XRP Surges on Upbit as ETF Approval Looms

XRP, the fourth-largest cryptocurrency by market capitalization, has seen a significant surge in trading volume on Upbit, a major South Korean cryptocurrency exchange. In the past 24 hours, XRP's trading volume on Upbit reached an impressive $3.253 billion, demonstrating the coin's growing popularity and demand among investors.

The increase in XRP trading volume comes amidst a wave of positive developments for the cryptocurrency. In a recent filing with the U.S. Securities and Exchange Commission (SEC), the CBOE BZX exchange proposed the listing and trading of spot XRP exchange-traded funds (ETFs). This filing, submitted under the 19B4 rule, is on behalf of four firms aiming to launch exchange-traded products that track XRP.

The proposed XRP ETFs represent the second part of a two-step process for launching a crypto ETF. Once acknowledged by the SEC, the proposal will be published in the Federal Register, officially starting the agency's approval process. Industry experts predict that with a pro-crypto administration and the upcoming new SEC chair, the approval of XRP spot ETFs could happen as early as this year.

In the filing, the CBOE BZX exchange stated that approving the proposal would provide U.S. investors with access to XRP in a regulated and transparent exchange-traded vehicle, which would help limit risk to U.S. investors. Unlike previous crypto ETFs, XRP lacks an established futures market on the Chicago Mercantile Exchange (CME), a key component in the SEC's decision-making process for Bitcoin and Ethereum approvals. To increase the likelihood of approval, one of the filing firms, WisdomTree, is implementing safeguards such as sourcing XRP from secondary markets rather than Ripple Labs, avoiding any direct ties with the company at the center of the SEC's legal battle.

The interest in XRP ETFs has increased following Ripple Labs' partial legal victory in its ongoing SEC lawsuit in July 2023. This favorable ruling has been referenced in ETF applications, and there is growing anticipation that a wave of institutional investment could flood into the market if XRP ETFs are approved. The launch of XRP ETFs, along with similar products targeting top cryptocurrencies like Solana, would offer investors greater exposure to the digital asset space.