The U.S. government shutdown has put the brakes on one of the most anticipated events in the crypto market: the approval of new exchange-traded funds (ETFs). With the Securities and Exchange Commission (SEC) pausing reviews, investors waiting for spot altcoin ETFs—including Solana, XRP, and Cardano—are left in limbo.
SEC Freezes ETF Reviews Amid Budget Impasse
The SEC announced that it will not review or approve any new financial products during the government closure, citing its contingency operations plan. That means no progress on the more than 90 pending crypto ETF applications, which include funds tied to Solana, XRP, Cardano, Litecoin, and Dogecoin.
Bloomberg analysts had expected the first approvals—likely Solana ETFs—by early October. But with Congress locked in a budget standoff, that timeline is now in jeopardy.
“Crypto ETF approval season has officially arrived!” wrote Bloomberg Senior ETF Analyst Eric Balchunas earlier this week, before the shutdown stalled the process.
Growing Demand for Crypto ETFs
Interest in crypto investment products has surged following the success of Bitcoin and Ethereum spot ETFs. According to CoinGlass, the 11 Bitcoin funds now manage about $150 billion in assets, with BlackRock’s iShares Bitcoin Trust emerging as the fastest-growing ETF in history. Ethereum ETFs have also gained traction, surpassing $22 billion in assets under management.
This momentum fueled a wave of applications from both traditional finance firms and crypto-native issuers seeking to launch altcoin ETFs. The expectation was that Solana, currently the sixth-largest cryptocurrency with a market cap above $118 billion, would be among the first to receive approval.
Market Reactions Remain Resilient
Despite the political gridlock, crypto markets showed little sign of panic. Solana traded above $222 on Wednesday, up more than 6% amid broader market gains, signaling investor optimism that ETFs will eventually receive the green light.
Speaking at Token2049 in Singapore, Robinhood CEO Vladimir Tenev acknowledged possible delays but remained upbeat: “There may be some delays, but optimism is that we’ll get through it and there won’t be too much business interruption.”
Nate Geraci, co-founder of the ETF Institute, echoed the sentiment but cautioned on X (formerly Twitter) that “the shutdown would definitely impact the launch of new spot crypto ETFs,” adding that “ETF Cryptober might be on hold for a bit.”
What Comes Next for Crypto ETFs?
Until lawmakers resolve the budget deadlock, the SEC will continue operating with limited staff, leaving ETF applicants waiting. For now, investors may need to temper expectations for near-term approvals—but the long-term trajectory for crypto ETFs remains strong.
With Bitcoin and Ethereum ETFs setting records and demand for altcoin investment products on the rise, the eventual rollout of Solana and other spot ETFs seems more a question of “when” than “if.”
