The U.S. federal government shutdown has entered its third week, and if it continues into November, up to 16 exchange-traded funds (ETFs) are still awaiting approval.
On October 1, Republicans and Democrats failed to reach an agreement on a funding deal, leading to a shutdown of most U.S. government agencies. This has left agencies, including the U.S. Securities and Exchange Commission (SEC), which is responsible for approving ETF applications, operating with only essential personnel.
The cryptocurrency industry was originally prepared for a wave of ETFs in October, as the SEC was scheduled to make final decisions on at least 16 cryptocurrency ETFs, with an additional 21 applications submitted in the first eight days of October. However, the shutdown has brought everything to a standstill, with deadlines passed and no action taken.
There is no clear timeline for when the shutdown will end, as both sides remain at an impasse over competing demands.
Republican demands include spending cuts to reduce the growing national debt—now exceeding $37.8 trillion, or about $111,000 per U.S. citizen—while also increasing funding for areas such as border enforcement.
Meanwhile, Democrats oppose cuts to healthcare spending and wish to extend expiring tax credits that make health insurance cheaper, along with other demands.
The Senate plans to hold a vote by Tuesday, while the House is in recess, leaving no direct path to end the shutdown.
To end the shutdown, Congress—both the House and Senate—must pass legislation to fund the government, either through a complete budget that includes 12 separate bills to fund different government departments or through a continuing resolution, which is a temporary measure to maintain government funding at current levels while negotiations continue.
Once the bill is passed, President Donald Trump can sign it into law, and the shutdown will end.
The Republicans currently control both chambers of Congress; however, in the Senate, they lack the votes needed to pass spending bills without Democratic support.
This shutdown marks the 11th in U.S. history and the first since the shutdown from December 2018 to January 2019, which lasted 35 days and remains the longest on record.
ETF analyst and president of NovaDius Wealth Management, Nate Geraci, predicted in a post on X on Monday, "Once the government shutdown ends, the floodgates for spot cryptocurrency ETFs will open," expecting a wave of approvals.
"Ironically, the growing fiscal debt and common political theatrics are hindering these approvals. This is precisely the issue that cryptocurrency aims to address," he added.
Bitfinex analysts predicted in August that if all proposed ETFs are approved, a new altcoin season may be on the horizon, as they provide exposure to these coins with lower risk, potentially attracting more investors.
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Original article: “U.S. Government Shutdown Enters Third Week, Crypto ETF ‘Floodgates’ Awaiting to Open”
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