America’s federal government has entered its third week of a shutdown, leaving at least 16 exchange-traded funds (ETFs) awaiting approval if the shutdown continues into November.
Most federal operations came to a halt on October 1, after Republicans and Democrats failed to reach a funding agreement. Key agencies, including the U.S. Securities and Exchange Commission (SEC), which oversees ETF approvals, are now operating with only essential staff.
The crypto sector was anticipating a surge of ETF approvals in October, with the SEC expected to decide on at least 16 crypto ETF applications, alongside 21 additional filings submitted in the first eight days of the month. However, the shutdown has stalled all progress, leaving deadlines unmet and decisions pending.
No End in Sight for the Government Shutdown
There is currently no clear timeline for ending the shutdown, as both parties remain deadlocked over competing priorities.
Republicans are pushing for spending cuts to curb the national debt—which has surpassed $37.8 trillion, or roughly $111,000 per American—while seeking increased funding for areas like border enforcement. Democrats, on the other hand, oppose reductions to healthcare spending and are advocating for the extension of expiring tax credits that help make health insurance more affordable, among other demands.
With the Senate not scheduled to vote until Tuesday and the House out of session, there is no immediate path to resolve the shutdown.
To end the stalemate, Congress must pass legislation funding the government either through a full budget—comprised of 12 separate bills covering different agencies—or via a continuing resolution, a temporary measure that maintains current funding levels while negotiations continue. Once legislation is approved, the President can sign it into law, officially ending the shutdown.
Currently, Republicans control both chambers of Congress, but they lack the votes in the Senate to pass spending bills without Democratic support.
This marks the 11th shutdown in U.S. history and the first since the December 2018–January 2019 shutdown, which lasted 35 days and remains the longest on record.
Altcoin Season Hangs in the Balance
ETF analyst and NovaDius Wealth Management president Nate Geraci tweeted Monday that “once the government shutdown ends, the floodgates for spot crypto ETFs will open,” with widespread approvals anticipated.
“Ironic that rising fiscal debt and the usual political theater are holding these back—exactly what crypto is designed to address,” he added.
Bitfinex analysts predicted in August that a new altcoin season could emerge if all the proposed ETFs received approval, as they provide exposure to the coins with lower risk, potentially attracting more investors.
