The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s application for a spot XRP exchange-traded fund (ETF), citing the need for additional time to review the proposal. The regulator extended the deadline to May 21, though a final decision may not come until mid-October.
Growing Interest in XRP ETFs
Grayscale’s bid marks the first XRP ETF proposal acknowledged by the SEC, following its submission in January. Other major asset managers, including Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares, have also applied for similar products, reflecting increasing institutional interest in XRP-related investment vehicles.
Meanwhile, Franklin Templeton has joined the race by filing an S-1 registration with the SEC on March 11 to establish the Franklin XRP Trust. If approved, Coinbase Custody will act as the ETF’s custodian, and the fund will trade on the Cboe BZX Exchange.
The Rise of Crypto ETFs and Regulatory Hurdles
The recent wave of XRP ETF filings comes amid the success of spot Bitcoin ETFs, which collectively manage $95 billion in assets as of March 12, according to Coinglass data. Analysts suggest that the growing interest in crypto ETFs reflects a broader trend of offering regulated investment alternatives for digital assets.
Despite the increasing number of applications, the SEC remains cautious, often citing concerns over regulatory uncertainty and potential market manipulation. Historically, the agency has been slow to approve crypto-based ETFs, opting for a conservative approach to digital asset regulation.
Approval Odds and Market Sentiment
Bloomberg analysts Eric Balchunas and James Seyffart estimate that XRP ETFs have a 65–75% chance of approval in 2025, indicating growing confidence in regulatory acceptance. Additionally, betting markets on Polymarket currently place the odds of approval at around 72%, further reflecting positive sentiment among investors.
With the SEC’s decision timeline extended, market participants are closely monitoring developments. Many anticipate that clearer regulations will pave the way for greater institutional adoption of crypto investment products, potentially reshaping the digital asset market in the coming years.
