In the fast-paced world of crypto, where regulatory hurdles can make or break a token's momentum, a recent tweet from BSC News has stirred up quite the conversation. The post highlights potential setbacks for XRP, Ripple's native cryptocurrency, in its quest for a spot ETF approval. Unlike Litecoin (LTC) and Hedera (HBAR), which have recently seen their spot ETFs launched and trading on major exchanges like NASDAQ, XRP's path seems mired in delays. But is this a sign of outright rejection, or just a temporary hiccup? Let's break it down.
The tweet in question, posted by BSC News on X, poses a dramatic question: "IS $XRP FACING ETF REJECTION?!" It points out that while LTC and HBAR are basking in the glow of spot ETF approvals, XRP isn't faring as well. The linked article on BSC News dives deeper, explaining that the U.S. Securities and Exchange Commission (SEC) has hit pause on reviewing several XRP ETF proposals due to a temporary government shutdown. Filings from heavyweights like Grayscale, Bitwise, and Franklin Templeton are on hold until federal operations resume.
For those new to the scene, an ETF, or Exchange-Traded Fund, is like a basket of assets that trades on stock exchanges, making it easier for traditional investors to dip their toes into crypto without directly buying and storing the coins. A spot ETF specifically tracks the current market price of the asset, offering direct exposure. Bitcoin and Ethereum paved the way with their approvals in 2024, and now altcoins like LTC and HBAR are joining the party. Canary Capital's Litecoin ETF (LTCC) and HBAR ETF (HBR) launched around late October 2025, marking a big win for these projects and signaling growing institutional interest.
But why the hold-up for XRP? According to the article, it's not about rejection but procedural delays tied to the shutdown. The SEC is also working on aligning altcoin classifications with its digital asset framework, with a key milestone around November 6, 2025. Crypto researcher Ripple Bull Winkle suggests this isn't random but strategic, hinting at upcoming clarity for assets like XRP, Solana, and others. He views it as preparation for eventual approval, echoing patterns seen with Bitcoin and Ethereum ETFs.
Despite the pause, institutional players aren't backing down. They're maintaining exposure through futures, swaps, and even existing products like the REX-Osprey XRP ETF, which has already amassed over $100 million in assets. Ripple itself is pushing forward with initiatives like its RLUSD stablecoin, backed by BNY Mellon, and partnerships with banks for tokenization projects. These moves could smooth XRP's integration into regulated systems once the green light comes.
On the market side, XRP trading remains strong globally, with robust futures activity on CME and ETPs in Europe under the MiCA framework. Analysts predict that if approved, an XRP ETF could attract $5-8 billion in inflows initially, potentially ballooning to $18 billion by year's end. Surveys show high institutional interest, reinforcing that approval feels like a "when," not an "if."
For meme token enthusiasts tuning in from the wilder side of crypto, this saga underscores how regulatory developments in established coins like XRP can ripple through the entire market. Approvals for LTC and HBAR have boosted their prices—HBAR surged 25% on its ETF launch day—and could set precedents for more niche assets. If XRP gets the nod, it might open doors for meme coins to explore similar structured products, bringing more legitimacy and capital to the space.
In the end, the delay highlights the SEC's cautious approach to altcoins, even as courts have ruled XRP isn't a security. With global moves like Japan's SBI Holdings filing for a Bitcoin-XRP ETF, the pressure is on for U.S. regulators to catch up. Keep an eye on November—things could heat up fast. If you're holding XRP or eyeing meme plays influenced by broader market vibes, this is one to watch closely.