SEC Delays Spot XRP ETF Decision by 21Shares
In a move that has stirred both speculation and frustration across the crypto landscape, the U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding the Spot XRP Exchange-Traded Fund (ETF) application filed by 21Shares. The postponement marks yet another hurdle in the path toward broader institutional adoption of XRP, despite growing momentum for digital asset ETFs across the market.
The SEC’s notice, dated May 2025, extends the review period for the 21Shares application by an additional 21 days, leaving the XRP community waiting for further clarity.
Read Also: Could Project Artemis Be the Spark LUNC and USTC Need?
Timing and Market Impact
The delay comes at a time when optimism surrounding XRP has been building—especially with Ripple’s ongoing regulatory victories and rising institutional interest. The Spot XRP ETF was expected to open the doors for more mainstream exposure to XRP, similar to how the Spot Bitcoin ETFs spurred renewed inflows into BTC markets earlier in 2024.
While the SEC has not provided specific reasons for the delay, this move falls in line with the agency’s cautious approach toward crypto-backed financial products. It reflects the ongoing tension between innovation and regulation in the United States crypto economy.
XRP Remains in Focus
Despite the temporary setback, XRP continues to enjoy increasing interest from global investors, particularly after the launch of regulated XRP futures on the CME and Ripple’s strengthening legal standing. The proposed Spot ETF by 21Shares is seen by many as a key step toward legitimizing XRP’s status within traditional finance.
Read Also: Liquidity Wins: Terra Classic Passes Twin Proposals to Boost Ecosystem
The ETF, if approved, would allow investors to gain exposure to XRP’s market performance without directly holding the asset—an appealing feature for institutional portfolios that require regulated investment vehicles.
Community Reaction and What’s Next
The XRP community responded to the delay with a mix of disappointment and determination. Many see this as a familiar tactic by the SEC to buy time rather than make decisive moves. Yet, there is also cautious optimism that the extension may result in a favorable outcome as market maturity and regulatory clarity continue to evolve.
For now, all eyes are on the revised deadline, as 21Shares and XRP supporters prepare to renew their push for approval in what could become a landmark moment for altcoin-based ETFs in the U.S.
Follow us on Facebook, Telegram, and Google News.
Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
