Here's Why October Will Be Critical for XRP

Key Points

• Regulators could be approving a handful of spot XRP ETF applications in the last few weeks of October.

• Those ETFs could create substantial buying pressure over time.

• Macroeconomic turmoil could potentially rain on the parade.

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If you're an XRP (CRYPTO: XRP) holder or considering an investment, be sure to mark down the weeks of Oct. 13 and Oct. 20 on your calendar. That's when the Securities and Exchange Commission (SEC) plan to rule on whether to approve multiple spot XRP exchange-traded fund (ETF) ETF applications.

If the agency gives the go-ahead to one or more funds, XRP would join the crypto heavyweights Bitcoin and Ethereum in the U.S. spot-ETF club. Here's why that's an important development for this coin.

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New funds mean new avenues for capital to flow in

The SEC's August 2025 decision to extend the ETF decision deadlines created a rare scenario in which multiple filings now converge within a one‑week window in late October. In practice, the regulator can approve, deny, or take no action by that date. That means investors will get regulatory clarity about XRP ETFs as a group all at once.

In a spot ETF offering, institutional partners known as authorized participants deliver cash to the fund sponsor, which must then go into the market and buy the underlying asset, which in this case is XRP. The prospect of big asset holders doing direct purchasing of the coin at the market price is what excites bullish investors, because it represents a steady and structural source of demand that could chip away at the coin's circulating supply over the long term.

But there's an important piece of context here.

ETF approvals are seldom a ticket for a coin to go to the moon. For example, Ethereum's July 2024 ETF debut provides a useful comparison, as on day one, its U.S. spot ETFs drew in about $106 million of net inflows, which was solid, but well below what the hype had led investors to expect. Only in August 2025, more than a year later, did the Ethereum ETFs hit their largest single‑day intake of about $1 billion.

In other words, any XRP ETF approvals in October are unlikely to be a major catalyst on the day that it happens, but it's very likely to be a significant tailwind during the quarters that follow. Price appreciation might build gradually as issuers gather assets and retirement platforms make XRP ETFs available to their customers.

For investors, patience is more than a virtue here, as it may actually be the requirement for realizing any potential gains.

What comes after approval

Even if October brings good news -- and there is a slim but real chance it won't -- investors shouldn't expect XRP ETFs to start trading the very next morning.

Each fund also needs its registration statement declared effective by the SEC before it can list its ETF on an exchange. Ethereum ETFs followed that path, winning their approvals in May 2024 but not going live until late July. That lag could very easily repeat, meaning actual inflows might not begin until winter.

Once trading does begin, the persistence of inflows will be just as important as the size. Net creations, which is when new shares are issued and backed with fresh purchases of XRP, are what generate real demand. But investors need to continue holding their ETF shares rather than selling them for the benefit to accrue to the coin's price over time.

Beyond the ETF mechanics, the regulatory backdrop could shape how much traction XRP gains. The October deadlines arrive as U.S. lawmakers debate comprehensive digital asset frameworks and as international bodies push for harmonized rules on stablecoins and cross‑border settlement. A clear approval could be read as a sign that XRP has finally moved past its long‑running legal battles with regulators, but any surprise denial would likely revive old questions about whether its unique issuance model still makes policymakers uneasy.

Investors should also keep an eye on broader macroeconomic conditions.

Spot Bitcoin and Ethereum ETFs took a while to gain traction partly because markets were digesting shifting interest rate policies and liquidity concerns -- do those concerns sound familiar to you? If the Federal Reserve continues trimming rates later this year, as many expect, cheaper borrowing costs could accelerate inflows. On the other hand, if economic weakness worsens and risk appetite dries up, even a green light for XRP ETFs may not translate into immediate momentum.

Investors who treat October as an opportunity for XRP's narrative to transition into a new phase will be well-positioned to navigate whatever comes next. If you're brave, it's probably worth bolstering your holdings in advance of this catalyst.

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Alex Carchidi has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.