The US Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s application for a spot XRP exchange-traded fund (ETF). A notice filed on Tuesday stated that the agency requires “a longer period” to evaluate the proposal.

SEC Review of Grayscale’s XRP ETF

The SEC acknowledged Grayscale’s application last month, starting a 45-day review period. The agency can extend this process for up to 240 days from the date the proposal was published in the Federal Register. The next deadline falls on May 21, but a final decision may not come until mid-October.

Franklin Templeton Files for Spot XRP ETF

Meanwhile, Franklin Templeton has filed for a spot XRP ETF. The proposed fund aims to track the spot price of XRP, with assets held by Coinbase Custody. Shares would trade on the Cboe BZX Exchange , with creation and redemption handled through cash converted to XRP via a third party. Shareholders would not receive XRP Ledger forks or airdrops.

The SEC has up to 240 days to review Franklin Templeton’s application. The firm joins Bitwise, 21Shares, Canary Capital, WisdomTree, and CoinShares in seeking approval for an XRP ETF. These filings reflect a broader trend of major financial firms entering the crypto ETF market.

XRP ETF Demand Follows Bitcoin ETF Success

The interest follows the success of spot Bitcoin ETFs. These funds have seen rapid adoption and now manage nearly $100 billion in assets. Ripple Labs CEO Brad Garlinghouse has previously stated that an XRP ETF approval in the U.S. is “inevitable,” citing demand from institutional and retail investors.

However, the uncertainty surrounding regulatory approval has coincided with market activity. XRPUSD is currently hovering around a key confluence level on the intraday charts, with the potential to generate strong momentum in either direction. Traders are watching for a breakout as speculation around the ETF decision continues.