The ongoing U.S. government shutdown, now entering its fourth week, has halted progress on a series of long-awaited cryptocurrency exchange-traded funds (ETFs). Multiple altcoin ETFs, including those tied to Cardano and Litecoin, were expected to receive final decisions this October. However, with the Securities and Exchange Commission (SEC) operating with limited staff, all non-emergency reviews and approvals have been suspended.
For the crypto industry, this timing is especially difficult. October had been seen as a critical month, with several “final deadline” decisions lined up after years of delays. Those deadlines have now come and gone with no rulings, leaving the fate of 16 pending ETFs unresolved.
Read also: No More 19b-4: Altcoin ETFs Enter Final Stage of Approval
Polymarket Shows High Confidence in Approvals
Despite the stall in regulatory action, investors on prediction markets remain largely optimistic. On Polymarket, the chance of a Cardano ETF approval is currently priced at 78%, while the Litecoin ETF sits at 76%. While both figures are down from over 90% before the shutdown began, they still suggest broad expectations that these products will eventually be approved.
The optimism stands in contrast to predictions about the shutdown’s duration. On the same platform, at the time of writing 45% of participants believe the government will remain closed through at least November 16, indicating that investors expect both a prolonged delay and eventual ETF approvals.
New Filings Continue Despite the Pause
While the SEC is temporarily inactive on ETF decisions, new crypto ETF applications continue to arrive. Issuers have submitted proposals for products ranging from leveraged exposure to liquid staking tokens. This ongoing activity suggests that asset managers are preparing for approvals once the SEC resumes normal operations.
Among the applications currently on hold are ETFs tied to altcoins such as Cardano, Litecoin, XRP, and Solana. Many of these products were filed after the SEC introduced new rules in September designed to shorten approval timelines. Under normal conditions, decisions might have been expected within 75 days under the updated process.
Read also: How to recognize a crypto presale scam? Full guide
Uncertainty in Washington Delays Key Decisions
The shutdown began on October 1 after Congress failed to pass a budget. Disagreements between parties over spending cuts, healthcare, and border security have kept the impasse going. While Republicans currently control both chambers, they lack the Senate votes needed to pass funding measures without bipartisan support.
Until a resolution is reached, the SEC remains limited to essential functions. No new approvals, including those for crypto ETFs, will be issued during this period. As a result, applications that were nearing final deadlines are now paused indefinitely.
Although the exact timing remains uncertain, analysts expect that once the government reopens, the SEC will move quickly to address the backlog. Market continues to monitor the situation closely as deadlines are missed and anticipation builds.
