SEC Delays Grayscale’s XRP ETF Decision, XRP Price Jumps 9%

The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding Grayscale’s application for a spot XRP exchange-traded fund (ETF). This move has garnered significant attention from market observers, as it reflects the SEC's cautious approach towards the evolving cryptocurrency landscape.

The delay, which could extend the decision-making process until mid-October, comes at a time when interest in digital asset investment products is surging. The SEC is under pressure to navigate a complex regulatory environment while considering various ETF filings from multiple issuers. The official notice from the SEC stated, “We require a longer period to assess whether Grayscale’s application will be approved,” highlighting the regulatory challenges and the need for thorough evaluation.

Grayscale’s application is particularly noteworthy as it aims to introduce a spot XRP ETF to the U.S. market. This could potentially expand accessibility for both institutional and retail investors, providing them with a regulated and accessible way to invest in XRP. The delay underscores the regulatory hurdles that cryptocurrencies face, as the SEC continues to grapple with the complexities of integrating digital assets into traditional financial markets.

Following the SEC’s notice, there was a notable market reaction, with XRP’s price rising to $2.19, marking a nearly 9% increase in value. This uptick indicates strong market interest, particularly as XRP has outperformed several major cryptocurrencies, including Bitcoin and Ethereum, since November 5. Industry experts attribute this surge, at least in part, to heightened investor sentiment following political developments.

The broader landscape of ETF applications also reflects a robust interest in digital asset ETFs. Major players like WisdomTree, Bitwise, and 21Shares have submitted ETF filings, indicating a growing demand for traditional investment products that encompass cryptocurrencies. This movement follows the success of spot Bitcoin ETFs, which have attracted significant assets, highlighting a burgeoning market for digital asset investment products.

With the re-election of President Donald Trump, several analysts suggest that regulatory clarity may improve for digital assets. This could bolster the likelihood of ETF approvals and foster a more favorable environment for innovation in the crypto sector. Ripple Labs CEO Brad Garlinghouse previously called the approval of an XRP ETF “inevitable,” expressing confidence in the demand from investors eager to participate in