SEC Ruling Sparks Institutional XRP Demand, Adoption Limited
On August 7, 2025, Ripple Labs and the U.S. SEC dropped their appeals, ending a nearly five-year legal battle over whether XRP was an unregistered security. The ruling confirmed that XRP traded on public exchanges is not a security, removing the main regulatory obstacle for institutional investors. Since the settlement, daily XRP trading volumes have surged 208% to roughly $12.4 billion, suggesting major players are returning to the market.
Galaxy Digital disclosed a new position of $34.4 million in XRP (15.39 million tokens), marking the firm’s first large XRP investment. Other institutions have filed for XRP ETFs and launched custody solutions, but few have publicly shown substantial purchases this month. Analyst Steven McClurg of Canary Capital projects that an approved XRP ETF could attract up to $5 billion in inflows during its first month.
XRP’s price climbed from $3.15 to $3.25 between August 12 and 13, peaking at $3.30 during heavy volume, with professional block-order patterns visible. Support levels held at $3.25–$3.26 and resistance at $3.30, indicating strong but cautious buying activity.
While legal clarity has opened the door for institutional demand, broad adoption remains limited. For XRP’s rally to sustain and grow, it will require ongoing inflows from both institutional and retail investors worldwide.
Bullish
The SEC settlement eliminates a key regulatory hurdle, prompting significant spikes in daily XRP trading volume and the first major institutional purchase by Galaxy Digital. ETF filings and analyst projections of $5 billion in potential inflows underscore growing institutional interest. Historical parallels—such as institutional inflows into BTC and ETH following regulatory clarifications—suggest that legal certainty often precedes sustained capital inflows. In the short term, expect continued volume-driven price support around $3.25 and attempts to break $3.30. Over the long term, XRP’s price outlook hinges on further institutional commitments and ETF approvals, making the overall sentiment bullish.