XRP ETF Approval: Why the US Could Follow Canada’s Lead by September 2025
2025-06-19
The anticipation surrounding the potential approval of an XRP Exchange-Traded Fund (ETF) in the United States is reaching a fever pitch.
After years of regulatory uncertainty, the U.S. Securities and Exchange Commission (SEC) has moved forward with a formal review process for the proposed Franklin XRP ETF, setting a critical deadline of September 9, 2025, for its decision.
This development comes on the heels of Canada’s successful launch of its own XRP ETF on June 18, 2025, which has further fueled optimism that the U.S. might soon follow suit.
Key Takeaways
The SEC has officially started the formal review process for the Franklin XRP ETF with a decision expected by September 9, 2025.
The Franklin XRP ETF will hold physical XRP tokens with custody provided by Coinbase Custody Trust.
The SEC is investigating whether the XRP ETF can prevent market manipulation and protect investors.
Public comments are currently being solicited to evaluate the maturity and stability of the XRP market.
Canada’s recent XRP ETF launch sets a precedent that could influence the U.S. regulatory approach.
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The Significance of the XRP ETF Review
The journey toward an XRP ETF in the United States has been long and fraught with regulatory hurdles, primarily due to ongoing legal disputes involving Ripple Labs and the SEC.
The new ETF proposal, filed by Cboe BZX Exchange and managed by Franklin Templeton, marks a serious attempt to bring XRP into the mainstream investment fold.
If approved, the ETF would allow institutional and retail investors to gain exposure to XRP without directly holding the cryptocurrency, offering an easier, regulated path to invest.
Coinbase Custody Trust is slated to safeguard the physical XRP tokens, adding a layer of security and credibility. Additionally, the ETF’s price would track the CF Benchmark CME XRP-Dollar Index, ensuring transparent pricing tied to a reputable source.
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SEC’s Concerns and Review Process
While the approval prospect is exciting for XRP enthusiasts, the SEC remains cautious. The regulator’s current “Order Instituting Proceedings” phase is a formal investigation to ensure the ETF’s structure aligns with investor protection laws and market integrity standards.
Key questions under scrutiny include whether the ETF can prevent price manipulation and whether the XRP market is mature and liquid enough to support such a product.
The SEC began its review in March 2025 and has opened the floor to public comments, seeking input on the ETF’s potential risks and benefits. This public consultation process is pivotal, as market participants and experts provide feedback that may sway the final decision.
Read more: SEC Delays on XRP and Solana ETFs: What’s Next for Crypto Markets?
Canada’s XRP ETF: A Market Game-Changer
Canada’s recent move to approve an XRP ETF represents a landmark event in the cryptocurrency regulatory space.
Launched on June 18, 2025, the Canadian ETF enables investors to access XRP exposure in a regulated environment, setting a benchmark for other countries, including the U.S.
This launch has been largely well-received, with many viewing it as a validation of XRP’s growing acceptance in traditional finance.
The Canadian approval sends a strong signal to U.S. regulators that XRP ETFs can operate within compliance frameworks while offering value to investors
. The SEC’s September decision may well be influenced by this success, pushing the U.S. market closer to embracing XRP ETFs.
Potential Impact on XRP Price and Market Dynamics
The approval of an XRP ETF could dramatically reshape XRP’s market dynamics. ETFs generally increase liquidity and open new avenues for capital inflows, particularly from institutional investors wary of direct crypto custody.
This broader investor base could support price appreciation and reduce volatility.
Currently trading around $2.12, XRP has shown resilience amidst market uncertainties. The potential ETF approval adds a bullish catalyst that traders and investors are watching closely.
However, the price reaction will depend on the final SEC ruling and the broader market context.
Read more: XRP Price Prediction for June 20 | A Bet for XRP
What Investors Should Watch Next
With the SEC’s decision date approaching, investors should keep a close eye on several factors:
Public comments and regulatory updates from the SEC.
Performance and reception of Canada’s XRP ETF in its initial weeks.
Developments in Ripple Labs’ legal proceedings.
Broader market conditions influencing crypto assets.
Staying informed and cautious remains crucial, as regulatory decisions can cause rapid market shifts.
Conclusion
The potential approval of an XRP ETF in the United States by September 2025 represents a critical juncture for XRP and the wider crypto market.
Building on Canada’s pioneering launch, the U.S. could soon offer investors a regulated gateway to XRP exposure, enhancing liquidity and mainstream acceptance.
While regulatory scrutiny remains rigorous, the evolving landscape suggests growing institutional confidence in XRP as a viable investment.
Investors and crypto enthusiasts should watch the upcoming months closely, preparing for a possible game-changing moment that could redefine XRP’s trajectory in global finance.
FAQs
Q1: What is the significance of the XRP ETF approv
A1: Approval would allow investors easier, regulated access to XRP via an ETF, boosting liquidity and legitimacy.
Q2: When will the SEC decide on the XRP ETF?
A2: The SEC is expected to make its final decision by September 9, 2025.
Q3: What role does Coinbase Custody play in the ETF?
A3: Coinbase Custody will securely store the physical XRP tokens backing the ETF.
Q4: How does Canada’s XRP ETF affect the U.S. decision?
A4: Canada’s approval serves as a precedent, potentially influencing the SEC’s regulatory stance positively.
Q5: Can XRP price rise if the ETF is approved?
A5: Yes, ETF approval typically attracts new investors and capital, which may support price gains.
Disclaimer: The content of this article does not constitute financial or investment advice.
