If You Invested $1,000 In XRP Token When SEC Lawsuit Caused Mass Panic, Here's How Much You'd Have Today

The cryptocurrency XRP Token XRP/USD from Ripple is soaring in price over the last week with a new filing for an XRP exchange-traded fund adding to optimism for the crypto.

What Happened: Asset manager WisdomTree filed to establish a trust entity as part of a step towards launching a potential XRP ETF.

The move follows other companies like Bitwise that have filed to launch cryptocurrency ETFs.

Don’t Miss:

• Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum.
• Bitcoin has been surged back toward the psychological $100,000 per bitcoin milestone after wild swing — one of the most global crypto trading platforms is offering $10 of free crypto for new sign ups today!

With Bitcoin and Ethereum ETFs already approved, cryptocurrency experts see ETFs based on other top 10 cryptos by market capitalization like Solana, Dogecoin and XRP as the next to be approved.

Ripple Labs, the issuer of XRP, has been involved in several regulatory issues with the U.S. Securities and Exchange Commission (SEC) previously, which could impact the approval of the ETFs and has also impacted the price of XRP in the past.

With SEC Chairman Gary Gensler set to resign in January and a new pro-crypto White House administration potentially taking shape, some see past cases against cryptocurrency companies quietly going away.

In July 2023, Ripple received a favorable ruling in a case dating to 2020.

U.S. District Judge Analisa Torres determined the sale of the XRP token by Ripple is not an offer of "investment contracts." The ruling came after Ripple spent a significant amount of money fighting claims that XRP was a security.

Torres said that some assets can serve as an investment contract, including digital tokens. In the case of the XRP token, it is not a security, according to the ruling.

Trending: Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O’Reilly and Rudy Giuliani are using this platform to create customized gold IRAs to help shield their savings from inflation and economic turbulence.

Alongside the ruling, the judge found Ripple's sales of XRP to institutions to be in violation of the Securities Act. This ruling could become a key item to watch for the cryptocurrency sector moving forward.

The case between the SEC and Ripple remains active, with the SEC appealing and having until January to submit additional filings.

Here's a look back at an investment in the XRP token when the lawsuit by the SEC was announced.

If You Invested $1,000 in XRP: The XRP token hit a low of $0.41055 on Dec. 22, 2020, the day the charges were announced.

XRP would fall to a low of $0.1748 on Dec. 29, 2020, hitting new lows for the year. On that day, an investor could have purchased 5,720.82 XRP with $1,000.

The $1,000 investment would be worth $8,409.61 today, representing a gain of 741%.

The return of the hypothetical investment in XRP has outperformed the broader stock market.

The same $1,000 invested in the SPDR S&P 500 ETF, which tracks the S&P 500 Index, would be worth $1,594.15 today, representing a gain of 59.4%.

XRP has traded between $0.3911 to $1.62 over the last year, with the yearly high hit in the last week. The 36% weekly gain for XRP is the second largest among the top 10 cryptocurrencies by market capitalization, trailing only Cardano (+39%).

While XRP has seen a sharp rise in the last week, the cryptocurrency remains well off of its all-time high of $3.84, which was set in January 2018.

Read Next:

• This well known prop trading firm is offering 100% of your first $25,000 profit per account and 90% after that. Here's how to get a special 50% OFF CODE that lets you start out with monthly investments as low as $147 today.
• Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

This article was previously published by Benzinga and has been updated.