SEC Rule Shift Sparks XRP ETF Hopes as October 2025 Deadline Nears
The US Securities and Exchange Commission (SEC) has approved a major policy change that allows in-kind creation...
Quick overview
- The SEC has approved a policy change allowing in-kind creation and redemption for crypto exchange-traded products (ETPs), enabling exchanges to trade ETF shares for underlying crypto assets.
- This shift could accelerate the approval process for pending XRP ETF applications, with major asset managers like Fidelity and Franklin Templeton poised for potential approvals.
- Legal analysts suggest the SEC's language indicates a faster approval timeline, with forecasts predicting an XRP ETF could be approved by early fall 2025.
- Canada has already launched three XRP spot ETFs, highlighting regulatory divergence and increasing pressure on US regulators to act.
The US Securities and Exchange Commission (SEC) has approved a major policy change that allows in-kind creation and redemption for crypto exchange-traded products (ETPs). This means authorized participants can now exchange ETF shares for underlying crypto assets – not cash – a big shift from the previous cash only model.
Crypto lawyer Bill Morgan sees this as a turning point that could unlock the long stalled XRP ETF applications. By streamlining operations and reducing transaction costs this removes one of the last technical hurdles for altcoin ETFs. Market makers can now settle in crypto directly, something that’s already the case for commodity ETFs like gold and oil.
Legal analysts also point to the SEC’s use of the term “order granting accelerated approval” as a signal they may fast track pending filings. Bloomberg ETF strategists Eric Balchunas and James Seyffart say this could be a tone change and sets the stage for an XRP ETF approval by early fall.
Key Players Signal XRP ETF Momentum
The SEC’s policy change has emboldened several major asset managers with pending XRP ETF filings. Fidelity, Franklin Templeton and Bitwise are among the firms waiting for approval and the new regulatory framework increases the likelihood decisions will come sooner rather than later.
According to Bloomberg forecasts the probability of an XRP ETF being approved by October 17, 2025 the final deadline is growing. Legal and market signals suggest the SEC may act before that.
ETF Developments at a Glance:
- US XRP ETF deadline: October 17, 2025
- Bloomberg expects approvals by early fall 2025
- SEC language signals faster approvals
- Key asset managers in queue: Fidelity, Bitwise, Franklin Templeton
This could have wider implications beyond XRP, potentially opening the door for ETFs on other altcoins under similar frameworks.
Canada Leads with XRP ETF Launch
While the US regulatory process moves forward Canada has already acted. In June 2025 three XRP spot ETFs launched on the Toronto Stock Exchange under the tickers XRPQ, XRPP and XRP. These ETFs give traditional investors direct exposure to XRP and could be a test case for US regulators to assess risk and investor demand.
This shows how regulatory divergence can drive adoption outside the US and pressure the US agencies to follow. As the legal and infrastructure landscape improves XRP ETF approval in the US looks more likely.
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