XRP has been on quite the rollercoaster ride lately, skyrocketing over 60% since last Saturday.
Even though it has dipped slightly from its peak, it still managed to hit the $1.6 mark for the first time since May 2021. There are more factors in play.
WisdomTree launches Ripple ETP
WisdomTree, the crypto asset manager just launched a new exchange-traded product that tracks Ripple’s XRP.
The WisdomTree Physical XRP ETP, with the ticker WXRP, is now live for trading on several exchanges, including SIX Swiss in USD and Swiss francs, Euronext Amsterdam in USD, and Xetra and Euronext Paris in euros.
Dovile Silenskyte, the company’s Digital Assets Research Director, noted that with a growing risk-on sentiment in the market, alts like XRP could outperform traditional investments like Bitcoin and Ethereum.
The director explained that adding cryptocurrencies to a diversified portfolio can enhance returns while reducing reliance on any single asset.
Gensler’s exit sends shockwaves
The second reason behind XRP’s spike is the hype surrounding SEC Chair Gary Gensler’s announcement that he’ll step down when President-elect Donald Trump is inaugurated on January 20, 2025.
While many expected this move, especially since Trump had promised to fire Gensler right away, it still sent ripples through the crypto industry.
After the news broke, XRP shot up more than 25% within just 12 hours, jumping from around $1.15 to over $1.4.
The anticipation of Gensler’s departure is pretty big deal because of the ongoing four-year battle between Ripple and the SEC. It seems like this change could bring some much-needed relief to XRP holders.
Regulatory changes and ETF hopes
Gensler’s exit is just one piece of a larger puzzle as we anticipate shifts in U.S. regulatory policies with Republicans taking office.
Reports are swirling that Trump is selecting pro-crypto candidates for key positions in his administration, which has many in the crypto community feeling quite optimistic.
Since the elections on November 5, the overall market has added more than $1.2 trillion in value, and XRP is riding this wave too, with hopes of launching its own ETF in the U.S.
There have been several filings with regulators since September, and experts believe we could see some resolutions in just a few months.
With a more crypto-friendly SEC on the horizon, Ripple’s CEO has often stated that an XRP ETF is basically “inevitable”.
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