XRP Surges Past USDT, Eyes Ethereum for Second Spot as Bitcoin Soars to $118K
In a notable shift within the cryptocurrency market, XRP has outperformed USDT (Tether) and set its sights on overtaking Ethereum (ETH) to claim the number two position by market capitalization. Meanwhile, Bitcoin (BTC) has reached a new record high, hitting $118,288 amid strong ETF inflows and positive regulatory developments.
XRP’s Impressive Rally Amid Regulatory Optimism
XRP experienced a significant price jump of over 7% on July 11, continuing from a 5.84% gain the previous day, closing at approximately $2.73. This surge contrasts with a relatively modest 1.4% increase across the broader crypto market, lifting the total market cap to $3.62 trillion.
Investor enthusiasm is largely fueled by speculation that the U.S. Securities and Exchange Commission (SEC) may decide to drop its appeal in the long-running lawsuit against Ripple, the company behind XRP. The SEC’s silence following a second closed-door meeting, where no vote on the appeal was made, has led traders to anticipate a positive regulatory outcome.
Ripple CEO Brad Garlinghouse recently testified before the Senate Banking Committee, emphasizing the court’s favorable rulings for Ripple, including a key decision that XRP is not inherently a security. Garlinghouse criticized the SEC’s inconsistent legal approach and argued that the agency’s tactics amounted to a “war” on the cryptocurrency industry.
Rising Demand for XRP ETFs Signals Market Confidence
The optimism surrounding an end to the SEC suit has translated into increased demand for XRP exchange-traded funds (ETFs). Teucrium’s 2x Long Daily XRP ETF (ticker: XXRP), which launched in April 2025 and aims to deliver twice the daily price movement of XRP, saw volume surge by four to five times its usual levels. The ETF’s price jumped 27% in a single day and marked a 55% gain over the week, with trading volumes hitting $120 million.
Bloomberg Intelligence’s senior ETF analyst Eric Balchunas highlighted this trend, noting that early movers like Teucrium could be well-positioned to capitalize on the anticipated approval of XRP spot ETFs by U.S. regulators. The potential clearance of Ripple’s lawsuit is expected to accelerate the approval process for pending XRP spot ETF applications and could attract large asset managers such as BlackRock, which may file for an XRP ETF following resolution of the case.
Grayscale Challenges SEC Stay on Digital Large Cap ETF
Further regulatory signals have emerged from Grayscale, which recently filed for a rule change to convert its Digital Large Cap Fund (GDLC)—which includes exposure to BTC, ETH, ADA, SOL, and XRP—into an ETF. Although the SEC approved the filing on July 1, it simultaneously issued a stay order to delay the launch.
Grayscale has since pushed back against the SEC’s stay through a legal filing, arguing that the commission lacks authority to delay the conversion. This move builds on Grayscale’s successful 2023 appeal that overturned the SEC’s rejection of the Grayscale Bitcoin Trust conversion, a legal victory that paved the way for U.S. spot Bitcoin ETFs.
Bitcoin Rockets to New Highs on ETF Inflows and Regulatory Progress
Bitcoin also enjoyed a sharp rally, surging to a record $118,288 on July 11 (Binance data). This breakthrough is partly attributed to record ETF inflows, dovish bets on an upcoming Federal Reserve rate cut, fading recession fears, and optimism about crypto-friendly legislation such as the CLARITY Act.
Data from Farside Investors reveal that U.S.-based Bitcoin spot ETFs attracted over $1.17 billion in inflows on July 10, extending a winning streak of six consecutive sessions. Notable inflows on July 11 included $23.5 million into the ARK 21Shares Bitcoin ETF (ARKB), $20.9 million into the Grayscale Bitcoin Mini Trust (BTC), and $20 million into VanEck’s Bitcoin ETF (HODL).
ETF Store President Nate Geraci cited the ongoing surge in demand, noting that the U.S. spot Bitcoin ETF market has seen inflows in 22 of the last 23 sessions, with a total of $7.14 billion flowing into the asset class.
XRP’s Price Outlook and Potential Market Movements
XRP’s immediate price trajectory depends significantly on forthcoming SEC decisions concerning its appeal, related U.S. crypto legislation, and developments on the XRP spot ETF front. Technical analysis points to a breakout above July 11’s high of $2.97 potentially pushing XRP toward the 2025 peak of $3.40, and if momentum holds, the 2018 all-time high of $3.55 could come into reach.
Conversely, a dip below the $2.50 support level may open the door for further declines, testing lower supports around $2.40 and possibly $2.30. ### Conclusion
The cryptocurrency market is witnessing a remarkable moment of bullish momentum, particularly for XRP and Bitcoin. XRP’s potential to flip USDT and challenge ETH’s ranking reflects growing market confidence amplified by evolving regulatory circumstances and ETF appetite. Meanwhile, Bitcoin’s new price high fueled by ETF inflows demonstrates institutional investors’ strong interest and signals a robust market environment going forward.
As investors await definitive resolutions in the SEC vs. Ripple case and legislative clarity, the crypto space remains poised for significant growth and transformative shifts throughout 2025. —
Article authored by Bob Mason for FXEmpire, updated July 12, 2025.