Investor Uncertainty Grows as XRP Loses $16B in Market Value Amid ETF Delay

XRP’s market performance has taken a hit, shedding over $16 billion in value over the past week as regulatory indecision continues to cloud its outlook.

The setback follows the U.S. Securities and Exchange Commission’s latest move to extend its review of a proposed spot XRP exchange-traded fund.

The 21Shares Core XRP Trust—designed to track the CME CF XRP-Dollar Reference Rate and leverage Coinbase Custody for storage—is now facing a longer regulatory review process. The SEC announced on May 20 that it would need additional time to assess whether the product meets anti-fraud and investor protection standards under the Exchange Act.

This pause has shaken investor sentiment. XRP’s market cap, which stood above $153 billion last week, has now dropped to $137.45 billion—a steep decline accompanied by a 10% dip in token price to $2.34.

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According to Bloomberg’s ETF analyst James Seyffart, the delay isn’t surprising. He noted that the SEC commonly uses the full 240-day window to review ETF filings under the 19b-4 process. As a result, meaningful progress on approvals is unlikely before Q4 2025.

Still, market watchers are eyeing June 17, when the agency is scheduled to issue a decision on Franklin Templeton’s separate spot XRP ETF proposal. Hopes remain high; on platforms like Polymarket, the odds of an XRP ETF being approved this year have jumped to 83%.

In the background, Ripple’s ongoing legal battle with the SEC remains unresolved, further complicating the regulatory picture around XRP. While both sides continue negotiations, procedural delays have extended the timeline for clarity.

Whether ETF approval materializes or not, the market has already responded—highlighting just how sensitive XRP remains to regulatory developments.

Alexander Stefanov