The SEC delayed a final decision on the XRP Spot ETF until June 17, disappointing the market’s more bullish hopes. It also postponed a ruling on the DOGE and Ethereum staking ETFs and could delay again until mid-October.
Although this deferral seems bearish on the surface, it didn’t cause a huge market splash. The Commission has been moving slowly on precedent-setting decisions like a settlement with Ripple, but it may decide on an XRP ETF before October.
No Decision Yet on US XRP ETFs
Right now, the crypto industry is so amped to welcome an XRP ETF that false rumors are driving market confusion. The world’s first such asset began trading in Brazil last week, further fueling optimism.
However, the SEC officially delayed Franklin Templeton’s XRP ETF proposal, putting a downer on these sentiments.
The Commission didn’t stop there; it also delayed Bitwise’s Dogecoin ETF proposal as well as one for an Ethereum staking ETF.
Despite this bearish signal from the SEC, analyst James Seyffart concluded that these delays were anticipated. He went one step further, claiming that the Commission will probably also delay Solana and HBAR ETFs:
“These dates are all intermediate and we will likely see final decisions on a lot of the crypto ETPs in Q4. For the XRP spot ETF, [I’m] eyeing mid-October, around the 18th, as a final decision deadline. It’s possible the SEC won’t take all that time to make its decision, but a lot will hinge on how actively they engage on the applications,” Seyffart explained.
Although the SEC is under more crypto-friendly leadership, that doesn’t mean a bonanza of ETF approvals will start immediately.
More than 70 active ETF proposals are awaiting their verdict, and it will need to proceed carefully to sort them all out. This June deadline is not final, and the Commission could enact further delays until mid-October.
Following today’s delay, Polymarket odds of Q2 XRP ETF approvals also saw a sharp decline.
However, the crypto community already knew that October would be the latest possible deadline. For a few reasons, the SEC has to be cautious about establishing a new precedent with these crypto ETFs.
For one thing, if it greenlights these products too hastily, the market might experience unpredictable outcomes.
Additionally, the Commission is receiving criticism that it’s losing its neutrality with these crypto reforms. Although the SEC is committed to its new stance, a spree of ETF approvals might invite further pushback.
The Commission ostensibly wrapped up the Ripple case, yet loose ends will linger for the foreseeable future.
In other words, this delaying action is not as bearish as it first appears. Since the Commission has been refraining from hasty action in different areas, the market can easily stomach another new deadline.
October is presently the worst-case scenario. Depending on a lot of small factors, the SEC could approve an XRP ETF much sooner than that.
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