The U.S. Securities and Exchange Commission (SEC) has opened a review of a proposed NYSE Arca rule change that introduces an 85% asset threshold — any fund seeking exchange listing must hold at least 85% in already-approved assets. While technically valid under futures-linked criteria, the rule creates ambiguity for complex instruments like OTC options, potentially pushing hybrid crypto funds below the line and delaying product approvals. The market reacted with a sudden sell-off.
SEC's 85% Asset Threshold Proposal
The proposed rule targets funds that include unapproved assets, complicating the path for crypto ETFs that blend spot and derivatives exposure. XRP currently lacks a spot ETF approval, though futures-based products exist. The SEC's move is seen as a tightening of the approval pipeline, triggering short-term uncertainty. According to the proposal, any fund falling below the 85% threshold due to complex instruments would face exchange listing hurdles.
XRP Price Slides to $1.38, Weekly Loss Exceeds 4%
Per CoinMarketCap, XRP is trading at $1.38, down 2% in 24 hours and over 4% in the past week. The market cap stands at $85.44 billion. The price dropped from $1.41 earlier this week after the SEC news broke. Two scenarios emerge: if XRP holds above $1.35–$1.32, a bounce toward $1.42–$1.48 is possible, with positive sentiment pushing toward $1.55. A break below $1.35 may drag price to $1.28–$1.22, made harder by low trading volume.
34.94M XRP Exit Exchanges in 24 Hours
Santiment data shows the XRP Ledger recorded a net outflow of 34.94 million XRP from exchanges in a single day — the sixth largest daily outflow this year. Large outflows typically indicate assets moving to cold storage (private wallets), signaling holder caution rather than panic. Meanwhile, SoSoValue reports cumulative net inflows into XRP-related products have reached $1.29 billion, suggesting longer-term positioning remains constructive. The divergence between price drop and outflow data suggests consolidation, not collapse.
$1.35 Support Zone in Focus
The SEC's proposal introduces a structural hurdle for hybrid crypto ETFs, but its final form and timeline remain uncertain. For now, XRP's price is testing the $1.35–$1.32 support zone. If it holds, a recovery toward $1.42–$1.48 is within reach. If it breaks, the next downside targets are $1.28–$1.22. The outflow and inflow data point to experienced holders staying put. Traders should watch the $1.35 level closely this week and monitor SEC developments rather than react to short-term noise.
This content is for informational purposes only. It does not constitute financial, investment, or legal advice. Cryptocurrency markets are highly volatile. Always do your own research.