SEC delays Franklin Templeton XRP ETF decision to June 2025 as part of its extended review process.
Franklin Templeton joins major firms in seeking approval for crypto ETFs like Solana, Ethereum, and Dogecoin.
The SEC delay affects multiple crypto ETF applications and signals more time needed for regulatory evaluation.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Franklin Templeton’s spot XRP ETF. The new deadline for the decision is June 17, 2025. This move extends the review period, allowing more time to assess the application.
https://twitter.com/EleanorTerrett/status/1917262100419731541 Details of the ETF Application
The ETF, called the Franklin XRP Fund, was filed through the Cboe BZX Exchange. The application appeared in the Federal Register on March 19 2024. The SEC was initially required to conduct a 45-day review of the proposal that was intended to complete by May 3, 2025. The SEC demanded more time to analyze the proposed modification to regulations.
The global asset management firm Franklin Templeton maintains control over $1.5 trillion worth of assets. Franklin Templeton became the pioneering large asset management company which requested regulatory approval to operate an XRP-based spot ETF. The planned approval for an ETF would enable investors to access exposure to XRP without needing to hold the cryptocurrency directly.
Other Crypto ETFs Also Affected
The delay for XRP ETF approval has coincided with postponements from the SEC for multiple cryptocurrency-based ETF decisions. The SEC has postponed the review for Fidelity's spot Ethereum ETF that uses staking as well as Bitwise's Dogecoin ETF. Franklin Templeton has also applied for a Solana ETF. The SEC’s delay affects these filings as well, keeping them under review for longer periods.
The extended review periods follow standard practice at the SEC according to analysts. The SEC applied this same approval process to Bitcoin and Ethereum ETFs which led to delayed approval decisions before they received final approval. The SEC normally needs time to review these applications as they solve regulatory issues while maintaining market integrity standards.
Why the Delay Matters for Crypto ETFs
The delay is not unusual and does not necessarily indicate a rejection of the ETF. It simply means the SEC needs more time to gather data and assess the proposed products. The review process also involves public comments and further scrutiny of potential risks. This helps the SEC make an informed decision to protect investors.
The Franklin XRP Fund represents growing institutional investor appetite towards crypto ETFs. Multiple firms including Grayscale and WisdomTree have filed similar applications for crypto ETFs. The growing interest from institutional investors implies that they search for regulated crypto investment methods.
At the time of writing, XRP is trading at around $2.23, a 2.1% decrease in the past day. The final decision of the agency will likely impact the price of XRP and the broader crypto market.
