XRP News Today: SEC Shutdown Puts XRP ETF Deadline at Risk

XRP leveraged ETFs are experiencing heightened institutional interest amid regulatory developments and market anticipation of U.S. Securities and Exchange Commission (SEC) approvals. Six spot XRP ETF applications from major asset managers-including Grayscale, 21Shares, Bitwise, Canary Capital, CoinShares, and WisdomTree-are set for SEC decisions between October 18 and October 25, 2025. These filings, under the Securities Act of 1933, require direct SEC approval, a process currently stalled due to the federal government shutdown, which began on October 1. Limited staffing at the SEC has paused routine reviews, casting uncertainty over the October 25 deadline.

The potential approval of XRP ETFs has sparked significant market speculation. Analysts project that institutional inflows could reach $5–$8 billion in the first month alone, driven by the need for ETFs to purchase XRP directly from the market to back shares. This demand could create a "supply shock," as institutions compete for limited liquidity, particularly given that XRP's circulating supply is largely held by long-term investors rather than active traders. For context, Coinbase's XRP inventory has declined nearly 90% in recent months, with holdings now near 100 million tokens.

Market analysts highlight parallels to Bitcoin and Ethereum ETF launches, where initial approvals triggered price surges due to institutional buying. However, XRP's structural dynamics differ. Unlike Bitcoin, which saw a 7.5% price drop on the day after its ETF launch, XRP's market may exhibit a more pronounced "sell the news" effect. This is attributed to its smaller liquid float and the potential for ETFs to absorb circulating supply, reducing exchange-based liquidity. Glassnode data suggests that ETFs can act as "structural supply absorbers," stabilizing prices during inflows but increasing fragility during outflows.

Institutional interest is further underscored by existing XRP-linked products. ProShares' 2x Daily XRP futures ETF (UXRP) and Volatility Shares' XRPI have already attracted $70 billion and $5 billion in assets under management (AUM), respectively. Meanwhile, Grayscale's XRP Trust, with a 2.50% expense ratio and $17.5 million in net assets, remains a key player, though its conversion to an ETF awaits SEC clearance. The firm's recent activation of Ethereum and Solana staking ETPs signals a broader strategy to expand institutional-grade crypto yield products.

Regulatory clarity is a critical factor. The SEC's September 2025 approval of generic listing standards for crypto ETFs has expedited the review process for compliant products, increasing the likelihood of October approvals. However, the agency's focus on "essential" functions during the shutdown complicates timelines. If the government reopens, issuers aim to expedite filings to minimize delays. A potential settlement between Ripple Labs and the SEC could further remove regulatory hurdles, as highlighted by analysts like John Squire.

Price forecasts vary widely. Conservative models project XRP reaching $2.82–$4.50 in 2025, while bullish scenarios, contingent on ETF approvals and institutional adoption, suggest targets of $5–$10. Google Gemini AI's analysis posits a $10–$16 range by December 2025 under a full approval scenario, driven by institutional demand and retail FOMO. However, risks persist, including regulatory delays, reliance on derivatives, and macroeconomic volatility.

The XRP ETF landscape also highlights global competition. Canada's Purpose XRP ETF, launched in 2025, and Rex-Osprey's XRPR-approved under the SEC's newer rules-demonstrate that international regulators are moving faster than the U.S. in approving spot XRP products. This divergence could pressure the SEC to accelerate its decisions to retain market share.

In summary, the October 2025 deadline represents a pivotal moment for XRP's integration into traditional finance. While regulatory outcomes remain uncertain, the convergence of institutional demand, structural market dynamics, and global regulatory trends positions XRP ETFs to reshape the asset's trajectory, with potential implications for price volatility, liquidity, and broader adoption.

Source: [1] Coinpedia (https://coinpedia.org/news/will-xrp-etfs-be-approved-on-october-25-sec-wants-no-delay/)

[2] CryptoSlate (https://cryptoslate.com/if-spot-xrp-etfs-arrive-who-will-buy-and-how-much-will-liquidity-shift/)

[3] Grayscale (https://www.grayscale.com/funds/grayscale-xrp-trust)

[4] The Currency Analytics (https://thecurrencyanalytics.com/altcoins/grayscale-xrp-etf-approval-and-market-impact-172337)

[5] CCN (https://www.ccn.com/education/crypto/xrp-etfs-tracker-complete-list-issuers-products/)

[6] Coinedition (https://coinedition.com/grayscale-adds-eth-solana-staking-etps-as-xrp-etf-nears/)

[7] CoinPedia (https://coinpedia.org/news/xrp-price-prediction-after-october-2025-etf-approvals/)

[10] XRP Right Now (https://xrprightnow.com/xrp-price-analysis/xrp-price-prediction-if-spot-etfs-are-approved/)