US Government Shutdown Leads to Halt of SEC Approvals for Crypto ETFs

Investors expecting U.S. Securities and Exchange Commission approvals for a range of exchange-traded funds tracking various altcoins will have to wait longer, as the partial government shutdown lingers. The regulator said that it would “not review and approve applications” for products or provide other “non-emergency support to registrants” during the closure, as outlined in a contingency operations plan highlighted on its website.

The SEC is currently reviewing more than 90 applications for ETFs based on the spot price of various altcoins, combinations of tokens, and different digital asset strategies, with Bloomberg fund analysts predicting that likely approvals, beginning with Solana-focused products, will be announced in early October. “Crypto ETF approval season has officially arrived!” quipped Bloomberg Senior ETF analyst Eric Balchunas in a Tuesday post.

Issuers from the traditional finance and digital asset worlds have also proposed funds based on XRP, Cardano, Litecoin, and Dogecoin, among others. Now, the October timeline seems increasingly unlikely as Senate Republicans and Democrats try to resolve a budget impasse. As of late Wednesday, both sides were entrenched with budget proposals from each failing to muster enough votes to override a filibuster. In the interim, government agencies have had to scale back their everyday activities. The SEC noted that it would have limited personnel “until further notice.”