XRP News Today: Will XRP ETFs Provide Market Floor or Fuel Volatility as SEC Decides?

Grayscale Investments LLC has updated its application to convert its XRP Trust into an exchange-traded fund (ETF), with the NYSE Arca exchange listed as its preferred listing venue. The move comes as the U.S. Securities and Exchange Commission (SEC) faces mounting pressure to resolve a backlog of XRP ETF filings, with final deadlines for several applications approaching in late October 2025Full List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. Grayscale's XRP Trust, which holds $2.1 billion in assetsXRP Regulation Push: Ripple CEO Urges U.S. Crypto …^[4], seeks regulatory approval to transition into a spot ETF, mirroring its successful conversions of Bitcoin and Ethereum trusts in 2024.

The SEC's review process has been complicated by a recent government shutdown, which paused evaluations of approximately 90 ETF applications, including those for XRPFull List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. Eric Balchunas, a Bloomberg ETF analyst, noted the delay is akin to a "rain delay," with the agency resuming reviews once operations normalizeFull List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. Despite the hold, Grayscale's filing has triggered optimism, with Bloomberg analysts assigning a 95% probability of approval by October 18, the deadline for the company's applicationXRP Regulation Push: Ripple CEO Urges U.S. Crypto …^[4].

The XRP ETF race has intensified, with competitors including Franklin Templeton, Bitwise, WisdomTree, and 21Shares all submitting proposalsFull List of XRP ETF Filings: New Dates, Deadlines, and …^[1]. Franklin Templeton's XRP ETF, which partners with Coinbase Custody and the Cboe BZX Exchange, is also under SEC review, with a projected decision by June 2026XRP Regulation Push: Ripple CEO Urges U.S. Crypto …^[4]. Ripple, the company behind XRP, has endorsed these efforts, citing regulatory clarity as a catalyst for broader crypto adoption. CEO Brad Garlinghouse recently urged Congress to establish clear crypto regulations, arguing that a structured framework would accelerate institutional participationXRP Liquidity Risks Signal Volatility and Investor Caution^[5].

Market dynamics further underscore the urgency. XRP's price has surged to $2.42, up 3.5% in the last 24 hoursSEC stalls Grayscale’s XRP ETF, analyst says 64 altcoins are …^[2], driven by Ripple's strategic partnerships, including a $500 million stablecoin custody deal with BNY MellonXRP Liquidity Risks Signal Volatility and Investor Caution^[5]. The collaboration, which secures RLUSD-a U.S. dollar-backed stablecoin-highlights institutional confidence in XRP's infrastructure. "This is indicative of the shift in sentiment-from headwinds to tailwinds," Garlinghouse told CNBC, emphasizing traditional finance's growing embrace of digital assetsXRP Liquidity Risks Signal Volatility and Investor Caution^[5].

However, risks persist. Analysts warn that ETF approvals could amplify XRP's volatility, with leveraged products and retail herd behavior exacerbating price swings. On-chain data also reveal whale activity, including a $950 million sell pressure in early October, raising concerns about market stability. Despite these challenges, proponents argue that ETFs will provide a "soft floor" for XRP, with institutional inflows potentially injecting $5–7 billion into the marketXRP Regulation Push: Ripple CEO Urges U.S. Crypto …^[4].

The SEC's decision will have ripple effects beyond XRP. A greenlight could pave the way for ETFs for altcoins like Solana and Dogecoin, with approval odds for those projects rising to 85% and 75%, respectivelyXRP Regulation Push: Ripple CEO Urges U.S. Crypto …^[4]. Conversely, a rejection might deepen regulatory uncertainty, stalling innovation in the crypto space.

With the clock ticking toward October 18, market participants remain poised. Grayscale's NYSE Arca listing, combined with Ripple's institutional partnerships, positions XRP as a key battleground in the SEC's evolving stance on crypto assets. As Balchunas quipped, "Everything is on ice-but the melt is coming."

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