SEC Delays Decision on XRP ETF, Extends Review to May 2025

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s proposal to convert its XRP Trust into a spot exchange-traded fund (ETF). The regulator has extended the review period to May 21, 2025, giving itself more time to assess the potential risks and market impact of listing an XRP ETF.

This delay follows the SEC’s pattern of caution when handling cryptocurrency investment products. Despite growing demand from investors, regulators continue to scrutinize these offerings, weighing concerns about volatility, investor protection, and market stability. The postponement signals that the SEC is not yet ready to approve an XRP ETF, though it has not rejected the proposal outright.

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Key Takeaways

• The SEC is taking its time with the XRP ETF decision, pushing it back to May 2025 instead of giving a clear answer now.
• Despite the delay, interest in XRP ETFs is growing, with major firms like Franklin Templeton filing their own proposals.
• Analysts and investors are still hopeful that an XRP ETF will get approved, even if the SEC is dragging its feet for now.

XRP Sees Minor Dip After Delay Announcement

The SEC’s decision had an immediate but modest impact on the price of XRP. After briefly reaching $2.2, the token dropped by 1.2% as investors reacted to the delay. The dip reflects ongoing uncertainty in the market, as traders remain cautious about regulatory approvals.

While the decline was not dramatic, it underscores how closely the market follows regulatory decisions. Many investors had hoped for a faster resolution, but with the SEC taking its time, XRP’s price movement suggests that traders are adjusting their expectations accordingly.

More Crypto ETF Decisions Pushed to May 2025

The XRP ETF isn’t the only crypto investment product facing delays. The SEC has also postponed decisions on other cryptocurrency-related ETFs, including Grayscale’s Dogecoin ETF, Canary Capital’s Litecoin ETF, and Cboe BZX Exchange’s spot Solana ETF. By pushing these rulings to May 2025, the regulator is signaling a broader reluctance to approve new crypto ETFs without further scrutiny.

Grayscale’s initial request to convert its XRP Trust into an ETF was submitted in January 2025, and the SEC formally acknowledged the filing in mid-February. This acknowledgment was seen as a positive step for XRP-based investment products, but the delay suggests that regulators are still not fully convinced. Similar delays could be expected for other pending XRP ETF applications from firms like 21Shares and Canary Capital.

Franklin Templeton Joins the XRP ETF Race

Despite the regulatory hurdles, institutional interest in XRP investment products continues to grow. On March 11, 2025, asset management giant Franklin Templeton filed a preliminary prospectus for a spot XRP ETF. If approved, this fund would be listed on the Cboe BZX Exchange, with Coinbase Custody serving as its official custodian.

Franklin Templeton’s involvement adds credibility to the push for XRP ETFs, as the firm has a strong reputation in the traditional finance sector. Its decision to file for an XRP ETF highlights the increasing demand among institutional investors for regulated crypto investment products. Even with the SEC’s delays, firms are preparing for the eventual approval of XRP ETFs.

Optimism Remains Despite Delays

While the SEC’s delay may frustrate investors, market analysts remain optimistic about the eventual approval of an XRP ETF. Bloomberg analysts Eric Balchunas and James Seyffart estimate a 65–75% chance of approval in 2025. Similarly, bettors on Polymarket, a popular cryptocurrency prediction platform, place the odds at around 72%. These predictions suggest that many investors still expect the SEC to give XRP ETFs the green light at some point.

The delay may be part of the SEC’s broader strategy of taking a slow and measured approach to crypto regulation. The agency has already approved Bitcoin and Ethereum ETFs, and many expect XRP to follow, even if it takes longer than some had hoped.

Regulatory Hurdles and Market Impact

The SEC’s reluctance to approve new crypto ETFs highlights the ongoing challenges of integrating digital assets into traditional finance. Regulators remain concerned about risks such as price manipulation, liquidity issues, and compliance with existing securities laws. While institutional interest in crypto ETFs is growing, the SEC’s cautious stance suggests that full regulatory acceptance will take time.

However, with Bitcoin and Ethereum ETFs already making their way into mainstream financial markets, many believe XRP and other digital assets will eventually receive similar treatment. The next few months will be critical as the May deadlines approach, and the SEC provides further clarity on its position.

Final Takeaway

The SEC’s decision to delay its ruling on the XRP ETF reinforces its cautious approach to cryptocurrency regulation. While investors will have to wait until May 2025 for further updates, interest in XRP-based ETFs continues to grow among major financial institutions. Market sentiment remains optimistic, with many predicting eventual approval.

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