ETFs for XRP and DOGE Launch as Fed Cuts 25 BPS, Crypto Eyes Powell’s Next Move

The U.S. Federal Reserve’s decision to cut interest rates by 25 basis points on September 17, 2025, sparked immediate reactions across the cryptocurrency market. Bitcoin (BTC-USD) initially climbed above $117,000 as investors braced for the Federal Open Market Committee (FOMC) meeting outcome, according to market data. The price briefly dipped to $115.6K in the hours following the official announcement, with analysts attributing the decline to the market already having priced in much of the expected easing. The CME Group FedWatch tool indicated a 96% probability of a 25 basis point cut, with Polymarket traders reinforcing this with a 93% consensus for the same move.

Ethereum (ETH), the second-largest cryptocurrency, also reflected FOMC-driven volatility. Historical data from previous FOMC meetings suggests that ETH has historically faced short-term pressure after the policy announcements, with a documented 1.5–2.3% decline observed in the three months leading up to this event. However, recent on-chain and technical indicators pointed to a potential breakout. ETH surged past $4,600, reclaiming a key resistance level and signaling bullish momentum. Analysts highlighted the possibility of ETH reaching $6,000 in the near term, driven by a combination of strong ETF inflows, declining exchange supply, and favorable technical patterns. The bull flag pattern on the daily chart further supported this view, with a price target of $6,150 derived from the pattern's proportional height.

XRP and Dogecoin (DOGE) were set to enter a new phase with the scheduled launch of the first U.S. spot ETFs for both assets on September 18. The REX-Osprey XRP ETF (XRPR) and Dogecoin ETF (DOJE) were designed to offer investors direct exposure to XRP and DOGE, with allocations of at least 80% in their respective assets. These products were structured under the Investment Company Act of 1940, reinforcing transparency and investor protections. The move marked a significant regulatory shift, as earlier XRP and Dogecoin ETF proposals had largely been derivative-based.

Market observers noted that the launches aligned with growing institutional interest in altcoins and underscored the maturation of the crypto investment landscape. As the ETFs approached their debut, the XRP and Dogecoin markets remained relatively stable, with no major price disruptions reported in the 24 hours following the Fed announcement.

The broader market environment was characterized by a heightened focus on the Federal Reserve's forward guidance. While the immediate 25 basis point cut was largely expected, traders and investors were keenly watching Federal Reserve Chair Jerome Powell’s post-meeting press conference for any subtle shifts in tone that could influence market direction. Swissblock, a private wealth management firm, emphasized that Powell’s remarks would play a critical role in shaping near-term volatility, particularly for high-beta assets like Bitcoin and Ethereum. The Bitcoin Risk Index, according to some analysts, could serve as a key metric to determine whether the bullish structure would continue or if a sell-off was imminent.

As the market digested the Fed's latest policy shift, the next focal points remained the implementation of the newly launched XRP and Dogecoin ETFs and the potential for further rate cuts in 2025. Investors and traders were closely monitoring both macroeconomic indicators and on-chain activity to assess the next moves in this rapidly evolving market.