‘Surprising’ XRP Rise Driven by Regulatory Expectations, ETF Estimates: Analysts

XRP price rose to a new seven-year high on Monday, analysts said Decrypt The asset's dramatic rise is being driven by a number of post-election factors, from renewed regulatory expectations to the potential of XRP-based investment products.

Since election day last month, the Ripple Labs-hosted token has outperformed the relative gains of Bitcoin and Ethereum and is one of the crypto market's best performers. Since November 5, for example, the price of XRP has more than doubled. 430% up to $ 2.67 from $ 0.50.

let it be WisdomTree Or 21 sharesSeveral asset managers have recently introduced products that give traditional investors exposure to the XRP spot price. While the development could expand investors' access to cryptocurrencies in the US, similar products already exist outside the US and have seen significant gains recently, according to CoinShares.

European fund manager reported Monday saw $95 million in revenue for XRP digital asset products in the past week. The performance, which represents 67% of the total inflows into such products this year, has pushed investors' year-to-date allocation to XRP to $141 million.

James Butterfill, head of research at CoinShares, wrote on Monday that traders may be speculating on the approval of the XRP exchange-traded product, which Ripple CEO Brad Garlinghouse has described as a development in the US.It is inevitable.“In October.

“We believe. [XRP’s record weekly inflows] It's because of the hype surrounding US ETF potential,” Butterfill wrote, noting the $95 million allocated to XRP products last week.

In the year Launched in 2013, XRP is a native asset of the Ripple Network, a payment system for international money transfers and exchanges. Fox Business reported Last week, the New York Department of Financial Services was expected to approve a stablecoin issued by a fintech company on a long-term network.

The token XRP will operate independently of Ripple's payment and settlement products, said Sidney Powell, founder and CEO of Maple Financial. Decrypt That the currency is benefiting from Ripple's “strongest brand recognition” in the crypto space.

“I think it has a lot of legacy value because of the length of time it's been around,” Powell said of XRP. “It's actually a very well-established cryptocurrency, and Ripple itself is a very well-established business.”

Miami-based Powell described the latest Ripple conference as different than other crypto events he has attended. At the designated conference Ripple swellingPowell said he looked at a number of institutional participants, from investment banks to commercial banks.

According to Jake Ostrovsky, OTC trader at market maker Wintermuth, last week's XRP price jump can be compared to the continued rise of Iota and Hedera. Both coins have rallied over the past seven days. From 66% to 0.38 USD And From 116% to 0.29 USD In order of value.

to be The third largest digital asset At market prices this weekend, Ostrovskis attributed XRP's recent strength to traders who navigate the crypto market on their own accord. “Retail momentum shows no signs of abating,” Ostrovsky wrote, referring to XRP's jump Monday.

Meanwhile, XRP was the third-traded digital asset on Monday, just behind it Bitcoin and a stable coin arrestbasis CoinGecko. In the previous day, the XRP trade exceeded 56 billion dollars, the cryptocurrency Ethereum And Dogecoin in volume.

Four years ago, Ripple was sued by the Securities and Exchange Commission (SEC), accusing the company of violating its rules by selling $1.3 billion of XRP as an unregistered security. Although later a federal judge found XRP is “not necessarily a security on its face,” the SEC said He appealed the verdict..

The development came as SEC Chairman Gary Gensler announced he would step down when President-elect Donald Trump takes office next year. It is widely seen as positive For the crypto industry under Gensler's leadership, it has come under intense attack.

Digital assets are among those expected to benefit from the potential change in the SEC's regulatory approach, according to Nick Cowan, CEO of asset manager VLRM. Decrypt XRP's “amazing” rally is partly driven by new regulatory expectations.

“XRP rallied an impressive 400%, helped by growing sentiment that the SEC's legal battles may be coming to an end, with Gensler's announcement to withdraw from the SEC on January 20,” Cowan said in a statement.

Edited by Andrew Hayward.