XRP Surges Past Tether as Bitcoin Faces Pressure from US Government Moves

XRP-Spot ETF Activity Intensifies Driving XRP Demand

WisdomTree has filed an S-1 with the US Securities and Exchange Commission (SEC) for an XRP-spot ETF, significantly boosting XRP demand. Journalist Eleanor Terrett reported the filing, stating:

“WisdomTree officially files an S-1 with the SEC for an XRP-spot ETF. WisdomTree joins Bitwise Invest, 21Shares, and Canary Funds in applying for a fund that tracks the daily price of XRP.”

WisdomTree, a pioneer in the US crypto-spot ETF space, previously launched its WisdomTree Bitcoin Fund (BTCW) which has seen $217 million in net inflows since its launch. The anticipated success of the XRP-spot ETF hinges on the current demand for XRP.

In Europe, Bitwise Invest has rebranded its European XRP exchange-traded product (ETP) to Bitwise Physical XRP ETP, with Ripple being an early investor in this new product. Bitwise noted:

“XRP is gaining more and more popularity due to its speed, efficiency, and reliability in areas like cross-border remittances, institutional DeFi, and real-world tokenization.”

Bitcoin Dips Below $95,000 on US Government Activity

Recently, the US government transferred $1.92 billion in BTC to Coinbase, impacting the demand for Bitcoin. The transfer leaves the government with 188,309 BTC, valued at approximately $18.01 billion. Arkham reported:

“US government moving $1.92B BTC to new addresses.”

This transfer could negatively affect BTC price trends. Jason Lowery, in his critique of the government's actions, stated:

“This is a huge strategic mistake. There is no price where it makes sense for the US to sell any Bitcoin it has under its control.”

The contrasting views on Bitcoin's future between political parties highlight the ongoing debate regarding the cryptocurrency's status as a strategic reserve asset.

US BTC-Spot ETF Market Eyes Three-Day Inflow Streak

The US BTC-spot ETF market is seeing a potential three-day inflow streak with:

• Fidelity Wise Origin Bitcoin Fund (FBTC): $25.1 million in net inflows
• ARK 21Shares Bitcoin ETF (ARKB): $17.2 million in net inflows
• Grayscale Bitcoin Mini Trust (BTC): $6.4 million in net inflows

However, Grayscale Bitcoin Trust (GBTC) and VanEck Bitcoin Trust (HODL) experienced net outflows of $28.1 million and $10.9 million, respectively. The overall market has seen net inflows of $15.3 million.

Despite BTC hovering below the $100k mark, Kalshi reported a decrease in bullish sentiment for BTC reaching that price by year-end, now at 64%, down from 77%.

Bitcoin (BTC) Price Prediction

On Monday, BTC closed at $95,813, marking a 1.25% decline. The recent dips highlight the importance of US BTC-spot ETF flows and government actions in determining BTC's near-term price movements. Analysts predict BTC could rise above $100,000 if pro-crypto policies are implemented, while further government transfers could push BTC down toward $90,000.