SEC Policy Shift May Accelerate XRP ETF Approval Before October 2025
The US SEC’s recent approval of in-kind creation and redemption for crypto exchange-traded products (ETPs)
Quick overview
- The SEC's approval of in-kind creation and redemption for crypto ETPs boosts hopes for XRP ETFs by allowing direct exchanges of ETF shares for crypto assets.
- This policy change enhances operational efficiency, reduces costs, and minimizes intermediaries for ETF issuers.
- Experts anticipate that the new regulations could expedite pending ETF applications, with a potential decision date for XRP ETFs set for October 17, 2025.
- The SEC's evolving stance on crypto investments aligns them more closely with traditional commodities, paving the way for increased altcoin ETF approvals.
The US SEC’s recent approval of in-kind creation and redemption for crypto exchange-traded products (ETPs) is giving new life to XRP ETF hopes. According to crypto lawyer Bill Morgan, the policy change removes the last hurdle for altcoin ETFs—allowing authorized participants to exchange ETF shares for crypto assets directly, not cash.
This technical change means operational efficiency, lower costs and less intermediaries. Experts believe it could speed up pending ETF applications, including XRP ones.
Morgan said this is the SEC’s evolving view of crypto-based investment products. Supporting this, Bloomberg’s Eric Balchunas and James Seyffart pointed to recent SEC language such as “order granting accelerated approval”—a phrase usually associated with faster processing times.
ETF issuers and market watchers now see October 17, 2025 as the final decision date for many XRP ETFs as a potential approval date.
Why This Matters
The SEC said its new policy brings Bitcoin and Ethereum ETFs in line with long-standing commodity ETFs like those backed by gold. The goal is to reduce market friction and modernize ETFs.
Jamie Selway, Director of the SEC’s Division of Trading and Markets, said this gives more flexibility to ETF issuers and market participants. SEC Chairman Paul S. Atkins added this is part of a broader effort to create transparent and functional rules for digital assets.
Key points:
- Allows crypto-based redemptions (not just cash)
- Reduces ETF operational costs and inefficiencies
- Signals growing regulatory maturity for digital asset markets
This is a big deal as the SEC is starting to treat crypto assets like traditional commodities, paving the way for more altcoin ETF approvals.
XRP ETFs in the US are Lagging Behind Canada
While the US has not approved an XRP ETF, Canada is already ahead. In June 2025, the Toronto Stock Exchange launched three spot XRP ETFs under the tickers XRPQ, XRPP and XRP. These funds give institutional and retail investors access to XRP through regulated markets.
In the US, asset managers like Fidelity, Franklin Templeton and Bitwise have filed, but all are pending.Until then, US investors wait. But with the pace picking up and hurdles being cleared, XRP ETFs could get approved by Q4 2025 and get XRP one step closer to being mainstream.
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