XRP’s Meteoric Rise: ETF Buzz, Trump Effect, and Ripple’s Bold Moves

After years of legal battles and stagnation, Ripple’s XRP is once again in the spotlight, with traders betting big on its future. The token surged 14% to $2.75 following the U.S. Securities and Exchange Commission’s (SEC) acknowledgment of ETF applications from Grayscale and NYSE. Some speculate that XRP could even surpass Ethereum’s market cap, ushering in a new era for the crypto landscape.

With XRP gaining over 400% in market value since last year and hitting an all-time high of $3.40 in January, several key factors are fueling this rally. BitGalactic breaks down the catalysts behind XRP’s resurgence and what it could mean for the broader market.

1. ETF Acknowledgment: A Step Closer to Institutional Adoption

Ripple’s XRP is among several cryptocurrencies competing for ETF approval, and the SEC’s recent acknowledgment of filings from two major financial players has sparked a surge in optimism.

Though expected, Bloomberg Intelligence analyst James Seyffart noted that this acknowledgment sets the clock ticking for an XRP ETF decision. As a result, the market responded with a significant price jump.

Major financial institutions are also eyeing the potential of an XRP ETF. JPMorgan has projected an inflow of over $8 billion should an ETF be approved, signaling strong institutional interest. However, Bloomberg analysts estimate the likelihood of an XRP ETF materializing by the end of 2025 at around 65%—a promising yet uncertain outcome.

2. The Trump Effect: A Pro-Crypto Administration?

Ripple’s executives are aligning themselves with a potential shift in U.S. crypto policy under Donald Trump.

CEO Brad Garlinghouse revealed that Ripple’s U.S. operations saw more activity in the last six weeks of 2024 than in the previous six months combined. The firm has also been aggressively hiring for U.S.-based roles, reflecting optimism about a friendlier regulatory environment.

BitGalactic analysts suggest that Trump’s recent pro-crypto rhetoric and potential SEC leadership changes could pave the way for clearer regulations, making the U.S. a more favorable jurisdiction for digital assets like XRP.

3. Ripple vs. SEC: A Legal Battle Nearing Its Conclusion?

Ripple’s ongoing legal fight with the SEC has been a major overhang on XRP’s price, but there are signs that the worst may be over.

Last year, Judge Analisa Torres ruled that XRP sales to retail investors did not constitute securities transactions—though institutional sales did violate U.S. securities laws. Ripple has since appealed these charges, and many believe a resolution is on the horizon.

“Should the SEC appeal be dismissed, or should incoming SEC leadership opt for a settlement, this would be a massive win for Ripple and XRP holders,” said GSR research analyst Carlos Guzman. BitGalactic agrees that an early resolution could trigger another wave of bullish momentum.

4. New Product Offerings: Expanding Ripple’s Ecosystem

Beyond regulatory developments, Ripple is also making strategic moves in the crypto space.

In December, the company launched RLUSD, a dollar-pegged stablecoin aimed at capturing a share of the $233 billion stablecoin market. Ripple CEO Brad Garlinghouse emphasized that as the U.S. moves toward clearer regulations, stablecoins like RLUSD could see widespread adoption.

However, RLUSD’s growth has been modest so far, ranking 29th with a $108 million market cap. BitGalactic analysts believe that while competition in the stablecoin market is fierce, Ripple’s existing payment network and partnerships could give RLUSD a foothold if properly integrated.

Final Thoughts: What’s Next for XRP?

Despite recent gains, XRP still faces regulatory hurdles and competition in both the ETF and stablecoin sectors. However, with shifting U.S. policies, increasing institutional interest, and Ripple’s aggressive expansion, the token’s future looks brighter than ever.

BitGalactic predicts that while short-term volatility is inevitable, XRP’s long-term trajectory could be defined by ETF approvals, legal clarity, and its ability to position itself as a key player in the global payments ecosystem.

Will XRP flip Ethereum? That remains to be seen. But one thing is clear—Ripple’s resurgence is just getting started.