XRP investors hoping for a near-term exchange traded fund launch will have to wait longer, as the U.S. Securities and Exchange Commission (SEC) pauses all crypto ETF approvals amid the ongoing government shutdown.

Key Takeaways

  • XRP ETF approval is delayed because October 19b-4 filings are procedural steps, not actual launch dates.
  • The SEC’s review process is on hold due to the U.S. government shutdown, affecting XRP and other crypto ETF proposals.
  • Legal and crypto market experts emphasize that additional filings like S-1 and 8-A are still required for ETF approval.
  • Despite delays, institutional interest remains high, with $61.6 million in XRP inflows reported in a single week.

What Happened?

The anticipated launch of XRP exchange traded funds has been pushed back due to regulatory delays stemming from the U.S. government shutdown. Legal experts clarified that the October 19b-4 filings are not actual launch dates, but rather procedural milestones. The SEC must still review additional documentation, which has been postponed until the agency resumes operations.

Regulatory Delays Stall XRP ETF Launch

The core issue affecting the XRP ETF rollout is the current U.S. government shutdown, which has effectively frozen the SEC’s review of all crypto ETFs. Legal expert Greg Xethalis explained that the 19b-4 filings made in October are procedural under Generic Listing Standards (GLS) and do not mean the ETFs are ready to launch.

ETF issuers must also file under:

  • Securities Act of 1933 (via S-1 filings)
  • Securities Exchange Act of 1934 (via Form 8-A)

These documents require active review by SEC staff, which is currently on hold. Without SEC input, exchanges like NYSE Arca, CBOE BZX, and Nasdaq are expected to delay ETF listings until the agency resumes operations.

As Xethalis put it, “We’re basically just waiting for the government to reopen.”

Misunderstanding Around 19b-4 Deadlines

Many investors incorrectly assumed the October 19b-4 deadlines were final approval dates. Xethalis clarified via social media that these dates do not signal imminent launches. Instead, they are procedural waypoints, and real progress cannot occur until the SEC returns to full function.

The SEC also recently rescinded delay notices affecting other spot crypto ETFs linked to Cardano (ADA), Solana (SOL), and XRP, suggesting that reviews may restart quickly once the government is operational again.

XRP ETF Applications Stack Up

When the government reopens, the SEC will be faced with a packed calendar. ETF proposals under review include applications from:

  • Bitwise
  • CoinShares
  • Canary Capital
  • WisdomTree

These are scheduled for review through October 24, though progress will likely be pushed back given the current delays.

Meanwhile, GraniteShares filed on October 7 for a 3x leveraged XRP ETF, aiming to amplify long and short exposure. Experts believe this could spark a surge in institutional interest once approved.

Strong Institutional Interest Persists

Despite the regulatory holdup, institutional demand for XRP remains strong. According to CoinShares, XRP investment products saw $61.6 million in net inflows for the week ending October 13. This marks the 18th consecutive week of positive inflows, reflecting growing confidence in XRP’s long-term viability.

ETF Store President Nate Geraci remains optimistic, saying that XRP-linked fund launches are “just around the corner,” citing amended S-1 filings as a key step toward final approval.

CoinLaw’s Takeaway

In my experience tracking crypto regulatory cycles, these types of delays are frustrating but not unusual. What really stood out here is how many investors misunderstood the nature of the 19b-4 filings. I found Greg Xethalis’ breakdown especially helpful because it cuts through the hype and sets realistic expectations. Yes, the government shutdown is annoying, but the strong inflows into XRP tell me one thing that big players are still positioning for when the gates finally open. When the SEC gets back online, XRP ETFs could be among the first to move. I’d keep a close eye.

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Kelvin Scott

Kelvin Scott

Finance News Analyst


Kelvin Scott, with over 8 years of experience, covers the latest trends in digital assets, financial markets, and regulatory developments. With a strong focus on accuracy and clarity, he delivers timely updates to help readers navigate the fast-changing world of crypto and finance. An avid football fan, he never misses a chance to watch a good match, whether it’s Premier League drama or a local game.
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