XRP Sheds $20 Billion After SEC ETF Reversal — What’s Next for Investors? –

XRP’s market capitalization has plunged by nearly $20 billion amid rising regulatory uncertainty and turbulence across the broader crypto sector. Within just 24 hours, the market shed $18.37 billion, dropping from $208.77 billion to $190.4 billion at press time. This sharp move also pushed XRP’s price down 9.6% to $3.21, despite a 6.1% gain over the past week. As market participants weigh the fallout from this dramatic correction, some investors are turning their attention to new opportunities with strong growth potential.

The recent sell-off was amplified by an extreme liquidation imbalance, with $37.85 million in long positions wiped out compared to only $360,000 in shorts—a striking 10,409% disparity. Such an imbalance highlights the market’s overexposure to bullish leverage, as long positions averaged 100 times larger than shorts, making XRP’s price highly sensitive to even minor downward moves.

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‘Bizarre’ XRP ETF Decision

The latest drop was exacerbated by a sudden regulatory reversal when the U.S. Securities and Exchange Commission (SEC) abruptly halted the conversion of Bitwise’s 10 Crypto Index Fund into an ETF on July 22—a fund that would have included XRP among its holdings. This move followed just hours after the SEC’s Division of Trading and Markets granted initial approval, leaving market watchers puzzled. The fund, which is heavily weighted toward Bitcoin (BTC) and Ethereum (ETH) and allocates the remainder to altcoins like Solana (SOL), XRP, and Cardano (ADA), manages over a billion dollars in assets and is rebalanced monthly.

ETF analyst Nate Geraci called the about-face “bizarre,” referencing a similar pattern with the Grayscale Digital Large Cap ETF (GDLC), where early greenlights were also followed by unexplained pauses. The move is particularly surprising given the SEC’s recently stated pro-crypto stance under new leadership.

Analysts caution that spot XRP ETFs could remain in regulatory limbo until a new unified listing framework is finalized by the SEC. While some anticipate further delays stretching into late 2025, optimism remains in certain circles. On prediction platform Polymarket, traders still assign an 85% probability that an XRP spot ETF will win approval by year-end. Bitwise’s spot XRP ETF, originally filed in October 2024, is awaiting a final SEC decision by October 20, 2025. Until then, XRP remains exposed to shifting regulatory winds and ongoing market sentiment.

Conclusion

In summary, XRP’s market faces heightened volatility as the sector navigates sudden regulatory moves and shifting sentiment. While some investors remain hopeful for an XRP spot ETF approval in the coming year, others are already seeking the next major opportunity. As analyst attention turns to up-and-coming projects, MAGACOIN FINANCE stands out with its high-upside potential and fresh momentum. For strategic investors watching the next wave of digital asset growth, keeping an eye on MAGACOIN FINANCE could prove rewarding as the broader market evolves.

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