XRP Price Surges Above $2 as ETF Inflows and Regulatory Optimism Boost Momentum

XRP climbed above the $2 mark on Friday for the first time since mid-December, signaling a strong start to 2026 as investor confidence continues to build. The rally has been fueled by steady inflows into U.S. spot XRP exchange-traded funds (ETFs) and growing optimism around the U.S. regulatory environment, even as the broader cryptocurrency market remains largely rangebound.

According to data from SoSoValue, U.S. spot XRP ETFs recorded net inflows of $13.59 million on January 2. This pushed total cumulative inflows since their launch to approximately $1.18 billion, highlighting sustained institutional and retail demand. These consistent inflows have helped shift short-term supply and demand dynamics in favor of XRP, supporting its recent price strength.

Market participants are also closely watching changes in the regulatory landscape. Traders have reassessed sentiment following the departure of SEC Commissioner Caroline Crenshaw, who had been one of the most outspoken critics of crypto-related products. Crenshaw previously opposed spot crypto ETFs and had resisted the SEC’s decision to drop its appeal in the long-running Ripple case. Her exit has been interpreted by some investors as a potential step toward a more crypto-friendly regulatory stance in the United States.

Additional momentum has come from speculation around upcoming U.S. legislation. Traders have pointed to a possible Market Structure Bill markup scheduled for January 15, which has kept regulatory expectations elevated going into the first quarter of 2026. These policy-driven catalysts have contributed to XRP outperforming other major digital assets.

XRP’s rally stands in contrast to mixed flows seen in other crypto ETFs. The same data indicated softer demand for bitcoin ETFs during the same period, reinforcing the view that XRP’s price surge is driven primarily by token-specific developments rather than a broad risk-on move across the crypto market.

At last check, XRP was trading just above $2, up roughly 8% on the day. Meanwhile, bitcoin hovered near $90,000 and ether traded around $3,000, both posting only modest gains.