XRP ETF Approvals at Risk Due to U.S. Government Shutdown and Delays

TLDR

• XRP ETF issuers are amending S-1s, preparing for a possible launch delay.
• U.S. government shutdown halts SEC’s review process, delaying XRP ETF approvals.
• Amendments to XRP ETFs signal readiness for approval once the SEC resumes.
• Prolonged government shutdown could push XRP ETF launch to November.

XRP ETF issuers are pressing forward with their plans, even as the ongoing U.S. government shutdown stalls SEC approvals. The filing of amended S-1 registration statements signals that these issuers are preparing for an eventual launch of XRP-spot ETFs. However, the prolonged government shutdown is casting uncertainty on the timeline for approval, potentially delaying the anticipated entry of these funds into the market.

XRP ETF Issuers File Amended S-1s Amid Government Shutdown

Despite the U.S. government shutdown, which has delayed the SEC’s review process, multiple XRP-ETF issuers have filed amended S-1s. These include asset management firms like Grayscale, Bitwise, and Franklin Templeton. The S-1 amendments are a necessary step for these funds to be approved once the SEC resumes full operations. The amendments help ensure the funds are ready for approval as soon as the SEC clears its backlog of filings.

The shutdown has temporarily halted many processes, but the issuers continue to work in anticipation of a resumption of activity. The filing amendments represent a crucial step forward for the XRP-ETF market, as they suggest that issuers are preparing for a possible approval. Notably, some of these funds have even specified tickers, such as Grayscale’s “GXRP” and Franklin Templeton’s “XRPZ,” though others like Bitwise and WisdomTree have not revealed their tickers yet.

Government Shutdown Delays ETF Approval Process

The government shutdown has complicated the timeline for XRP-ETF approvals. The U.S. Securities and Exchange Commission (SEC) has temporarily halted its review of registration statements due to limited resources during the shutdown. With the government shutdown showing no clear end date, the approval process for XRP-ETFs has been delayed indefinitely.

While issuers continue to submit amendments, the lack of SEC activity leaves uncertainty about when the final approval will happen. Market experts had initially hoped for an October launch, but this is now in question. The SEC will need to resume its regular operations to review and approve the registration statements, which could be delayed further if the shutdown extends.

Amendments Signal ETF Launch Imminence

Despite the government shutdown, experts view the filing of amended S-1s as a sign that XRP-spot ETFs are getting closer to launch. Nate Geraci, the President of NovaDius Wealth Management, emphasized that the amendments demonstrate issuers’ preparedness. This suggests that once the SEC resumes its duties, these funds will be among the first to be approved.

The amendments to the registration statements are crucial because they streamline the approval process once the SEC is operational again. Issuers have made the necessary adjustments to ensure that they meet the SEC’s updated guidelines. This could help speed up approval when the agency is back to full capacity.

Uncertainty Surrounds ETF Launch Timing

The continued government shutdown introduces a significant risk to the timing of the XRP-ETF launch. The SEC’s approval process is currently stalled, and many industry stakeholders are awaiting the resumption of operations. If the shutdown persists beyond October 20, further delays are likely, pushing the anticipated launch into November or later.

As of now, there is no clear indication of when the government shutdown will end. This ongoing uncertainty is adding to the challenges XRP-ETF issuers face. While market experts remain optimistic that approval could happen soon after the shutdown ends, there are risks that the delay could push back the timeline further, particularly if the shutdown extends into November.

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