XRP News Today: SEC Framework Could Open Floodgates for Spot XRP ETFs; BTC Tumbles

XRP-Spot ETF Approval Speculation Intensifies

XRP came under heavy selling pressure on Thursday, August 14. The token faced heavier losses than its peers as uncertainty about the timing of an XRP-spot ETF approval weighed on sentiment.

In a previous interview, Ripple CEO Brad Garlinghouse discussed a potential XRP-spot ETF market with eToro CEO and founder Yoni Assia and eToro market analyst Sam North, stating:

“Part of the transition from maybe more speculative retail into more institutional adoption/participation is the ETF step. Certainly, the Bitcoin ETF getting approved, the SEC was dragged kicking and screaming a little bit towards that outcome. But getting the Bitcoin ETF was a monumental event in terms of expanding the ability for others to participate, particularly institutional investors. […]. I think it’s inevitable that there will be an XRP ETF.“

Investors expect the eventual launch of a US XRP-spot ETF to be the next key price catalyst. Notably, the US is falling behind other markets, with spot XRP ETFs having already launched in Brazil and Canada. However, analysts expect the end of the SEC vs. Ripple case to pave the way for a US XRP-spot ETF market. The Frankfurt Stock Exchange, remarked:

“As we said, a spot XRP ETF cannot be approved by the SEC as long as you are involved in a legal dispute with this exact company and this coin. That’s over now. So, from this point of view, nothing should stand in the way of a Spot XRP ETF now.”

While the conclusion of the Ripple case removed a key legal hurdle, regulatory steps remain. Given the deadline for SEC decisions on pending XRP-spot ETF applications is October, the agency has the time to roll out its standardized crypto ETF framework.

Standardized Crypto ETF Framework to Trigger the Next Adoption Phase

The timing of the SEC rolling out its standardized crypto ETF framework remains uncertain. The agency recently approved but issued stay orders, delaying the launches of the Grayscale Digital Large Cap ETF (GDLC) and the Bitwise 10 Crypto Index ETF (BITW). Both ETFs will have exposure to XRP. Notably, the SEC issued the stay orders before the Joint Stipulation of Dismissal filing on Thursday, August 7.

However, the SEC’s rollout of its standardized crypto ETF framework could open the floodgates for crypto-spot ETF launches.

Nate Geraci, President of Nova Dius Wealth, recently remarked on the potential impact of a standardized crypto ETF framework, stating:

“The three major stock exchanges, NYSE, Nasdaq, and Cboe, they have all filed with the SEC for generic listing standards for crypto ETFs, which basically means that the exchanges wouldn’t need to seek specific approval for each spot crypto ETF as long as it meets certain criteria. So, this would streamline the approval process.”

Geraci added:

“And that’s important because, right now, there are filings out there from multiple issuers for XRP ETFs, Solana ETFs, Cardano, HBar, we could go on down the list, but there are a boatload of filings out there and the expectation is that the standardized crypto framework will be implemented, say in the next two months or so.”

Remarking on the outlook for a potentially expanded crypto-spot ETF market, Geraci concluded:

“So, if and when that happens, I think you’re going to see the floodgates open. We’re going to see a wave of approvals, and you’re going to see a boatload of new crypto ETFs coming to market.”

XRP Price Outlook: Investors Eye Banking License and Spot ETF Approvals

XRP slid 5.78% on Thursday, August 14, reversing Wednesday’s 0.14% gain to close at $3.0830. The token underperformed the broader market, which fell 3.93% to a total crypto market cap of $3.96 trillion.

In the near-term, XRP’s price outlook hinges on several key catalysts, including:

• XRP-spot ETF news.
• Ripple’s progress in obtaining a US-chartered bank license.
• SWIFT-related updates.
• Legislative developments.

A breakout above the $3.2 resistance level could pave the way to the August 8 high of $3.3826. A sustained move above $3.3826 could bring the July 18 all-time high of $3.6606 (Binance Exchange) into sight.

However, a break below $3 may allow the bears to target the 50-day Exponential Moving Average (EMA). If breached, the August 3 low of $2.7254 would be the next key support level.

Explore our full XRP forecast here for key breakout zones and timing insights.

US Data Signals Inflation Pickup, Sinking Fed Rate Cut Bets, and BTC

While XRP saw heavy losses as investors reacted to potential delays to an XRP-spot ETF approval, US economic data impacted Bitcoin (BTC).

Producer prices jumped 3.3% year-on-year in July after a 2.4% increase in June, while core producer prices surged 3.7% (June: 2.6%). Given that economists consider producer prices a leading inflation indicator, the upswing signaled a potential inflation spike. Higher inflation, stemming from tariffs driving import prices, could delay Fed rate cuts.

US labor market data also tempered expectations of multiple Fed rate cuts. Initial jobless claims fell from 227k (week ending August 2) to 224k (week ending August 9). A resilient labor market may bolster wage growth and boost consumer confidence. Rising consumer confidence may fuel household spending and demand-driven inflation.

According to the CME FedWatch Tool, the chances of a September Fed rate cut fell from 100% on August 13 to 92.1% on August 14.

A less dovish Fed rate path would weigh on demand for risk assets, including BTC. BTC tumbled 1.83% immediately after the data release, eventually dropping to a session low of $117,161 before stabilizing.

US BTC-Spot ETF Market Inflow Streak Threatened

July’s producer prices and jobless claims also impacted demand for US BTC-spot ETFs on August 14. According to Farside Investors, key flow trends included:

• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $149.9 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $113.5 million.
• Bitwise Bitcoin ETF (BITB) saw net outflows of $30.9 million.

With BlackRock (BLK) iShares Bitcoin Trust (IBIT) flow data pending, total US BTC-spot ETF outflows reached $292.9 million, potentially snapping a six-session streak. Spot BTC ETF flow trends remain crucial to the price trajectory.

BTC Price Outlook: US Economic Data, the Fed, and Spot ETF Flows in Focus

BTC slid 3.54% on Thursday, August 14, reversing Wednesday’s 2.28% rally to close at $118,399. Notably, BTC struck a new all-time high of $123,731 before hitting the reverse.

Several key events will dictate the near-term price trajectory. These include:

• Fed monetary policy stance.
• US retail sales and Michigan Consumer Sentiment.
• Legislative developments on Capitol Hill.
• BTC-spot ETF flows.

Potential scenarios:

• Bearish Scenario: Legislative roadblocks, stronger US economic data, hawkish Fed rhetoric, and ETF outflows. A combination of these may push BTC below $115,000 and the 50-day Exponential Moving Average (EMA).
• Bullish Scenario: CLARITY Act’s progress on Capitol Hill, weaker US data, dovish Fed signals, and ETF inflows. In this case, BTC could target the record high of $123,731.

Key Market Drivers to Fuel or Derail a Breakout

Traders should monitor the following key events to determine whether XRP and BTC climb to new all-time highs:

• XRP-spot ETF headlines.
• Legislative news: The CLARITY Act.
• US Economic Data.
• Fed commentary: Hawkish or dovish signals.
• ETF market flows: Flow trends crucial for BTC’s supply-demand balance.

See where analysts expect XRP and BTC to head as legal and political risks evolve.