The ongoing United States (US) government shutdown has caused a delay in the approval of several crypto investment products, including the XRP ETFs. As investors eagerly anticipate institutional exposure to one of the most popular and debated crypto assets, new insights from market insiders shed light on revised timelines, procedural shifts, and what could happen once the regulatory delay is cleared.
XRP ETF Approval Delayed Amid US Government Shutdown
Former Fox Business Journalist Eleanor Terrett has provided fresh updates on the evolving timeline for XRP ETFs approval. In a recent post on X social media, she revealed that Canary Funds has filed an updated S-1 registration for its XRP Spot ETF, removing the delaying amendment that typically gives the US Securities and Exchange Commission (SEC) control over when such filings take effect.
She also stated that Canary Funds’ procedural change effectively sets the stage for a potential automatic launch date of November 13, provided that NASDAQ grants approval for the accompanying 8-A filing. Nevertheless, the timeline for the ETF approvals remains uncertain due to the ongoing 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 further postponements, depending on additional reviews by SEC staff.
Terrett mentioned that the current SEC Chair, Paul Atkins, has signaled support for companies using the auto-effective process to bring new financial products to the market. While Atkins did not directly address ETFs, he praised firms such as MapLight for successfully going public during the government shutdown through the statutory 20-day waiting mechanism—the same process used by Bitwise and Canary to launch their recent Solana, Hedera, and Litecoin ETFs.
The US Congress originally designed this approach to keep capital markets active during periods of administrative downtime. Now, it is being leveraged by crypto asset managers seeking to launch their XRP ETFs and other crypto ETPs without prolonged regulatory delays. In a follow-up discussion, Terrett clarified that previous October deadlines for XRP ETF approval are now irrelevant because the SEC’s new generic listing standards have eliminated the need for the older 19b-4 filing process, effectively rendering earlier submission dates obsolete.
Major Liquidity Surge Expected After XRP ETF Approval
Crypto analyst ‘DigitalG’ on X has added further perspective on the potential market impact of the pending approval of the ETFs. He revealed that the ongoing US government shutdown has led to a backlog of XRP ETF filings awaiting clearance. Once the SEC reopens and begins processing the backlog, the analyst predicts that multiple approvals could occur in quick succession.
He suggested that this rapid approval process could immediately increase institutional access and demand for XRP, triggering a major surge in market liquidity. DigitalG also forecasted that this sudden influx of institutional participation could catalyze significant price movements. He explained that the expected wave of ETF approvals might provide the perfect backdrop for covering massive short positions currently in the market.
Featured image from Freepik, chart from Tradingview.com
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