The SEC Postpones Its Decision On The XRP ETF Again

The crypto industry is holding its breath in the face of still hesitant regulation. As enthusiasm for crypto ETFs grows, the U.S. Securities and Exchange Commission (SEC) has just postponed its decision on a significant request: the conversion of Grayscale’s XRP Trust into an ETF.

This postponement, announced on Tuesday, illustrates the heightened regulatory difficulties surrounding these assets, even as crypto-related financial products gain legitimacy among institutional investors. Amid regulatory uncertainties and expansion strategies from major asset managers, the wait continues for supporters of an XRP ETF.

The SEC extends its review of Grayscale’s XRP ETF

The American financial watchdog has chosen to exercise its right to delay its decision on Grayscale’s request to transform its XRP Trust into an exchange-traded fund (ETF). In its statement, the agency indicates that it finds it “appropriate” to extend the review period to evaluate the implications of this transformation in more detail.

The announcement immediately impacted the price of XRP, which recorded a decline of 1.2% after reaching an intraday peak of $2.2. This postponement is not an isolated case: the SEC has also pushed back its decisions regarding similar proposals, including those targeting Dogecoin and Litecoin ETFs.

The battle of XRP ETFs and the reluctance of financial giants

While Grayscale is on the front line, other players are also looking to position themselves in the XRP ETF market. The SEC still has to rule on the applications submitted by 21Shares and Canary Capital, which are awaiting a verdict in the coming weeks. Franklin Templeton, one of the heavyweights in asset management, has also expressed interest in an XRP ETF by recently filing an official application.

In contrast, giants like BlackRock and Fidelity, although already engaged in the Bitcoin and Ethereum ETF market, are keeping their distance from XRP ETFs. BlackRock even dismissed the idea of investing in financial products related to alternative cryptos, which could indicate heightened skepticism regarding uncertain regulations and market prospects for XRP.

The uncertainty surrounding the regulation of crypto ETFs in the United States continues to weigh on market players. Despite measured optimism (Polymarket analysts estimate the chances of an XRP ETF approval at 75%), caution remains necessary.

The SEC’s decision could condition the evolution of the altcoin market, which would influence the price of XRP, but also the attitude of institutional investors towards alternative cryptos. This postponement once again highlights the prudence of the regulator in the face of a sector undergoing significant changes, which is still striving to find its place alongside traditional financial assets.