XRP ETF Dreams Dashed? SEC Delays Franklin’s Bid—What’s Next?
SEC delays Franklin Templeton’s XRP ETF decision to May 2025. Will XRP’s mainstream moment wait? Explore the drama!
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Franklin Templeton’s spot XRP ETF application, setting a new deadline for May 21, 2025. This delay, announced on March 11, 2025, aligns with similar pauses for other crypto ETFs, including Dogecoin and Solana. For new investors, this news highlights the bumpy road cryptocurrencies face in gaining traditional finance’s approval. Let’s unpack what’s happening.
What’s Going On?
Franklin Templeton filed an S-1 registration on March 11, 2025, to launch an XRP ETF, aiming to track XRP’s price with Coinbase Custody holding the assets. The ETF would trade on the Cboe BZX Exchange, offering a simple way for investors to gain XRP exposure without managing crypto wallets. However, the SEC needs more time to review, citing a “longer period” to assess the proposal. This follows delays for Grayscale, Bitwise, and others, with final decisions possibly stretching to October 2025.
Franklin Templeton filed an S-1 registration on March 11, 2025, to launch an XRP ETF, aiming to track XRP’s price with Coinbase Custody holding the assets. The ETF would trade on the Cboe BZX Exchange, offering a simple way for investors to gain XRP exposure without managing crypto wallets. However, the SEC needs more time to review, citing a “longer period” to assess the proposal. This follows delays for Grayscale, Bitwise, and others, with final decisions possibly stretching to October 2025.
Why It Matters
XRP, with a $120 billion market cap, is a top cryptocurrency used for fast, low-cost cross-border payments. An ETF could boost its legitimacy, attracting institutional investors and potentially lifting its price, which recently hit $2.19 after a 9% surge. Yet, the SEC’s caution stems from ongoing legal battles, like the Ripple Labs lawsuit, and concerns about market volatility. Bloomberg analysts peg approval odds at 65-75% for 2025, but delays could dampen short-term enthusiasm, as XRP’s price dipped 4% post-news.
XRP, with a $120 billion market cap, is a top cryptocurrency used for fast, low-cost cross-border payments. An ETF could boost its legitimacy, attracting institutional investors and potentially lifting its price, which recently hit $2.19 after a 9% surge. Yet, the SEC’s caution stems from ongoing legal battles, like the Ripple Labs lawsuit, and concerns about market volatility. Bloomberg analysts peg approval odds at 65-75% for 2025, but delays could dampen short-term enthusiasm, as XRP’s price dipped 4% post-news.
What’s Next?
Investors must wait until May, with a final ruling possibly by October. A pro-crypto SEC shift could help, but risks remain. Newcomers should research XRP’s utility and diversify to manage volatility.
Investors must wait until May, with a final ruling possibly by October. A pro-crypto SEC shift could help, but risks remain. Newcomers should research XRP’s utility and diversify to manage volatility.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
