SEC Kicks XRP ETF Can Down the Road—Again

Regulators hit snooze on crypto’s hottest approval race—but true believers aren’t sweating.

Wall Street’s favorite game: Delay, deny, and don’t explain why. The SEC just punted its XRP ETF decision into Q3, leaving traders to chew on stale memes and hopium. Meanwhile, Grayscale’s legal team sharpens their knives.

Pro tip: When bureaucrats move slower than Bitcoin transactions, maybe it’s time to revisit that ’decentralization’ pitch.

SEC’s Consistent Procedural Approach

The SEC’s delay in deciding on 21Shares’ XRP ETF application is now seen as a customary practice within the sector. The U.S. regulatory body undergoes a lengthy process of analyzing market structures, gathering public opinions, and assessing potential risks before approving a new ETF. This procedure can last up to 240 days, with a similar process observed for Bitcoin$106,745 and Ethereum$2,556 ETFs in the past.

Up to now, the SEC has not approved spot ETFs for any altcoins. Popular altcoins like Solana$169 and XRP remain outside this approval list. Rather than being a negative signal, this delay indicates that the regulator continues to approach the process cautiously. Meanwhile, approvals following such delays build greater confidence among investors over time.

Rising Optimism with Institutional Interest

Aside from 21Shares, major institutions like Franklin Templeton and Bitwise have also faced similar postponements for their XRP ETF applications this year. However, the repeated delays and eventual approvals of Bitcoin and ethereum ETFs in the past serve as hopeful examples for investors. According to Bloomberg analyst James Seyffart, the SEC is expected to make a decision on the XRP ETF in the second half of the year. The most likely scenario is approval between September and December.

On the other hand, institutional confidence in XRP is also increasing. The trading of regulated XRP futures contracts, which began this week, clearly demonstrates major investors’ interest in the altcoin. Additionally, platforms like Polymarket are pricing the probability of an XRP ETF approval at 83%, reflecting the high expectations within the market.

The latest postponement decision by the SEC caused a slight fluctuation in the XRP price. Following the news, the altcoin declined by approximately 2% to $2.35. However, according to analysts, such temporary declines have limited impact compared to long-term developments like the ETF process.