Ripple investors left in limbo as SEC postpones XRP ETF verdict. The U.S. Securities and Exchange Commission (SEC) has delayed its much-anticipated decision on the 21Shares XRP ETF proposal. The delay comes as XRP trades just above its critical support level of $2.35, raising questions about whether bullish momentum can hold in the face of growing regulatory uncertainty.
The application by 21Shares and Ark Invest, seeking to list an XRP exchange-traded fund on the Cboe BZX Exchange, was expected to trigger a wave of institutional inflows if approved. But with the SEC pushing its decision to later in 2025, markets are once again trapped in a “wait and see” cycle.
XRP Price Reaction: Support Holds, But Momentum Wanes
As of May 21, 2025, XRP is trading at $2.38, marking a 2.1% daily drop. The price is hovering precariously above the $2.35 support level, which has acted as a floor since early May.
Technical Analysis Highlights:
RSI (Relative Strength Index): Dropping below 50, indicating a shift toward bearish territory.
20-day EMA: XRP is now testing this moving average, often a tipping point between short-term uptrends and downtrends.
Volume: Declining daily volume suggests a lack of conviction among buyers.
If XRP breaks below $2.35, the next key support lies at $2.10, a zone where whales previously accumulated during Q1.
SEC’s Delay and Its Ripple Effect (Literally)
This isn’t the first time the SEC has delayed an XRP ETF. However, the 21Shares proposal has gained special attention due to Ripple’s partial legal victory over the SEC in 2023 and increasing pressure for ETF approvals following Bitcoin and Ethereum product greenlights.
“The delay is disappointing but not surprising,” said legal analyst Eleanor Terrett. “Given the political pressure post-Bitcoin ETF approval, the SEC is carefully calibrating its next move, and XRP is still a regulatory wildcard.”
Ripple Labs CEO Brad Garlinghouse previously hinted that XRP is “inevitable” for ETF treatment, citing growing institutional demand and favorable court rulings. But the SEC’s hesitance shows the battle isn’t over yet.
Institutional Interest Still Growing Behind the Scenes
Despite the regulatory holdup, data from Santiment and Whale Alert reveal a rise in large XRP transactions. In the past week:
Over 310 million XRP were moved from exchanges to cold wallets.
Whale wallets holding 10M+ XRP grew by 4%, suggesting accumulation.
Institutional desks may be buying the dip in anticipation of a favorable ETF outcome later this year.
The Road Ahead: Will XRP ETF See Approval in 2025?
The next deadline for the SEC to make a ruling on the 21Shares XRP ETF is projected for late Q3 2025. Analysts believe the SEC might:
Request public comments to further delay the process.
Coordinate with Congress on crypto classification frameworks.
Approve conditionally, depending on market surveillance mechanisms.
For now, investors are left speculating, but the ETF narrative remains a bullish catalyst for XRP’s long-term outlook.
“An ETF approval would validate XRP as a compliant, institutional-grade asset,” said crypto analyst Scott Melker. “Until then, expect range-bound volatility.”
XRP Price Table
| Date | XRP Price | 24h Change | Volume (24h) | Trend |
|---|---|---|---|---|
| May 15 | $2.51 | +1.8% | $3.2 Billion | Bullish |
| May 18 | $2.42 | -1.6% | $2.7 Billion | Sideways |
| May 20 | $2.39 | -0.9% | $2.4 Billion | Weakening |
| May 21 | $2.38 | -2.1% | $2.1 Billion | Bearish |
Conclusion: XRP Caught in ETF Crossfire, But Long-Term Trend Intact
The SEC’s latest delay has introduced another round of uncertainty, putting short-term pressure on XRP ETF. However, the broader fundamentals remain bullish:
Legal clarity is improving.
Institutional interest is quietly building.
ETF potential could unlock major capital inflows.
Unless XRP decisively loses its $2.35 support, long-term investors may view this moment as a consolidation phase before the next leg up.
FAQs
What is the 21Shares XRP ETF?
It’s a proposed exchange-traded fund by 21Shares aiming to offer direct exposure to XRP through traditional financial markets.
Why did the SEC delay the ETF decision?
The SEC cited the need for additional review and potential market impact. It is likely taking extra caution due to XRP’s legal history.
Will the ETF eventually be approved?
Experts are cautiously optimistic, especially following Ripple’s legal win. Approval may depend on evolving crypto regulations.
What happens if XRP breaks below $2.35?
A breakdown could lead to further downside toward $2.10, unless whale support or ETF optimism returns swiftly.
Glossary
ETF (Exchange-Traded Fund): A tradable investment product tracking the price of an asset like XRP.
Support Level: A price point where demand is expected to prevent further decline.
Whales: Investors or entities holding large quantities of a cryptocurrency.
RSI: A technical indicator measuring price momentum.
Sources:
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