XRP News Today: SEC in-kind XRP ETF rule raises approval odds to 85% as demand surges

The U.S. Securities and Exchange Commission (SEC) has implemented regulatory updates that could significantly expedite the approval of XRP-based exchange-traded funds (ETFs). The agency recently revised its framework for crypto ETFs, including approving in-kind creation and redemption mechanisms, a move aligning these products with traditional commodity ETFs and reducing operational costs for issuers [12]. This shift removes the prior requirement for cash-only transactions, enabling market makers to directly deposit or withdraw cryptocurrencies like XRP without converting them to fiat. Analysts suggest this change enhances pricing efficiency, lowers fees, and attracts institutional investors to the crypto market [13].

The policy adjustments come amid growing interest in XRP ETFs, with at least ten XRP spot ETF proposals pending as of July 2025, and decisions expected by October [4]. Market sentiment has shifted positively, with Polymarket traders assigning an 85% probability to XRP ETF approval in 2025 [7]. This optimism is linked to the SEC’s broader normalization of crypto ETFs, including recent approvals for Bitcoin and Ethereum ETFs and expanded position limits for crypto derivatives [11].

The in-kind rule change is already influencing market dynamics. Teucrium’s 2x leveraged XRP ETF has attracted over $300 million in assets, capturing 52% of the leveraged crypto ETF market [3]. This surge reflects heightened demand for XRP exposure, particularly among investors anticipating ETF approval. The SEC’s “merit-neutral” approach—evaluating crypto ETFs under the same standards as non-crypto commodities—has reduced regulatory ambiguity [13].

Industry experts highlight long-term benefits of the in-kind framework. By eliminating cash conversion needs, ETF issuers can mitigate slippage and settlement delays, while investors may see tighter alignment between ETF prices and XRP’s market value [11]. Jamie Selway, director of the SEC’s Division of Trading and Markets, emphasized the change provides “flexibility and cost savings” for institutions previously hesitant to engage with crypto due to inefficiencies in the cash model [11].

The regulatory shift positions XRP as a beneficiary of the SEC’s broader crypto strategy. While Bitcoin and Ethereum ETFs dominate discussions, XRP’s inclusion in pending applications underscores its growing institutional acceptance. Over 75 crypto ETF proposals remain under review, including altcoin ETFs for Solana, Cardano, and Dogecoin [8]. The SEC’s recent decisions signal a willingness to integrate crypto into mainstream financial markets, with XRP’s inclusion reflecting its strategic importance.

Analysts note that institutional demand for XRP is evident in the concentration of ETF applications from prominent asset managers [4]. If approved, these ETFs could drive a “wave of new demand” for XRP, according to Nasdaq analysts [1]. However, final approval hinges on the SEC’s assessment of risks such as market volatility and liquidity constraints.

The regulatory landscape remains dynamic, with key decisions anticipated by October 2025 [4]. Market participants are closely monitoring developments, as outcomes could redefine XRP’s role in global finance. For now, the in-kind redemption rule and pending ETF applications have created a favorable environment for XRP, blending regulatory progress with investor optimism.

Sources:

[1] https://www.nasdaq.com/articles/xrp-ripple-just-did-something-it-hasnt-done-2018-and-it-could-foreshadow-significant-move

[3] https://cryptoslate.com/sec-approves-in%E2%80%91kind-redemptions-for-spot-bitcoin-and-ethereum-etfs/

[4] https://www.tradingview.com/news/cryptonews:7d3749cfd094b:0-chatgpt-s-28-indicator-xrp-analysis-95-etf-odds-ignite-battle-over-3-11-support-line/

[7] https://www.nasdaq.com/articles/3-bullish-catalysts-xrp-ripple-should-you-buy-cryptocurrency-now

[11] https://www.cryptoninjas.net/news/sec-greenlights-in-kind-crypto-etf-transactions-major-game-changer-for-bitcoin-ether-funds/