XRP Community Awaits ETF Breakthrough Amidst U.S. Government Developments
Senate Decision Sparks Optimism for Crypto Market
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The recent decision by the United States Senate, with a 60-40 vote, to advance a bill aimed at reopening the federal government has brought a wave of optimism to the XRP community. This pivotal moment could potentially reshape the crypto market landscape, offering a beacon of hope for XRP holders. With lawmakers focused on reinstating government operations, the immediate question centers around the Securities and Exchange Commission (SEC) and its capacity to resume full operations, raising the possibility of Spot XRP ETFs gaining approval.
Anticipation Builds for XRP ETF Approval
Monday’s Senate vote has set the stage for a decisive House vote, anticipated as early as Wednesday. This bipartisan measure, if passed, will reinstate government funding, enabling regulatory bodies like the SEC to resume regular activities following an unprecedented shutdown. During this hiatus, the SEC staff responsible for ETF evaluations were on furlough, halting numerous applications from prominent asset managers, including Dogecoin, Cardano, Solana, and notably, XRP ETFs, which had already surpassed their decision deadlines in October.
Prior to the shutdown, the SEC had released new procedural guidelines intended to streamline and expedite ETF approvals. However, the shutdown effectively paused all advancements. As efforts to conclude the shutdown persist, attention turns to how swiftly the SEC can address its backlog. There is growing optimism that the XRP ETF applications, which have garnered significant public interest, might be among the first to undergo review once the SEC resumes operations.
The Wait for Spot XRP ETFs Continues
Ranked as the third-largest cryptocurrency by market capitalization (excluding the stablecoin USDT), XRP is a natural candidate for the next wave of tradable Spot ETFs in the U.S. market. In recent months, several major firms, including Grayscale, Bitwise, 21Shares, and CoinShares, have filed for Spot XRP ETFs, aiming to extend the same level of institutional exposure to XRP that Bitcoin and Ethereum currently enjoy. These firms anticipated SEC responses in October, but the government shutdown disrupted this timeline.
While a variety of XRP futures and leveraged ETFs are already available, they lack the buying pressure associated with Spot XRP ETFs. Unlike futures-based ETFs, Spot ETFs hold the underlying asset—in this case, XRP—allowing investors to gain direct exposure through traditional brokerage accounts without the need to personally hold the tokens.
The approval of Spot ETFs could have a profound market impact. Once a regulated product becomes available, institutional demand typically surges, as witnessed with Spot Bitcoin and Ethereum ETFs. Consequently, the approval of Spot XRP ETFs could drive up the cryptocurrency’s price and liquidity significantly.
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