TLDR
- The SEC has delayed its review of XRP ETFs due to a government shutdown, affecting major firms like Grayscale and Bitwise.
- Despite the delay, experts emphasize that the pause does not signal a rejection of XRP ETFs.
- Institutions remain committed to investing in XRP once the ETF is approved and expect approval by the end of the year.
- Ripple’s RLUSD stablecoin, backed by BNY Mellon, connects directly to future XRP ETF systems for faster settlements.
- XRP trading continues to show strong institutional demand with billions in open interest on CME XRP futures.
The approval of XRP ETFs in the U.S. has been delayed due to a government shutdown. The U.S. Securities and Exchange Commission (SEC) paused its review process, affecting filings from prominent firms. These delays affect firms such as Grayscale, Bitwise, and Franklin Templeton, which are awaiting the SEC’s new timelines.
Despite the delay, experts confirm the pause is temporary. It does not indicate a rejection of XRP ETFs. Significant funds have not backed out but have adjusted their plans. Some funds have turned to futures contracts and other instruments to maintain exposure to XRP. Many institutions had prepared for XRP ETF approval this quarter and are now adjusting to the new timeline.
Institutions Eager for XRP ETF Approval
Surveys suggest that institutions are still eager to invest in XRP once the ETF is approved. Analysts remain optimistic that the approval will happen later this year. There is a strong likelihood that the SEC will give its approval before December.
Ripple has also made significant strides with its stablecoin, XRP, which BNY Mellon now supports. This partnership is crucial as it links the stablecoin to future XRP ETF systems. The new structure aims to improve settlement speeds and increase XRP’s role in global payments.
Despite the SEC delay, XRP trading remains robust. CME XRP futures reflect billions in open interest, signaling sustained institutional demand. Global investors have already embraced XRP through European exchange-traded products (ETPs), which are trading under the MiCA framework.
Global Efforts to Boost XRP’s Adoption
Ripple continues to push for XRP’s integration into traditional financial infrastructure. The company is collaborating with major banks, such as State Street, on projects related to the tokenization of money markets. These initiatives leverage the ISO 20022 messaging standard, aligning with XRP’s network for better liquidity and faster settlements.
The SEC and Commodity Futures Trading Commission (CFTC) are collaborating to create clearer regulations for digital assets. Global regulators are also developing frameworks that could expedite the approval process for XRP ETFs. With this progress, many expect the approval of XRP ETFs to attract billions of dollars in investment soon.
SBI Holdings, a Japanese firm, has already filed for a Bitcoin-XRP ETF, showcasing confidence in XRP’s legal clarity. Experts predict that XRP ETFs could attract up to $18 billion by the end of the year once approved.
