The anticipation surrounding a potential XRP exchange-traded fund (ETF) in the United States has extended further, yet one prominent industry expert expresses confidence in the process. The SEC has recently delayed its decisions on multiple applications for spot XRP ETFs, with new deadlines now set for October. Despite this setback, Nate Geraci, the President of The ETF Store, maintains a positive outlook, interpreting the delay as a sign of progress in regulatory readiness.
Prospects for XRP ETFs: What Lies Ahead
Geraci articulated his perspective following the SEC’s postponement regarding the 21Shares Core XRP Trust. Originally, the SEC was expected to announce a decision by August 20, but it has opted to prolong the timeline by 60 days, pushing the deadline to October 19 in order to thoroughly evaluate public feedback and address concerns related to regulations established in the Securities Exchange Act of 1934.
This delay impacts a variety of companies, including not just 21Shares but also major players such as Grayscale, Bitwise, WisdomTree, Canary Capital, CoinShares, and Franklin Templeton. If everything proceeds as scheduled, the SEC is anticipated to issue decisions in a compact timeframe, with Grayscale expecting rulings as early as October 18, followed by 21Shares on October 19, Bitwise on October 20, and a mix of Canary Capital and WisdomTree between October 24 and 25.
Market analysts believe the SEC will maintain consistent standards for these applications, similar to previous ETF approvals. In spite of the delay, Geraci remains optimistic. He stated in a recent post on X that the “floodgates for spot crypto ETFs are primed to open in the coming months.” He elaborated that the necessary regulatory framework is “nearly finalized,” indicating that this delay is more procedural than a genuine hindrance.
Changes in Regulation Paving the Way for Crypto Integration
Geraci’s enthusiasm for the probable approval of XRP ETFs correlates with broader shifts in U.S. financial regulations. He pointed out that the country is “almost prepared” for expanded spot crypto ETFs, highlighting that approval for Ethereum staking is on the horizon and that the Senate is reviewing the Clarity Act. He believes the remaining months of the year will be remarkable as new regulations governing digital assets start to emerge.
The sentiment echoed by Geraci is also shared by Fed Governor Michelle Bowman, who addressed the Wyoming Blockchain Symposium, advocating for a more proactive approach from banks and regulatory bodies towards emerging technologies. She emphasized that an overly cautious stance could hinder the U.S.’s competitive edge in the global financial landscape.
Bowman affirmed that regulatory frameworks and innovation should not be at odds. As she put it, the U.S. must strive to lead in the future of finance or risk lagging behind. Moreover, Congress has recently introduced the GENIUS Act, establishing guidelines for stablecoins, while the Senate’s Digital Asset Market Clarity Act could potentially delineate oversight responsibilities between the SEC and the CFTC, offering a clearer direction for industry involvement.
