XRP saw a 7.5% price increase on Feb. 20, 2025, hitting $2.71, following key developments regarding its potential for institutional investment.
XRP saw a 7.5% price increase on Feb. 20, 2025, hitting $2.71, following key developments regarding its potential for institutional investment. This rally comes after the SEC acknowledged multiple ETF filings for XRP, including submissions by major asset managers WisdomTree and Canary Capital. These filings, which will undergo a 21-day public comment period, are part of a process that could lead to the creation of a regulated investment vehicle for XRP. The SEC has up to 240 days to decide on these filings, which has created a sense of optimism among investors about the cryptocurrency’s future.
At the same time, Brazil has become the first country to approve a spot XRP ETF. The Hashdex Nasdaq XRP Index Fund has received approval from Brazil’s financial regulator to launch on the B3 exchange. This approval is significant because it provides the first regulated opportunity for investors to gain direct exposure to XRP through an exchange-traded fund. The fund, currently in a pre-operational phase, is expected to launch soon, marking Brazil as the leader in offering a regulated XRP ETF.
In contrast, the U.S. market is still awaiting the SEC’s approval. Although the SEC has acknowledged filings from entities like Grayscale and CoinShares, the process can be lengthy, taking up to 240 days after the 21-day public comment period. These filings are seen as crucial in setting the stage for XRP’s possible inclusion in the U.S. market through ETFs.
Ripple, the company behind XRP, has been in a legal battle with the SEC since 2020 when the SEC filed a lawsuit alleging that Ripple had sold unregistered securities in the form of XRP. This lawsuit has created legal uncertainty surrounding the cryptocurrency, which has affected XRP’s price and market performance. Ripple’s next court deadline is set for April 16, 2025, leading many to speculate that the SEC could delay its decision on the case, which might provide clearer direction for XRP’s future.
Despite this uncertainty, there is a growing sense of optimism in the market. The acknowledgment of XRP ETF filings by the SEC, along with the approval of the first spot XRP ETF in Brazil, is fueling bullish sentiment. Many investors believe that the approval of these ETFs, along with potential legal clarity for Ripple, could pave the way for greater institutional interest in XRP.
The SEC’s review of filings from Grayscale, CoinShares, Bitwise, and other asset managers signals that the regulator is moving closer to providing more structure for the cryptocurrency market. While legal and regulatory hurdles remain, the recent developments have sparked renewed interest in XRP and its prospects.
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