XRP News Today: SEC Closure Delays Crypto ETFs Amid Rising Institutional Interest

The ongoing lack of response from the U.S. Securities and Exchange Commission regarding cryptocurrency ETF proposals has left both investors and fund issuers in a state of uncertainty, with

and (ADA) spot ETFs still awaiting approval as a result of the federal government shutdown. With the SEC operating at reduced capacity, key application reviews have been put on hold, stalling decisions on more than 20 altcoin ETP submissions and making it harder for digital assets to be incorporated into mainstream financial markets, according to .

ProShares has recently submitted an application for a diversified cryptocurrency ETF that would track the CoinDesk 20 Index, which features

(BTC), (ETH), XRP, and (SOL), among other assets. Instead of holding cryptocurrencies directly, the fund would utilize swaps and derivatives, and could become one of the first U.S. ETFs to provide exposure to several leading digital currencies, as noted in . This development highlights the increasing interest from institutional investors in regulated crypto investment vehicles, with companies such as VanEck and 21Shares also updating their filings to lower costs and broaden their product range. Nevertheless, the SEC’s backlog has left even prominent applications, like Franklin Templeton’s XRP ETF, in a state of regulatory limbo, according to a .

The current government shutdown, now the second-longest in U.S. history, has only increased the uncertainty. The SEC’s contingency plan allows only a small number of staff to continue with essential duties, putting a freeze on final ETF approvals and other regulatory actions, as detailed in

. Andrew Jacobson, previously the legal chief at 21Shares, told Yahoo Finance that the SEC usually speeds up reviews in the fall after operations resume, and he expects a wave of approvals once the shutdown ends. This hopeful outlook is at odds with the current 7% chance on Polymarket that the government will reopen by October 31, raising concerns that the shutdown could surpass the 35-day record set in 2013, according to .

Market responses to these delays have varied. Despite a recent 40% drop in XRP’s value during a broader crypto sell-off, institutional interest in the token remains strong, with 20 active ETP filings—twice as many as there are for Ethereum. Ripple’s recent legal win against the SEC has strengthened XRP’s reputation in international payments, but ETF approvals are still crucial for wider adoption, as

pointed out. At the same time, Grayscale’s application for a Cardano ETF has also been delayed, even though rule changes in September reduced the approval window to 75 days for qualifying cryptocurrencies.

Experts such as James Seyffart from Bloomberg Intelligence predict that if the streamlined process continues, over 100 crypto ETFs could launch in the coming year, as mentioned in the Yahoo article. However, delays in the SEC’s tokenization framework—a separate regulatory initiative—pose additional operational challenges for companies planning new offerings. The Cryptonomist article advises firms to prepare governance documentation now to expedite approvals when reviews resume.

With the Senate preparing for its eleventh vote on government funding, the near-term outlook remains unclear. For now, strong institutional interest and pent-up demand in the crypto sector persist, but the SEC’s eventual return to full operations is expected to shape the next wave of ETF approvals and the integration of digital assets into traditional markets, as the Bitcoinsistemi article concluded.