XRP News Today: SEC Delays XRP ETFs as Institutional Demand and Retail Enthusiasm Collide

The race to bring XRP-based exchange-traded funds (ETFs) to U.S. markets is intensifying, with Grayscale Investments LLC leading the charge as it seeks to convert its XRP Trust into a spot ETF listed on NYSE Arca. The move comes amid growing institutional interest in the cryptocurrency, despite regulatory delays caused by the recent U.S. government shutdown. With final approval deadlines approaching in late October 2025, market participants are closely watching whether the Securities and Exchange Commission (SEC) will greenlight the applications, potentially unlocking a new wave of capital inflows for XRP.

A Pivotal Moment for XRP ETFs

Grayscale's XRP Trust, which holds a significant portion of the cryptocurrency, filed for conversion to an ETF in November 2024 under the 1940 Act framework. The firm's updated filing, submitted in January 2025, aims to list the product on NYSE Arca, with a final SEC decision expected by October 18, 2025SEC Delays Decision on Grayscale Spot XRP ETF. Here’s New …^[3]. This timeline aligns with similar applications from WisdomTree, Bitwise, and 21Shares, all of which face October deadlinesFull List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. However, the SEC's review process has been stalled due to the government shutdown, which has left approximately 90 XRP ETF filings in limboFull List of XRP ETF Filings: New Dates, Deadlines, and …^[1].

Eric Balchunas, a Bloomberg ETF analyst, described the situation as "a rain delay," noting that the shutdown has forced the SEC to operate with a skeleton crew. "From what I hear, everything is on ice... Bad time, but what are you gonna do?" he remarkedFull List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. The agency's delayed action has pushed back decisions on spot XRP ETFs, which differ from existing futures-based products like the Volatility Shares XRP ETF (XRPI) and the ProShares Ultra XRP ETF (UXRP), both of which launched in 2025Full List of XRP ETF Filings: New Dates, Deadlines, and …^[1].

Institutional Momentum and Supply Constraints

Despite regulatory uncertainty, institutional demand for XRP has surged. Zach Rector, a crypto analyst, argues that the token is on the cusp of a "supply squeeze" driven by pending ETF approvals and reduced circulating supply. Over $210 million in institutional inflows were recorded in September 2025 alone, with large holders locking XRP in cold storage and tokenization platforms like Flare's FXRP further tightening liquidityWhat To Expect From XRP in October 2025? - BeInCrypto^[6]. Rector predicts that if ETFs gain approval, institutional investors could trigger a "tidal wave" of buying, potentially pushing XRP toward $5–$10 by year-endWhat To Expect From XRP in October 2025? - BeInCrypto^[6].

This optimism contrasts with the current institutional hesitancy, which stems from ongoing litigation between Ripple Labs and the SEC. While retail investors view XRP as a "sleeping giant," institutions remain cautious, citing regulatory risksRetail Enthusiasm vs. Institutional Hesitation: Unpacking the XRP ...^[5]. However, recent developments-including a partial legal victory for Ripple and the introduction of NYSE Arca's leveraged XRP ETF-signal growing acceptance of the token within traditional financeNYSE Arca Approves XRP Leverage ETF - Times Tabloid^[8].

Retail vs. Institutional Sentiment

The duality of XRP's market perception is stark. Retail traders, drawn to its low-cost cross-border payment utility and historical price volatility, have driven speculative buying. Meanwhile, institutions are wary of the SEC's unresolved classification of XRP as a securityRetail Enthusiasm vs. Institutional Hesitation: Unpacking the XRP ...^[5]. John Deaton, a legal analyst, highlighted this divide, stating XRP is "most hated by institutions, most loved by retail"Retail Enthusiasm vs. Institutional Hesitation: Unpacking the XRP ...^[5].

This sentiment gap is narrowing as regulatory clarity emerges. ProShares' Ultra XRP ETF (UXRP), which offers 2x leveraged exposure, received NYSE Arca approval in April 2025NYSE Arca Approves XRP Leverage ETF - Times Tabloid^[8], while 21Shares and Canary Capital have also advanced their filingsFull List of XRP ETFs: Filings, Dates, Deadlines, and More^[2]. These products cater to sophisticated investors seeking amplified returns, further diversifying XRP's investor base.

Path to Approval and Market Implications

The SEC's October 2025 deadlines could determine XRP's trajectory. If approved, spot ETFs would provide direct exposure to XRP, bypassing the need for futures contracts and reducing market fragmentation. This could boost trading volumes and stabilize prices, particularly as XRP approaches key resistance levels near $3.02What To Expect From XRP in October 2025? - BeInCrypto^[6].

However, risks persist. A breakdown below $2.75 could reignite historical bearish patterns, while a prolonged regulatory delay might dampen momentum. Analysts like Ali Martinez remain bullish, forecasting a potential surge to $4.80 if XRP breaks above $3.02Analysts Predict XRP Surge With NYSE Arca Approval of …^[9].

For now, the market remains in a holding pattern. As Grayscale and its competitors await SEC decisions, the outcome of Ripple's legal battles and the broader regulatory environment will likely shape XRP's future. With institutional demand rising and retail enthusiasm undeterred, the coming months could mark a turning point for the cryptocurrency.

---