The XRP ETF proposal has been delayed once again, as the U.S. Securities and Exchange Commission continues its in-depth review of several crypto exchange-traded fund filings. This, including a similar delay on Ethereum staking plans, was anticipated by analysts familiar with the regulatory body’s decision-making pace regarding digital assets like XRP.
On May 20, the SEC extended its evaluation window for Bitwise’s application to include staking within its Ethereum ETF, a move that also affected its timeline for evaluating Grayscale’s proposed XRP fund. This delay, announced just before the agency’s May 22 deadline, grants an additional 45 days to carefully assess the proposed rule changes and address potential regulatory concerns.
In tandem with this decision, the SEC also postponed its rulings related to tracking funds for both Solana and XRP. These delays enable the regulatory body to initiate proceedings that allow for thorough analysis and public feedback. The goal is to ensure these ETFs meet strict compliance standards before potentially receiving approval.
Market analyst James Seyffart pointed out that such postponements were foreseeable. According to him, it is standard practice for the SEC to utilize the full period allowed under the 19b-4 rule when reviewing such filings. The final rulings for most of these crypto-based applications are not expected until October, he noted, adding that any earlier decision would be quite unusual.
Dispelling rumors of bias or deliberate obstruction, Seyffart emphasized that the delays are procedural rather than tactical: “No matter how crypto-friendly the current SEC is, this is just how the process works,” he clarified.
Discussions around ETFs don’t stop with XRP and Ethereum. Delays appear to be a structural outcome of the SEC’s overwhelmed schedule, as the agency deals with a wave of new crypto product applications. Analysts expect Litecoin ETFs to be similarly postponed, though Seyffart remarked that Litecoin might be among the earlier approvals due to relatively less regulatory friction.
Upcoming deadlines loom for several other crypto ETF proposals during June. For example, the SEC is expected to examine Grayscale’s proposal for a Polkadot fund by June 11, followed by a decision on 21Shares’ ETF for the same digital asset by June 24. These upcoming verdicts add further burdens to the regulatory agenda, which is already saturated with pending cryptocurrency filings.
Recent changes within the agency may influence its approach to digital assets. After Gary Gensler’s resignation in January, the regulatory environment has become significantly more accommodating toward the crypto industry. During Gensler’s term beginning in 2021, the agency carried out over 100 enforcement actions targeting crypto firms, which many viewed as part of an aggressive anti-crypto stance.
With Gensler’s departure, a number of enforcement cases appear to be shifting. Notably, the SEC decided to end investigations into companies like Gemini and Cumberland DRW earlier this year. This shift suggests a broader softening of regulatory scrutiny, offering hope for platforms and investors waiting on ETF approvals for digital assets like XRP.
Despite this change in tone, the path to launching an XRP ETF remains cautious and deliberate. Seyffart forecasted that even the earliest possible approvals would not occur before late June or early July, with a more realistic expectation centered around the beginning of the fourth quarter. Given the meticulous nature of ETF evaluations, XRP enthusiasts and investors alike may need to practice patience as regulators work through the mounting portfolio of crypto applications.
