The course United States (US) government shutdown has caused a delay in the approval of several crypto investment products, including XRP ETF. As investors eagerly anticipate institutional exposure to one of the most popular and debated cryptoassets, new insights from market experts shed light on revised timelines, procedural changes, and what could happen once the regulatory backlog is cleared.
XRP ETF Approval Delayed Amid US Government Shutdown
Former Fox Business journalist Eleanor Terrett has provided new updates on the evolving schedule for XRP ETF Approval. In a recent post on social media X, she revealed that Canary Funds has filed an updated S-1 filing for its XRP Spot ETF, removing the dilatory amendment that normally gives the U.S. Securities and Exchange Commission (SEC) control over when such filings take effect.
She also stated that Canary Funds The procedural change effectively sets the stage for a possible automatic launch date of November 13, provided NASDAQ grants approval for the accompanying launch. 8-A presentation. However, the timeline for ETF approval remains uncertain due to the current government shutdown.
If the US federal government reopens soon and the SEC resumes normal operations, Terrett notes that the approval and subsequent launch of XRP ETFs could proceed more quickly. However, they could also face more postponementsdepending on additional reviews by SEC staff.
Terrett mentioned that the current SEC Chairman Paul Atkinshas expressed its support for companies that use the self-effective process to bring new financial products to the market. While Atkins did not directly address ETFs, he praised companies like MapLight for successfully going public during the government shutdown via the legal 20-day waiting mechanism, the same process used by Bitwise and Canary to launch their recent Solana, Hedera and Litecoin ETFs.
He United States Congress He originally designed this approach to keep capital markets active during periods of administrative downtime. Now, it is being leveraged by crypto asset managers looking to launch their XRP ETFs and other crypto ETPs without delays. regulatory delays. In a follow-up discussion, Terrett clarified that the previous October deadlines for XRP ETF approval are now irrelevant because the The SEC’s New Generic Listing Standards have eliminated the need for the old 19b-4 filing process, effectively making the old filing dates obsolete.
Huge Liquidity Surge Expected After XRP ETF Approval
Crypto analyst ‘DigitalG’ at X has added further insight into the potential Market impact of pending approval of ETFs. He revealed that the current US government shutdown has caused a backlog of XRP ETF filings awaiting clearance. Once the SEC reopens and begins processing the backlog, the analyst predict that multiple approvals could occur in quick succession.
He suggested that this rapid approval process could immediately increase institutional access and demand for XRPwhich caused a significant increase in market liquidity. DigitalG also predicted that this sudden influx of institutional participation could catalyze significant price movements. He explained that the expected wave of ETF approvals could provide the perfect context to cover the huge short positions that currently exist in the market.
Featured image from Freepik, chart from Tradingview.com
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