- SEC delays Franklin XRP ETF decision to June 17, extending its regulatory review window.
- Franklin’s XRP Fund aims to offer direct exposure with daily NAVs and verified market pricing.
- No public objections were filed, suggesting limited resistance to the ETF’s proposed structure.
The U.S. Securities and Exchange Commission has delayed its decision on the Franklin Templeton XRP ETF. This move grants regulators more time to examine the proposed structure and compliance under BZX rules. It follows increasing pressure on U.S. regulators to respond to rising institutional demand for crypto products.
XRP ETF Decision Postponed Amid Regulatory Review
The SEC extended its review deadline for the Franklin XRP ETF to June 17, 2025, from an original May 3 date. In a report on X by Eleanor Terrett, the delay was confirmed with a direct link to the official SEC release notice. The fund aims to list under BZX Rule 14.11(e)(4), which governs Commodity-Based Trust Shares on the exchange.
Franklin Templeton’s proposed product would offer regulated exposure to XRP, a blockchain-based digital asset. The proposal was submitted through Cboe BZX and formally published in the Federal Register on March 19. The regulatory path mirrors processes followed by prior crypto-based ETF applications submitted to the SEC.
Such shifts are prompting firms to recalibrate strategies around timing and ETF structure approval pathways. Investor focus now rests on how the SEC interprets risk exposure linked to blockchain-linked investment products. No public feedback was recorded, according to SEC records reviewed in the April 29 procedural extension.
SECGOV Extends Timeline to Evaluate Fund Structure
In the official announcement, SECGOV moved to extend its decision timeline to allow deeper analysis. The Franklin XRP Fund is designed as a Commodity-Based Trust Share offering direct exposure to XRP’s value. It would publish daily indicative NAVs, with price data sourced from verified market trading venues.
Custody responsibilities will lie with a provider approved under U.S. compliance and asset safeguarding rules. Disclosures will include asset holdings, price fluctuations, and liquidity thresholds monitored in real-time. Daily pricing benchmarks and rule-governed transparency will be required under BZX’s regulatory framework.
These findings create new opportunities for institutional investors exploring SEC-compliant digital asset exposure. Market observers are watching to see if XRP’s legal history influences approval timelines or fund structure terms. If approved, this ETF would mark a key development in bringing XRP into mainstream financial instruments.
Absence of Comments and What Comes Next
No comment letters were received during the public notice period that ended ahead of the May 3 deadline. This lack of feedback may reflect limited resistance or stakeholder alignment with the proposal’s ETF design. The Commission’s internal review continues as industry participants await final SEC direction by June 17.
Broader market forces are now shaping investor behavior across crypto-linked ETFs under regulatory review. Each SEC decision creates a new precedent that could affect future filings involving similar blockchain assets. The Franklin XRP Fund’s fate will hinge on whether it satisfies disclosure, custody, and price integrity standards.
