XRP News Today: Shutdown Paralyzes SEC as Crypto ETFs Near Approval

Litecoin and Hedera (HBAR) exchange-traded funds (ETFs) are nearing final approval stages, with recent filings indicating regulators are close to greenlighting the products. Canary Capital, a crypto-focused investment firm, has submitted amended registration documents for its HBAR ETF (ticker: HBR) and Litecoin ETF (ticker: LTCC), both carrying a 0.95% sponsor fee. These filings, analysts note, typically signal the final steps before launch. Bloomberg Senior ETF analyst Eric Balchunas highlighted that the fees, while higher than those for Bitcoin ETFs, are standard for emerging crypto assets. "With shutdown tho who knows but these docs look pretty finalized to me," Balchunas tweeted, acknowledging the uncertainty caused by the U.S. government shutdown.

The SEC is evaluating over 90 crypto ETF proposals, including those tracking Dogecoin, XRP, and Ethereum. However, the shutdown has halted regulatory activity, with the agency operating under a skeleton crew focused solely on emergencies. This has delayed decisions on pending applications, including Canary's Litecoin and HBAR ETFs. The shutdown, triggered by a political stalemate over funding bills, has left the SEC unable to review or approve new products. Analysts estimate the delay could extend for weeks, complicating the timeline for October's anticipated "Cryptober" wave of altcoin ETF launches.

Despite the holdup, market optimism persists. Bloomberg Intelligence analyst James Seyffart described Litecoin and HBAR ETFs as "at the goal line," emphasizing that the regulatory landscape has improved under the Trump administration. The amended S-1 filings for both ETFs include critical details like fees and tickers, which are typically finalized pre-launch. However, the SEC's recent shift to a generic listing standard has blurred traditional approval deadlines, further complicating predictions. Eleanor Terrett, a crypto analyst, noted that the Litecoin ETF's "due date" is now ambiguous, as the agency lacks the capacity to address inquiries.

The broader crypto market has shown resilience amid the uncertainty. The cumulative market cap rose 4% in 24 hours to $4.16 trillion, with Bitcoin surpassing $120,000 and Ethereum reclaiming $4,500. Ripple's XRP also gained traction, overtaking Tether to rank third in market capitalization. Analysts argue that the delayed ETF approvals could accelerate once the shutdown ends, particularly for niche assets like HBAR and Litecoin, which lack established ETF benchmarks.

Political dynamics continue to influence the timeline. The Trump administration has prioritized halting federal funding for projects in Democratic-led states, including $2.1 billion in Chicago transit projects and $18 billion in New York infrastructure. While unrelated to crypto, these actions underscore the partisan gridlock delaying regulatory clarity. ETF Institute co-founder Nate Geraci warned that prolonged shutdowns could disrupt the launch of new spot crypto ETFs, which are critical for institutional adoption.

Source: [1] The Block (https://www.theblock.co/post/373739/litecoin-hbar-and-more-crypto-etfs-at-the-goal-line-as-shutdown-sits-in-the-backdrop-analysts-say) [2] Coinpedia (https://coinpedia.org/news/canary-capital-files-s-1-amendment-for-spot-litecoin-and-hedera-etfs-analysts-say-approvals-next/) [3] Cryptopolitan (https://www.cryptopolitan.com/litecoin-etf-still-expected-but-shutdown-creates-fresh-delays/) [4] CBS News (https://www.cbsnews.com/live-updates/government-shutdown-third-day-trump-senate-house/) [5] ABC News (https://abcnews.go.com/Politics/senate-vote-government-funding-bills-shutdown-reaches-3rd/story?id=126183293)