XRP News Today: SEC's Shutdown Woes Spur XRP ETF Race as Firms Seize Regulatory Vacuum

The race to launch the first U.S. spot XRP exchange-traded funds (ETFs) is accelerating as Bitwise and Grayscale finalize their filings, with fees set at 0.34% and 0.35%, respectively. The firms are capitalizing on a regulatory vacuum created by the U.S. Securities and Exchange Commission's (SEC) limited capacity during the government shutdown, which has left the agency operating under a skeleton crew. This has enabled asset managers to push ahead with filings without waiting for traditional approval cycles, according to a The Block article.

Bitwise's XRP ETF, which will list on the New York Stock Exchange, has completed its final regulatory steps, including fee and listing venue disclosures, according to a Coinpedia report. Bloomberg ETF analyst Eric Balchunas noted that such updates typically signal the last stage before approval, with the product potentially launching within 20 days if the SEC clears it, Coinpedia reported. Grayscale, meanwhile, has taken a similar approach with its XRP and Dogecoin ETFs, leveraging a strategy that bypasses the need for explicit SEC approval, the TradingView piece also noted.

The momentum is bolstered by recent successes in the crypto ETF space. Bitwise and Grayscale's Solana ETFs, launched last week, generated over $199 million in inflows within four trading days, according to a U.Today report. This trend underscores growing institutional confidence in altcoin-based products, with XRP ETFs poised to follow a similar trajectory. Nate Geraci, president of The ETF Store, predicted the first XRP ETFs could launch within two weeks, calling it "the final nail in the coffin" for anti-crypto regulators, in a Coinotag article.

The SEC's current operational constraints, coupled with the resolution of Ripple's five-year legal battle in August 2024, have created a favorable environment for these filings. The agency's recent guidance allows firms to file S-1 registration statements without delaying amendments, expediting the approval process, as noted earlier. Additionally, the removal of "delaying amendments" in filings by Canary Funds and others has set specific launch dates, such as November 13 for Canary's XRP ETF, according to a Coinotag report.

Market participants are closely watching the ripple effects on XRP's price. The token has traded between $2.50 and $2.55 recently, with analysts noting potential resistance at $2.75 and support near $2.15, according to Coinotag. If approved, XRP ETFs could mirror the success of Bitcoin and Ethereum ETFs, which have attracted billions in assets under management since their 2024 launches, Coinotag also reported.

The broader crypto market is also showing signs of institutional adoption. Litecoin's first ETF, launched by Canary, saw $1.65 million in inflows in its first week, while Solana and Hedera ETFs have drawn even larger sums, according to a Yahoo Finance article. However, XRP's unique regulatory history—marked by the SEC's past lawsuit against Ripple—has led some major players like BlackRock and Fidelity to adopt a cautious stance, Coinotag reported.

With over a dozen firms competing to launch XRP ETFs, the market is bracing for a potential influx of institutional capital. The SEC's final decision, expected by year-end, will determine whether XRP joins Bitcoin and Ethereum in the mainstream financial portfolio, Coinpedia reports.