XRP News Today: Crypto Market Turbulence Rises as SEC Alters Regulations and Major Whale Closes Short Position

A prominent figure in the crypto market, often referred to as the "Triple Short ASTER" whale, has closed out a $4.79 million short position in the AST token, sparking heightened volatility throughout the digital asset markets. This event has coincided with steep unrealized losses for

and long holders, who are now facing close to $10 million in paper losses, . The timing of this liquidation has led to speculation about its potential links to ongoing regulatory shifts and ETF-related developments in the crypto sector.

The ASTER short, which had been in place for several months, was reportedly closed following a rapid price surge in the token. Although the whale’s identity remains a mystery, the liquidation is believed to be part of a larger "triple short" approach that utilized various derivatives platforms.

The abrupt closure of this position has intensified market anxiety, especially among altcoins such as XRP and ETH, which are already contending with regulatory ambiguity and .

XRP has been hit particularly hard, with its value falling to $2.40 per token after a 6% drop in just one day. This downturn comes as Canary Capital’s

, which recently submitted an 8-A form to the SEC, is set to start trading this week. The fund, inspired by the successful (XRPR) that currently oversees $138 million in assets, could add further downward pressure on XRP by boosting institutional participation . At the same time, ETH long positions have also taken a hit, with losses attributed to the SEC’s latest guidance on crypto ETFs, which has for spot and other altcoin funds.

The U.S. Securities and Exchange Commission (SEC) has released new guidance that allows crypto ETF applications to become effective 20 days after filing, without the need for amendments. This update comes after the resolution of a government shutdown that had stalled over 900 applications, including those for crypto ETFs. The new rules have paved the way for BlackRock’s Bitcoin ETF and other altcoin-focused products to move forward, creating a regulatory climate that may further unsettle long positions in assets like XRP and ETH

.

Industry observers are also monitoring the launch of the first crypto market index ETFs under the U.S. Investment Company Act of 1940 by 21Shares. The 21Shares FTSE Crypto 10 Index ETF (TTOP) and the FTSE Crypto 10 ex-BTC Index ETF (TXBC) offer diversified exposure to the top 10 cryptocurrencies, with the latter excluding Bitcoin. These funds, which have management fees of 0.50% and 0.65% respectively, signal increasing institutional interest in digital assets and

for ETH and XRP.

The closure of the ASTER short position has also overlapped with broader market movements, including the SEC’s ongoing examination of crypto assets and the introduction of new ETF offerings. Despite the uncertain regulatory backdrop,

the deep connections between derivatives trading, ETF growth, and retail investor sentiment within the cryptocurrency markets.