SEC Focuses on Institutional Reforms, Dimming XRP Spot ETF Hopes

With the United States Securities and Exchange Commission (SEC) concentrating on institutional reforms instead of XRP spot ETF approval, investors’ optimism is dwindling.

According to the prediction platform Polymarket, the likelihood of XRP spot ETF approval dropped to just 7% by the end of July, down from 50% in April and 32% at the start of July.

Currently, the SEC is developing guidelines aimed at streamlining the approval process for crypto spot ETFs, as reported by Reuters. However, indications suggest that any approvals may not occur soon.

The SEC’s initial 12-page guidance document, released earlier this month, outlines the disclosure standards required for ETFs. Bitwise CIO Matt Hougan described the guidance as a sign of crypto ETFs integrating into the traditional financial system.

The market is particularly eager for a second directive that has yet to be released. This document is anticipated to introduce new listing standards to replace the existing 19b-4 application process. Ongoing negotiations within the SEC indicate that this second document might be completed in the fall, pushing expectations for new crypto ETF approvals to that timeframe.

In this environment, there were hopes that a Solana (SOL)-based ETF could be the first product approved. The staking-based Solana ETF, launched earlier, was seen as the beginning of a “crypto ETF summer.” However, the SEC’s current stance appears to have weakened these aspirations for now.

> This is not investment advice.