XRP’s price is in the green due to the optimism around spot XRP ETF filings and Brazil’s approval of its first spot XRP ETF. Brazil’s Braza Group is also set to launch a stablecoin on the XRP Ledger, which could help strengthen XRP’s ecosystem. Meanwhile, Franklin Templeton introduced a Bitcoin and Ethereum ETF. The EZPZ fund tracks the US CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum.
XRP Rally Gains Momentum
XRP surged more than 15% after closing at $2.32 on Feb. 6, reaching $2.65 in a strong recovery despite the broader crypto market’s struggles. While many altcoins recently faced difficulty regaining some momentum, XRP’s weekly chart has drawn positive attention for its bullish outlook.
XRP’s price action over the past week (Source: CoinMarketCap)
The recent price rally can largely be attributed to the developments surrounding XRP ETFs. The SEC recently acknowledged yet another spot XRP ETF filing, this time submitted by CoinShares through Nasdaq.
This is the fourth such filing to receive the regulator’s initial approval, after applications from Grayscale, 21Shares, and Bitwise. Additionally, filings from WisdomTree and Canary Capital have also been acknowledged.
Despite the positive sentiment, XRP futures traders are a bit more cautious. Earlier this month, XRP’s open interest (OI) plummeted by over 78% after a sharp price drop in the first week of February. Although the asset was able to rebound by almost 20%, futures open interest only increased by $600 million, compared to the nearly $4 billion in notional value that was wiped out. This suggests that the current price action is being driven by lower trading volumes, making it more vulnerable to market manipulation and heightened volatility.
Some analysts are making bold predictions for XRP’s price trajectory. A crypto commentator known as Polly suggested that market makers are setting up the asset for a big breakout, and predicted a surge to $6 within the next ten days. Polly’s thesis is built on the assumption that the long-standing SEC lawsuit against Ripple will be resolved before the end of February. However, no official confirmation has been provided by either party about a possible conclusion to the case, making the prediction more speculative.
Other market observers took a more technical approach. Dom, an XRP market analyst, pointed out the critical resistance zone between $2.50 and $2.80. He stated that XRP’s all-time high volume-weighted average price (VWAP) remains a key barrier, sitting just above $2.80. A decisive daily close above this level will be the first major step for XRP to establish new highs or make another attempt at its previous all-time high of $3.40.
Brazil Approves First Spot XRP ETF
Brazil’s securities regulator also recently approved the country’s first spot XRP exchange-traded fund. The Hashdex Nasdaq XRP Index Fund received approval from the Comissão de Valores Mobiliários on Feb. 19, clearing the way for trading on Brazil’s B3 exchange. However, an official launch date has not yet been announced, and Hashdex stated that more details will be provided soon. The fund manager already offers several crypto ETFs in Brazil, covering Bitcoin, Ethereum, Solana, DeFi, Web3, and the metaverse.
The approval in Brazil also happened after the US SEC recently acknowledged multiple spot XRP ETF filings. In response to these developments, XRP’s price climbed 7.8% on the day to reach $2.72. XRP’s price slightly dropped to $2.65 at press time.
Meanwhile, Brazilian financial firm Braza Group is set to launch a stablecoin that is pegged to the Brazilian real on Ripple’s XRP Ledger. The new digital asset is known as BBRL, and will be backed by Braza Bank, which specializes in foreign exchange services and international payments.
Although Braza Bank is not among the top ten financial institutions in Brazil in terms of assets and deposits, it claims to be the largest exchange bank in the country. The goal of the initiative is to provide a highly secure and compliant stablecoin solution that is tailored for the Brazilian market. RippleX senior vice president Markus Infanger believes that launching BBRL on the XRP Ledger could drive broader adoption across South America and beyond.
(Source: Braza Bank)
The stablecoin is scheduled for launch in the first quarter of 2025 and will initially be available to institutional clients before expanding to business-to-consumer markets. Braza Group expects that by the end of next year, BBRL will capture approximately 30% of the Brazilian market.
The company is also involved in the DREX initiative, which is a blockchain project led by Brazil’s central bank. The project focuses on asset tokenization, cross-border payments, and the potential development of a central bank digital currency. Earlier this month, Brazil’s central bank chief, Gabriel Galipolo, said that cryptocurrency usage in the country has increased a lot in recent years, with stablecoins accounting for around 90% of digital asset flows. He clarified that DREX is not a central bank digital currency but rather an infrastructure that will help credit access through collateralized assets.
Franklin Templeton Launches Bitcoin and Ether ETF
Aside from XRP ETFs being in the spotlight, Franklin Templeton launched an ETF that holds both spot Bitcoin and Ethereum, which makes it the second cryptocurrency index ETF to enter the market. The Franklin Crypto Index ETF (EZPZ) was announced on Feb. 20, and follows the recent launch of Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) on Feb. 14.
The EZPZ fund tracks the US CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum. On Feb. 20, the index is weighted approximately 87% in Bitcoin and 13% in Ethereum, according to CF Benchmarks.
Franklin Templeton revealed that the ETF will expand to include additional cryptocurrencies as they are added to the index, ultimately serving as a comprehensive crypto investment option for US investors. The fund provides exposure to Bitcoin and Ethereum without requiring direct purchases of the assets. The firm stated that new digital assets will be incorporated as they become eligible, subject to regulatory approvals. Similarly, Hashdex’s NCIQ currently holds only Bitcoin and Ethereum but also plans to expand its portfolio in the future.
The launch of Franklin Templeton’s ETF happened in the middle of a growing wave of regulatory filings for cryptocurrency ETFs in the US. The SEC approved both the NCIQ and EZPZ funds in December, allowing them to be listed on Nasdaq and Cboe BZX, respectively. The approval shows that there is a shift in the regulatory landscape, with US authorities becoming a lot more open to cryptocurrency investment products. This trend gained even more momentum after Donald Trump’s election victory and his pledge to make the US the global leader in cryptocurrency.
In 2024, asset managers rushed to submit filings for ETFs that include a broader range of digital assets, with applications covering altcoins like Solana, XRP, and Litecoin. In October, NYSE Arca petitioned regulators for approval to list a Grayscale ETF that will hold a diversified basket of spot cryptocurrencies. The Grayscale Digital Large Cap Fund, which was established in 2018 but is not yet publicly traded, includes Bitcoin, Ethereum, Solana, and XRP among its holdings. Bloomberg Intelligence projected high approval odds for many of these pending crypto ETF filings.
This article was originally Posted on Coinpaper.com
