XRP’s price has been steadily rising, and with momentum from last year showing no signs of slowing down, experts point to another driver fueling its ascent towards $3 and beyond.
A recent regulatory change in Brazil is a key factor contributing to this trend. As of February 19, institutional investors are now allowed to hold and trade exchange-traded funds (ETFs) that hold XRP. This development has already led to increased trading volume, with nearly $7 billion in transactions recorded over the previous 24 hours.
The approval of an XRP ETF is a significant boost for the coin’s price, and it’s likely to pave the way for future approvals, which will further increase trading volume. Moreover, financial institutions that issue these ETFs must buy and hold XRP to offer them to their clients, generating fees that trickle back to Ripple.
This regulatory change has already shown its impact in Brazil, where a major exchange bank is using the XRP chain and recently launched its own stablecoin. The presence of such a large processor in international money transfers lends credibility to XRP’s investment thesis: financial institutions will be incentivized to buy it to avoid currency exchange fees and money transfer fees.
While the approval of an XRP ETF in Brazil provides optimism, a similar development in the U.S. could potentially boost the coin’s price even higher. The Securities and Exchange Commission (SEC) is evaluating whether to approve XRP ETFs, which could lead to significant trading volume growth, fee generation, and increased buying activity.
While regulatory approval alone may not guarantee a price surge above $3, when combined with other catalysts like integration into a U.S. national crypto reserve, the chances increase significantly. A long-term approach, such as slowly building up a position, intelligently buying dips, and holding onto coins for at least a few years, can provide a more stable investment strategy.
Source: https://www.fool.com/investing/2025/03/01/this-1-new-catalyst-shows-why-xrp-will-climb-above