Hopeful investors in crypto exchange-traded funds have seen their dreams of altcoin ETFs securing approval mired in Washington’s political gridlock.
This week, the deadline for the Securities and Exchange Commission’s decision on three XRP ETFs and Grayscale’s Cardano ETF passed without any announcement from the SEC.
The US Federal Government’s shutdown since October 1 has meant the SEC has been operating at reduced capacity, and ETF approvals are frozen for the time being, Andrew Jacobson, general counsel at Halliday and former global head of legal at 21Shares, told DL News.
Despite the current interlude, Jacobson says he expects a flurry of approvals once the shutdown ends.
“Fall is often the hottest season for ETFs, and once the government is back up and running, things will move very fast,” Jacobson said.
The current shutdown is the second-longest in US history, and most bettors on Polymarket don’t expect it to end this month, according to a newly created poll on the crypto betting platform.
Punters give it a 7% chance that the shutdown will end by October 31.
If that happens, it could eclipse the record 35-day shutdown that occurred during US President Donald Trump’s first term in office.
However, on Monday, Kevin Hassett, US National Economic Council Director, said the shutdown could end this week. The US Senate will hold its 11th vote to fund the government and end the shutdown.
Still, enthusiasm for a Cardano ETF this year is riding high.
On Polymarket, users have pegged the odds of a Cardano ETF happening in 2025 at 77%.
Cardano and other altcoin ETFs received a major boost in September as the SEC significantly revamped its approval rules for crypto ETFs.
The move trimmed the approval timeline for spot crypto ETF approvals to 75 days from the usual 240-day slog.
The streamlined process also simplified the path forward for crypto ETFs, provided the underlying cryptocurrencies already trade futures on regulated US exchanges.
These changes prompted analysts, including James Seyffart, ETF analyst at Bloomberg Intelligence, to predict a swarm of over 100 crypto ETFs in the next six to 12 months.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@dlnews.com.