TLDR
- SEC postpones its verdict on Grayscale’s XRP ETF to possibly mid-October 2025.
- Franklin Templeton becomes the latest among numerous firms to apply for an XRP ETF.
- XRP saw a price surge to $2.19, marking a nearly 9% increase, according to data from CoinGecko.
- Several firms such as Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares have submitted projects for XRP ETFs.
- The ETF shares would reflect XRP's spot price with fees deducted, and assets would be securely held using Coinbase Custody services.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale’s XRP fund proposal for a spot XRP exchange-traded fund (ETF), according to a newly released SEC notice, explaining the need for more time to make a determination.
When the SEC first accepted Grayscale's proposal last month, it initiated a 45-day review period. However, this can be extended up to a maximum of 240 days from the initial Federal Register publication.
With the May 21 deadline looming, the SEC might delay its conclusive decision until the middle of October.
Franklin Templeton has also entered the competitive arena as the investment entity recently submitted its application for an XRP spot ETF to the SEC.
The Franklin XRP ETF is intended to mirror XRP’s spot price, minus applicable fees, with assets held through Coinbase Custody.
Shares from the planned ETF would be traded on the Cboe BZX Exchange. Authorized entities would be able to generate or remove shares in bulk, using cash that gets converted to XRP via third-party involvement.
Shareholders wouldn't gain from any forks or airdrops from the XRP Ledger, a critical factor mentioned in the documentation.
Other ETF applications
Many other financial entities have filed for XRP ETF approval. The SEC has taken note of submissions from firms like Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares.
This growing trend of applications represents a broader market movement, with major issuers responding to the rising demand for digital asset investments packaged as traditional financial products.
Following the success of spot Bitcoin ETFs, which have rapidly grown to oversee close to $100 billion in assets, applications are surging.
Ripple Labs' CEO, Brad Garlinghouse, has previously described the green light for an XRP ETF approval in the U.S. as a “given,” citing strong demand from both market investors and individual traders.
XRP Price
XRP has experienced some price volatility recently, climbing to $2.19, which is nearly a 9% bump, as noted by crypto analytics firm CoinGecko.
This current valuation remains below its post-election high of $3.38, yet compared to Bitcoin and Ethereum, XRP has retained its value since November 5.
XRP's position came under regulatory scrutiny under former SEC Chair Gary Gensler, with the commission filing a lawsuit against Ripple Labs for XRP sales.
Although the SEC continues its case against Ripple Labs, it has been gradually reducing similar high-profile legal actions against other exchanges like Coinbase and Kraken.
Franklin Templeton's proposal is still under preliminary review, with the SEC having up to 240 days to reach a decision, possibly extending it until late 2025.
Currently enjoying a 4.2% rise within the past 24 hours, XRP’s boost coincides with a general market recovery.
