XRP ripped after SEC acknowledgment. These other three factors ...

After years of languishing, Ripple is catching the good graces of traders.

XRP surged 14% today to $2.75 after the SEC acknowledged on February 13 applications from Grayscale and NYSE for the first XRP ETF. Some even say that the token is gearing to flip Ethereum as the second most valuable cryptocurrency.

Ripple’s XRP has been on a tear since last year. It’s gained 400% in market value so far, and it reached a new all-time high of $3.40 on January 7. Now the asset looks primed for further growth.

These are the four factors driving XRP’s rally.

ETF acknowledgement

Ripple’s XRP is one of several cryptocurrencies vying for an exchange-traded fund approval.

That said, Ripple notched a victory yesterday when the SEC acknowledged filings from two major brokers.

Even though the acknowledgement was largely expected, said Bloomberg Intelligence analyst James Seyffart, this will officially start the clock for an XRP ETF — which started with today’s double-digit price rally.

Other major players are also bullish on a potential XRP ETF. JPMorgan previously said it sees more than $8 billion flowing into an XRP ETF.

That said, Bloomberg ETF experts put the likelihood of an XRP ETF approval by the end of 2025 at 65%.

Trump effect

Ripple executives are betting on Donald Trump.

At the onset of 2025, Ripple CEO Brad Garlinghouse said on X that the crypto company had done more business stateside in the last six weeks of 2024 than in the previous six months.

The company recently ramped up hiring, with almost a dozen new roles in the US since October.

Ripple vs. SEC

Many are hopeful that Ripple’s legal quarrels with the SEC are nearing an end.

That’s because Judge Analisa Torres ruled last year that Ripple’s XRP sales to retail investors did not constitute securities transactions — even though the firm’s institutional sales did break US securities laws.

Ripple appealed those charges.

“Should the SEC appeal be dismissed, or should the incoming SEC leadership choose to settle instead, this would be a huge win for Ripple,” said GSR research analyst Carlos Guzman.

New product offerings

Ripple has also been building.

The company launched a dollar-pegged token, RLUSD, in mid-December, with hopes to plug into the highly-coveted $233 billion stablecoin sector.

“As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD,” Brad Garlinghouse, the CEO of Ripple, said in the statement today announcing the debut.

Despite the optimism, RLUSD has struggled to gain market share. It lands in 29th place, with a $108 million market value.

Correction 14 February: A previous headline suggested that an XRP ETF has been approved. It hasn’t. The headline has been changed to reflect this.

Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.