XRP Crosses $3 Mark for First Time in Seven Years. Why Is It Up Today?

The price of XRP is up more than 17% over the last 24-hour period, significantly outperforming the wider cryptocurrency market as other major digital assets including bitcoin, ether, and SOL are up between 2.7% and 14% in the same period.

XRP’s price surged means it has crossed the $3 mark for the first time since 2018, a seven-year high for the native token of the XRP Ledger that comes as speculation surrounding the potential launch of a spot XRP exchange-traded fund (ETF) could soon be launched in the United States.

A recent report from JPMorgan has suggested that such an ETF could draw in billions of dollars from investors, which would mean adding significant demand for the cryptocurrency, whose price has been surging over the last few months.

XRP price chart via CCData.

XRP, like most digital assets, experienced a surge in value due to expectations of a more favorable regulatory environment under President-elect Donald Trump’s administration and is up roughly 490% over the past three months

Anticipated policy changes, such as the establishment of a strategic Bitcoin reserve and the appointment of Paul Atkins as the head of the SEC, have significantly boosted investor confidence.

It’s worth noting that Atkins is regarded as a crypto-friendly figure to lead the regulatory agency, which has been involved in a legal battle with Ripple, a prominent player in the XRP ecosystem, over Ripple’s XRP sales.

Trump’s pro-crypto stance has led many to speculate that XRP could soon launch a spot ETF, providing investors with exposure to the asset. Several companies have already filed for spot XRP ETFs, including Bitwise, Canary Capital, WisdomTree, and 21Shares. Ripple’s CEO, Brad Garlinghouse, has even suggestedthat such a fund is “just inevitable.”

Featured image via Pexels.