21Shares' XRP ETF Proposal Hits the Pause Button. Will This Delay Approval?

Once again, the U.S. Securities and Exchange Commission (SEC) has hit the pause button on an XRP ETF proposal, this time from 21Shares.

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on a new product—this time, it’s 21Shares’ proposal to launch a spot XRP ETF. However, while this news may appear disappointing at first glance, it’s more routine than alarming. In the grand scheme of the approval process, this delay, which pushes the decision into the next review period, is a regular occurrence.

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on a new product—this time, it’s 21Shares’ proposal to launch a spot XRP ETF. However, while this news may appear disappointing at first glance, it’s more routine than alarming. In the grand scheme of the approval process, this delay, which pushes the decision into the next review period, is a regular occurrence.

It would also be surprising to see the SEC approve an altcoin ETF so quickly. So far, the SEC has yet to approve any altcoin ETFs, not even for SOL. They are still in the process of testing the waters, just like they did with BTC and ETH before granting them the green light earlier this year.

This delay also impacts other XRP ETF proposals. Earlier this year, we reported on several new proposals from firms like Franklin Templeton and Bitwise for XRP ETFs, all of which were met with a delay from the SEC.

However, those familiar with the SEC’s procedures know that these delays are common, especially for new products like spot crypto ETFs. Usually, the SEC takes several months—specifically 240 days—to review, collect public feedback on, and study the market data regarding an ETF before making a decision.

This delay pushes the decision into the next review period, which is no surprise to those following the SEC’s processes closely. Moreover, those who follow new ETF launches, like Benzinga’s own Ben Garrett, have noted that several more crypto ETF relaunches are on the horizon from firms like WisdomTree and State Street.

If we're gonna see early approvals from the SEC on any of these assets - i wouldn't expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q.

While there isn't any news yet on the SEC's stance regarding any new crypto ETFs, there have been some positive developments on the institutional crypto front this week.

Institutions are becoming increasingly comfortable with cryptocurrencies, and we've already seen the launch of regulated XRP futures this week, marking a significant step toward broader acceptance.

According to Polymarket predictions, there is an 83% chance that an XRP ETF will be approved by the end of 2024, indicating strong confidence in the future of XRP.

Following the news of the delay, XRP experienced a slight decline of about 2% in the past 24 hours, now trading at around $2.34. Some experts opine that small short-term price drops are to be expected following the introduction of good news, which is later followed by an announcement of a delay in the product's approval.