XRP ETF Hopes Diminish as SEC Delays Review; Bitcoin Stays Above $94K
By Bob Mason | Published: April 30, 2025, 01:30 GMT
In a significant development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has announced a 45-day delay in its review of the Franklin XRP Fund. This news comes just ahead of the previously scheduled May 1 deadline, dampening short-term sentiment around XRP-spot exchange-traded funds (ETFs). Meanwhile, Bitcoin (BTC) remains resilient, hovering just above the $94,000 mark amid rising recession fears in the United States.
SEC Delays Franklin XRP Fund Review
The SEC’s delay concerning the Franklin XRP Fund marks a setback for proponents of XRP-spot ETFs, which are considered essential for bolstering demand for the digital asset. James Seyffart, a Bloomberg Intelligence analyst, predicted that this decision was anticipated within the market, citing upcoming deadlines as late as October 2025 for many of these reviews.
This announcement follows news earlier in the week that ProShares has decided not to launch its XRP Futures ETFs on the previously anticipated date of April 30, further contributing to the clouded outlook for XRP’s regulatory landscape.
The Importance of XRP-Spot ETF Approvals
Currently, applications for XRP-spot ETFs have been filed by firms including 21Shares, Bitwise, Canary Funds, Franklin Templeton, Grayscale, and WisdomTree. However, notable absentees like BlackRock continue to raise eyebrows. Following a misleading filing attributed to BlackRock last November that triggered a market pump-and-dump of XRP, investors are wary of how the ongoing SEC litigation with Ripple impacts potential applications.
Anticipation is growing for a SEC filing that could ease restrictions on XRP sales to institutional investors and potentially reduce Ripple’s financial penalties. If successful, this move may pave the way for a resolution beneficial to both Ripple and the knee-jerk reaction that has characterized the XRP markets.
Despite the regulatory hurdles, the sentiment remains cautiously optimistic. A recent survey by crypto-betting platform Polymarket indicates that there is a 78% chance of a U.S. XRP-spot ETF approval by December 2025, even though this is a decrease from 87% just a few weeks prior.
Market Reaction and XRP Price Movement
In response to the latest news, XRP saw a decrease of 2.43%, closing at $2.2393 on April 29, reversing a previous day’s gain. This downturn mirrors broader market dynamics, where the total cryptocurrency market cap has fallen to approximately $2.91 trillion.
Analysts suggest that the upcoming weeks will be pivotal for XRP, with key drivers including updates on the Ripple-SEC settlement, news related to XRP-spot ETFs, and overall market conditions influenced by Federal Reserve policy and U.S.-China trade relations. XRP currently has immediate support at $2.10, while a breakthrough above $2.50 could signal a rally toward its all-time high of $3.5505. ### Bitcoin Holds Steady Amid Economic Concerns
Amidst XRP’s fluctuations, Bitcoin remains relatively stable. After a slight dip below $94,000, BTC closed at $94,342. This decline coincides with growing fears of a U.S. recession, highlighted by a drop in consumer confidence and job openings, according to recent economic data. Polymarket has noted that perceptions of a recession in 2025 have risen significantly, highlighting increased worry in the market.
Despite the economic backdrop, Bitcoin-spot ETF inflows continue to thrive, with significant net inflows reported in April, amounting to $591.2 million for leading issuers like BlackRock’s iShares Bitcoin Trust. However, some ETF players experienced outflows, illustrating the nuanced movements within the Bitcoin market.
Outlook and Future Developments
The near-term outlook for both XRP and Bitcoin will likely hinge on macroeconomic factors and updates from regulatory bodies. For BTC, recent proposals such as the reintroduction of the Bitcoin Act by Senator Cynthia Lummis, which suggests government acquisition of Bitcoin, could serve as a catalyst for further market interest.
As both XRP and Bitcoin navigate their respective challenges and opportunities, market participants will be closely monitoring legal developments, economic trends, and potential legislative changes that could significantly impact the future of cryptocurrencies.
For ongoing updates and detailed analysis of market conditions, stay tuned as we continue to follow these dynamic developments in the cryptocurrency space.
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