XRP ETF Approval Imminent Despite Government Shutdown Delays - Grayscale Analysis

Wall Street's waiting game for XRP ETF approval might be closer to resolution than expected, with Grayscale signaling potential breakthrough timing despite bureaucratic hurdles.

The Regulatory Standoff

Government shutdowns typically freeze financial innovation in its tracks—but digital asset markets aren't playing by traditional rules anymore. Grayscale's latest analysis suggests the XRP ETF approval process has built enough momentum to potentially bypass Washington's political theater.

Institutional Pressure Mounting

With $24.5 million already flowing into Bitcoin Layer-2 projects during presale phases, the market's sending a clear message: traditional finance delays won't stop crypto innovation. The institutional money pipeline keeps building pressure while regulators play musical chairs with government funding.

Because nothing motivates Washington like watching Wall Street make money without them—the ultimate FOMO trigger for policymakers who still think 'blockchain' is a type of bicycle lock.

As the U.S. government shutdown stretches beyond 20 days, concerns are growing that it could temporarily slow down the approval process for new crypto ETFs, including the highly anticipated XRP exchange-traded fund (ETF).

Zach Pandl, Head of Research at Grayscale Investments, said that while certain government functions remain open, ETF and ETP product reviews are among the areas facing delays. “Unfortunately for crypto ETF providers, one of the functions that slows down is approval of these types of products,” he said, adding that investors will need to wait “just a little longer” before new funds are cleared.

Despite the delay, Pandl expressed optimism that once the shutdown ends, the SEC will likely accelerate ETF approvals. He explained that regulators have already established “generic listing standards,” meaning they will not evaluate each cryptocurrency one by one. Instead, any asset that meets the criteria can qualify as an ETF or ETP.

This new approach could lead to a “big bang” moment in the coming months, with multiple single-asset ETFs, such as those for XRP and Solana, hitting the market almost simultaneously.

When asked which ETF might perform best, Pandl avoided choosing a favorite but said that both XRP and solana offer unique strengths. He added that Grayscale’s diversified products, like its Crypto 5 ETF, allow investors to balance exposure while customizing allocations toward assets such as XRP.

Analysts say that an approved XRP ETF could mark a major milestone for the cryptocurrency, enhancing institutional access, liquidity, and legitimacy. While the U.S. shutdown may delay the timeline, industry experts remain confident that XRP’s entry into the ETF era is closer than ever.