Will the approval of the XRP ETF be delayed? Experts clarify that the October deadline is only a "procedural milestone," and government reboot is key.

The optimistic sentiment in the crypto market towards Spot encryption ETFs for XRP, Solana, Litecoin, etc. may need to cool down. Experts clarify that the upcoming deadline in October is more of a procedural milestone rather than a final deadline for the official launch of the products. According to Greg Xethalis's latest interpretation, in addition to the SEC needing to approve the 19b-4 filing, issuers also need to complete S-1 and Form 8-A sign up. With the U.S. government currently in a shutdown, SEC employees are unable to conduct proactive reviews, and the reopening of the government has become a key prerequisite for advancing the XRP ETF approval. Despite facing procedural obstacles, market optimism remains high, with CoinShares data showing that XRP investment products have achieved net inflows for 18 consecutive weeks, and institutional interest continues to be strong.

Approval process misunderstood: October is not the official start date

The market has long misunderstood the approval timeline for ETFs of altcoins like XRP. In a recent post on X, expert Greg Xethalis clarified the SEC's handling process for spot crypto exchange-traded products (ETPs), including those related to XRP, Solana, and Litecoin.

19b-4 is not the end

Xethalis explained that although the 19b-4 filing (i.e., the exchange rule change application) may technically take effect under the “Generic Listing Standards” (GLS), this does not mean that the product can automatically launch. In addition to the 19b-4 process, the ETF issuer must also complete registration under the Securities Act of 1933 (via S-1 filing) and the Securities Exchange Act of 1934 (via Form 8-A).

These documents typically require proactive review by SEC staff. However, due to the U.S. government shutdown, the SEC has paused the approval process for crypto ETFs.

Government restart is a prerequisite for approval

Xethalis pointed out clearly: “Basically, we are waiting for the government to reopen.” Although in theory, the issuers can remove the delay amendment to activate their filing after 20 days, major exchanges such as NYSE Arca, CBOE BZX, and Nasdaq may still delay their listings until the SEC officially resumes operations.

Therefore, experts urge investors to ignore the October 19b-4 deadline, emphasizing that they are merely procedural milestones rather than the final issuance deadline for the ETF. Once the government reopens, the SEC is expected to prioritize a series of incoming XRP ETF proposals, including applications from companies such as Bitwise, Canary Capital, CoinShares, and WisdomTree, which were originally set for review before October 24. Notably, the SEC recently withdrew the delay notice for several spot encryption ETFs, including Cardano (ADA), XRP, Solana (SOL).

Market Optimism Continues: Strong Institutional Inflows for XRP

Despite facing the U.S. government shutdown and procedural hurdles, some experts remain optimistic about the recent prospects for XRP ETF. Nate Geraci, president of ETF Store, stated that the launch of XRP-related funds is just around the corner. He pointed out that several issuers have submitted revised S-1 filings, which is a key step toward obtaining final approval.

Institutional demand is strong

New filings continue to emerge. On October 7, GraniteShares submitted a filing for a 3x leveraged XRP ETF, aiming to amplify long and short exposure to the asset. Crypto lawyer Bill Morgan believes this move could trigger “panic buying,” as traders anticipate that institutional demand will surge once leveraged products are launched.

According to CoinShares data, institutional interest in XRP remains strong even amid regulatory delays. In the week ending October 13, XRP investment products recorded an inflow of $61.6 million, marking the 18th consecutive week of net growth for the product.

Experts generally expect that once the government resumes operations and the SEC restarts the normal approval process, the XRP ETF is likely to become one of the first approved crypto ETFs.

This is bound to have a positive impact on the XRP price. So, if you wish to buy XRP without submitting identity verification, you can choose an anonymous or KYC-free method. Such transactions are usually completed through decentralized platforms, which offer high flexibility, but one should be careful to ensure the counterpart's credibility and the platform's security.

Conclusion

The approval process for the XRP Spot ETF is currently in a critical waiting period, with macro-political events (the US government shutdown) temporarily hindering regulatory progress. Experts clarified the procedural nature of the October deadline, reminding the market not to overinterpret it. However, institutional interest in XRP has not diminished, with sustained capital inflows indicating strong hedging and speculative demand. Once the government reopens and the SEC resumes review, these “backlogged” XRP ETF applications are likely to become a focal point of market attention. Investors should remain patient and closely monitor the government's reopening and the final approval status of the S-1 filings.

Note: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.