As the U.S. government shutdown stretches beyond 20 days, there are growing concerns that the approval process for new crypto ETFs, including the anticipated XRP exchange-traded fund (ETF), could be temporarily delayed.
Zach Pandle, head of research at Grayscale Investments, said that while some government functions remain open, the review of ETF and ETP products is one area facing delays. “Unfortunately for crypto ETF providers, this is one of the features that delays the approval of these types of products,” he said, adding that investors will have to wait “a little bit longer” for new funds to be liquidated.
SEC accelerates approvals after shutdown ends
Despite the delays, Pandle expressed optimism that the SEC will likely accelerate approval of ETFs once the shutdown ends. He explained that regulators have already established “general listing criteria,” meaning they do not evaluate each cryptocurrency one by one. Instead, assets that meet the criteria qualify as ETFs or ETPs.
Initial expected stocks include XRP and Solana ETF
This new approach could lead to a “big bang” moment in the coming months, with multiple single-asset ETFs such as XRP and Solana coming to market at about the same time.
When asked which ETF performs best, Pandl declined to pick a favorite, but said that XRP and Solana both have their own strengths. He added that Grayscale’s diverse products, such as the Crypto 5 ETF, allow investors to balance their exposure while customizing their allocation to assets such as XRP.
XRP ETF considered a major step towards institutional adoption
Analysts say an approved XRP ETF could be a major milestone for the cryptocurrency, enhancing institutional access, liquidity and legitimacy. Although the US shutdown may delay the timeline, industry experts believe XRP’s entry into the ETF era is closer than ever.
