of the digital asset industry. His stance sharply contrasts with the approach of his predecessor, Gary Gensler, whose tenure at the SEC was marked by heightened scrutiny of the crypto market. Many industry insiders believe Uyeda’s appointment could signal a more favorable regulatory environment for crypto companies, especially Ripple, which has been at the center of the SEC’s crackdown on digital assets.
With the change in leadership, market participants are now speculating that the SEC may drop its appeal against Ripple's ongoing lawsuit, potentially clearing the path for XRP’s price to continue its ascent. The announcement has coincided with a surge in buying activity across the XRP spot market and investment products, contributing to a 5% jump in its value.
Increased Investment and Whale Activity
Ripple’s strong start to 2025 is evident in the increasing net inflows into XRP investment products. According to CoinShares data, XRP investment products recorded a net inflow of $31 million, marking a continuation of the positive trend that began in mid-November. Since then, XRP has seen a total of $484 million in inflows, despite a lack of participation from US investors due to the ongoing legal uncertainty.
The growing interest in XRP is not just limited to retail investors. Large XRP holders, or whales, have also been active, as evidenced by a recent spike in whale transactions. While some attributed the uptick in transactions to selling activity following a brief decline in XRP’s price below $3.00, analysis of exchange reserves suggests that the majority of the transactions were actually buying activity. XRP’s exchange reserves have declined, while net outflows have increased, signaling that the whales are accumulating more of the asset.
ETF Potential and Market Outlook
The surge in XRP investment activity has prompted analysts to speculate on the potential success of XRP exchange-traded funds (ETFs) if they are approved by the SEC. According to Standard Chartered analysts, XRP ETFs could attract a significant influx of capital, with estimates suggesting inflows between $4.3 billion and $8.4 billion within the first six to twelve months of launch.
The possibility of XRP ETFs becoming a reality is increasingly likely with the SEC’s new leadership under Uyeda. His pro-crypto stance and focus on transparent regulation may open the door for XRP ETFs to launch, providing more institutional investors access to the remittance-based token.
XRP’s Rising Confidence and Funding Rates
In addition to the strong investment flows and growing bullish sentiment, XRP’s open interest in the derivatives market has started to recover. Open interest, which refers to the total value of outstanding derivative contracts, had decreased from 2.34 billion XRP to 2.07 billion XRP over the past five days, indicating some market uncertainty. However, XRP’s funding rates have improved significantly, reaching a six-week high of 0.0143%. Funding rates are an indicator of the cost of holding a leveraged position, and their improvement suggests rising confidence in XRP’s long-term potential.
The combination of positive sentiment from XRP whales, the potential for SEC approval of XRP ETFs, and improved market conditions has positioned XRP for a strong year ahead. If Ripple can successfully navigate the regulatory challenges posed by the SEC under the leadership of Mark Uyeda, the token could see even greater institutional interest, and its market price could continue to rise.
Conclusion
The appointment of Mark Uyeda as the acting SEC Chair is a game-changing development for Ripple and the broader cryptocurrency market. With a more favorable regulatory stance towards digital assets, XRP is experiencing a significant boost in investor confidence, as reflected in rising market activity, inflows into investment products, and a renewed interest in potential XRP ETFs. As the legal landscape surrounding XRP and the SEC continues to evolve, the outlook for Ripple in 2025 appears increasingly optimistic.
January 2025, Cryptoniteuae