SEC to decide on Franklin Templeton's XRP spot ETF by June 2025

In the United States, the first spot Bitcoin and Ether exchange-traded funds (ETFs) were approved on January 10, 2024, leading to a surge in trading volume as mainstream investors sought cryptocurrency exposure through existing brokerage accounts. Following this momentum, Franklin Templeton has proposed an XRP spot ETF, which is currently under review by the Securities and Exchange Commission (SEC). The SEC is expected to make a decision by June 17, 2025. The concept of a spot ETF involves holding the underlying asset, in this case, XRP, rather than utilizing futures or derivatives. This proposed fund aims to function similarly to existing cryptocurrency ETFs, aiming to provide investors with a more straightforward way to invest in XRP. The proposed management fees for the XRP spot ETF are expected to be competitive, potentially falling under the current sub-20-basis-point fees seen in Bitcoin ETFs. Despite a favorable court ruling in March 2025 that determined XRP sold on public exchanges is not a security, regulatory hurdles remain. The SEC must assess whether the XRP spot market possesses sufficient depth and ensure that exchange platforms agree to surveillance-sharing provisions to mitigate risks of market manipulation. These conditions reflect the continued scrutiny of cryptocurrency assets by regulatory bodies, aiming to protect investors while fostering a more stable market environment. Furthermore, there are concerns regarding the potential risks associated with an XRP spot ETF, which include broader legal, operational, and macroeconomic uncertainties. The dynamics surrounding the XRP market have been significantly influenced by previous legal actions and rulings, indicating that the regulatory landscape plays a crucial role in shaping the future of such investment vehicles. As anticipation grows, the outlook for an XRP spot ETF could have substantial effects on XRP’s price and global adoption if approved by U.S. regulators.