The U.S. Securities and Exchange Commission (SEC) has again postponed its decision on the XRP ETF proposed by Franklin Templeton, extending the review deadline to June 17, 2025. This postponement is considered standard procedure and does not necessarily indicate a rejection of the application.
Reasons for postponement
1. Standard regulatory process: The SEC has up to 240 days to evaluate ETF proposals, with the possibility of extending the initial 45-day deadlines as needed. This type of extension has previously occurred with Bitcoin and Ethereum ETFs, which were ultimately approved after prolonged reviews.
2. Volume of proposals under review: Currently, the SEC is reviewing about 70 proposals for cryptocurrency-related ETFs, including assets like Ethereum, Dogecoin, Solana, and Hedera. This high volume contributes to the need for more time for detailed analyses.
3. Lack of active futures market for XRP: Unlike Bitcoin and Ethereum, which have active futures markets on the CME (Chicago Mercantile Exchange), XRP does not yet have this type of market in the U.S. The SEC typically considers the existence of futures markets as an important factor for the approval of spot ETFs, as they provide additional data for evaluation.
4. Ongoing litigation with Ripple: The SEC is still involved in lawsuits with Ripple, the company associated with XRP. Although a 2023 ruling determined that XRP is not a security in secondary sales, the SEC has appealed that decision. The resolution of these lawsuits may influence the approval of XRP-related ETFs.
Future prospects
Analysts, such as James Seyffart from Bloomberg, believe that the SEC will make final decisions on XRP ETFs by mid-October 2025, within the regulatory timeframe of 240 days. The approval of Bitcoin and Ethereum ETFs after similar delays suggests that the current delay is not necessarily a negative sign.
Meanwhile, the Brazilian market has already approved an XRP ETF, raising expectations for a similar decision in the U.S. Approval in the U.S. could significantly boost institutional adoption of XRP.
