XRP is witnessing a notable decline in investor confidence, with its market capitalization dropping by over $16 billion in the past week.
This downturn coincides with the U.S. Securities Exchange Commission’s (SEC) decision to postpone its ruling on 21Shares’ proposed spot XRP exchange-traded fund (ETF), as outlined in a filing on May 20.
A week ago, XRP’s market capitalization stood at $153.56 billion. As of press time, the figure has fallen to $137.45 billion, a decline of $16.11 billion.
The token is currently trading at $2.34, reflecting a price drop of nearly 10% over the same period.
SEC delays spot ETF approval
In announcing the delay, the SEC stated it would extend the review period to assess whether the proposed 21Shares Core XRP Trust complies with Section 6(b)(5) of the Exchange Act.
This provision mandates that ETF products implement adequate safeguards against fraud and market manipulation.
The proposed ETF aims to track the CME CF XRP-Dollar Reference Rate and rely on Coinbase Custody to securely store its underlying assets. Following the delay, stakeholders have 21 days to submit comments and 35 days for rebuttals.
On the other hand, Bloomberg ETF analyst James Seyffart described the development as “expected,” noting that the SEC typically utilizes the 240-day review window under the 19b-4 filing process.
He stated that approvals for spot crypto ETFs are unlikely before late June or early July and are more realistically expected in early Q4 2025.
Next SEC ETF decision
For instance, as reported by Finbold, the SEC is expected to decide on Franklin Templeton’s application for a spot XRP ETF by June 17, 2025.
Franklin Templeton, one of the largest asset managers pursuing such a product, aims to offer investors exposure to XRP via traditional brokerage accounts, an approval that could potentially drive the asset’s price higher.
Indeed, odds of spot XRP ETF approval have surged on prediction markets such as Polymarket, where confidence in a 2025 unveiling of the product has risen to 83%.
Importantly, this ETF delay has occurred against ongoing litigation between Ripple and the SEC. Both parties continue to push for a resolution, though the case remains unresolved and has now experienced further procedural delays.
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