The US Securities and Exchange Commission (SEC) has postponed its decision regarding an application for a spot XRP exchange-traded fund (ETF) that was recently submitted. A notice indicated that the SEC needs more time to thoroughly evaluate the proposal.
The SEC had recognized the application last month, initiating a 45-day review cycle. This process can be extended up to 240 days from the initial publication date in the Federal Register. The next crucial deadline is set for May 21, but a definitive ruling could potentially take until mid-October.
In a related development, Franklin Templeton has also filed for a spot XRP ETF, intending to align with the current spot price of XRP. The assets of this proposed fund would be managed by Coinbase Custody, and shares are planned for trading on the Cboe BZX Exchange. The structure includes an arrangement for the creation and redemption of shares via cash that is converted into XRP through a third party. Notably, shareholders will not receive any forks or airdrops from the XRP Ledger.
Franklin Templeton’s application adds to a list of several firms, including Bitwise, 21Shares, Canary Capital, WisdomTree, and CoinShares, that are also seeking SEC approval for an XRP ETF. This trend underscores a growing interest from significant financial institutions entering the cryptocurrency-focused ETF landscape.
The surge in interest for XRP ETFs aligns with the success previously seen with spot Bitcoin ETFs. These Bitcoin-themed funds have rapidly gained traction, now managing close to $100 billion in assets. The Ripple Labs CEO has expressed confidence that the approval of an XRP ETF in the US is “inevitable,” highlighting strong demand from both institutional and retail investors.
Despite this growing enthusiasm, regulatory uncertainties are influencing market dynamics. Currently, the XRP/USD pair is at a critical point on intraday charts, poised for possible strong movements in either direction as traders anticipate further developments surrounding the ETF decisions. Speculation continues to build as stakeholders monitor the potential impacts of these regulatory decisions on market trends.