The U.S. Securities and Exchange Commission (SEC) has delayed its review of XRP Exchange-Traded Funds (ETFs) due to a government shutdown. This pause affects several major firms, including Grayscale, Bitwise, and Franklin Templeton, all of which are awaiting updated timelines from the SEC. Despite this setback, experts emphasize that the delay is temporary and does not imply a rejection of XRP ETFs.
### Temporary Delay, Not a No
Although the review process has stalled, significant institutional investors remain committed to XRP. Many funds have adjusted their investment strategies, some shifting toward XRP futures contracts and alternative instruments to maintain exposure while awaiting the ETF approval. Institutions that initially expected approval this quarter are now adapting to the extended timeline, with optimism that the SEC will grant approval by the end of the year.
### Institutional Appetite Remains Strong
Surveys indicate strong eagerness among institutions to invest in XRP once the ETF gains approval. Analysts are generally optimistic, predicting that the SEC’s green light will come before December 2024. This enthusiasm is also reflected in the active trading of XRP futures on the Chicago Mercantile Exchange (CME), where billions of dollars in open interest signal sustained institutional demand.
### Ripple’s Advancements and Strategic Partnerships
Ripple has made significant strides in strengthening XRP’s role in the financial ecosystem. Notably, Ripple’s RLUSD stablecoin, backed by banking giant BNY Mellon, is designed to integrate directly with future XRP ETF systems. This integration aims to enhance settlement speeds and bolster XRP’s utility in global payments.
Beyond stablecoins, Ripple is actively collaborating with major financial institutions such as State Street on projects focused on the tokenization of money markets. These initiatives leverage the ISO 20022 messaging standard, which aligns well with XRP’s network, facilitating better liquidity and faster transaction settlements.
### Global Adoption and Regulatory Developments
While the U.S. regulatory environment experiences delays, XRP has already gained traction in global markets. European exchange-traded products (ETPs) backed by XRP are trading under the EU’s Markets in Crypto-Assets (MiCA) framework, signaling growing international acceptance.
Regulatory bodies like the SEC and the Commodity Futures Trading Commission (CFTC) are working together to develop clearer guidelines for digital assets, which may help streamline future XRP ETF approvals. Additionally, global efforts to establish regulatory frameworks are underway, potentially accelerating this process.
### Looking Ahead: Massive Investment Potential
Investor confidence in XRP’s legal clarity is underscored by moves such as SBI Holdings’ filing for a Bitcoin-XRP ETF in Japan. Experts project that once approved, XRP ETFs could attract up to $18 billion in investments by the end of the year, marking a significant influx of institutional capital into the XRP market.
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In summary, despite the SEC’s current delay caused by the government shutdown, the outlook for XRP ETFs remains positive. Institutional interest remains robust, Ripple continues to broaden XRP’s financial integration, and global regulatory progress supports a promising future for XRP ETF approval. Investors and market participants alike are closely watching for developments as they anticipate a potential green light later this year.
https://coincentral.com/xrp-etf-gets-another-delay-ripple-adjusts-plans-amid-uncertainty/