XRP News Today: XRP Loses $18.37 Billion as SEC Halts Bitwise ETF Approval Triggering 9.6% Price Drop

XRP’s market capitalization plummeted by approximately $18.37 billion within 24 hours, dropping from $208.77 billion to $190.4 billion as of press time. The token’s price fell 9.6% to $3.21, despite a 6.1% gain over the preceding seven days [1]. The sell-off was driven by a stark imbalance in liquidations, with $37.85 million in long positions liquidated versus $360,000 in short positions—a 10,409% disparity. Long positions, on average, were 100 times larger than shorts, exacerbating price sensitivity to downward movements and triggering forced selling [1].

The collapse followed an abrupt regulatory reversal by the U.S. Securities and Exchange Commission (SEC), which halted the conversion of Bitwise’s 10 Crypto Index Fund into an ETF on July 22, 2025, just hours after the SEC’s Division of Trading and Markets had initially approved the move [1]. The index fund, which includes XRP among altcoins like Solana (SOL) and Cardano (ADA), is weighted heavily toward Bitcoin and Ethereum and manages over $1 billion in assets. ETF analyst Nate Geraci labeled the decision “bizarre,” noting a similar pattern with the Grayscale Digital Large Cap ETF (GDLC), which also faced unexplained pauses after early approvals. This inconsistency has raised questions about the SEC’s clarity in regulating crypto products [1].

Analysts warn that XRP spot ETFs may remain in regulatory limbo until the SEC establishes a unified listing framework. Despite delays, traders on prediction platform Polymarket assign an 85% probability of XRP spot ETF approval by year-end [1]. Bitwise’s standalone XRP ETF application, submitted in October 2024, awaits a final SEC decision by October 20, 2025. Until then, XRP remains exposed to shifting regulatory dynamics and market sentiment. The episode highlights the vulnerability of leveraged positions in crypto markets and the outsized influence of regulatory decisions on asset prices. As the SEC refines its approach, XRP’s trajectory will likely hinge on its ability to navigate these uncertainties.

Source: [1] [XRP wipes out massive $20 billion in a day after bizarre SEC ETF decision] (https://finbold.com/xrp-wipes-out-massive-20-billion-in-a-day-after-bizarre-sec-etf-decision/)