As the U.S. government shutdown stretches beyond 20 days, concerns are growing that it could temporarily slow down the approval process for new crypto ETFs, including the highly anticipated XRP exchange-traded fund (ETF).
Zach Pandl, Head of Research at Grayscale Investments, said that while certain government functions remain open, ETF and ETP product reviews are among the areas facing delays. “Unfortunately for crypto ETF providers, one of the functions that slows down is approval of these types of products,” he said, adding that investors will need to wait “just a little longer” before new funds are cleared.
SEC to Accelerate Approvals After Shutdown Ends
Despite the delay, Pandl expressed optimism that once the shutdown ends, the SEC will likely accelerate ETF approvals. He explained that regulators have already established “generic listing standards,” meaning they will not evaluate each cryptocurrency one by one. Instead, any asset that meets the criteria can qualify as an ETF or ETP.
XRP and Solana ETFs Among the First Expected
This new approach could lead to a “big bang” moment in the coming months, with multiple single-asset ETFs, such as those for XRP and Solana, hitting the market almost simultaneously.
When asked which ETF might perform best, Pandl avoided choosing a favorite but said that both XRP and Solana offer unique strengths. He added that Grayscale’s diversified products, like its Crypto 5 ETF, allow investors to balance exposure while customizing allocations toward assets such as XRP.
XRP ETF Seen as Major Step for Institutional Adoption
Analysts say that an approved XRP ETF could mark a major milestone for the cryptocurrency, enhancing institutional access, liquidity, and legitimacy. While the U.S. shutdown may delay the timeline, industry experts remain confident that XRP’s entry into the ETF era is closer than ever.
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