SEC Delays Grayscale's XRP ETF Filing Proposal

Bittime - The United States Securities and Exchange Commission (SEC) has taken another disappointing step for the crypto community. The SEC officially announced that it would delay a decision regarding Grayscale's XRP ETF proposal on Tuesday, March 11. 

This move extends the uncertainty that has been haunting the crypto market regarding the status of XRP ETFs in the US. This postponement was announced through an official notification. 

Where, the SEC stated that they needed "more time" to review whether Grayscale's XRP ETF application would be approved or rejected. 

This decision is not surprising, considering that the SEC has previously done the same thing with various other crypto ETF proposals.

Lengthy XRP ETF Application Process

Source: DL News

When the SEC acknowledged Grayscale's XRP ETF filing last month, it triggered a 45-day initial review period. However, the SEC has the authority to extend the review process up to 240 days after the filing is published with the Federal Registrar. 

With an initial deadline of May 21, 2025, the SEC now estimates that a final decision could be delayed until mid-October 2025.

Meanwhile, competition in the XRP ETF sector is getting tougher. On the same day as Grayscale's delay announcement, asset management giant Franklin Templeton also submitted an XRP ETF proposal to the SEC. 

Apart from that, a number of other financial companies such as Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares have also submitted similar proposals.

Read also: XRP ETF and Its Impact on Ripple Coin Price

The Impact Of The XRP ETF On The Market

This delay raises big questions among investors about the direction of the SEC's policy towards crypto-based ETFs. 

Previously, the surge in interest in crypto ETFs was triggered by the approval of spot Bitcoin ETFs which set a record for the fastest growth in the history of the ETF industry, with total assets under management reaching almost $100 billion (Rp. 1,600 trillion).

Ripple Labs CEO Brad Garlinghouse previously stated that approval of an XRP ETF in the US was “inevitable”. He believes that high demand from institutional and retail investors will be the main driver behind the possible approval of an XRP ETF.

However, with the SEC decision continuing to be delayed, the price of XRP has fluctuated. Currently, XRP is trading at $2.19 (Rp. 35,040), up nearly 9% in the last few days according to CoinGecko data. 

Even though it has not returned to its highest level after the election, namely $3.38 (Rp. 54,080), XRP has still been able to maintain its gains better than Bitcoin and Ethereum since November 5, 2024.

Read also: Greyscale Proposes XRP ETF: Latest Info!

Regulatory Dynamics and Political Impact

Many analysts believe that the re-election of Donald Trump as US President has had a positive impact on XRP. 

Under the leadership of former SEC Chairman Gary Gensler, XRP faced major challenges regarding its legal status, with the SEC suing Ripple Labs for alleged illegal securities sales.

Although the SEC has not officially dropped its case against Ripple, the regulator appears to be starting to ease pressure on the crypto industry in general. 

Some of the major lawsuits against exchanges such as Coinbase and Kraken are also starting to subside, signaling a change in direction towards more open policies towards digital assets.

FAQ

1. What is an XRP ETF? 

An XRP ETF is an exchange-based mutual fund that allows investors to gain exposure to XRP without having to buy and hold it directly.

2. Why is the SEC delaying Grayscale's XRP ETF decision? 

The SEC stated that it needed more time to review the proposal and consider its regulatory implications before granting approval or rejection.

3. When will the SEC's final decision be announced? 

The SEC has until mid-October 2025 to make a decision regarding Grayscale's XRP ETF.

4. What are the main benefits of an XRP ETF for investors? 

XRP ETFs provide an easier and safer way for investors to gain exposure to XRP without having to deal with the technicalities of storage or security of the digital asset.

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Reference 

Decrypt, SEC Delays XRP ETF Decision as Franklin Templeton Joins Hopefuls, accessed March 12, 2025.

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