An Overwhelming Disappointment over The Community

On Tuesday, the SEC delayed its decision on Grayscale’s 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’s price swaying, a tense showdown between innovation and regulation is unfolding. What’s really at play behind the SEC’s doors?

Delay decision from SEC

According to a notice filed on Tuesday, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale’s 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 “a longer period” to review the application. The decision will determine whether the proposed spot XRP ETF in the U.S. gets approved or denied.

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.

XRP ETF signals from the financial community 

Following the SEC’s 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. 

Previously, on October 9, 2024, Bitwise Asset Management 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.

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

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’s 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.

Response from XRP supporters

The SEC’s delay, pushing the deadline to June 15, 2025, has sparked mixed reactions within the crypto community, especially among the “XRP Army”—a group of loyal XRP investors. Many XRP investors and supporters expressed clear disappointment over the delay. Following the news, XRP’s price dropped 4% to around $2.15 within 24 hours, according to CoinGecko, reflecting the market’s short-term negative sentiment. Some members of the community remain optimistic, believing that Franklin Templeton’s entry is a stronger signal than the SEC’s 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’t new—it continues the anti-SEC sentiment within the XRP community that has persisted since the Ripple lawsuit in 2020.

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, “The SEC will likely stall until the Ripple lawsuit is resolved or Congress sets new regulations.” He noted that institutional investors are used to the SEC’s 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’s acceptance in the U.S.