The approval of XRP exchange-traded funds (ETFs) in the U.S. has been delayed. The SEC paused reviews because of a government shutdown. This has pushed back filings from firms such as Grayscale, Bitwise, WisdomTree, Franklin Templeton, 21Shares, CoinShares, and Canary Capital. The pause is only temporary. It does not mean the ETFs were rejected.
Institutional Moves
As explained by an expert, large funds have not pulled back. Instead, they adjusted their plans. Some used futures and other instruments to keep exposure to XRP. Many had set aside funds for XRP ETFs this quarter and are now waiting for new timelines.
Surveys show most institutions still want to invest in XRP once ETFs are approved. Analysts expect approval later this year, with a high chance it happens before December.
Custody and Payments
Ripple’s new stablecoin, RLUSD, is now backed by BNY Mellon. This setup links the token directly to future ETF systems. It allows faster settlements and could help improve XRP’s use in global payments.
Ripple is also working with major banks like State Street on money market tokenization. These projects use ISO 20022, the global banking message standard, which fits well with XRP’s network.
Market Response
Even without an ETF, trading activity around XRP remains strong. CME XRP futures show billions in open interest, suggesting steady institutional demand.
In Europe, XRP ETPs already trade under the MiCA framework. These products give global investors exposure while the U.S. approval process continues.
New Ways to Access XRP
Institutions are finding other ways to include XRP in their portfolios. Some use structured notes and swaps that track XRP’s price. Others are testing XRP for cross-border payments and as a form of collateral.
Ripple’s goal is to make XRP part of regular financial infrastructure. This includes liquidity for banks, faster settlements, and lower costs.
Regulation and Timing
The SEC and CFTC are now working more closely on digital asset rules. Global regulators are also updating standards to support digital finance. This could help speed up ETF approvals.
In Japan, SBI Holdings has already filed for a Bitcoin–XRP ETF, showing confidence in XRP’s legal clarity.
Experts predict that once approved, XRP ETFs could attract $5–8 billion in the first month and reach up to $18 billion by year-end.
Conclusion
The delay shows how the market is maturing. XRP is no longer seen only as a speculative token. It is becoming a key asset in payment systems and liquidity networks.
When U.S. ETFs launch, they will connect XRP directly to traditional finance. The delay, while frustrating, may help ensure a smoother, stronger launch later this year.
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