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"SEC Decision on XRP Triggers Altcoin ETF Boom, Paving the Way for Crypto's Entry into the Mainstream"

"SEC Decision on XRP Triggers Altcoin ETF Boom, Paving the Way for Crypto's Entry into the Mainstream"

Bitget-RWA2025/09/27 10:34
By:Coin World

- SEC's 2025 XRP ruling cleared secondary sales as non-securities, enabling institutional ETF approvals and adoption. - 11+ asset managers, including Grayscale and Franklin Templeton, filed XRP ETFs with 95% approval probability by year-end. - Ripple's ODL and partnerships with Santander/BNY Mellon expanded XRP's utility in cross-border payments and stablecoin corridors. - XRP's $176B market cap and ETF-driven inflow potential ($4.3–$8.4B) position it as a top crypto asset with real-world use cases. - SEC'

After the U.S. Securities and Exchange Commission (SEC) concluded its five-year legal dispute with Ripple Labs in August 2025, XRP’s regulatory challenges have eased considerably. The court determined that secondary market

transactions do not constitute securities, paving the way for institutional involvement and the approval of spot ETFs [ 5 ]. This breakthrough has triggered a surge in XRP ETF proposals, with more than 11 asset managers—including Grayscale, Franklin Templeton, and Bitwise—submitting applications through the 19b-4 process. Bloomberg analysts project a 95% likelihood of approval by the end of 2025 [ 2 ]. Grayscale’s $2.1 billion XRP Trust is set to transition into an ETF, while Franklin Templeton’s product stands out with a competitive 0.15% fee [ 2 ]. The SEC’s expedited review, with final verdicts anticipated between October 18 and November 14, 2025, has brought greater certainty to the market [ 3 ].

As legal ambiguity fades, institutional demand for XRP has grown rapidly. Ripple’s global payment solutions, such as its On-Demand Liquidity (ODL) platform, have drawn interest from leading banks and remittance providers like Santander and SBI Holdings, who use XRP to cut down on liquidity expenses and speed up settlements. The token’s function as a bridge for fiat and stablecoin transfers has made it a strong contender against legacy systems like SWIFT. Ripple’s acquisition of Hidden Road, a prime broker with a crypto focus, and its collaboration with

to provide stablecoin price data further highlight its growing influence in institutional finance. These moves reflect broader industry shifts, as XRP’s market capitalization reached $176 billion in September 2025, placing it among the top three digital assets.

The introduction of XRP ETFs could attract substantial new investment. Bloomberg Intelligence predicts that spot ETFs could bring in $4.3–$8.4 billion from institutional investors, enhancing both liquidity and price stability for XRP [ 4 ]. Past examples, such as Bitcoin’s ETF-fueled rally in 2024, indicate that such financial products can drive adoption. Still, there are challenges. Some analysts warn that much of the optimism may already be reflected in the price, as XRP jumped 480% in July 2025 after regulatory clarity was achieved [ 5 ]. Additionally, volatility following ETF approval remains a concern, with leveraged products like the ProShares Ultra XRP ETF (UXRP) showing increased price swings [ 4 ].

Ongoing global partnerships and technical enhancements to the XRP Ledger (XRPL) further reinforce its long-term outlook. Ripple’s partnership with Chainlink for dependable price feeds and the launch of the Ripple USD (RLUSD) stablecoin, supported by BNY Mellon, demonstrate efforts to integrate XRP into conventional finance. Recent XRPL updates, such as automated market maker (AMM) features and token escrow, are designed to boost liquidity and institutional use. Meanwhile, international XRP ETFs in Canada and Europe have shown strong demand, with liquidity increasing by 40–60% after launch [ 2 ]. These elements indicate that XRP’s strengths go beyond speculation, rooted in practical applications for cross-border payments and asset tokenization.

The potential impact on the wider crypto sector could be significant. Approval of an XRP ETF might set the stage for other altcoin ETFs, with

and applications moving forward on similar schedules. If these succeed, altcoin ETFs could see inflows exceeding $20 billion, accelerating mainstream adoption [ 4 ]. Nevertheless, regulatory changes or delays remain possible obstacles. The SEC’s “Project Crypto” under Chairman Paul Atkins has taken a stance supportive of innovation, but future leadership could shift the regulatory approach [ 5 ]. For XRP, the combination of legal certainty, growing institutional use, and ongoing technical progress positions it as a major force in the changing digital asset landscape.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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