SEC Extends XRP ETF Decision Deadline to May 21
2min read The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding several proposed exchange-traded fund (ETF) applications linked to XRP. This decision, made on March 11, extends the review period for multiple ETF proposals, including those from Grayscale and Canary. The SEC cited the need for additional time to evaluate the proposals and related issues before reaching a final decision.
The delay affects the proposed rule change allowing an XRP ETF, which underwent amendments before publication in the Federal Register on February 20, 2025. The initial 45-day review period was set to expire on April 6, 2025. However, the commission has now extended the deadline, setting May 21, 2025, as the new decision date. This extension provides regulators with additional time to assess the filings. Among the postponed applications, Canary’s request for a spot XRP ETF will now be considered on May 22, 2025. Meanwhile, Grayscale’s application for an XRP ETF also faces the same delay. The SEC’s decision aligns with similar extensions granted for other crypto ETFs.
In addition to XRP-related ETFs, the SEC also postponed its decision on various altcoin investment products. The commission delayed rulings on Solana (SOL) ETF applications from VanEck, 21Shares, and Canary. Similarly, a Canary Spot Litecoin ETF application will remain under review until May 13, 2025. The Grayscale Spot Dogecoin ETF is now scheduled for a decision on May 21, 2025, while the Canary Spot ADA ETF is expected to be reviewed on May 29, 2025. These delays reflect the regulator’s cautious approach toward approving crypto investment products.
Furthermore, the SEC extended its review of proposals related to in-kind creations and redemptions for Fidelity’s FBTC and FETH. BlackRock’s IBIT application also remains under consideration. Additionally, 21Shares’ request to integrate staking into its Ethereum (ETH) ETF remains unresolved. This cautious approach by the SEC underscores the regulatory challenges faced by the cryptocurrency industry. The delays are part of a broader trend of cautious regulatory oversight, as the SEC seeks to ensure that any new financial products comply with existing laws and regulations.
In a separate development, the SEC recognized a proposed rule change that would allow Nasdaq to list and trade shares of the Grayscale Hedera Trust. The regulator opened a 21-day public comment period for the proposal before making a final decision. Under the proposal, the trust’s shares would trade under commodity-based trust share rules. Grayscale would serve as sponsors, and CSC Delaware Trust Company would act as trustee. coinbase Custody Trust Company would provide custodial services. This development highlights the ongoing efforts by various firms to navigate the regulatory landscape and bring new cryptocurrency investment products to market.
The delay in the SEC's decision on XRP ETFs has implications for the broader cryptocurrency market. While the delay may be seen as a setback for firms seeking to launch XRP ETFs, it also provides an opportunity for the industry to address regulatory concerns and demonstrate the potential benefits of these financial products. The delay also underscores the need for continued dialogue between regulators and industry stakeholders, as the cryptocurrency market continues to evolve and mature. The SEC's decision to extend the review period for XRP ETFs, as well as for other cryptocurrency ETFs, reflects the regulator's commitment to ensuring that any new financial products comply with existing laws and regulations. This cautious approach is essential for maintaining the integrity of the financial markets and protecting investors.
