• 18 June, 2024
Market News

XRP Surges on ETF Enthusiasm Amid SEC Challenges

Ripple (XRP) is making a resurgence as it aims for the $0.700 milestone, overcoming regulatory challenges posed by the U.S. Securities and Exchange Commission (SEC). The recent upswing in the cryptocurrency’s value can be attributed to a rebound rally, capitalizing on the positive sentiment surrounding the approval of spot Bitcoin ETFs.

James K. Filan, a defense lawyer, recently posted on X that the SEC requested Ripple’s financial statements for 2022 and 2023, along with details regarding contracts linked to institutional sales, after the initial complaint was filed in December 2020. The SEC is seeking disclosure of the proceeds generated from institutional sales since the complaint was lodged, explicitly focusing on pre-complaint contracts. This data is crucial for Judge Torres to assess and determine suitable injunctions and civil penalties for Ripple.

Subsequently, the move followed a previous ruling by Judge Analisa Torres in the Southern District of New York, where she issued a summary judgment that partially favored Ripple. Judge Torres determined that institutional sales of Ripple’s XRP token were considered an unregistered securities offering, while programmatic sales through cryptocurrency exchanges were not.

After several applicants received approval for spot Bitcoin exchange-traded funds (ETFs), the communities of Ethereum (ETH) and Ripple (XRP) started considering the potential approval of spot ETFs for ETH or XRP. According to Eleanor Terrett, a Fox Business reporter, Steven McClurg, Chief Investment Officer at Valkyrie Funds, expressed that the emergence of a Ripple or Ethereum ETF would be imminent, adding momentum to this speculation.

XRP’s current support level at $0.5784 has proven crucial, providing a foundation for the token’s upward momentum. Traders hope to reclaim the $0.700 high, last tested on December 9. This resilience is noteworthy, especially in the face of the SEC’s recent move to subpoena Ripple, compelling the company to disclose its financial statements for 2022-2023 and institutional sales records.

While regulatory uncertainties persist, XRP’s current positive momentum and community optimism suggest a potential upward trajectory, provided key support levels hold firm. As of the latest update, XRP’s price is $0.5983, reflecting a 1.49% growth in the past 24 hours.

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