Nov 29, 2024
6thTrade
XRP has surged to a new three-year high, reaching $1.67 on Friday, driven by mounting speculation about the potential launch of an XRP exchange-traded fund (ETF) and growing optimism about a shakeup at the U.S. Securities and Exchange Commission (SEC). As of publication, XRP is trading at $1.66, reflecting a 13.8% daily increase and a 12.8% rise over the past week.
The surge follows recent moves in the ETF space, including WisdomTree’s registration of an XRP ETF in Delaware, marking the first step toward possible approval. Additionally, the European XRP ETP recently rebranded to the Bitwise Physical XRP ETP, with Ripple announcing plans to invest in the fund. Ripple CEO Brad Garlinghouse has expressed confidence in the eventual approval of an XRP ETF, calling it "inevitable," especially after the approval of Bitcoin and Ethereum ETFs earlier this year.
XRP's price surge comes as demand for crypto-backed investment products continues to grow, with Garlinghouse noting that the clearer regulatory environment in the U.S. will accelerate this trend. XRP’s legal battle with the SEC, which began in 2020 over allegations that it is an unregistered security, has cast a long shadow over the asset. However, a 2023 court ruling found that XRP is not inherently a security, and Ripple executives remain optimistic despite ongoing legal challenges.
The regulatory landscape for XRP seems to be shifting, particularly following news of SEC Chair Gary Gensler’s impending departure. XRP surged to $1.49 last week after the announcement of Gensler’s resignation, breaking through its previous three-year high. However, it still remains 51% below its all-time high of $3.40, set in January 2018.