Cryptocurrency investors who hold Ethereum and Ripple in their wallets are having a great week. Both cryptocurrencies are currently up on the live chart offered by the Kraken platform.
ETH, the cryptocurrency used for transactions on the Ethereum network, is currently priced at 2,900 euros. Similarly, Ripple (XRP) is currently priced at 0.40 cents. More than 15,000 units of each currency have been purchased on the Kraken platform in the last 24 hours.
This article examines the possible reasons behind the rise of both cryptocurrencies to help undecided investors assess whether they are solid investments.
Ethereum’s Trajectory
Analysts have linked the rise of Ethereum to the processing of bureaucratic transactions in the United States. The SEC, the regulatory agency for financial transactions in the US, is currently reviewing several applications. If approved, these applications will allow the registration of several Ethereum spot ETFs.
Well-established companies such as 21 Shares, Fidelity, and Blackrock have submitted registration statements that will allow the marketing of these spot ETFs. This will likely increase the popularity of ETH and contribute to its rise in value.
Ripple’s Trajectory
The reason behind the rise of this cryptocurrency is also linked to bureaucratic procedures involving the SEC. In this case, however, such procedures are more controversial.
In December 2020, the SEC initiated a lawsuit alleging that Ripple did not officially register XRP cryptocurrency sales, thus conducting illegal transactions. The trial began in April and has yet to conclude.
The penalty initially proposed by the SEC was quite high – nearly 2 billion euros. This negatively affected investor confidence in XRP. Now that the trial is nearly over, the proposed fine is expected to be reduced to a little over 100 million euros.
The rise in XRP’s price this week is likely a positive response to the end of the trial and the reduction in the fine.
Are They Good Investment Opportunities?
The involvement of the US regulatory agency in the potential appreciation of Ethereum and Ripple indicates that the sustainability of their rise is uncertain.
Ethereum’s rise will likely continue if the SEC approves the registration forms for ETH. Similarly, if the SEC decides to reduce Ripple’s fine, XRP’s price will likely increase.
However, if the applications’ approvals are denied and the fine is not reduced, ETH and XRP prices may drop. Interested investors can track the price of these cryptocurrencies on the Kraken platform.
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