XRP Spot ETF: Shutdown Lifted - Approval Clock Ticking Again?
XRP's ETF dreams just got a second wind as regulatory roadblocks clear.
The Comeback Trail
With the government shutdown resolved, SEC officials return to their desks facing mounting pressure to reconsider XRP investment vehicles. Market watchers note the timing couldn't be more crucial - institutional demand for crypto exposure hits all-time highs while traditional finance struggles to keep pace.
Regulatory Roulette
The same commission that dragged Ripple through years of litigation now holds XRP's mainstream adoption in its hands. Industry insiders whisper about backchannel negotiations and revised applications gathering dust in Washington filing cabinets.
Wall Street's Crypto FOMO
Asset managers scramble to position themselves for what could be the first non-Bitcoin crypto ETF approval. Meanwhile, traditional finance veterans still can't decide whether blockchain is revolutionary technology or just an elaborate spreadsheet - but they're definitely afraid of missing the next big fee generator.
1. Moderna
(MRNA 4.81%), a longtime biotech start-up, became a highly profitable drug company in 2021 and 2022, when Spikevax, its COVID-19 vaccine, was in high demand due to the pandemic. In both those years, additional revenue and earnings were in the billions.
Image source: Getty Images.
Since then, however, COVID-19 vaccine demand dropped dramatically, and revenue has fallen significantly. Last quarter, Moderna's total sales totaled just $142 million. Meanwhile, the company continues to invest heavily into the development of other mRNA-based medicines, but these costly efforts have yet to produce Moderna's next blockbuster drug.
Givern these circumstances, it's not surprising that share prices have fallen by around 35% year to date, and by around 95% from their all-time highs set in 2021. Unless Moderna unveils a positive surprise when the company next announces earnings on Nov. 6, shares could experience further downward price pressure.
2. Novo Nordisk
(NVO 2.60%) once had first-mover advantage when it came to GLP-1 therapies, but competitors likehave since grabbed significant market share. As a result, forecasts call for this company, the manufacturer of Ozempic and Zepbound, to experience a slowdown in earnings growth this year, as well as in 2026.
While earnings per share increased by 22% in 2024, sell-side analyst estimates say that earnings will only increase 3.8% this year, and by 4.8% in 2026. Worse yet, recent remarks from President Donald TRUMP regarding GLP-1 prices could mean even greater disappointment with future earnings.
Trading at a forward P/E ratio of 14, Novo Nordisk might look like a "cheaper way" to play the GLP-1 trend, given that Eli Lilly trades for 27 times forward earnings. However, relative to growth, Novo Nordisk's valuation isn't justified, and it may be somewhat inflated, especially if governmental pressure to lower GLP-1 prices does indeed start to affect profitability and growth.
3. UnitedHealth Group
(UNH 2.17%), once a Wall Street darling, has experienced tragedy, controversy, and headwinds like rising costs over the past year. This has led to a 37% price decline for shares in America's largest health insurance company.
Back in August, news of legendary investor Warren Buffett'smaking a $1.5 billion investment in UnitedHealth led to a partial price rebound for shares. However, this "Buffett boost" could ultimately prove to be short-lived. UnitedHealth next reports earnings later this month, on Oct. 28.
Following other developments, such as the company's reestablishment of full-year guidance, expectations now run high that the worst is over. Still, as margin pressures persist, and the company remains under investigation from the U.S. Department of Justice (DOJ) investigation, there's still room for some unexpected bad news, which may result in a pullback for shares.
