XRP ETF Approvals Delayed as U.S. Government Shutdown Freezes SEC Actions
The ongoing U.S. government shutdown has halted the approval process for the long-anticipated XRP exchange-traded funds (ETFs). Several applications were originally scheduled for decision deadlines in October, but the U.S. Securities and Exchange Commission (SEC) has paused all related actions until the government reopens.
New Timeline: Late 2025
A crypto expert noted that once operations resume, the SEC will likely need about four weeks to clear its backlog and complete legal reviews before addressing ETF applications. This means the earliest realistic approval window for XRP ETFs has shifted from October to late November or December 2025.
Some analysts believe the review process could still move faster than in previous cycles. The SEC has removed the 19b-4 requirement and adopted a new generic listing standard, allowing applications to advance through a simplified S-1 filing process.
Major Firms Await SEC Decision
Several major asset managers are waiting on the SEC’s decision, including Grayscale Investments, 21Shares, Bitwise Asset Management, Canary Capital, WisdomTree, and CoinShares. Their original deadlines fell between October 18 and 25.
Other ETF proposals for Litecoin, Solana, and Cardano are also facing similar delays.
Market data from Polymarket shows that the probability of XRP ETF approval by the end of 2025 has risen to 99%.
Industry Reactions
Many industry observers had expected October to be a turning point for crypto ETF approvals. After the shutdown, that sentiment changed quickly. Nate Geraci, president of The ETF Store, said the delay was unavoidable. Bloomberg senior ETF analyst Eric Balchunas described the situation as a “rain delay,” emphasizing that the pause is temporary rather than a cancellation.
Key Takeaways
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Earliest approval window: Late November to December 2025.
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Reason for delay: Government shutdown and SEC backlog.
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Market sentiment: 99% probability of approval by year-end 2025.
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Firms involved: Grayscale, 21Shares, Bitwise, Canary Capital, WisdomTree, and CoinShares.
