{"id":19860,"date":"2025-03-12T11:53:43","date_gmt":"2025-03-12T11:53:43","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2025\/03\/12\/sec-postponed-xrp-etf-an-overwhelming-disappointment-over-the-community\/"},"modified":"2025-03-12T11:53:43","modified_gmt":"2025-03-12T11:53:43","slug":"sec-postponed-xrp-etf-an-overwhelming-disappointment-over-the-community","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2025\/03\/12\/sec-postponed-xrp-etf-an-overwhelming-disappointment-over-the-community\/","title":{"rendered":"SEC Postponed XRP ETF: An Overwhelming Disappointment over The Community"},"content":{"rendered":"

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On Tuesday, the SEC delayed its decision on Grayscale\u2019s XRP ETF. As the XRP community awaits a verdict, a bigger question looms: Is this just caution, or a hidden battle against XRP? With giants like Franklin Templeton joining the ETF race and XRP\u2019s price swaying, a tense showdown between innovation and regulation is unfolding. What\u2019s really at play behind the SEC\u2019s doors?<\/span><\/p>\n

Delay decision from SEC<\/strong><\/h2>\n

According to a notice<\/a> filed on Tuesday, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale\u2019s XRP ETF application. The next deadline for their decisions is set on May 21, though a final decision might not come until mid-October. The Commission stated that it takes \u201ca longer period\u201d to review the application. The decision will determine whether the proposed spot XRP ETF in the U.S. gets approved or denied.<\/span><\/p>\n

Not long ago, in the latter half of February 2025, the Grayscale XRP ETF appeared in the U.S. Federal Register, starting a 21-day public comment period. It was listed alongside three other XRP ETF applications from Canary Capital, WisdomTree, and Bitwise.<\/span><\/p>\n

XRP ETF signals from the financial community\u00a0<\/strong><\/h2>\n

Following the SEC\u2019s announcement, another major TradFi player has joined the race. Franklin Templeton, a well-known name in traditional finance, has filed an application for a spot XRP ETF with the regulator.\u00a0<\/span><\/p>\n

Previously, on October 9, 2024, Bitwise Asset Management<\/a> became the first company to file an application for a spot XRP ETF with the SEC. This filing marked the beginning of a wave of interest in XRP ETFs. Bitwise argued that the 2023 legal ruling, which determined that XRP is not a security when sold to retail investors, provided a sufficient legal basis for SEC approval.<\/span><\/p>\n

Moreover, on November 15, 2024, 21Shares\u2014a well-known provider of crypto ETF products in Europe\u2014also filed for a spot XRP ETF in the U.S., according to The Block. The filing highlighted XRP\u2019s potential for cross-border payments, citing Ripple\u2019s relationships with global banks. This development further strengthened confidence within the XRP community, even as the SEC remained silent on the review process.<\/span><\/p>\n

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Source: iStock<\/p>\n<\/div>\n

To conclude, several major financial firms have taken steps to bring an XRP ETF to the U.S. market so far. This wave of interest began in late 2024, with growing attention from financial institutions. However, the SEC\u2019s appeal in October 2024 dampened expectations, culminating in the March 11 delay of the XRP ETF approval. This has created a landscape where investors remain both hopeful and cautious.<\/span><\/p>\n

Response from XRP supporters<\/strong><\/h2>\n

The SEC\u2019s delay, pushing the deadline to June 15, 2025, has sparked mixed reactions within the crypto community, especially among the \u201cXRP Army\u201d\u2014a group of loyal XRP investors. Many XRP investors and supporters expressed clear disappointment over the delay. Following the news, XRP\u2019s price dropped 4% to around $2.15 within 24 hours, according to CoinGecko, reflecting the market\u2019s short-term negative sentiment. Some members of the community remain optimistic, believing that Franklin Templeton\u2019s entry is a stronger signal than the SEC\u2019s delay. Discussions on X suggest that the SEC may be deliberately obstructing XRP for political reasons or favoring other assets like Bitcoin and Ethereum, which have already received ETF approvals. This frustration isn\u2019t new\u2014it continues the anti-SEC sentiment within the XRP community that has persisted since the Ripple lawsuit in 2020.<\/span><\/p>\n

Institutional investors and analysts take a more balanced view, focusing on long-term impact rather than short-term reactions. Bloomberg ETF expert James Seyffart expected the delay, stating, \u201cThe SEC will likely stall until the Ripple lawsuit is resolved or Congress sets new regulations.\u201d He noted that institutional investors are used to the SEC\u2019s slow pace on crypto matters. Funds like Bitwise and 21Shares seem prepared for this scenario, with no signs of withdrawing their applications. Most institutional investors see this as part of the long journey toward XRP\u2019s acceptance in the U.S.<\/span><\/p>\n

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