XRP has surged over 7% recently, reflecting renewed investor confidence. Several positive developments have boosted sentiment, which we’ll explore in this article.
However, XRP’s performance over the past month has been less encouraging, with a 12% decline. At the start of February, it fell from $3, and despite attempts to recover last week, it struggled to maintain the $2.7 level. Currently trading at $2.69, XRP faces another test of this critical support.
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XRP ETF Breakthrough in Brazil
Brazil has made headlines by approving the world’s first spot XRP exchange-traded fund (ETF), marking a significant milestone for Ripple and the crypto community. The authorization from Brazil’s Securities and Exchange Commission (CVM) allowed Hashdex’s Nasdaq XRP Index Fund to launch, making Brazil the first country to provide regulated exposure to XRP through an ETF.
This approval opens the door for more investors to access XRP via traditional stock exchanges, bypassing the difficulties of digital wallets. It also places Brazil ahead of the U.S. and other major markets in embracing cryptocurrency investments.
The timing is crucial as global interest in crypto ETFs grows. Brazil’s progressive stance signals its intent to be a leader in digital finance. This is a victory not just for XRP but for the entire cryptocurrency industry.
With trading expected to start on Brazil’s B3 stock exchange soon, the world will be watching. If successful, this ETF could pave the way for other countries to follow suit.
SEC Finally Acknowledging XRP ETF Filings
While Brazil advances, the U.S. is showing signs of catching up. The Securities and Exchange Commission (SEC) recently acknowledged several XRP ETF filings from major players like WisdomTree, Bitwise, and Grayscale, indicating a possible shift in the SEC’s approach to crypto regulation.
However, acknowledgment doesn’t guarantee approval. The SEC has up to 240 days to make a final decision and may request changes or reject the filings. Nonetheless, the consideration of these applications suggests growing regulatory acceptance.
Political changes in the U.S., including a more crypto-friendly administration, could influence the SEC’s decision. If approved, these ETFs would allow institutional investors to gain exposure to XRP without directly purchasing the cryptocurrency, potentially boosting demand and liquidity, similar to Bitcoin ETFs’ impact.
Is the SEC Dropping Its Case Against Ripple?
Speculation is mounting that the SEC might drop its longstanding lawsuit against Ripple. Filed in 2020, the lawsuit alleges that Ripple sold XRP as an unregistered security, casting uncertainty over XRP’s legal status and limiting its U.S. growth.
However, under new leadership, the SEC has paused several high-profile crypto lawsuits, raising hopes that Ripple might be next.
Some legal experts argue that the SEC’s acknowledgment of XRP ETF filings suggests a shift in stance, as it would be contradictory to treat XRP as a security while approving ETFs that classify it as a commodity. Political factors, including a more crypto-friendly administration and pressure from Congress for regulatory clarity, may also influence the SEC’s decision.
If the SEC drops the lawsuit, it would be a major victory for Ripple and the XRP community, eliminating a significant legal obstacle and paving the way for broader adoption.
Trump’s Surprising Endorsement of Ripple
Recently, U.S. President Donald Trump has been sharing Ripple-related posts on his Truth Social platform. This endorsement has fueled speculation about his support for XRP.
Trump’s endorsements emphasized Ripple’s growing influence in the U.S., boosted by his administration’s pro-crypto stance. Ripple CEO Brad Garlinghouse has noted an increase in U.S.-based deals, reflecting rising confidence among American businesses.
Trump’s significant public following could shift public perception and enhance mainstream acceptance of XRP. Some analysts believe his support could indirectly impact the SEC’s case against Ripple, given his administration’s push for crypto-friendly regulations.
Final Thoughts
The approval of the first spot XRP ETF in Brazil is a major milestone for Ripple. Meanwhile, the SEC’s acknowledgment of XRP ETF filings hints at a potential regulatory shift in the U.S., and rumors of the lawsuit being dropped offer hope for legal clarity. Add to this the support from Donald Trump, and XRP’s future looks really optimistic.
