The path for crypto exchange-traded funds (ETFs) is being streamlined by two recent SEC decisions, but a U.S. government shutdown is currently preventing any new funds from launching.
SEC Simplifies Approvals, Then Pauses
The SEC has agreed to adopt Generic Listing Standards (GLS), replacing the slow, case-by-case approval process for ETFs. This change, along with allowing firms like Dimensional Fund Advisors to add an ETF share class to mutual funds, will make listing crypto ETFs more efficient once other requirements are met.
However, all progress is now paused because the ongoing U.S. government shutdown has furloughed SEC staff responsible for reviewing and processing ETF registrations.
October Deadlines Are Misleading
Despite rising investor excitement around October deadlines, an ETF analyst, Xethalis, explains that the widely discussed October 19b-4 deadlines are not actual launch dates and have mostly been made moot by the new GLS.
- The 19b-4 process only covers exchange rule filings, which many funds (including those for Litecoin, Solana, etc.) have cleared.
- Each fund must still complete the 1933 and 1934 Act registration by submitting Form S-1 and Form 8-A, both of which require SEC review.
- Because the SEC review process is halted, no ETF can go live yet, even if issuers have removed “delaying amendments” to speed things up.
The Waiting Game for XRP and Others
When the government reopens, major exchanges like NYSE Arca, CBOE BZX, and NASDAQ will be ready to list the ETFs.
- XRP ETF excitement has driven its price and trading volume up sharply, despite the uncertain timing. The SEC was expected to review several spot XRP ETF filings from various issuers between October 18 and 25, but those dates are now in doubt.
- Analysts believe that if approvals come after the shutdown, XRP’s price could rally and push for a weekly close above $3.11.
For now, the regulatory path remains the key factor. No crypto ETF, regardless of its readiness, can launch until the SEC staff returns and resumes operations.
October 2025, Cryptoniteuae
