- SEC has paused decisions on spot altcoin ETF applications due to a government shutdown.
- Analysts had anticipated approvals for Solana-based ETFs in early October, but these are now delayed.
- The SEC is reviewing over 90 fund applications linked to various cryptocurrencies and trading strategies.
- Both traditional finance and crypto firms have proposed funds for XRP, Cardano, Litecoin, and Dogecoin.
- 11 spot Bitcoin ETFs now manage about $150 billion, with Ethereum funds exceeding $22 billion in assets.
The U.S. Securities and Exchange Commission (SEC) has stopped reviewing and approving spot exchange-traded fund (ETF) applications tied to alternative cryptocurrencies as a partial government shutdown continues. This pause affects decisions for funds that would track the spot price of altcoins such as Solana, Cardano, and others.
The SEC’s operations plan, available on its website, states it will not process new fund applications or offer non-emergency support to registrants during the closure. The agency is currently considering more than 90 ETF proposals for funds based on single tokens, combinations of tokens, and digital asset strategies. According to Bloomberg analysts, approvals—especially for Solana—had been expected in early October but are now on hold.
Crypto ETF approval season has officially arrived! wrote Eric Balchunas, Senior ETF Analyst at Bloomberg, on X (formerly Twitter). Nate Geraci of the ETF Institute also posted that the shutdown will definitely impact the launch of new spot crypto ETFs, warning that “ETF Cryptober might be on hold for a bit.” The SEC has noted there will be limited staff until the shutdown is resolved, impacting everyday regulatory activities.
This review pause comes after 18 months of filings from both financial and crypto institutions hoping to meet growing demand for crypto investment products. Momentum for digital asset funds has surged following the success of spot Bitcoin and Ethereum ETFs. Data from CoinGlass shows Bitcoin ETFs hold approximately $150 billion in assets, with BlackRock’s iShares Bitcoin Trust leading as the largest and fastest-growing. Ethereum ETFs collectively manage over $22 billion.
Solana, currently the sixth-largest cryptocurrency, recently traded above $222 with a market cap of more than $118 billion. Despite the delays, broader crypto prices rose on Wednesday as investors seemed undeterred by the ongoing budget deadlock in the Senate. For more about the SEC’s operations plan, visit the SEC’s official operations plan.
Geraci’s post and further information can be found here.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Pfizer Shares Soar After Trump Drug Deal, $70B Investment Pledge
- Alpaca Launches 24/7 Network for Instant Tokenization of US Stocks
- Ford Shares Surge as Q3 Sales Jump 8%, EV Deliveries Hit New High
- Bakkt Finalizes $11M Loyalty Unit Sale, Shares Drop, Bullish Chatter
- Top Bitcoin Miner Market Cap Soars Past $50B Amid AI Pivot
