XRP Spot ETF Decision Delayed by SEC: What It Means for Investors
SEC Extends Review Period for Franklin Templeton XRP ETF Proposal
The United States Securities and Exchange Commission (SEC) has opted to extend its review period for the proposed spot XRP exchange-traded fund (ETF) by Franklin Templeton, pushing the decision date to June 17, 2025. This extension follows the application submitted by the Cboe BZX Exchange on March 13, 2025, as indicated by a regulatory filing on April 29.
Advertisement Banner
Details of the Franklin Templeton XRP ETF Proposal
According to the proposal, the Cboe BZX Exchange aims to list and trade shares of the Franklin XRP Fund under the commodity-based trust shares category. This move is being closely watched by market participants, as it could pave the way for new investment opportunities in the cryptocurrency sector.
Reasons for the SEC’s Decision Delay
The SEC’s decision to delay is reportedly driven by the need for a more thorough review of the proposed rule change, in accordance with Section 19(b)(2) of the Securities Exchange Act of 1934. The commission has emphasized the importance of considering public feedback and addressing internal concerns before reaching a final decision.
Understanding the Procedural Delay of the XRP Spot ETF
While some may have anticipated a smooth approval process given the SEC’s increasingly crypto-friendly stance, experts suggest that the delay is merely procedural. Eric Balchunas, Bloomberg’s Chief ETF Analyst, reassures investors that there is no cause for concern, highlighting that Bitcoin and Ethereum ETFs faced similar delays prior to their approvals.
Potential Impact of U.S. Approval on XRP
Should the XRP spot ETF receive approval, the U.S. would become the second country to launch such a product, following Brazil. The Brazilian equivalent, known as the XRP HASH CI ETF, trades under the ticker XRPH11 on the B3 stock exchange and has shown promising performance. However, its impact on XRP’s price has been limited due to the relatively smaller scale of Brazil’s financial markets.
Alternative Investment Options for U.S. Investors
In the interim, U.S. investors seeking exposure to XRP can consider futures-based products, such as the one approved by the regulator for ProShares. This allows investors to participate in the market while waiting for the spot ETF decision.
Current XRP Price Analysis
As of the latest reports, XRP is trading at $2.23, reflecting a nearly 3% decline. On a weekly basis, the asset has decreased by almost 2%. Despite these fluctuations, XRP continues to consolidate below the $3 threshold. Approval of the spot ETF could potentially spark increased institutional interest, which might drive the price up to or beyond the $3 mark.
