- XRP’s price surged to a seven-year high, driven by factors like renewed regulatory hopes, speculation about potential XRP investment products, and the resignation of SEC Chair Gary Gensler.
- Analysts attribute XRP’s rally to traders speculating on the approval of a U.S. XRP exchange-traded product, with inflows into XRP investment products reaching $95 million last week.
- XRP’s price jump is seen as benefiting from Ripple’s strong brand recognition, the cryptocurrency’s legacy value, and increased interest from retail and institutional investors.
Whether it’s SEC Chair Gary Gensler’s departure or ETF speculation, analysts see several post-election factors behind XRP’s spike. XRP has surged to a fresh seven-year high, outpacing Bitcoin and Ethereum‘s gains since Election Day.
XRP Price Surge
The price of XRP has more than quintupled since November 5, rising 430% to $0.267 from $0.050. On Monday, XRP continued surging, hitting $0.274 – the highest since January 2018. Over the past 30 days, XRP is up more than five times.
Driving Factors
Regulatory Hopes
Many believe XRP is benefiting from renewed regulatory hopes with SEC Chair Gary Gensler’s resignation. XRP is expected to be among the assets to gain from a potential SEC policy shift.
ETF Speculation
Traders are speculating on the approval of a US ETF for XRP. Similar products already exist outside the US and have seen significant inflows recently. Asset managers like WisdomTree and 21Shares have filed for XRP investment products.
Institutional Interest
Institutional participation in XRP is increasing. Ripple‘s recent conference saw many banks and investment firms attending. The rise in Coinbase and Robinhood rankings shows retail is also driving XRP’s surge.
Ongoing SEC Lawsuit
XRP’s jump comes despite an ongoing SEC lawsuit against Ripple Labs from 2020. The SEC accused Ripple of selling XRP as an unregistered security. A judge ruled XRP is not necessarily a security, but the SEC has appealed.
Conclusion
XRP has been one of the best-performing cryptos since Election Day. Analysts attribute the astonishing rally to factors like renewed regulatory hopes and speculation around SEC Chair Gensler’s departure and potential XRP-based ETFs. However, the SEC’s appeal of a favorable court ruling remains a headwind.
