SEC Expedites Crypto ETF Review After Shutdown Backlog

The SEC has initiated a swift review process for over 900 crypto ETF registrations submitted during the recent government shutdown, potentially favoring Bitwise’s XRP ETF as the next approval.

This guidance could accelerate U.S. crypto ETF offerings, impacting digital asset markets and driving innovation on exchanges.

SEC Streamlines ETF Reviews to Clear Shutdown Backlog

The SEC’s recent guidance streamlines the registration process for over 900 pending digital asset products submitted during the government shutdown. Issuers can now pursue expedited listing processes by including specific delay clauses in their registration statements, potentially hastening market entries. Bitwise Asset Management’s XRP ETF application is viewed as a frontrunner, as analysts highlight the possibility of its rapid approval following these new measures.

Market dynamics are expected to shift, with crypto ETFs like Bitwise’s XRP ETF entering the landscape faster than previously anticipated. Investor access to regulated digital asset markets is anticipated to expand, enhancing market participation. Bloomberg’s Eric Balchunas noted that products such as Canary’s XRP ETF have already utilized automatic approval paths, signifying heightened investor interest in these offerings.

“XRPC and BSOL are in a league of their own, with third place more than $20 million behind, highlighting strong investor appetite for regulated altcoin investment products,” remarked Eric Balchunas from Bloomberg.

XRP Market Update Amid Regulatory Changes

Did you know? During earlier government shutdowns, SEC registration backlogs often resulted in significant delays for ETF listings, but the current guidance marks a first in overriding standard timeframes for automatic approval.

XRP currently trades at $2.32, with a market cap of $139.58 billion and accounting for a 4.28% market dominance, reports CoinMarketCap. Its 24-hour trading volume stands at $7.93 billion, reflecting a 21.43% increase. Recent price trends show a 1.37% decline over the last day, culminating in a 25.19% drop over 90 days. XRP maintains a circulating supply of 60.11 billion, approaching a max supply of 100 billion.

Coincu analysis suggests that the SEC’s updated procedures could enhance regulatory clarity while encouraging new ETF entrants to explore innovative fund mechanisms. By leveraging historical precedents, analysts predict increased investor confidence and regulatory assurance, setting a positive trajectory for digital asset adoption in traditional finance markets.