XRP Price Surge Fueled by Positive ETF Developments

XRP, the digital asset associated with the Ripple network, has seen a notable surge of over 10% in value over the past two days. This increase is attributed to significant advancements concerning the initial approval of exchange-traded funds (ETFs) and the introduction of real-world assets (RWAs) on the XRP ledger. As investors show renewed interest, XRP has successfully rallied past its previous resistance level of $2.50, reaching a high of $2.78 on February 14, according to recent data from Cointelegraph and TradingView.

SEC Approves Grayscale’s ETF Application

The recent surge in XRP’s price follows a favorable development reported on February 13, when the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale’s Form 19b-4 application to list ETFs for XRP and Dogecoin. The SEC’s acknowledgment signifies an important step towards potential approval, with the agency required by law to make a final decision regarding the ETFs within 240 days. This timeline aligns with Section 19(b)(2) of the Securities Exchange Act.

The current administration within the SEC has shown a more supportive stance towards crypto assets. This environment has led to speculation that final approvals could occur sooner than expected. A notable example is Bitwise’s recent dual Bitcoin-Ethereum ETF, which gained initial approval less than 90 days after its filing.

The Ripple Effect of Regulatory Sentiment

However, analyst James Seyffart from Bloomberg has suggested that the approval of an XRP ETF may hinge on the resolution of the ongoing lawsuit against Ripple Labs by the SEC. Seyffart’s observations highlight the complexities surrounding regulatory compliance and advocacy for crypto-assets, a sentiment shared by many in the industry.

Despite the uncertainty, sentiment amongst Polymarket bettors regarding the approval of an XRP ETF in 2025 reflects growing optimism. As of now, the betting odds for such an approval have increased to 81%. Over the past month, this probability has shifted by 23%, indicating a bullish turn, especially from a base of approximately 70% just a month prior in January 2025.

Divergence in Betting Strategy

When examining the probability of approval by a specified date, polls indicate a more divided stance. Approximately 45% of bettors believe a favorable outcome could materialize before the third quarter of 2025. This uncertainty underscores the volatile nature of crypto-assets and their regulatory environment.

Jeremy Hogan, a partner at Hogan and Hogan, who has been a prominent advocate for XRP, expressed caution regarding the timeline for ETF tradability. While he acknowledges that the initial approval might be rapid, he also notes that additional paperwork, particularly the S-1 filing, is required before the ETF can be actively traded. Hogan estimates that the entire approval process could realistically extend to between 8 to 12 months.

The Form S-1 is critical for non-traditional ETFs like those based on cryptocurrencies as it necessitates detailed disclosures concerning the ETF’s investment strategy, risks, fees, and overall operations.

Conclusion

In summary, XRP’s recent price rally is reflective of expanding optimism surrounding potential ETF approvals amidst an evolving regulatory landscape. While current developments point to a bright future for XRP, investors are advised to remain vigilant and conduct their own research, as the cryptocurrency market remains subject to rapid changes and uncertainties.

> Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.