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The ongoing United States (US) government shutdown has caused delays in the approval of several crypto investment products, including the highly anticipated XRP ETFs. As investors eagerly await 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 potential outcomes once the regulatory delay is resolved.
## XRP ETF Approval Delayed Amid US Government Shutdown
Former Fox Business journalist Eleanor Terrett has provided fresh updates on the evolving timeline for XRP ETF approvals. In a recent post on X (formerly Twitter), she revealed that Canary Funds has filed an updated S-1 registration for its XRP Spot ETF. This update removes the delaying amendment that typically grants the U.S. Securities and Exchange Commission (SEC) control over when such filings take effect.
Terrett explained that this procedural change by Canary Funds 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, further postponements remain possible, depending on additional reviews by SEC staff.
Terrett also mentioned that current SEC Chair Paul Atkins has expressed support for companies using the auto-effective process to bring new financial products to the market. While Atkins did not directly reference ETFs, he praised firms such as MapLight for successfully going public during the government shutdown via the statutory 20-day waiting mechanism — the same process used by Bitwise and Canary to launch their recent Solana, Hedera, and Litecoin ETFs.
Originally designed by the US Congress, this approach aims to keep capital markets active during periods of administrative downtime. Now, crypto asset managers are leveraging this mechanism to launch XRP ETFs and other crypto Exchange-Traded Products (ETPs) without prolonged regulatory delays.
In a follow-up discussion, Terrett clarified that the previously anticipated October deadlines for XRP ETF approval are now irrelevant. This is due to the SEC’s new generic listing standards, which 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 provided additional perspective on the potential market impact once these ETFs receive approval. He noted that the ongoing US government shutdown has led to a backlog of XRP ETF filings awaiting clearance.
Once the SEC reopens and begins processing this backlog, DigitalG predicts that multiple approvals could occur in rapid succession. This accelerated approval process could significantly increase institutional access and demand for XRP, potentially triggering a major surge in market liquidity.
Furthermore, DigitalG forecasts that this influx of institutional participation may catalyze significant price movements. He suggests that the expected wave of ETF approvals could provide an ideal environment for covering massive short positions currently active in the market.
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*Featured image from Freepik, chart from TradingView.com.*
https://bitcoinist.com/new-timeline-xrp-etfs-approval/
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