Grayscale’s application for a spot XRP exchange-traded fund has been postponed by the U.S. Securities and Exchange Commission, which cited the need for more time to examine the proposal.
According to a SEC notice published on Mar. 11, the next deadline has been moved to May 21 by the regulator’s extension, although a final decision may not be made until mid-October. The SEC acknowledged Grayscale XRP ETF application in February after it was initially submitted in January.
The company’s bid was the first Ripple (XRP) ETF proposal that the regulator acknowledged. Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares are among the other asset managers that have applied, suggesting a growing interest in institutional investment products associated with XRP.
In the meantime, Franklin Templeton entered the race by filing as an S-1 with the SEC on Mar. 11 in order to establish the Franklin XRP Trust. If authorized, Coinbase Custody will act as the ETF’s custodian and it will trade on the Cboe BZX Exchange.
Rising ETF fillings follow the success of spot Bitcoin ETFs, which manage $95 billion in assets as of Mar. 12, as shown by Coinglass data. According to industry insiders, the increasing number of ETF registrations is a result of a larger trend to offer investors regulated substitutes for conventional digital asset investments.
Many believe that these ETFs are an essential step in improving market transparency and protecting investors. The SEC is still wary despite the spike in filings. In the past, the SEC has been hesitant to approve crypto-based ETFs, citing worries about regulatory uncertainty and market manipulation.
However, according to Bloomberg analysts Eric Balchunas and James Seyffart, XRP ETFs have a 65–75% chance of being approved in 2025. Market sentiment also remains optimistic. In the cryptocurrency betting platform Polymarket, bettors have currently placed the odds of approval at around 72%, indicating confidence in a positive result.
Investors are now awaiting further information, with many expecting that a more transparent regulatory environment will open up new avenues for investment in the digital asset space.
