SEC Policy Shift Could Accelerate XRP ETF Approvals in 2025

• The SEC now allows crypto ETFs to use actual cryptocurrency for creation and redemption instead of cash settlements, which removes a major barrier for XRP ETF approvals.

• Bloomberg experts spotted language in recent SEC filings that suggests faster decision-making, and multiple major firms like Fidelity and Bitwise are waiting for approval by October 17, 2025.

• Canada already launched three XRP ETFs in June 2025, setting a precedent that could influence U.S. regulators to approve similar products.

The Securities and Exchange Commission’s recent approval of in-kind creation and redemption for crypto exchange-traded products has sparked optimism among legal experts regarding pending XRP ETF applications.

Crypto lawyer Bill Morgan believes this regulatory change removes a significant barrier stalling XRP ETF filings. The new policy allows authorized participants to create and redeem ETF shares directly using underlying cryptocurrency assets instead of cash settlements.

Market makers can now handle redemptions with actual cryptocurrency, reducing operational costs and streamlining trading processes. Industry analysts view this development as the final major obstacle before altcoin ETFs receive regulatory approval.

Bloomberg Experts Signal Faster SEC Decision Timeline

Bloomberg ETF specialists Eric Balchunas and James Seyffart highlighted key language in recent SEC filings that suggests accelerated approval processes. Balchunas identified the phrase “order granting accelerated approval” as evidence of faster decision-making at the regulatory agency.

Seyffart noted that altcoin ETFs could receive approval sooner with integrated in-kind settlement mechanisms. The final SEC decision deadline for current U.S. XRP ETF filings remains October 17, 2025.

Several major asset management firms await regulatory decisions on their XRP ETF applications. Fidelity, Franklin Templeton, and Bitwise have submitted filings but continue waiting for SEC approval.

Regulatory Alignment with Traditional Commodity ETFs

The SEC’s official statement explains that this policy update aligns Bitcoin and Ethereum ETPs with existing commodity-backed products like gold ETFs. The change aims to reduce trading friction while cutting operational expenses for market participants.

Jamie Selway, Director of the SEC’s Division of Trading and Markets, stated the move provides greater flexibility for issuers and market makers. SEC Chairman Paul S. Atkins emphasized that the policy reflects the agency’s commitment to creating transparent regulatory frameworks for cryptocurrency markets.

Bloomberg analysts previously assigned relatively high probability ratings for XRP ETF approval in 2025. The recent regulatory developments strengthen these forecasts significantly.

Canada established a precedent in June 2025 by launching three spot XRP ETFs on the Toronto Stock Exchange. The funds trade under tickers XRPQ, XRPP, and XRP, providing traditional investors with regulated XRP exposure.

This Canadian approval could influence U.S. regulatory decisions as North American markets often coordinate on cryptocurrency policy. The successful launch demonstrates institutional demand for XRP investment products among traditional portfolio managers.