SEC Delays Decision On XRP ETF

The U.S. Securities and Exchange Commission (SEC) has deferred its ruling on Grayscale’s proposal to convert its XRP Trust into a spot exchange-traded fund (ETF). This postponement extends the review period to May 21, 2025, allowing the SEC additional time to evaluate the proposed rule change. 

Following the SEC’s announcement, XRP experienced a brief decline. XRP’s price retreated by 1.2% having surged to $2.2 on Tuesday.  

Additional Cryptocurrency ETF Decisions Deferred

In conjunction with Grayscale’s XRP ETF decision delay, the SEC has also postponed rulings on several other cryptocurrency ETFs. These include Grayscale’s Dogecoin ETF, Canary Capital’s Litecoin ETF, and Cboe BZX Exchange’s spot Solana ETF filings. The decisions on these applications have been pushed to May 2025, indicating the regulator’s cautious approach toward introducing cryptocurrency investment vehicles into the U.S. financial markets. 

Grayscale’s initial filing to transform its XRP Trust into an ETF in late January 2025 marked the first XRP ETF proposal acknowledged by the SEC in mid-February. This acknowledgment signified a significant milestone for XRP-based investment products. Industry analysts anticipate that the SEC may issue similar 45-day extensions for other pending XRP ETF applications from asset managers such as 21Shares and Canary Capital. 

Growing Interest in XRP ETFs

The pursuit of XRP ETFs has intensified, with investment giant Franklin Templeton filing a preliminary prospectus for a spot XRP ETF on March 11, 2025. If approved, this ETF would trade on the Cboe BZX Exchange, with Coinbase Custody serving as the custodian for the fund’s holdings. This move underscores the escalating interest among institutional investors in regulated XRP investment products. 

Despite the regulatory delays, market sentiment regarding the approval of an XRP ETF remains optimistic. Bloomberg analysts Eric Balchunas and James Seyffart estimate a 65–75% probability of approval in 2025. Similarly, bettors on the cryptocurrency prediction platform Polymarket currently place the approval odds at approximately 72%, reflecting confidence in a favorable outcome. 

The SEC’s cautious stance on cryptocurrency ETFs highlights the complexities of integrating digital assets into traditional financial frameworks. As the May deadlines approach, stakeholders within the cryptocurrency and investment sectors will closely monitor the SEC’s forthcoming decisions, which could significantly influence the trajectory of XRP and the broader digital asset market.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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