The XRP ETF has hit another regulatory speed bump as the U.S. Securities and Exchange Commission (SEC) announced a delay in its decision regarding 21Shares’s proposal for a spot-based XRP exchange-traded fund. This delay is a procedural move within the bounds of standard review protocols, but it has nonetheless caught the attention of XRP investors and market watchers.
The application for the XRP ETF was originally submitted on March 11, and the SEC’s postponement falls within its typical 70-day response window. These review periods can last as long as 240 days in total, giving the agency time to gather feedback from public commentary and conduct internal evaluations. While the delay may appear discouraging initially, it’s worth understanding that such extensions are a normal part of how the SEC handles ETF filings.
Recent months have seen similar delays for other financial products based on alternative cryptocurrencies. Earlier this year, firms like Franklin Templeton Investments and Bitwise also experienced delays to their own XRP ETF filings. These delays collectively indicate a broader cautious approach by the SEC, particularly when it comes to authorizing ETFs for altcoins like XRP and even Ethereum. Just this week, the SEC also postponed its decision on staking provisions within Bitwise’s proposed Ethereum ETF.
The extension does not necessarily signal a rejection or unfavorable outcome. History shows that Bitcoin and Ethereum ETFs were initially delayed but eventually secured approval, reflecting a tightening but evolving regulatory stance. This precedent gives hope that XRP may follow a similar trajectory.
Despite the delay, recent developments in the institutional acceptance of XRP have been promising. Earlier this week, regulated XRP futures were launched, representing a critical leap toward mainstream financial market integration. These futures listings enhance the token’s credibility and could significantly influence the SEC’s forthcoming decisions by showcasing increasing investor interest and institutional infrastructure around XRP.
Looking ahead, market confidence remains high. According to Polymarket, a decentralized prediction market, there’s an 83% belief among traders that an XRP ETF will be approved within the year. Such optimism is partially fueled by the live trading of XRP derivatives and Bloomberg reports suggesting possible approval by the end of the year — or as early as June if momentum continues to build.
The SEC’s cautious regulatory path reflects the complex dynamics between innovation in digital assets and investor protection frameworks. For Ripple and its vast holder base, these delays serve as both a test of patience and a signal of pending legitimacy in traditional financial markets. A successful ETF approval would mark a transformative milestone for XRP, potentially unlocking significant capital inflows and deepening its integration across institutional portfolios.
Until then, stakeholders are advised to keep an eye on the SEC’s procedural timelines and observe how additional regulatory endorsements, like futures listings, might tip the scale toward a favorable ETF verdict. The interplay between regulation and adoption continues to shape the future of XRP in profound ways.
