Anticipation in the Cryptocurrency Community
As October approaches, the cryptocurrency community keenly anticipates a pivotal moment in the market, with the U.S. Securities and Exchange Commission (SEC) set to make decisions on several proposed XRP exchange-traded funds (ETFs). The SEC’s upcoming announcements, concerning six ETF applications, have gained additional importance following a recent federal government shutdown attributed to the inability of lawmakers to reach a funding consensus. This shutdown has led to missed deadlines for various ETF evaluations, stirring conversations about potential outcomes and impact on the XRP ecosystem.
Key Dates for SEC Announcements
Among the key dates on the calendar, the SEC is expected to announce its verdict for the Grayscale XRP ETF on October 18, followed by decisions for:
- 21Shares Core XRP Trust ETF on October 19
- Bitwise XRP ETF on October 22
- Canary Capital XRP ETF on October 23
- WisdomTree XRP ETF on October 24
- CoinShares XRP ETF on October 23
Historical context highlights the difficulties posed by shutdowns; for instance, the previous closure in late 2018 was notable for lasting 35 days—the longest on record—raising concerns about the current timeline and the repercussions for pending ETF approvals in the XRP community.
Insights on ETF Approvals
In discussions surrounding ETF approvals, crypto journalist Eleanor Terrett weighed in on insights from XRP supporter Chad Steingraber, particularly concerning the status of the Teucrium XRP ETF. As Terrett explained, the SEC did not directly approve or deny this ETF application before the deadline, allowing it to proceed by default. However, she emphasized that this scenario does not extend to all ETFs, especially spot ETFs, which require direct affirmation from the SEC to launch.
Understanding ETF Regulations
The Teucrium XRP ETF, holding assets such as Treasuries, cash, and swap receivables, is registered under the 1940 Investment Company Act, thereby not needing the SEC’s active consent. In contrast, spot ETFs fall under the 1933 Act as commodity trusts, which necessitates explicit SEC approval prior to trading. This distinction casts uncertainty over when new spot crypto ETFs, including those associated with XRP, might commence trading, suggesting that such activities may hinge upon the SEC’s operations returning to normalcy post-shutdown.
