- The U.S. SEC has continued to receive more new spot crypto ETFs following its adoption of generic listing standards.
- The spot XRP ETFs must wait for the final node from the SEC to list and trade, thus subject to the ongoing government shutdown.
- The Teucrium 2x Long Daily XRP ETF was registered under the Investment Company Act of 1940, thus not requiring approval from the SEC.
The spot crypto exchange-traded funds (ETFs) must wait for the final approval from the United States Securities and Exchange Commission (SEC). Market reporter Eleanor Terrett clarified that the final node of spot ETF must come from the SEC’s Division of Corporation Finance.
Will Spot XRP ETF Start Trading Like Teucrium’s?
The simple answer is no.
Unlike futures ETFs, the spot ETF products need an active approval process from the SEC. Terrett was responding to a statement from an X user, Chad Steingraber, who noted that silence is compliance in regards to the spot ETF approvals.
With the SEC operating under a limited number of staff members, Steingraber signaled that the spot ETF products might follow the listing process of the Teucrium 2x Long Daily XRP ETF.
However, Terrett reminded crypto traders that the Teucrium 2x Long Daily XRP ETF was registered under the Investment Company Act of 1940. As such, the Teucrium 2x Long Daily XRP ETF, which holds Treasuries, cash, and swap receivables, did not require an active approval process from the SEC. Terrett noted.
“Spot ETFs, though, are registered under the 33 Act as commodity trusts and do require explicit SEC approval before launching. So any new spot crypto ETFs ($LTC, $SOL, $XRP) won’t begin trading until the SEC can declare the S‑1s effective, likely after the government shutdown is over and the agency has returned to operating at full capacity,”
Related: SEC Goes Skeleton Crew in U.S. Shutdown, Canary Litecoin ETF Left Waiting
Impact of U.S. Government Shutdown on Crypto ETF Approvals
According to crypto legal expert Bill Morgan, the late October approvals of spot crypto ETFs may not be completely off the table. Morgan noted that a surprise move from the SEC could lead to spot crypto approvals later this month, but it depends on the extent of the U.S. Government shutdown.
On Thursday, the SEC missed its final deadline on the Canary Litecoin ETF. The final approval of spot crypto ETFs depends on how soon the SEC receives the withdrawals of Form 19b-4s from respective fund managers in order to facilitate approvals via the generic listing standards.
Related: Crypto Cycle Topped in 2025 or Still Bullish? ETF and Macro Viewpoints
How Many Spot XRP ETFs are in the Pipeline?
In the coming few weeks, the U.S. SEC will reach its final deadline for several spot XRP ETFs including:
- Grayscale spot XRP ETF on October 18,
- 21Shares’ XRP ETF on October 19.
- Bitwise Spot XRP ETF on October 20.
- CoinShares’ XRP ETF on October 25.
- Canary Capital’s XRP ETF is expected by around October 23.
- WisdomTree’s XRP ETF on October 24.
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