XRP Awaits SEC Decision as Bitwise ETF Faces Delay

The XRP community, along with proponents of other prominent altcoins, is currently facing uncertainty as the U.S. Securities and Exchange Commission (SEC) has deferred its ruling on Bitwise’s proposal to upgrade its crypto index fund into an exchange-traded fund (ETF). This latest regulatory pause casts a shadow over hopes for expanded institutional access to diversified crypto investments.

Originally launched in November 2017, the Bitwise 10 Crypto Index Fund (BITW) was developed to provide exposure to the top cryptocurrencies by market capitalization. As of now, the fund has about $1.44 billion in assets under management, making it one of the major players in crypto-based investment vehicles.

Bitcoin dominates the fund’s holdings, constituting roughly 77% of its assets — a reflection of the flagship cryptocurrency’s commanding market cap. Ethereum follows, representing nearly 12% of the total portfolio. However, the fund is not solely Bitcoin- and Ethereum-focused. It also includes other significant digital assets such as XRP, Solana (SOL), and Cardano (ADA), which contribute to its broad appeal among investors seeking diversified crypto exposure.

This postponement by the SEC extends a pattern of cautious deliberation from the agency regarding spot cryptocurrency ETFs. Even with the introduction of a seemingly more crypto-accommodating leadership, the Commission has yet to approve any spot ETF linked directly to a single digital asset. This includes applications tied to XRP filed by notable asset managers like Franklin Templeton, Bitwise itself, Canary Capital, and 21Shares—all of which are still pending review.

For the XRP ecosystem, this delay adds to ongoing regulatory friction. Despite Ripple’s partial legal victories and its increasing global acceptance, XRP remains under intense scrutiny by U.S. regulators. The unresolved approval of crypto ETFs directly impacts XRP’s ability to be more widely adopted within institutional portfolios, potentially slowing its overall market integration.

Meanwhile, the optimism around an eventual green light is not unwarranted. Many industry watchers suggest that the SEC’s hesitation might wear off by late 2025. In fact, decentralized prediction marketplace Polymarket has highlighted that bettors remain overwhelmingly positive about the approval odds, suggesting a strong belief among investors and traders that regulatory clarity is on the horizon.

Still, until official approvals are granted, XRP and its altcoin peers remain in limbo. While the inclusion of XRP in a diversified index like BITW signals confidence in the asset’s long-term prospects, the absence of formal SEC approval continues to stall its next big leap into mainstream financial products.

Related: Expert Advice: Sell XRP If You’re Confused

With institutional demand for crypto investment offerings on the rise, the SEC’s final ruling will be pivotal not just for Bitwise but also for the broader landscape of cryptocurrency regulation and mainstream adoption. Eyes remain on the regulatory front as XRP, along with SOL and ADA, stands ready for potential breakthroughs—once the waiting game is over.