XRP News Today: SEC Clears Altcoin ETFs, Spurring Institutional Crypto Investment

The U.S. crypto market is on the cusp of a significant expansion as multiple XRP and Dogecoin (DOGE) exchange-traded funds (ETFs) prepare for launch, signaling growing institutional acceptance of altcoins. The Securities and Exchange Commission (SEC) has cleared the path for these products, with 21Shares, Franklin Templeton, and Grayscale each securing regulatory approval to list their funds on major exchanges. The developments come amid surging trading volumes and renewed optimism among investors.

The first major milestone came with 21Shares' XRP ETF, which received automatic SEC approval following the agency's recent guidance during the government shutdown. The fund, set to trade under the ticker "TOXR", will track the CME CF XRP-Dollar Reference Rate. Custody for the ETF will be managed by Coinbase Custody Trust Company, Anchorage Digital Bank, and BitGo Trust Company, while BNY Mellon will handle administrative functions. This approval follows a 20-day review period after 21Shares filed Form 8-A, expediting the process compared to earlier crypto ETF applications.

Franklin Templeton also made headlines with its Franklin XRP Trust, which removed a delaying clause in its S-1 registration, potentially accelerating its listing under BZX Rule 14.11(e)(4). The fund, structured to hold XRP via Coinbase Custody, could mark a breakthrough for institutional investors seeking regulated exposure to the token without direct custody risks. Analysts note that the structure avoids complications from XRP Ledger forks or airdrops, simplifying operational and regulatory hurdles.

Meanwhile, the Bitwise 10 Crypto Index ETF approved by the SEC for listing on NYSE Arca, includes XRP as a key component. The fund maintains 85% exposure to SEC-approved assets, with XRP accounting for 4.97% of its portfolio. This follows Canary Capital's XRP ETF (XRPC), which recorded $250 million in first-day inflows, underscoring strong demand for XRP-based products.

Grayscale, a crypto investment giant, is set to launch its own XRP and DOGE ETFs on the New York Stock Exchange (NYSE), converting existing private trusts into exchange-listed products. The approvals, finalized by NYSE Arca, expand Grayscale's lineup to include Bitcoin, Ethereum, Solana, and now altcoins. These ETFs are expected to deepen liquidity and attract traditional capital to the crypto market.

Dogecoin, the original memecoin, is also gaining traction. Grayscale's DOGE ETF joins REX Shares and Osprey Funds' September-launched product, marking the second U.S. Dogecoin ETF. The token surged nearly 6% ahead of the anticipated launch, with traders positioning for the first U.S. Dogecoin ETF (ticker: DOJE) on September 12. Whale accumulation of 280 million DOGE and increased trading volumes further signaled institutional interest.

The SEC's evolving stance on crypto ETFs has been pivotal. Recent guidance allowing firms to list funds without explicit approval, provided they meet strict standards, has streamlined the process. This framework enabled the rapid approvals of XRP and DOGE ETFs, reflecting the agency's gradual shift toward broader crypto market oversight.

Market reactions have been mixed. While XRP ETF approvals have driven the token's price up 5% in the past 24 hours, Bitcoin ETF outflows—reaching $1 billion in recent weeks—have raised concerns about broader market volatility. Analysts warn that continued outflows could pressure Bitcoin toward $82,000, though altcoin ETFs remain a growth driver.

The launches of XRP and DOGE ETFs represent a pivotal moment for crypto adoption. By providing regulated access to altcoins, these products could bridge the gap between traditional finance and digital assets, fostering greater institutional participation and retail investor confidence.