The crypto industry is holding its breath amid prolonged regulation. As interest in crypto ETFs grows, the US SEC has postponed its decision on a significant request: converting Grayscale's XRP Trust into an ETF.
Delay in Grayscale’s XRP ETF Review
The American financial regulator has chosen to delay its decision on Grayscale’s request to transform its XRP Trust into an ETF. In its statement, the agency noted that it is 'appropriate' to extend the review period to evaluate the implications of this transformation in more detail. Following the announcement, XRP’s price declined by 1.2% after reaching an intraday peak of $2.2. This postponement is not an isolated case: the SEC has also delayed decisions on similar proposals, including those targeting Dogecoin and Litecoin ETFs.
Competition for Spot in the XRP ETF Market
While Grayscale is on the frontline, other players are also striving to secure a position in the XRP ETF market. The SEC is yet to rule on applications from 21Shares and Canary Capital, with verdicts expected in the coming weeks. Franklin Templeton, one of the leading asset managers, has also shown interest in an XRP ETF by recently filing an official application. In contrast, giants like BlackRock and Fidelity, although actively participating in the Bitcoin and Ethereum ETF market, are keeping their distance from XRP ETFs. BlackRock even dismissed the idea of investing in financial products related to alternative cryptos, potentially indicating greater skepticism regarding uncertain regulations and market prospects for XRP.
Uncertainty and Market Impact
Uncertainty surrounding the regulation of crypto ETFs in the US continues to weigh on market players. Despite cautious optimism (with Polymarket analysts estimating a 75% chance of XRP ETF approval), caution remains necessary. The SEC’s decision could guide the evolution of the altcoin market, affecting XRP’s price and institutional investors’ attitudes towards alternative cryptos. This postponement highlights once again the regulator's prudence in the face of a sector undergoing significant changes, still striving to find its place alongside traditional financial assets.
The delayed SEC decision on Grayscale’s XRP ETF highlights the ongoing regulatory challenges in the crypto industry. As investors await clarity, caution remains key in a volatile market.
