What the SEC’s Delay on 5 Spot XRP ETFs Means for the Future of Crypto ETFs

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decisions on five spot XRP exchange-traded funds (ETFs). 

Applications from major issuers like 21Shares, CoinShares, Bitwise, Grayscale, and Franklin Templeton are now on hold until October 2025, with deadlines ranging from October 18 to October 23.

While delays have become familiar in crypto ETF filings, this decision comes at a pivotal moment for XRP and the broader crypto ETF market. 

Rather than signaling rejection, the postponement highlights the SEC’s methodical approach and sets the stage for a potentially transformative end to 2025.

SEC’s Regulatory Caution and Scrutiny

The SEC’s decision reflects heightened regulatory scrutiny of crypto investment products. The Commission is:

• Reviewing extensive public comments.
• Evaluating surveillance, compliance, and transparency frameworks.
• Assessing broader market implications for XRP ETFs.

This cautious approach underscores the SEC’s focus on investor protection and market integrity before approving new spot crypto funds.

Read Also: XRP ETF Poised to Outshine Ethereum as Big Players Eye Massive Gains

Ripple’s Legal Victory Boosts ETF Outlook

The delay follows Ripple’s 2024 court victory, where a judge ruled that XRP’s programmatic sales are not securities. This legal clarity dramatically improves the outlook for spot XRP ETFs.

Industry analysts now estimate an 80–95% probability of approval later in 2025, with Ripple’s win clearing a major regulatory hurdle that had long clouded XRP’s future.

Potential for Coordinated Approvals

Some experts believe the SEC could approve multiple XRP spot ETFs simultaneously, similar to the earlier approval wave of Bitcoin and Ethereum ETFs.

Coordinated approval would:

• Maximize institutional inflows.
• Create a smoother market launch.
• Prevent competitive disadvantages among issuers.

This strategy could also help the SEC manage market stability during the ETF rollout.

Read more: XRP Whales are Moving Funds

Market Impact of XRP ETFs

If approved, XRP ETFs could bring billions in institutional capital. Analysts project $5 billion or more in inflows within the first few months, echoing the rapid growth seen in Bitcoin ETF markets.

The introduction of XRP ETFs would:

• Increase liquidity and trading volume.
• Boost retail and institutional adoption.
• Strengthen XRP’s legitimacy as an investable digital asset.

More Crypto ETFs in the Pipeline

XRP isn’t the only token awaiting ETF approval. Other spot products, including Litecoin and Solana ETFs, have also seen delays. This suggests the SEC is working on a coordinated regulatory framework for multiple crypto ETFs by year-end 2025.

Such developments could open the door to a broader range of digital assets entering mainstream investment portfolios.

Read Also: XRP Army Grows Stronger Post-Ripple SEC Settlement, Institutional Confidence

What Investors Should Watch Next

For investors tracking the XRP ETF story, the key points ahead include:

• SEC rulings in October 2025
• Any updates to ETF listing and compliance standards
• Issuer readiness for potential simultaneous approvals
• Market signals of institutional demand buildup

Until then, strategies tied to XRP ETFs remain in a holding pattern, with the fourth quarter of 2025 shaping up as a decisive moment.

Read more: XRP Price Manipulation?

Final Thoughts

The SEC’s delay on five spot XRP ETFs should be seen as procedural, not negative. Combined with Ripple’s legal victory and strong market interest, XRP is well positioned for ETF approval later this year.

If approvals come in October or December, 2025 could become a milestone year for crypto ETFs, unlocking greater institutional adoption and reshaping digital asset investment.

FAQs

Why did the SEC delay decisions on XRP ETFs?

The SEC is conducting thorough reviews, including public comments and compliance frameworks, to ensure investor protection and market transparency.

When will the SEC make a decision on spot XRP ETFs?

The new deadlines fall between October 18 and October 23, 2025.

How does Ripple’s legal victory affect ETF approval chances?

Ripple’s 2024 court win clarified that XRP’s programmatic sales are not securities, significantly boosting approval prospects.

What could be the market impact of XRP ETF approval?

Analysts expect institutional inflows of $5 billion or more in the first trading months, driving liquidity and adoption.

Are other crypto ETFs also delayed?

Yes, the SEC has also postponed decisions on Litecoin and Solana ETFs, signaling a broader regulatory timeline for crypto funds in 2025.