XRP ETF Launch Delayed: October 19b-4 Filings Are Procedural Steps

TLDR

• XRP ETF approval is delayed as the October 19b-4 filings are procedural steps, not launch dates.
• The U.S. government shutdown is preventing further progress on crypto ETF approvals, including XRP-linked products.
• Expert Greg Xethalis clarified that additional filings are needed beyond the 19b-4 process to finalize the XRP ETF.
• Institutional demand for XRP continues to grow despite regulatory delays, with $61.6 million in inflows for the week ending October 13.
• New filings for XRP ETFs, including a 3x leveraged product, indicate ongoing interest in the asset.

The approval of XRP ETFs may take longer than expected. According to an expert, the upcoming October 19b-4 filings are procedural milestones, not final launch dates. Furthermore, the U.S. government shutdown is delaying further progress.

XRP ETF Process Requires More Steps Beyond 19b-4 Filings

Greg Xethalis, an expert on crypto exchange-traded products, recently clarified the confusion surrounding the approval process for spot crypto ETFs. He explained that while the 19b-4 filings are essential, they do not directly trigger the launch of the XRP ETF. These filings are a part of the Generic Listing Standards (GLS), but they are not the final step.

Beyond the 19b-4 filings, ETF issuers must complete additional registration steps. These steps include filings under the Securities Act of 1933 (via S-1) and the Securities Exchange Act of 1934 (via Form 8-A). Both filings require active SEC review, which has been delayed due to the government shutdown.

Xethalis emphasized that investors should not expect the XRP ETF to launch soon. “Basically, we’re waiting for the government to reopen,” he stated. Issuers may also be unable to proceed without the SEC’s formal approval, which is unlikely to be granted before the shutdown ends.

The ongoing U.S. government shutdown has placed a hold on the approval process for several crypto ETFs, including XRP-linked products. While the 19b-4 filings were expected to become effective, they are procedural and do not indicate the imminent launch of the XRP ETF. The SEC’s review of ETF proposals for XRP, Solana, and Litecoin remains on hold.

Once the government reopens, the SEC will continue its review of the many pending proposals. The reviews include applications from Bitwise, Canary Capital, CoinShares, and WisdomTree. These reviews are scheduled to continue through October 24, further delaying the final approval of the XRP ETF.

Despite the delays, some experts remain optimistic about the near-term outlook for XRP ETFs. Nate Geraci, President of ETF Store, believes that the launch of XRP-linked funds is close. Several issuers have filed amended S-1s, a critical step toward final approval.

$61.6 Million Inflows Mark 18th Week for XRP

Despite regulatory delays, institutional demand for XRP products remains strong. According to CoinShares, XRP products saw $61.6 million in inflows for the week ending October 13. This marks the 18th consecutive week of positive net inflows for XRP.

New filings for XRP ETFs continue to emerge, indicating a growing interest in the product. For example, GraniteShares filed paperwork for a 3x leveraged XRP ETF on October 7. This move may spark significant market activity, as it could trigger a rise in institutional demand once leveraged products are approved.

While the approval of the XRP ETF may take longer than expected, its eventual launch remains highly anticipated. Once the government reopens and the SEC resumes operations, many expect the XRP ETF to be among the first cleared for listing.

The post XRP ETF Launch Delayed: October 19b-4 Filings Are Procedural Steps appeared first on CoinCentral.