SEC Delays in XRP ETFs’ Approval Adds Investors Anxiety

The SEC's recent delay in approving spot XRP ETFs, particularly Franklin Templeton's application (now postponed to June 17, 2025), has amplified investor anxiety by prolonging regulatory uncertainty.

This cautious approach mirrors past SEC behavior with Bitcoin and Ethereum ETFs, where procedural delays preceded eventual approvals, but the repetition underscores persistent scrutiny of altcoins like XRP.

Delays discourage institutional participation, as asset managers remain wary of regulatory risks despite growing interest in crypto-based funds.

XRP price dipped 2.7% immediately post-announcement, reflecting sensitivity to regulatory developments, though it maintains a 7% weekly gain at ~$2.24.

Ripple's unresolved SEC lawsuit compounds uncertainty, as the case's outcome could influence the ETF approval process.

Analysts note these delays are standard procedure, with Bloomberg’s Eric Balchunas comparing ETF approval to gaining visibility on streaming platforms-helpful but not guaranteeing demand. However, the SEC’s consistent postponements for altcoin ETFs (including Solana etc.) highlight a prioritization of Bitcoin and Ethereum in regulatory decision-making.

While precedent suggests eventual approvals remain possible, the extended timeline leaves XRP vulnerable to price swings below $2.00 if negative sentiment persists.

Institutional inflows into XRP-focused funds and Brazil’s approval of a spot XRP ETF offer counterbalancing optimism, but U.S. regulatory clarity remains the critical hurdle.

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