XRP Surges 15% Amid ETF Optimism

XRP's price has been strengthening amid growing optimism around spot XRP ETF filings and regulatory developments. The cryptocurrency surged more than 15% after closing at $2.32 on Feb. 6, reaching $2.65 in a strong recovery despite broader market struggles. While many altcoins have faced difficulty regaining momentum, XRP's weekly chart has drawn positive attention for its bullish outlook.

The recent price rally can largely be attributed to developments surrounding XRP ETFs. The SEC has acknowledged multiple spot XRP ETF filings, including those submitted by CoinShares through Nasdaq, Grayscale, 21Shares, Bitwise, WisdomTree, and Canary Capital. This positive sentiment has contributed to XRP's price action.

However, XRP futures traders have been 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 rebounded 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.

Brazil's securities regulator recently approved the country's first spot XRP exchange-traded fund, the Hashdex Nasdaq XRP Index Fund. The approval from the Comissão de Valores Mobiliários clears the way for trading on Brazil's B3 exchange, although an official launch date has not yet been announced. This approval comes after the US SEC acknowledged multiple spot XRP ETF filings, contributing to XRP's price climb of 7.8% on the day to reach $2.72.

Meanwhile, Brazilian financial firm Braza Group is set to launch a stablecoin pegged to the Brazilian real on Ripple's XRP Ledger. The new digital asset, known as BBRL, will be backed by Braza Bank and is expected to provide a highly secure and compliant stablecoin solution tailored for the Brazilian market. 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.

Franklin Templeton launched an ETF that holds both