XRP News Today: Legal Limbo Delays XRP ETF Approval as Market Waits on SEC's October Ruling

Grayscale Investments has updated its XRP ETF filing, positioning its XRP Trust for a potential conversion into an exchange-traded fund (ETF) on the NYSE Arca. This move comes as institutional demand for XRP exposure accelerates, with multiple asset managers navigating a regulatory landscape still impacted by the U.S. government shutdown and ongoing legal battles between Ripple and the Securities and Exchange Commission (SEC) XRP ETFs: Impact of Ripple vs SEC Delay – blockbeat.net^[5].

The SEC's review process for XRP ETFs has faced significant delays, with approximately 90 filings on hold due to reduced staffing during the shutdown. Grayscale's application, submitted under Form 19b-4, is set for a final decision by October 18, 2025 Grayscale's XRP ETF Filing: NYSE Arca & Rising Demand^[4]. Other major players, including Bitwise, WisdomTree, and 21Shares, also await approvals by late October, with their S-1 filings under similar scrutiny Full List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. Eric Balchunas, a Bloomberg ETF analyst, noted the pause in approvals, comparing it to a "rain delay" in a market where deadlines cluster in October Full List of XRP ETF Filings: New Dates, Deadlines, and …^[1].

The XRP ETF landscape has seen mixed momentum. While six XRP-focused ETFs-ranging from leveraged products like the ProShares Ultra XRP ETF to non-leveraged options like the Volatility Shares XRP ETF-are already trading, spot ETFs remain pending Full List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. Meanwhile, Ethereum ETFs experienced $175 million in outflows on October 10, 2025, as investors shifted focus to XRP applications Ethereum ETFs Lose $175M as SEC Fast-Tracks Spot XRP Filings^[2]. Analysts suggest that approvals could catalyze billions in institutional inflows, boosting XRP liquidity and price. Ripple CEO Brad Garlinghouse has hinted at potential approvals before year-end, aligning with a broader push for crypto-friendly regulation Ethereum ETFs Lose $175M as SEC Fast-Tracks Spot XRP Filings^[2].

Legal uncertainties, however, persist. The SEC's prolonged lawsuit against Ripple-alleging $1.3 billion in unregistered XRP sales-has complicated ETF approvals. A June 2025 court ruling clarified that XRP sold on public exchanges is not a security, but institutional sales remain contested Full List of XRP ETFs Awaiting SEC Approval: Dates, …^[7]. This ambiguity has discouraged major investment until a resolution, now anticipated by late summer 2025. Legal experts estimate a 90% chance of XRP ETF approval post-settlement, with Canada's June 2025 launch of the Purpose XRP ETF offering a regulatory contrast Full List of XRP ETFs Awaiting SEC Approval: Dates, …^[7].

Market reactions to these developments have been volatile. XRP prices dropped 12.6% in the week of October 10, 2025, amid broader crypto market turbulence linked to macroeconomic fears, including a proposed 100% tariff on Chinese imports Ethereum ETFs Lose $175M as SEC Fast-Tracks Spot XRP Filings^[2]. Grayscale's XRP Trust, holding $16.1 million in assets, remains a key player as it seeks ETF status to enhance institutional accessibility XRP ETFs: Impact of Ripple vs SEC Delay – blockbeat.net^[5].

The SEC's final rules on cryptocurrency ETFs also loom large. Recent guidelines require at least six months of XRP futures trading on platforms like Coinbase Derivatives for ETF eligibility . Ripple's legal team has urged Congress to establish tailored crypto regulations, arguing that outdated securities laws hinder innovation . Their proposed "network maturity" test-assessing decentralization and project age-could offer a framework for distinguishing securities from established digital assets .

With deadlines approaching and legal clarity on the horizon, the XRP ETF market stands at a pivotal juncture. Approvals could redefine institutional access to crypto, mirroring the transformative impact of Bitcoin and Ethereum ETFs. For now, investors and asset managers alike await October's regulatory verdicts, with ripple effects extending beyond XRP to the broader crypto ecosystem.