The long-awaited race to bring a spot XRP Exchange-Traded Fund (ETF) to U.S. markets has entered an exciting new phase. Two major players—21Shares and Franklin Templeton—have formally updated their filings with the U.S. Securities and Exchange Commission (SEC), setting off what many in the cryptocurrency community are calling a potential 20-day countdown to approval.
If successful, this development could mark a watershed moment not only for XRP, the digital asset associated with Ripple Labs, but also for the broader crypto ETF landscape that has so far been dominated by Bitcoin and Ethereum. The filings, which remove key delaying clauses, indicate growing confidence among institutional players that a U.S.-listed spot XRP ETF could soon become reality.
1. The XRP ETF Journey Reaches a Crucial Stage
For years, the idea of an XRP-based ETF has been discussed but never realized, largely due to regulatory uncertainty surrounding Ripple’s ongoing legal battles with the SEC. Now, with clearer legal outcomes and a shifting regulatory tone, that vision may finally be within reach.
The recent move by 21Shares and Franklin Templeton, two well-established investment management firms, signals strong institutional interest. Their decision to amend their S-1 filings with the SEC suggests that they are ready to advance to the next stage of the approval process.
These amendments are particularly noteworthy because they remove or modify the “delaying amendment” clause—a standard provision that allows issuers to postpone a registration statement indefinitely. By removing it, the firms have effectively started a 20-day automatic countdown under Section 8(a) of the U.S. Securities Act.
Unless the SEC intervenes within that window, the registration statements could automatically become effective, potentially paving the way for the first-ever U.S. spot XRP ETF.
2. What Makes This Different from Past Filings
This latest development stands out for several reasons. Unlike previous filings for crypto-based ETFs, which often languished in regulatory limbo, these amendments appear to be timed strategically.
The SEC’s recent approval of multiple spot Bitcoin ETFs has set a new precedent. After years of resistance, the regulator’s decision in early 2024 to greenlight Bitcoin-based ETFs opened the door to other digital assets receiving similar treatment.
For XRP, the path is somewhat unique. Unlike Bitcoin, XRP was once caught in the crossfire of a high-profile SEC lawsuit that questioned whether it should be classified as a security. That case has since seen major progress in Ripple’s favor, with courts clarifying that secondary XRP sales on exchanges do not constitute securities transactions.
This ruling has given institutional investors new confidence that XRP can be included in regulated financial products such as ETFs—an outcome that seemed unlikely just a year ago.
3. How the 20-Day Countdown Works
The “20-day countdown” has become the most talked-about phrase in the crypto world this week. Under Section 8(a) of the Securities Act of 1933, a registration statement becomes automatically effective 20 days after filing unless the SEC acts to delay or reject it.
By submitting their amended filings without a delaying clause, 21Shares and Franklin Templeton have effectively started that timer.
In simple terms, if the SEC does not intervene during that period, the ETFs could automatically gain approval and move toward listing on major exchanges. Of course, this doesn’t mean a launch is guaranteed—regulators still have the authority to pause the process if they raise new concerns or request revisions.
Still, the move reflects growing confidence among issuers that the SEC may be ready to consider XRP-based ETFs, especially given the regulatory momentum building across the crypto asset space.
4. Why an XRP ETF Matters
An approved spot XRP ETF would represent more than just another product launch—it would symbolize a major leap in mainstream crypto adoption.
Until now, only Bitcoin and Ethereum have been seen as “ETF-ready” digital assets in the U.S. market. The addition of XRP to that short list would not only validate its standing as a legitimate, non-security digital asset but also give investors a regulated way to gain exposure without dealing directly with crypto exchanges.
For traditional investors, ETFs offer several advantages:
- Ease of access through traditional brokerage accounts.
- Regulatory oversight, which increases confidence.
- Liquidity and price discovery via major exchanges.
For XRP, this could translate into stronger institutional demand and greater price stability over time. The crypto market tends to react positively when new investment vehicles open the door for pension funds, asset managers, and retail investors to participate.
Moreover, the XRP network itself has evolved into a critical part of the global payments infrastructure, with Ripple focusing on cross-border transactions, banking partnerships, and tokenized asset settlement. A spot ETF would amplify that narrative and potentially attract new institutional partnerships.
5. Institutional Competition Heats Up
The XRP ETF filing is also part of a larger race among asset managers to capture the next wave of institutional crypto investment. After the success of spot Bitcoin ETFs earlier this year—which saw billions of dollars in inflows during their first weeks—many firms are eager to expand their offerings.
Besides 21Shares and Franklin Templeton, several other major names are rumored to be exploring XRP or Solana-based ETFs. Each firm is positioning itself to be first to market, knowing that early movers often attract the lion’s share of investor interest.
This surge of competition also underscores a broader trend: traditional finance (TradFi) and digital assets are converging faster than ever before. The once-clear boundary between crypto natives and Wall Street institutions is blurring, as major firms compete to provide regulated access to blockchain-based assets.
6. The SEC’s Role: Approval or Intervention?
While optimism is high, the path forward is far from certain. The SEC still has full authority to delay, deny, or request amendments to the filings before the automatic approval window closes.
Historically, the Commission has been cautious about approving ETFs tied to digital assets beyond Bitcoin. Its main concerns typically revolve around market manipulation, liquidity, and custodial safety.
However, the landscape is evolving. The SEC’s acceptance of spot Bitcoin ETFs earlier this year shows that regulators may now be more open to digital-asset products—provided that issuers can demonstrate robust surveillance-sharing agreements and transparent custody arrangements.
For XRP, custodianship will be a key point of scrutiny. How the ETFs plan to store and secure XRP holdings—whether through regulated entities like Coinbase Custody or specialized crypto custodians—could determine the SEC’s comfort level with approval.
7. Broader Implications for Crypto Markets
The possibility of an XRP ETF approval is not just about one token—it represents the next chapter in the financialization of crypto.
If successful, it could:
- Trigger a price rally in XRP as institutional investors gain easier access.
- Strengthen XRP’s legitimacy as a global payment asset.
- Encourage similar filings for other altcoins such as Solana, Cardano, or Avalanche.
- Broaden the crypto ETF ecosystem beyond just Bitcoin and Ethereum.
Analysts predict that a spot XRP ETF could see significant initial inflows, particularly from investors seeking diversification within the crypto space. Even conservative exposure—such as 1–2% of institutional portfolios—could inject billions in liquidity.
8. The Countdown Begins
With the amended filings now submitted, the 20-day clock is ticking. Market participants are closely watching the SEC’s response, social media buzz is growing, and speculation about the ETF’s potential launch date is already circulating.
If approved, the XRP ETF would be a major win for both Ripple and the broader crypto community—signaling a clear shift toward regulatory normalization in the United States.
But even if the SEC intervenes to delay or request further amendments, the fact that such filings are advancing this far shows undeniable progress. The crypto ETF race has officially expanded beyond Bitcoin, and XRP is leading the charge into the next era of digital-asset investing.
Conclusion
The submission of amended filings by 21Shares and Franklin Templeton marks a turning point in the long pursuit of a U.S. spot XRP ETF. The countdown has begun, and the next few weeks could reshape how institutional investors engage with one of crypto’s most established assets.
While the SEC’s final decision remains uncertain, one thing is clear: the push for crypto integration into traditional finance is accelerating—and XRP is poised to play a defining role in that evolution.
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