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CryptoIntelligence 2025-04-29 19:33:34

SEC Delays Decision on Franklin Templeton’s Spot XRP ETF Until 17 June

The U.S. Securities and Exchange Commission (SEC) has extended its review timeline for Franklin Templeton’s spot XRP exchange-traded fund (ETF), now setting a decision deadline of June 17, 2025. The regulator announced the delay in a notice issued earlier this week, stating it needed more time to consider the proposed rule change filed by the Cboe BZX Exchange. More Time Needed for Evaluation Originally submitted on March 13 and published in the Federal Register on March 19, the application was initially under a 45-day review period set to expire on May 3. The SEC explained its rationale for the delay, saying, “The Commission finds it appropriate to designate a longer period… so that it has sufficient time to consider the proposed rule change and the issues raised therein.” Franklin Templeton is aiming to launch the Franklin XRP Fund, joining a growing list of asset managers—including Grayscale, Bitwise, 21Shares, and WisdomTree—seeking approval for crypto-backed investment products. XRP Price and Market Position XRP, which ranks as the fourth-largest cryptocurrency by market capitalization, was trading at around $2.30 at the time of the notice. The token saw a 7% increase over the past week, according to CoinGecko. The ETF would allow traditional investors to gain exposure to XRP through a regulated investment vehicle, without the need to hold the crypto asset directly. Other Delays in Crypto ETF Decisions The SEC didn’t stop with the XRP fund. It also postponed decisions on other crypto-related ETFs, including Fidelity’s spot Ethereum ETF with staking capabilities, Bitwise’s Dogecoin ETF, and Franklin Templeton’s proposed Solana ETF. These delays, while frustrating to some market participants, are not unexpected. The SEC often extends review periods to collect more information, open comment windows, and evaluate broader regulatory implications. Analysts: Delay Is “Standard Procedure” Industry experts were quick to interpret the delays as routine rather than signs of rejection. Bloomberg Intelligence analyst James Seyffart emphasized that the pause was “standard procedure” and wouldn’t necessarily hurt the ETF’s approval odds. “This doesn’t change our (relatively high) odds of approval,” Seyffart said. He also noted that the final deadlines for these ETF decisions aren’t until October. Echoing this view, Bloomberg’s Eric Balchunas referenced prior delays for Bitcoin and Ethereum ETFs that ultimately received regulatory approval. According to Balchunas, the current setbacks fit the established pattern used in past crypto fund evaluations. Patience Required as Crypto ETF Landscape Evolves For now, investors will have to wait a little longer to see if XRP will be available as a spot ETF on major exchanges. The SEC’s extended timeline may be part of a broader strategy to approach crypto-based financial products cautiously while balancing innovation with consumer protection. While these procedural pauses are unlikely to derail the applications entirely, they highlight the SEC’s careful approach to regulating the fast-evolving digital asset market.

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