- SEC processing stalls during the U.S. government shutdown, pushing XRP ETF timelines.
- XRP trades near $2.24 support after a three-week slide of about 27%.
- Analysts flag downside risk into any deadline extension, while institutional interest continues to build.
XRP could experience increased bearish pressure as the delay over a potential ETF approval persists. The setback in the SEC’s process for greenlighting ETF products for XRP and other cryptocurrencies stalled following a partial shutdown in US government operations.
The US Government Shutdown Impact on XRP
The shutdown will extend into another week after the US Senate failed to advance the GOP funding bill for a 10th time on Thursday. As a result, the stall in government activities will persist, with many agencies, including the SEC, suspending operations.
XRP’s price tumbled following the government shutdown, reflecting a 27% decline within the past three weeks. TradingView’s data reveals that the cryptocurrency has slipped to the $2.24 support region amid strong bearish pressure.
In the meantime, many crypto analysts attribute XRP’s decline to the delay caused by the shutdown, leading to the postponement of the SEC’s deadline to decide on the multiple ETF applications on its table. Notably, the agency will inevitably shift the deadline to a later date, considering the current pause in operations.
October 194-b is Not a Launch Deadline
Although crypto community members expected the SEC to approve XRP ETF products this October, legal experts have clarified that the original October 19b-4 filings did not represent actual launch dates. According to Greg Xethalis, a lecturing fellow at Duke Law School, the 19b-4 is only a part of a process that will resume after the government reopens.
Meanwhile, Xethalis noted that XRP ETFs, alongside those of other cryptocurrencies, would likely launch as soon as possible, and once a resolution is reached, either through government reopening or the exchanges deciding to list an otherwise timeline-cleared product.
Institutional Interest Persists for XRP ETF
Although XRP’s price faces immediate bear pressure, experts expect the pullback to be temporary, considering the growing institutional interest in the cryptocurrency. On October 14, CoinShares became the latest institutional investor to file for an XRP ETF. The firm named BitGo as its custodian and Valkyrie as its seed investor in an ETF that will provide exposure only to the spot price of XRP, without staking.
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