XRP Spot ETF Approval Delayed, Lawyer Stays Hopeful

The delay in approval for the spot XRP ETF matters as it influences market confidence and institutional investments. Past regulatory patterns show caution but potential future approval.

Overview

The SEC has extended the review period for Franklin Templeton’s spot XRP ETF, initially submitted for approval. This aligns with historical patterns seen in Bitcoin and Ethereum ETF precedents where regulatory bodies have taken extended time for evaluations.

Key Organizations

The primary organizations involved in this decision include Ripple Labs, Franklin Templeton, and the U.S. Securities and Exchange Commission (SEC). Franklin Templeton seeks to track XRP’s spot price, aiming to draw institutional investors despite existing regulatory concerns.

Speculations and Market Impacts

Some experts speculate that the delay relates to ongoing legal considerations with Ripple, with a potential settlement deadline soon approaching. The broader market may ultimately react as other affected assets, like Dogecoin and Solana, face similar evaluation delays. James Seyffart, an ETF analyst, suggests the SEC’s extended timeframe aims to ensure thorough application review. Meanwhile, shifts in institutions and financial engagements loom, reflecting broader impacts akin to earlier Bitcoin and Ethereum ETF paths.

Seyffart believes the $XRP spot ETF could be approved by mid-October with a final decision deadline set for October 18.

Future Expectations

While the SEC takes a cautious stance, analysts express optimism recognizing potential market movement following eventual ETF approval. Historical trends and future projections guide these assessments, offering insights into expected regulatory navigation in the crypto sector.