Franklin Templeton's XRP ETF Remains in Limbo, Awaiting an SEC Verdict

Templeton's XRP ETF remains in limbo, idling in the SEC's queue without a verdict on the horizon.

The U.S. Securities and Exchange Commission (SEC) has pushed back the deadline for a ruling on Franklin Templeton’s application for an exchange-traded fund (ETF) tracking the spot price of XRP cryptocurrency.

An official file mandated a judgment by June 17, 2025, as of April 29, 2025. Major asset management firm Franklin Templeton submitted the concept to the Cboe BZX Exchange on March 13, 2025. Benjamin Franklin Templeton conceived the concept.

The exchange actions follow the requirements outlined by BZX. A public notice about the proposal became accessible to the general public through the Federal Register on March 19, 2025.

The law demands, under Section 19(b)(2) of the Securities Exchange Act of 1934, that the SEC must decide these proposals within either 45 days from the publishing date or up to 90 days when necessary. Implementation of the review period ending on May 3, 2025, marked the beginning of its 45-day interval.

According to the SEC, the time limit for this review period must be extended. More time is required by the Commission for complete assessment of the proposed rule change while also handling potential problems during the review period.

The extended period will give a more thorough evaluation, according to the SEC. By the new deadline of June 17, 2025, the new agency must approve, disapprove, or initiate further proceedings to decide the fate of the proposed rule change.

Potential Timeline for Final Decision

The official deadline is now June 17, 2025, but the SEC can take longer in its regulatory framework. The longest period for review is 240 days, which could mean that the last decision would be in mid-October 2025, on the 18th of October.

The SEC filing notes that the proposal has yet to spark any public chatter or feedback. The lack of feedback could quicken the review, but the SEC’s crypto demonstrates thoroughness.

Investors gain exposure to XRP cryptocurrency using the Franklin XRP Fund without the asset ownership needed. An approval of this proposition would create significant momentum toward XRP’s market entry in U.S. financial systems.

Broader Context of Crypto ETF Delays

Franklin Templeton is not the only company to be hunting for crypto-based ETFs. Grayscale and Bitwise are other asset managers that have filed applications for cryptocurrency ETFs of sorts, including ones based on Ethereum, Solana, and Polkadot. Decisions on these filings are expected in the coming months.

The SEC regulates cryptocurrency ETFs because its purpose is investor protection and maintaining market stability. The regulatory obstacles faced by spot price cryptocurrency ETFs stem from worries regarding market manipulation and price volatility.

For example, the SEC previously held off on approving spot Bitcoin ETFs for years, only for the court to rule in January 2024 that they needed to reevaluate the decision. The same pattern of delays has been witnessed with other altcoin ETFs, such as those of Ethereum, now XRP.

These developments are being closely watched by investors and market participants. If an approved spot XRP ETF is launched, it could rev up institutions’ view of XRP and motivate them to invest more in it, driving up its market presence.