Crypto ETF Approvals Set to Resume as U.S. Government Shutdown Ends
The longest U.S. government shutdown on record has disrupted financial markets, with crypto feeling the ripple effects. Liquidity dried up, ETF approvals froze, and traders faced heightened volatility—culminating in a $19 billion Leveraged liquidation event on October 10.
Over 130 crypto ETFs remain in regulatory limbo as the SEC operated with reduced capacity during the shutdown. Now, with the Senate passing a funding package on November 12, the path is clearing for approvals to resume. "The dam is about to break," says Bloomberg Intelligence analyst James Seyffart, anticipating a wave of pent-up ETF filings.
While the House still needs to compromise on the deal, the crypto industry's building phase never stopped. Market infrastructure projects continued developing through the political gridlock, positioning themselves for the coming institutional wave.
