Key Takeaways
- The U.S. government shutdown has created uncertainty for over 90 pending ETF products.
- Despite earlier predictions of a 90–95% SEC chance of approval for many crypto ETF filings, the shutdown has raised many concerns over new timelines.
- Canary Capital’s proposed spot Litecoin ETF is among the products at risk of delay, with approval deadlines now effectively suspended.
As the U.S. government shutdown enters its third day, the crypto industry is bracing for delays to dozens of exchange-traded fund (ETF) applications, including Canary Capital’s proposed spot Litecoin product.
The SEC’s silence during the shutdown has raised concerns over whether the regulator can continue functioning without normal government activity, leaving issuers uncertain about timelines.
Shutdown or New Standards For ETFs?
On Oct. 2, Fox Business reporter Eleanor Terrett highlighted industry concerns that the federal shutdown could stall progress on pending crypto ETFs.
She wrote on X that the disruption “could affect the $LTC ETF approval because the SEC still needs to sign off on the S-1 and the agency is operating on a skeleton crew.”
Terrett noted that the regulator has yet to explain how it will prioritize work with reduced staffing levels, adding that “it’s unclear what remaining staff is working/what their priorities are at the moment.”
She pointed to the SEC’s new generic listing standards and the withdrawal of earlier 19b-4 filings, explaining that under the current framework “the deadlines technically no longer matter.”
When she sought further clarification, Terrett said that an SEC spokesperson could not respond to her inquiries due to the shutdown.
SEC’s “Operations Plan”
In August, the SEC published an “Operations Plan” outlining how it would function in the event of a funding lapse. A key caveat was that it would “not review and approve applications for registration.”
Under that plan, divisions such as Corporation Finance, Trading and Markets, Investment Management, and Examinations would be unable to process filings or perform other activities.
That guidance has fueled fears in the crypto ETF space that proposals not already granted effective status may stall indefinitely until appropriations resume.
In response to the news, Litecoin jokingly replied with a GIF illustrating they were still waiting for an update.
ETF October
The SEC had been expected to issue decisions on 16 crypto-focused ETF applications in October, a timetable that had prompted industry analysts to dub the month “ETF October.”
The products include proposals tied to major altcoins such as Solana, XRP, and HBAR, alongside multi-asset baskets.
Bloomberg ETF analysts Eric Balchunas and James Seyffart had earlier put approval odds at 90% to 95% for most filings.
The SEC currently has more than 90 crypto ETF applications pending overall.
While spot Bitcoin and Ether funds have already won approval and drawn strong inflows, the next wave of products faces uncertainty until normal government operations resume.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
