XRP ETF Faces Delay as Expert Clarifies 19b-4 Filing Deadlines No Longer Matter

The XRP ETF approvals could take longer than expected, as an expert explains that the upcoming October deadlines are mostly procedural rather than actual launch dates. He also highlighted that the U.S. government shutdown needs to reopen for further progress. Bloomberg analyst Eric Balchunas has also earlier clarified that approvals are on hold until the shutdown ends.

SEC Review Timeline Misunderstood Amid Shutdown

In a recent X post, Greg Xethalis clarified the confusion regarding the SEC’s handling of spot crypto exchange-traded products. This includes those tied to XRP, Solana, and Litecoin.

Xethalis explained that while the 19b-4 filings technically became effective under the Generic Listing Standards (GLS), this doesn’t automatically trigger product launches. He noted that beyond the 19b-4 process, ETF issuers must still complete registration under both the Securities Act of 1933 (via S-1 filings) and the Securities Exchange Act of 1934 (via Form 8-A). 

Those filings typically require active review by the SEC staff. However, the commission put crypto ETF approvals on hold due to the U.S government shutdown.

“Basically, we’re waiting for the government to reopen,” Xethalis said. He added that while issuers can technically remove delaying amendments to activate their filings after 20 days, exchanges like NYSE Arca, CBOE BZX, and Nasdaq may still hold off on listings until the SEC formally resumes operations.

In short, the expert urged investors to ignore the October 19b-4 dates, emphasizing that they mark procedural milestones, not launch deadlines.

Once operations resume, the SEC is expected to turn its attention to a crowded calendar of XRP ETF proposals. The reviews include Bitwise, Canary Capital, CoinShares, and WisdomTree and are slated through October 24.

Furthermore, the SEC recently rescinded its delay notices for several pending spot crypto ETFs.  This includes those associated with Cardano (ADA), XRP, Solana (SOL), and other tokens.

Market Optimism Persists Despite Procedural Hurdles

Some experts are optimistic about the near-term outlook for XRP ETFs despite the slowdown. President of ETF Store, Nate Geraci, said the launch of XRP-linked funds is close. He noted that several issuers have filed amended S-1s, a key step toward final authorization.

Meanwhile, new filings continue to surface. On October 7, GraniteShares submitted paperwork for a 3x leveraged XRP ETF. This is designed to amplify long and short exposure to the asset.

Crypto attorney Bill Morgan suggested the move could “spark panic buying,” as traders anticipate a surge in institutional demand once leveraged products go live.

Institutional appetite for the altcoin remains robust even amid regulatory delays. According to CoinShares, XRP products recorded $61.6 million in inflows during the week ending October 13. This marked the 18th consecutive week of net gains. 

Once the government reopens and the SEC resumes normal operations, some experts expect the XRP ETF to be among the first to be cleared for listing.