SEC Delays Grayscale XRP ETF Decision, Franklin Templeton Files Application

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale’s application for an XRP exchange-traded fund (ETF). The Commission indicated that additional time is required to assess whether the application, which seeks to establish a spot XRP ETF in the U.S., will be approved or rejected. The SEC initially recognized Grayscale’s application last month, initiating a 45-day review period. This timeline can be extended up to 240 days after the proposal was submitted to the Federal Registrar, with a May 21 deadline looming. The agency may take until mid-October to reach a final decision.

On the same day, Franklin Templeton submitted an application for a spot XRP ETF to the regulator. This filing joins a growing list of XRP ETF applications acknowledged by the SEC, which includes submissions from Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares. These filings are part of a broader trend where major issuers are submitting applications to meet the increasing demand for digital asset investments packaged in traditional financial products. This trend follows the historic launch of spot Bitcoin ETFs, which have become the fastest-growing category of funds in ETF history.

The approval of an XRP ETF in the U.S. has been described as "inevitable" by Ripple Labs CEO Brad Garlinghouse, who cited overwhelming demand from both institutional and retail investors. The recent price increase of XRP to $2.19, up nearly 9%, underscores this growing interest. Although XRP’s price is notably lower than its post-election peak of $3.38, it has maintained its gains better than competitors, including Bitcoin and Ethereum since Nov. 5. Experts suggest that the reelection of U.S. President Donald Trump was beneficial for XRP. Under former SEC Chair Gary Gensler, the cryptocurrency’s regulatory status was challenged as the agency pursued a lawsuit against Ripple Labs over XRP sales. Despite the SEC’s ongoing enforcement case against Ripple Labs, the agency has been scaling back similar, high-profile actions against exchanges.