TLDR
- XRP’s trading volume surged, contributing 14% to Coinbase’s Q4 revenue, surpassing Ethereum
- Grayscale filed for an XRP ETF, with SEC acknowledging the application and starting a 240-day review
- Gary Gensler stepped down from SEC, replaced by pro-crypto Paul Atkins
- Ripple removed CBDC mentions from its website, suggesting potential strategy shift
- Bloomberg analysts estimate 65% chance of XRP ETF approval, with potential increase under new SEC leadership
Trading activity for XRP has reached new heights on U.S. exchanges as multiple developments shape the cryptocurrency’s future. Recent data from Kaiko shows XRP has become a major revenue driver for cryptocurrency exchanges, particularly Coinbase, where it now generates more trading revenue than Ethereum.
In the fourth quarter of 2024, XRP accounted for 14% of Coinbase’s total trading revenue. This marks a substantial change in trading patterns following XRP’s re-listing on major U.S. exchanges after Ripple Labs’ partial court victory against the Securities and Exchange Commission (SEC).
The increased trading activity comes as Grayscale Investments submitted an application for an XRP exchange-traded fund (ETF). The SEC has officially acknowledged the application, starting a 240-day review period. This acknowledgment does not guarantee approval but represents a step forward in XRP’s path toward mainstream financial integration.
Bloomberg analysts Eric Balchunas and James Seyffart have assigned a 65% probability to the approval of a spot XRP ETF in the United States. This probability could increase following recent changes in SEC leadership, where Gary Gensler has stepped down and been replaced by Paul Atkins, who is known for his pro-cryptocurrency stance.
SEC Leadership Change
The leadership change at the SEC could have direct implications for XRP’s regulatory status. Under Gensler’s leadership, the SEC maintained an aggressive stance toward cryptocurrency regulation, including the lawsuit against Ripple. The arrival of Atkins might signal a shift in the agency’s approach to digital assets.
Kaiko’s liquidity rankings place XRP third behind Bitcoin and Ethereum. The ranking system compares a cryptocurrency’s market capitalization to its trading liquidity. Among all cryptocurrencies, only Bitcoin, Ethereum, XRP, and Solana demonstrate liquidity levels that closely match their market capitalizations.
The court’s previous ruling on XRP created a unique regulatory framework. The decision stated that XRP is not a security in secondary market transactions, but Ripple’s direct institutional sales of XRP were considered unregistered securities offerings. This mixed ruling has created a complex regulatory environment that continues to influence trading patterns.
Market observers are drawing parallels between XRP’s current situation and Ethereum’s experience in May 2024. During that period, Ethereum saw increased trading volumes and price movements following the SEC’s unexpected approval of spot Ethereum ETFs.
Website Update
Ripple has updated its website, removing references to Central Bank Digital Currencies (CBDCs). This change has sparked discussion about potential shifts in the company’s strategic focus, though Ripple has not officially commented on the reason for this modification.
The SEC’s treatment of XRP could affect other ongoing cases in the cryptocurrency industry. Major exchanges like Binance and Coinbase face investigations related to the sale of unregistered securities, and these cases have been temporarily paused by the SEC’s crypto enforcement task force.
Trading platforms have seen increased XRP activity since its re-listing on U.S. exchanges in 2024. The restoration of XRP trading followed the court decision that clarified its status on secondary markets, allowing exchanges to resume operations without fear of regulatory backlash.
The potential approval of an XRP ETF could bring new institutional investment to the market. Traditional investors would gain exposure to XRP without directly holding the cryptocurrency, potentially increasing market liquidity and stability.
Recent price movements reflect the market’s response to these developments. XRP experienced a 9% price increase following the SEC’s acknowledgment of the ETF application, demonstrating the market’s sensitivity to regulatory news.
The timeframe for the SEC’s decision on XRP ETF applications extends into late 2025. During this period, market participants expect continued volatility as various factors influence trading patterns and institutional interest.
