SEC Dismissal Spurs Spot XRP ETF Filings & $8.4B Inflows
Following the US SEC’s dismissal of its enforcement action against Ripple Labs on August 22, 2025, seven asset managers—including Grayscale, Bitwise, Canary, CoinShares, Franklin Templeton, 21Shares and WisdomTree—filed amended S-1 registration statements for a spot XRP ETF within days. The filings, reflecting active SEC feedback, mark an acceleration in the approval process and signal growing institutional readiness. Analyst models drawing on historic BTC and ETH ETF launches forecast $4.3 billion to $8.4 billion in institutional inflows into a spot XRP ETF. XRP rallied about 10% to $3.10 amid heightened volatility as traders speculated on short-term targets of $4–$6. Over the coming weeks and months, investors should monitor SEC correspondence, further amendments and execution risks from ETF creation/redemption cycles. This trend could reshape XRP liquidity and adoption while influencing capital allocation across crypto markets, including BTC and ETH. Close tracking of ETF application updates, liquidity metrics and price action will be critical for risk management.
Bullish
These developments are bullish for XRP. Short-term, the SEC’s dismissal and rapid ETF filings by major asset managers have driven a roughly 10% price rally and heightened volatility, as traders position for potential ETF approval and target $4–$6. Institutional readiness and projected inflows of $4.3–$8.4 billion support further upside. In the long term, successful ETF launches could significantly increase XRP liquidity and adoption, attracting additional capital and reducing market friction. However, investors should remain cautious of execution risks during creation/redemption cycles and potential delays from SEC correspondence.