XRP News Today: XRP Gains as Ripple-SEC Ruling Looms, ETF Demand Climbs; BTC at $96k

XRP Gains Amid Ripple-SEC Settlement Buzz

The market focus returned to the SEC vs. Ripple case on Tuesday, May 6, spotlighting XRP. Ripple CEO Brad Garlinghouse shared the Q1 2025 quarterly report, stating:

“Q1’25 was an incredible quarter for Ripple, with our acquisition of Hidden Road and end to the SEC case, not to mention institutional interest in XRP ETPs globally.”

Garlinghouse also declared an end to the quarterly reports:

“Moving forward, the XRP Markets Report will look a little different. As some may remember, the objective of publishing these reports starting in 2017 was transparency into Ripple’s holdings of XRP, which unfortunately was then used against us by the SEC and others.”

While ending the quarterly report, Garlinghouse assured stakeholders that Ripple would maintain transparency; continuing to disclose its XRP holdings on its website and deliver updates via social media.

Key takeaways from the final XRP Markets Report include:

• Ripple and the SEC reached an agreement to end the lawsuit, subject to a Commission vote. SEC agreed to request the Courts vacate the injunction and reduce the penalty from $125 million to $50 million, pending SEC Commission approval. Ripple also agreed to withdraw its cross-appeal.
• Ripple acquired Hidden Road for $1.25B to scale XRPL and RLUSD adoption. Hidden Road will begin using RLUSD as collateral across its services and adopt the XRP Ledger to boost post-trade operation efficiency in FX, swaps, and repo markets.
• Institutional demand rises for XRP-based investment products. Teucrium’s 2x Long Daily XRP ETF launched with $5 million in trading volume, placing it among the top 5% of new ETF launches.
• US policy shift signals more clarity, more opportunity.

SEC Closed Meeting Fuels Approaches

Market focus will now shift to the SEC’s upcoming closed meeting on Thursday, May 8. SEC Chair Paul Atkins and Commissioners Mark Uyeda, Hester Peirce, and Caroline Crenshaw may vote on Ripple’s settlement terms and appeal withdrawal, challenging the Programmatic Sales of XRP ruling.

Pro-crypto lawyer Bill Morgan remarked on market reaction to Ripple’s quarterly report, and the Ripple case in particular, stating:

“Ripple’s Q1 2025 quarterly market report released today makes interesting references to the lawsuit. I think this is the first explicit public reference by Ripple that the SEC agreed to request that the Court vacate the permanent injunction. Odd though that the report states the SEC has officially withdrawn its appeal when the SEC commissioners as far as we know have not voted yet on the matters.”

Morgan added:

“It is not over yet. Things need to happen first in court.”

In April, the SEC and Ripple filed a joint motion to pause the appeal, citing progress toward a settlement. The SEC must provide a status update within 60 days of the filing, which should allow time for a formal vote and filing.

Given the interlinked nature of the appeals, a resolution may depend on Judge Torres granting the SEC’s settlement motion.

XRP Outlook: Legal Momentum and ETF Trends

XRP rose 1.08% on Tuesday, May 6, partially reversing Monday’s 1.27% loss to close at $2.1549. However, it trailed the broader crypto market, which rallied 1.5%, taking the total crypto market cap to $2.95 trillion.

Short-term XRP price direction will likely hinge on:

• SEC votes, court filings, and appeal withdrawal.
• XRP-spot ETF-related news.
• Broader macro factors, including Fed policy and US-China trade headlines.

Key support lies at $2.10. A breakout above $2.50 could open the door to $3.00 and a retest of the all-time high at $3.5505.

See our full XRP forecast here.

Bitcoin Rallies on US-China Trade News

While XRP posted modest gains, bitcoin (BTC) surged on renewed US-China trade optimism. Beijing confirmed it will re-engage with Washington, easing recession fears and sparking a broader risk-on rally.

The Kobeissi Letter reported:

“BREAKING: China’s Commerce Ministry says reports that China plans to engage with the US on trade are true. China adds that “talks must be equitable and mutually beneficial.”

While BTC rallied on the news, gold prices tumbled 1.96% on Wednesday, May 7, as capital shifted safe-haven assets into risk assets. Still, investor caution was evident, with talks not guaranteeing a trade deal. After Trump’s Inauguration, BTC tumbled from an all-time high of $109,312 to $74,394 on April 7 amid trade tensions.

ETF Flows Remain Key to BTC Recovery

US BTC-spot ETF market inflows continue to support BTC’s recovery from the April 7 low. According to Farside Investors, US BTC-spot ETF issuers reported net inflows of $425 million on May 5.

BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) contributed $531.2 million in net inflows, offsetting outflows from other issuers.

Continued net inflows rely on IBIT for a second consecutive session, on May 6.

• Grayscale Bitcoin Trust (GBTC) and ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $89.9 million and $16.1 million, respectively.

Excluding pending flow data for IBIT, the US BTC-spot ETF market saw total net outflows of $122.4 million on May 6. Despite potential outflows, the US BTC-spot ETF market reported total net inflows of $4,447 million since April 7, driving the BTC recovery.

BTC Price Outlook: Policy and Legislation in Focus

BTC rallied 2.19% on May 6, adding to Monday’s 0.41% gain to close at $96,845.

Near-term price trends hinge on trade headlines, Fed policy signals, Bitcoin Act news, and ETF flow trends.

Key scenarios include:

• Bearish Scenario: Escalation in the US-China trade war, hawkish Fed guidance, US recession concerns, resistance to the Bitcoin Act, and renewed ETF outflows. Bearish sentiment could send BTC below $90,000.
• Bullish Scenario: Easing US-China trade tensions, a dovish Fed stance, strong US data, pro-crypto legislation, and sustained ETF inflows. Bullish sentiment could drive BTC above $100,000.

Legislation may play a decisive role. Senator Cynthia Lummis reintroduced the Bitcoin Act, proposing the US acquire one million BTC over five years with a 20-year hold. If passed, the bill would significantly influence BTC’s long-term supply outlook.

On May 6, New Hampshire became the first US state to legislate crypto investment. Republican Governor Kelly Ayotte signed the bill, allowing the government to invest in cryptocurrency and precious metals, another BTC price boost. This contrasted with Arizona’s veto a day earlier, where Governor Katie Hobbs blocked a similar measure allowing up to 10% of public funds in digital assets such as BTC.

What to Watch

Traders should closely monitor SEC actions in the Ripple case, BTC-spot ETF flow data, economic indicators, and monetary policy updates. A favorable SEC decision could boost XRP, while broader crypto sentiment will depend on policy clarity and global risk appetite.

Read analysts’ insights on what could drive cryptocurrencies to new highs.