U.S. Shutdown: Crypto ETFs Face Delay Risks

Government Shutdown – SEC Pauses ETF Reviews

The U.S. budget crisis has led to a partial government shutdown, directly impacting the approval process of crypto ETFs. The Securities and Exchange Commission (SEC) announced that it would not review or approve new applications—except for emergencies—during the closure.

This means investors awaiting critical decisions on crypto ETFs, especially Solana-based products, will have to wait longer.

Solana and Altcoin ETFs at Risk of Delay

Before the U.S. government fell into gridlock, analysts, including those from Bloomberg, predicted that a Solana ETF could be approved as early as October. However, under current circumstances, that scenario now seems highly unlikely.

The SEC currently has more than 90 crypto ETF filings to process, including funds based on XRP, Cardano, Litecoin, Dogecoin, and a variety of digital asset strategies. The delays have added tension to the market, as both traditional finance institutions and crypto firms were expecting ETFs to pave the way for a new wave of investment.

Spotlight Still on Bitcoin and Ethereum ETFs

While altcoin ETF applications are stalled, the market continues to highlight the overwhelming success of Bitcoin and Ethereum ETFs. There are now 11 Bitcoin ETFs managing approximately $150 billion in assets, with BlackRock’s iShares Bitcoin Trust accounting for more than half and becoming the fastest-growing ETF in the industry’s 32-year history.

Ethereum is not far behind, with its ETFs surpassing $22 billion in assets under management, showcasing strong demand from institutional investors.

Solana Holds Strong Despite Uncertainty

Despite the likelihood of ETF delays, Solana (SOL) has continued to surge, trading above $222 with a market capitalization exceeding $118 billion. Alongside Solana, Ethereum and several other major altcoins posted gains of around 5% on October 2, signaling the start of a bullish “Uptober” for the crypto market.

This resilience suggests that investors remain largely unfazed by Washington’s political gridlock, and some even view crypto as a safe-haven asset during times of uncertainty.

Conclusion

The U.S. government shutdown has put the “crypto ETF season” at risk of delay, slowing down progress on financial products tied to Solana, XRP, Cardano, and other altcoins. However, the current strength of Bitcoin and Ethereum ETFs, coupled with Solana’s price rally, indicates that demand for digital assets remains robust.

While U.S. politics continues to face turbulence, the crypto market is proving its resilience and positioning itself as a notable alternative within the global financial system.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.