The American Securities and Exchange Commission (SEC) postponed the decision on Grayscale’s request for a spot XRP Exchange-Traded Fund (ETF). The supervisor states that more time is needed to carefully assess the proposal.
Postponing to at least May
According to a secvlivity of 11 March, the deadline for a decision has been shifted to May 21. However, a final judgment may not be made until October. The SEC had officially recognized the Grayscale application in February, after it was submitted in January.
This application is the first official application for an XRP ETF that was accepted by the SEC. Other asset managers such as Canary Capital, Wisdomtree, Bitwise, Coinshares, and 21Shares have also submitted requests, which indicates an increasing institutional interest in XRP.
In the meantime, Franklin Templeton has joined the race for an XRP ETF. The company submitted an S-1 application to the SEC on 11 March to set up the Franklin XRP Trust. If approved, Coinbase Custody will act as the ETF custodian, and the trade will take place on the CBOE BZX Exchange.
Cautious attitude of the sec
Despite the increase in applications, the SEC remains cautious. Historically, the regulator is careful with the approval of crypto-etf’s, mainly due to concerns about market manipulation and regulatory insecurity. This ensured that, for example, ETHEEM ETFs were also in the waiting room for a long time.
Nevertheless, analysts from Bloomberg, Eric Balchunas and James Seyffart, the chance of approval of an XRP ETF in 2025 estimate between 65% and 75%. This optimism is confirmed by the Crypto gambling platform Polymarket, where investors estimate the chance of approval at around 72%. Investors are now waiting tense. If the SEC eventually agrees to a spot XRP ETF, that would be a catalyst for the adoption of XRP and possibly also give the a considerable boost to the XRP course.
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Source: https://newsbit.nl/sec-stelt-beslissing-over-grayscales-xrp-etf-uit-franklin-templeton-mengt-zich-in-de-race/
