Overview
- New Deadline: The SEC has postponed its decision on Franklin Templeton’s XRP spot ETF to June 17, 2025, citing the need for further review and public input.
- Procedural Delay: Analysts compare this to earlier Bitcoin and Ethereum ETF timelines, suggesting the delay is routine rather than indicative of rejection.
- Market Impact: Approval could catalyze institutional interest in XRP, currently trading below $3.
SEC’s Extended Review Period
The U.S. Securities and Exchange Commission (SEC) has deferred its ruling on the proposed Franklin XRP Fund, a spot ETF filed by Cboe BZX Exchange on March 13, 2025. The new deadline, announced in an April 29 filing, aligns with Section 19(b)(2) of the Securities Exchange Act of 1934, allowing extended review periods for complex financial products.
Key reasons for the delay:
- Regulatory Scrutiny: The SEC emphasized thorough evaluation of the ETF’s structure and compliance.
- Public Feedback: Stakeholder comments and internal deliberations will inform the final decision.
👉 Learn how ETF approvals impact crypto markets
XRP ETF Approval Timeline: What to Expect
Despite a crypto-friendly SEC, the process mirrors historical delays for Bitcoin and Ethereum ETFs. Eric Balchunas, Bloomberg’s ETF analyst, noted:
“This is standard procedure. Similar pauses occurred before BTC and ETH ETF approvals.”
If approved, the U.S. would follow Brazil, which launched the world’s first XRP spot ETF (XRPH11) in 2024. However, Brazil’s smaller market size limited its impact on XRP’s price.
Current Alternatives for U.S. Investors:
- Futures-Based ETFs: ProShares offers an SEC-approved XRP futures ETF.
XRP Price Outlook
As of April 2025:
- Price: $2.23 (3% daily drop, 2% weekly decline).
- Key Resistance: $3, a psychological barrier that ETF approval could help breach.
Potential Catalysts:
- Institutional inflows post-ETF approval.
- Resolution of Ripple’s ongoing case with the SEC.
👉 Explore XRP trading strategies
FAQs
1. Why did the SEC delay the XRP ETF decision?
The SEC requires more time to assess the ETF’s compliance and gather public input, a common step for novel financial products.
2. How does this delay compare to Bitcoin ETFs?
Bitcoin ETFs faced similar procedural delays before approval, suggesting the XRP ETF remains on track.
3. What’s the impact of Brazil’s XRP ETF?
Limited due to Brazil’s smaller market, but U.S. approval could significantly boost institutional demand.
Final Thoughts
While the delay tests investor patience, it reflects the SEC’s meticulous approach. Approval could unlock $3+ price targets for XRP, aligning with broader crypto adoption trends. Stay updated for June 2025’s pivotal decision.
Disclaimer: This content is for informational purposes only and not financial advice.
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