“WisdomTree’s registration will likely be followed by an S-1 registration filing with the SEC at some point. They would then join other issuers who have recently filed S-1s for XRP ETFs, including Bitwise Invest, 21Shares, and Canary Funds.”
WisdomTree registered for an XRP-spot ETF after SEC Chair Gensler announced his departure on January 20, 2025.
Expectations for Trump to nominate a pro-crypto SEC Chair have fueled speculation about the SEC approving XRP-spot ETFs. However, ETF approvals could hinge on the SEC’s decision regarding its appeal in the Ripple case.
Last week, Terrett reported that SEC staff engaged with SOL-spot ETF issuers on their applications. However, the SEC has remained silent on XRP-spot ETF applications to date, suggesting agency staff may be waiting on a decision regarding the appeal.
In October, Canary Funds applied for a US XRP-spot ETF after Bitwise’s application in September. This month, Grayscale submitted a Form 8-K, requesting the SEC’s permission to convert the Grayscale Digital Larga Cap Fund (GDLC) into a crypto-spot ETF. Grayscale’s crypto-spot ETF would hold BTC, ETH, AVAX, SOL, and XRP, the first US multi-crypto-spot ETF.
XRP climbed to a session high of $1.5399 on news of WisdomTree’s filing before retreating.
XRP Price Action
On Monday, November 25, XRP declined by 1.26%, following a 2.54% loss on Sunday, closing at $1.4153. The broader crypto market fell 3.84%, taking the total crypto market cap to $3.150 trillion.
Looking ahead, Trump’s SEC Chair nomination remains the focal point amid speculation that the SEC may drop the appeal against Ripple.
A pro-crypto SEC Chair favoring an end to legal cases against crypto firms could fuel bets on a US XRP-spot ETF market. Increasing XRP demand through spot ETFs could drive XRP toward the May 2021 high of $1.8171. However, XRP must break above the November 23, 2024, high of $1.6299.
Conversely, XRP could fall toward $1 if an incoming Chair suggests the SEC may continue pursuing the appeal against Ripple.
BTC Slides Below $93k on Profit-Taking
On Monday, BTC succumbed to profit-taking, dropping below $93k as investors awaited fresh price catalysts. Despite Monday’s retreat, sentiment remains bullish.
The Kobeissi Letter, an industry-leading commentary on the global capital markets, highlighted optimism for BTC’s 2025 outlook, stating,
“Prediction markets now see a BASE CASE of bitcoin rising above $150,000 by the end of next year. The odds of bitcoin rising above $150,000 in 2025 have jumped from 13% to 58% in just 2 weeks, according to Kalshi. The medium expectation is now for bitcoin to rise to $158,000 in 2025. There is also a 77% chance of bitcoin crossing above $125,000 next year. Prediction markets think bitcoin has much more room to run.”
Supply-demand shifts remain crucial for BTC to break above the $100,000 threshold. BTC-spot ETF market flow trends and progress toward BTC becoming a US strategic reserve asset may tilt the supply-demand balance in its favor.
US BTC-Spot ETF Market Ends Five-Day Winning Streak
On Monday, the US BTC-spot ETF market faces the prospect of ending its five-day winning streak. According to Farside Investors:
- Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $134.7 million.
- Bitwise Bitcoin ETF (BITB) saw net outflows of $280.7 million.
- Grayscale Bitcoin Trusts (GBTC) reported net outflows of $158.2 million.
- ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $110.9 million.
Excluding flow data for iShares Bitcoin Trust (IBIT), BTCO, and HODL, net outflows totaled $684.1 million. Nevertheless, Monday’s outflows only made a minor dent in last week’s inflows of $3,353.1 million.
Bloomberg Intelligence Senior Analyst Eric Balchunas remarked on BTC-spot ETF flow trends and BTC’s retreat, saying,
“I see a lot of CT baffled/frustrated as to how Saylor can buy $5b of btc but price doesn’t move up- which is same thing I hear sometimes about ETFs after big flows. Here’s data showing what I’ve long been saying: the call is coming from inside the house, it’s long-term hodlers.”
Bitcoin (BTC) Price Prediction
On Monday, BTC slid by 5.16%, reversing a 0.80% gain from Sunday, closing at $92,845. BTC dropped below $95,000 before finding support.
On Tuesday, November 26, SEC Chair-related updates and BTC-spot ETF flow trends require consideration. A pro-crypto Chair supporting crypto-friendly regulations could boost investor appetite for BTC and the broader crypto market. However, BTC-spot ETF market flow remains crucial for BTC’s move to $100,000.
Stay tuned for updates on how regulatory shifts and market dynamics influence crypto trends.
