If you’ve been hoping for a quick green light on XRP exchange-traded funds (ETFs), you might need to brace for a longer wait. A recent report highlights that the U.S. Securities and Exchange Commission (SEC) is taking a cautious approach to approving spot cryptocurrency ETFs, including those tied to XRP, leaving investors and market watchers in a holding pattern.
According to a Reuters report published on Monday, the SEC is prioritizing the creation of a structured framework for crypto ETFs rather than rushing approvals. This means that spot XRP ETFs, which would allow investors to gain exposure to XRP’s price without directly owning the cryptocurrency, are unlikely to see the light of day soon. Betting platform Polymarket reflects this sentiment, with the odds of an XRP ETF approval by July 31, 2025, dropping to just 7%, down from 32% earlier this month and a more optimistic 50% in April.
Why the Delay in XRP ETF Approvals?
The SEC is currently working on a two-part guidance plan to streamline the approval process for spot crypto ETFs. The first part, a 12-page document detailing disclosure requirements, was released earlier this month. While this is a step forward, it’s not enough to get ETFs across the finish line. The second, more critical part of the guidance will establish a universal listing framework, replacing the current process of submitting individual 19b-4 filings for each ETF proposal. Until this framework is finalized—likely not until closer to autumn—no spot crypto ETFs, including XRP-based ones, are expected to gain approval.
Matt Hougan, Chief Investment Officer at Bitwise, sees the existence of this initial guidance as a positive sign. “It shows that crypto ETFs are becoming part of mainstream finance,” he noted. However, the wait for a complete regulatory structure continues to test the patience of crypto enthusiasts and investors alike.
Solana ETFs Take the Lead, XRP Lags Behind
While XRP ETF hopefuls wait on the sidelines, the report suggests that Solana-based ETFs might be first in line for SEC approval once the new framework is in place. Recent developments, such as the launch of a staking-enabled Solana ETF, have fueled speculation of a “crypto ETF summer.” Yet, the SEC’s deliberate pace indicates that this summer might not be as hot as anticipated for crypto funds.
What Does This Mean for XRP Investors?
For those invested in or eyeing XRP, the regulatory limbo means uncertainty in accessing ETF products that could simplify and broaden investment in the cryptocurrency. ETFs are often seen as a gateway for traditional investors to enter the crypto space without navigating the complexities of wallets and exchanges. A delay in approvals could slow the mainstream adoption of XRP, even as the broader crypto market continues to mature.
The SEC’s cautious stance isn’t entirely unexpected. The agency has long grappled with how to regulate cryptocurrencies, balancing investor protection with innovation. XRP, in particular, has faced scrutiny due to ongoing legal battles between Ripple (the company behind XRP) and the SEC over whether XRP should be classified as a security. This unresolved issue could further complicate the path to ETF approval.
Looking Ahead: Patience is Key
As the SEC works through its regulatory roadmap, the crypto community will need to remain patient. The development of a universal listing framework could ultimately pave the way for a smoother approval process for XRP and other crypto ETFs in the future. For now, though, the focus remains on Solana and other frontrunners while XRP ETFs stay stuck in a regulatory waiting game.
Stay tuned for updates as we track the latest developments in crypto ETFs and regulatory shifts. Will XRP break through the barriers, or will it remain in limbo for the foreseeable future? Only time—and the SEC—will tell.
