SEC Extends Review Period for XRP ETFs as Franklin Templeton Enters Race

TLDR

• SEC has delayed its decision on Grayscale’s XRP ETF application until potentially mid-October 2025
• Franklin Templeton has joined the growing list of firms filing for XRP ETFs
• XRP price rose to $2.19, up nearly 9% according to CoinGecko
• Multiple firms including Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares have filed XRP ETF applications
• ETF shares would track XRP’s spot price minus fees with assets held via Coinbase Custody

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s application for a spot XRP exchange-traded fund (ETF), according to a notice filed on Tuesday. The agency stated it needs “a longer period” to determine whether to approve or deny the application.

When the SEC acknowledged Grayscale’s application last month, it started a 45-day review period. This timeline can be extended up to 240 days after the proposal was published in the Federal Register.

The May 21 deadline is approaching. The agency may take until mid-October to make its final decision on the application.

Franklin Templeton has now joined the race. The investment firm filed an application for a spot XRP ETF with the SEC on Tuesday.

The Franklin XRP ETF aims to track the spot price of XRP minus fees. The assets would be held via Coinbase Custody.

Shares of the proposed ETF would trade on the Cboe BZX Exchange. Authorized participants would create or redeem shares in blocks using cash, which would be converted to XRP through a third party.

Shareholders would not benefit from XRP Ledger forks or airdrops. This is a key detail in the filing.

Other ETF applications

Several other financial firms have also filed XRP ETF applications. The SEC has acknowledged filings from Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares.

These applications are part of a broader trend. Major issuers are submitting ETF applications to meet growing demand for digital asset investments packaged in traditional financial products.

This surge follows the successful launch of spot Bitcoin ETFs. These funds have become the fastest-growing category in ETF history and now manage close to $100 billion in assets.

Ripple Labs CEO Brad Garlinghouse previously called the approval of an XRP ETF in the U.S. “inevitable.” He cited strong demand from both institutional and retail investors.

XRP Price

XRP’s price has seen recent movement. It rose to $2.19, up nearly 9% according to crypto data provider CoinGecko.

This price is lower than its post-election peak of $3.38. However, XRP has maintained its gains better than competitors like Bitcoin and Ethereum since November 5.

The cryptocurrency’s regulatory status had been challenged under former SEC Chair Gary Gensler. The agency pursued a lawsuit against Ripple Labs over XRP sales.

The SEC has not abandoned its enforcement case against Ripple Labs. Yet the agency has been scaling back similar high-profile actions against exchanges like Coinbase and Kraken.

Franklin Templeton’s filing is preliminary. The SEC has up to 240 days to approve or deny it, which could push the decision to late 2025.

XRP is currently up 4.2% in the past 24 hours. This increase aligns with a broader market recovery.