SEC Postpones Decision on Franklin Templeton's XRP ETF, Extending Review to June 17, 2025

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Franklin Templeton's proposed spot XRP ETF, citing the need for additional

The U.S. Securities and Exchange Commission (SEC) has extended its decision on Franklin Templeton's proposed spot XRP ETF, according to a report by Benzinga. The regulator cited a need for additional time to evaluate the application, pushing the new decision date to June 17, 2025.

The filing, submitted by Cboe BZX Exchange on behalf of Franklin, entered its initial 45-day review period on March 19. The SEC's delay follows a familiar regulatory pattern seen across previous crypto ETF proposals.

Earlier this year, the SEC also postponed rulings on several other pending filings, including those for Litecoin, Solana, and Dogecoin ETFs.

Analysts noted that the extensions are procedural and not necessarily a negative indicator. James Seyffart of Bloomberg Intelligence stated that extensions are common and expected during the early review stages.

"This isn't some pliability move by the SEC to avoid approving any crypto ETFs," Seyffart noted. "It's just standard procedure and wouldn't be surprising during the initial stages of review."

Eric Balchunas, also of Bloomberg, pointed out that Bitcoin and Ethereum ETFs faced similar review cycles before receiving approval.

"The Bitcoin ETF took 210 days to approve, and the Ethereum ETF took 180 days to approve," Balchunas elaborated. "Both went through multiple extensions before final approval."

However, the Bitcoin ETF faced a steeper hurdle as it was the first of its kind in the U.S.

Franklin Templeton, one of the largest asset managers with over $1.5 trillion in assets under management, is at the forefront of efforts to bring XRP-based investment products to traditional markets.

The firm submitted its S-1 registration to the SEC in April, signaling deeper institutional interest in crypto-backed ETFs.

"We are grateful for the opportunity to register a series of exchange-traded funds (ETFs) that will provide investors with the ability to invest in digital assets in a convenient and familiar format," Franklin Templeton stated in a previous filing with the SEC.

Besides Franklin, companies like Grayscale, Bitwise, 21Shares, and WisdomTree are also pursuing approval for XRP-based investment vehicles.

The SEC's decision on Franklin Templeton's XRP ETF will have significant implications for the broader cryptocurrency market. Approval would open the door for a wave of new crypto ETFs to hit the market, expanding investment options for retail and institutional investors.

However, rejection could set back the development of the U.S. crypto ETF market and force applicants to start the approval process anew.