XRP News Today: Regulatory Clarity and ETF Hopes Spark XRP's $36B Resurgence

The XRP market cap has rebounded to $36 billion following a sharp flash crash, driven by institutional adoption, regulatory clarity, and anticipation of spot ETF approvals. The recovery follows a 42% intraday plunge in late October 2025, triggered by Donald Trump's 100% tariff announcement on Chinese imports, which sparked a $19 billion liquidation event across cryptocurrencies. Despite the volatility, XRP stabilized above $2.30, with institutional investors and long-term holders absorbing sell pressure, signaling resilience in the asset's demand .

The rebound coincided with the resolution of the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs in August 2025, which provided long-awaited legal clarity for XRP. This development catalyzed the launch of the first U.S.-listed spot XRP ETF, REX-Osprey XRPR, on September 18, 2025, which recorded $38 million in first-day trading volume CoinCentral.com^[8]. Analysts estimate that upcoming ETF approvals, including applications from Grayscale, Bitwise, and 21Shares, could unlock $5–$8 billion in institutional inflows by year-end, tightening XRP's circulating supply and potentially elevating its price Nftevening.com^[5].

Institutional confidence in XRP has grown, with $210 million in inflows reported in September 2025 despite market volatility. Whale activity also shifted toward accumulation, with over 439 million XRP ($1.2 billion) withdrawn from exchanges in late September, indicating a bearish-to-bullish sentiment shift BeInCrypto^[2]. Additionally, XRP's utility in cross-border payments and tokenization, supported by Ripple's partnerships with banks and CBDC pilots, has bolstered its appeal as a bridge currency TheCurrencyAnalytics.com^[6].

Technically, XRP faces critical resistance at $2.75–$2.81, with a breakout above $3.02 potentially targeting $3.61, nearing its all-time high of $3.66. However, a drop below $2.75 could trigger further sell-offs toward $2.00, aligning with historical patterns. October has historically averaged -4.5% returns for XRP, but analysts argue 2025 may deviate due to regulatory progress and ETF-driven demand Cointelegraph^[1].

Market participants are closely monitoring the SEC's October 18–25 decision window for XRP ETFs, alongside Ripple's pending national banking charter application. A successful outcome could position XRP for sustained institutional adoption, mirroring Bitcoin's ETF-driven rally. However, risks remain, including potential "sell the news" reactions if ETF approvals are already priced in or if geopolitical tensions persist Forbes^[3].

The XRP rebound reflects broader crypto market dynamics, where liquidity absorption by institutions and macroeconomic factors-such as Bitcoin's performance-play pivotal roles. With XRP's market cap stabilizing at $36 billion, the asset's trajectory will hinge on regulatory outcomes, ETF inflows, and its ability to maintain key support levels amid ongoing volatility.