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The XRP price surged 14% over the weekend following news of an SEC ETF acknowledgment emanating from the Grayscale and NYSE for the first XRP ETF. There’s now chatter that the token could potentially eliminate Ethereum from the second most valuable cryptocurrency position.
According to data from CoinGecko, the XRP price reached $2.75 immediately following the news of the SEC ETF acknowledgment. XRP price has gained a massive 400% in market value, having recently attained an all-time high XRP price of $3.40. All signs indicate the token’s value could still skyrocket.
Partial Victory for XRP ETF
Analysts believe that one of the reasons Ripple’s XRP price has recently gotten into the good books of traders is the SEC ETF acknowledgment, as the token is one of the many others seeking exchange-traded fund approval. The partial victory following the February 13 announcement acknowledging Ripple’s two filings from major brokers may have been responsible for the surge in the XRP price. Bloomberg analyst James Seyffart believes the acknowledgment is sufficient evidence that we could be on a countdown toward an XRP ETF. Expert prediction puts the final approval of the ETF towards the end of 2025.
Betting on Trump’s Goodwill
In addition to the XRP ETF issue, there are those traders who are betting on the goodwill of US President Donald Trump to push for a regulatory environment that works well for the crypto industry. At the beginning of 2025, Ripple CEO Brad Garlinghouse opined that his company had done more business in the weeks following Trump’s election win than in the previous months combined. Data indicates that the company hires for dozens of roles, which suggests the business is good.
Ripple vs. SEC Legal Battles
Perhaps the great signal that the SEC ETF acknowledgment sent to the community was a possibility that the long-drawn Ripple vs. SEC legal battles were finally nearing their end. This follows a ruling last year by Judge Analisa Torres that XRP sales to retail investors never constituted securities transactions but that the firm’s institutional sales did break US securities laws. Ripple went back to court to appeal the ruling. According to GSR research analyst Carlos Guzman:
“Should the SEC appeal be dismissed, or should the incoming SEC leadership choose to settle instead, this would be a huge win for Ripple.”
Dollar-Pegged Stablecoin
Last but not least, Ripple has been busy creating new products in reaction to the market’s emerging needs. Ripple recently launched a dollar-pegged stablecoin, the RLUSD, with which it hopes to get a share of the highly-coveted $233 billion sector. Commenting on the development last week, Ripple CEO Garlinghouse stated:
“As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD.”
Conclusion
While the XRP price seems to have settled following the gains the token experienced after news of the SEC ETF acknowledgment, the long-running battle between Ripple and the agency has continuously stuck out as a sore thumb. The currency continues to demonstrate resilience, meaning selling pressure from optimistic traders demands a cautionary approach. Should the XRP price face a downside break, it could close at around $2.60 and reach the $2.55 support level.
Frequently Asked Questions (FAQs)
What is an XRP ETF?
It is a financial instrument that allows investors to buy into XRP without actually owning or storing the currency.
Why is it important?
It would offer investors a regulated way to enter the XRP market, making it more accessible and potentially appealing to institutional players.
How Could an XRP ETF Shape Regulatory Clarity?
If finally approved by the SEC, the introduction of an XRP ETF acknowledgement could lead to more regulatory clarity around cryptocurrencies.
What Benefits Could an XRP ETF Bring to Institutional Investment?
If approved, an XRP ETF could provide a legitimate avenue for institutional investment in cryptocurrencies.
References
Appendix Glossary to Key Terms
ETF: A financial instrument allowing investors to gain exposure to digital assets through traditional brokerage accounts without the need to manage wallets or custody issues
SEC: A US government agency that regulates the stock market and protects investors.
XRP: A cryptocurrency and the token for the Ripple payment network.
Ripple: A digital payment company that uses the cryptocurrency XRP to enable fast, low-cost cross-border payments
RLUSD: Ripple USD is a stablecoin designed to maintain a 1:1 value with the US dollar.
