SEC's Approval of XRP ETF May Spark a Chain Reaction Across the Crypto Market

The U.S. Securities and Exchange Commission (SEC) is set to make several crucial rulings on a range of

exchange-traded fund (ETF) filings in October 2025, with market experts noting that approvals could significantly alter the cryptocurrency landscape. Currently, 11 spot XRP ETF proposals are being evaluated, with decision dates falling between October 18 and November 14, 2025. Bloomberg analysts estimate a 95% chance of approval, pointing to supportive legal outcomes and increasing institutional demand title1 [ 1 ]. The ProShares Ultra XRP ETF, which became the first XRP-based product to receive regulatory clearance, debuted in July 2025, providing investors with 2x leveraged access to XRP futures title2 [ 2 ]. This launch is seen as the start of a potential wave of institutional investments, with forecasts suggesting XRP ETFs could eventually outpace and ETFs in terms of assets under management title3 [ 3 ].

Leading contenders in the XRP ETF competition include Grayscale, Franklin Templeton, 21Shares, Bitwise, and WisdomTree, each presenting unique ETF structures. Grayscale’s XRP Trust, aiming for ETF conversion, faces a final SEC verdict on October 18, while Franklin Templeton’s proposal is scheduled for review on November 14. Bitwise and 21Shares are awaiting decisions on October 20 and October 19, respectively title4 [ 4 ]. The SEC’s extended review periods—such as Franklin Templeton’s 60-day delay—demonstrate the regulator’s careful approach to oversight title5 [ 5 ]. Analysts point to key benefits of these filings, such as institutional-grade custody, competitive management fees, and comprehensive market surveillance arrangements with leading exchanges title6 [ 6 ].

The anticipated approval of XRP ETFs is expected to unlock substantial liquidity for the token. XRP’s value has climbed 480% since the start of the year, hitting a seven-year peak of $3.65 in July 2025, fueled by regulatory certainty after Ripple’s court victory against the SEC title7 [ 7 ]. Future price forecasts range from a conservative $5–$10 by the end of 2025 to more optimistic projections of $8–$12 in 2026 title8 [ 8 ]. Technical signals, including an oversold RSI and a symmetrical triangle formation, indicate the potential for further gains if support levels between $2.70 and $2.80 are maintained title9 [ 9 ]. Institutional participation is on the rise, with the Rex-Osprey Spot XRP ETF posting $37.7 million in trading volume on its first day in September 2025 title10 [ 10 ].

Regulatory shifts have played a pivotal role. The SEC’s 2020 lawsuit against Ripple, alleging XRP was an unregistered security, ended in August 2025 with a favorable outcome for Ripple. Judge Analisa Torres’ 2023 ruling clarified that XRP is not a security in secondary market trades, setting a new regulatory precedent. Under Chairman Paul Atkins, the SEC has launched “Project Crypto,” an initiative to update digital asset regulations and encourage innovation. This new direction has resulted in a pause on enforcement actions and clearer rules for crypto custody and trading, boosting investor confidence.

The influence of XRP ETF approvals is expected to reach beyond price action. Experts foresee a “domino effect,” with ETF proposals for

, , and gaining traction following XRP’s approval. Institutional use of XRP is also expanding into international payments, as Ripple’s On-Demand Liquidity (ODL) leverages the asset for rapid settlements. Collaborations with banks like BNY Mellon and DBS to tokenize money market funds on the XRP Ledger further highlight its practical applications. The introduction of the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain in 2025 has also attracted developers, with nearly 1,400 smart contracts launched in its first week.

Despite the positive outlook, challenges persist. XRP has seen a 25% drop from its mid-September high to the $2.73–$2.77 range, reflecting ongoing volatility risks. Analysts warn that broader economic conditions and market sentiment could limit gains. Nevertheless, the growing influx of institutional funds and the SEC’s methodical approval process offer a foundation for continued expansion. As XRP nears its ETF milestones, its progress mirrors the wider move toward mainstream acceptance of digital assets, marking a new phase in the evolution of the crypto industry.