What the Government Shutdown Means for Pending Crypto ETFs

Investors hoping to receive approval from the US Securities and Exchange Commission will approve approval of various exchange contract funds that track various altcoins. This will have to wait a long time as the government closes.

The regulator said “Do not review and approve applications” for products during closures or “providing non-emergency support to subscribers” as outlined in the emergency operational plan highlighted on its website..

The SEC is currently reviewing more than 90 applications for ETFs based on various altcoin spot prices, token combinations and various digital asset strategies, and analysts at Bloomberg Fund predict that approvals, which could begin with a product focused on Solana, will be announced in early October.

“The Crypto ETF approval season has officially arrived!” Removed Bloomberg senior analyst Eric Bulknath on Tuesday’s Post.

Issuers in the world of traditional financial and digital assets have also proposed funds based on XRP, Cardano, Litecoin, Dogecoin, among others.

Now, the October timeline seems increasingly unlikely as Senate Republicans and Democrats try to resolve budget impasses.

As of the end of Wednesday, both sides were sticking to budget proposals, as each did not collect enough votes to override the filibuster.

In the interim, government agencies had to reduce their daily activities. The SEC noted that there is a limited number of personnel “until further notice.”

In a Twitter post Wednesday, Nate Geraci, co-founder of Trade Group The ETF Institute, wrote that “shutdowns will undoubtedly affect the launch of the New Spot Crypto ETF.”

“ETF Cryptober may be on hold for a bit,” he added.

The raft of applications over the past 18 months is seen by both traditional finance and crypto issuers to address the burgeoning demand for digital asset-focused products following the dramatic success of Spot Bitcoin and Ethereum funds.

According to Coinglass, a data analytics platform with BlackRock’s iShares Bitcoin Trust, 11 BTC funds currently manage approximately $150 billion in assets (AUM). Ethereum Funds’ AUM currently exceeds $22 billion.

Solana, the sixth largest crypto with a market capitalization of over $78 billion, has recently traded above $222, up over 6% amid a wider rise in crypto prices on Wednesday.