Institutional demand for XRP ETFs surges as SEC puts regulatory hurdles in place
The U.S. Securities and Exchange Commission (SEC) issued an official notice on Tuesday stating that it has postponed its decision on Grayscale’s proposed XRP exchange-traded fund (ETF).
Initially, Grayscale filed its application on January 30, 2025, with an amendment submitted on February 10. Under Section 19(b)(2) of the Securities Exchange Act. The SEC had 45 days from the application’s Federal Register publication on February 20 to make a decision.
That deadline was set for April 6 but has now been extended to May 21. The Commission stated that the extension allows it “sufficient time to consider the proposed rule change and the issues raised therein.”
Franklin Templeton joins the XRP ETF race
Meanwhile, the global investment management firm Franklin Templeton has officially submitted an application for an XRP ETF this Monday.
The firm’s filing follows similar moves from Bitwise, WisdomTree, CoinShares, 21Shares, and Canary Capital, reflecting a growing institutional push to bring an XRP-based investment vehicle to market.
Franklin Templeton’s entry reinforces the increasing demand for regulated crypto investment products, particularly as Bitcoin ETFs have already amassed nearly $100 billion in assets.
While the SEC remains cautious, the rising number of applications suggests that financial institutions anticipate eventual approval. However, the regulatory agency may still take the full 240-day review period before making a final determination.
Despite regulatory delays, XRP has surged 400% since November, with analysts pointing to strong technical indicators that suggest further upside, with some stating that they have “never seen XRP more bullish than this before.”
With a crucial hearing set for April 16 in the ongoing SEC vs. Ripple case, regulatory clarity could play a pivotal role in shaping XRP’s long-term adoption.
