The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the much-anticipated spot XRP exchange-traded fund (ETF) proposed by CoinShares, a Jersey-based digital asset investment firm. The filing, which aims to bring a regulated XRP investment product to U.S. markets, was initially submitted in January 2025 and officially acknowledged by the SEC shortly after.

Although delays are common in the ETF approval process, investors and the broader XRP community are growing increasingly curious about what’s causing the holdup and what it means for the future of XRP in traditional markets.

What We Know So Far

CoinShares filed an S-1 form with the SEC earlier this year, seeking approval to list a spot XRP ETF on the Nasdaq exchange. The SEC formally acknowledged the application in February, which started a 240-day countdown for the agency to make a final decision.

While this delay might appear discouraging, it’s worth noting that it doesn’t necessarily signal a rejection. Historically, the SEC has used most or all of the allowed timeframe before reaching a conclusion on cryptocurrency ETFs. This has happened previously with similar filings for Bitcoin and Ethereum-based funds.

Why the Delay Isn’t Unusual

According to Bloomberg analysts, the SEC rarely approves crypto-related ETFs quickly—even under administrations considered more open to digital assets. The agency’s caution largely stems from concerns about market manipulation, custody risks, and investor protection.

The delay could also be strategic. Regulatory bodies often wait until they have a clearer understanding of the broader implications of approving such financial instruments. The XRP ETF, in particular, would mark one of the first mainstream investment vehicles tied to a digital asset that has faced intense scrutiny and legal battles in the U.S.

What Does the Delay Mean for Investors?

For now, investors are left waiting for regulatory clarity. However, many remain optimistic that the SEC will ultimately approve a spot XRP ETF before the end of 2025. Most of the pending ETF applications, including CoinShares’, have final deadlines around late October, making Q4 the most likely period for any decisions.

There is also a possibility that some approvals could come as early as July. Still, that would be seen as unusually fast by SEC standards.

Market Sentiment and Industry Reaction

Despite the delay, industry sentiment remains hopeful. According to prediction markets like Polymarket, many users believe a spot-based XRP ETF will be approved this year. The delay, in this context, is viewed as procedural rather than a signal of impending rejection.

In a related development, Volatility Shares recently release a futures-based XRP ETF, which has added momentum to discussions around XRP’s growing utility and presence in traditional financial markets. While futures-based ETFs offer some exposure to XRP, spot ETFs are generally seen as more desirable because they directly hold the asset rather than tracking its price through derivative contracts.

A Step Closer to Institutional Adoption?

Approval of a spot XRP ETF would mark a significant milestone for institutional adoption of XRP. Such a product would offer investors regulated access to the asset without needing to hold or manage it directly. It would also lend additional credibility to XRP as a financial asset suitable for portfolios and funds focused on diversification and long-term value.

If greenlit, the XRP ETF would join a small but growing list of regulated digital asset investment vehicles in the U.S., potentially paving the way for other altcoin-based ETFs in the future.

Looking Ahead

While the SEC has not provided specific reasons for the delay, the ongoing review process reflects the regulatory body’s cautious stance toward crypto investment products. The crypto industry has long called for clear and consistent guidelines from regulators, and the eventual decision on the XRP ETF could help shape the future landscape of crypto investments in the U.S.

For now, the XRP community, investors, and market analysts will have to remain patient as the SEC continues its evaluation. All eyes are now on the fourth quarter of 2025, with the possibility of a mid-year decision still on the table.

Conclusion

Although the SEC’s delay may cause short-term uncertainty, it is a standard part of the regulatory process. Given past patterns, a final decision on CoinShares’ XRP ETF is likely to come later this year. Approval would represent a major milestone not only for XRP but also for the broader adoption of digital assets within traditional financial markets.