The ongoing US federal government shutdown has entered its third week, leaving the approval of up to 16 exchange-traded funds (ETFs) in limbo. The shutdown, which began on October 1, has resulted in the US Securities and Exchange Commission (SEC) operating with only essential staff, thereby delaying the approval process for these ETFs.
The crypto industry was expecting a flurry of ETF approvals in October, with the SEC set to make final decisions on at least 16 crypto ETFs and submit another 21 applications in the first eight days of the month. However, the shutdown has brought everything to a standstill, with deadlines passing without any action being taken. This has significant implications for the crypto market, particularly for altcoins, which could potentially benefit from the increased exposure and lower-risk investment opportunities offered by ETFs.
Government Shutdown: No End in Sight
The shutdown is a result of the failure of Republicans and Democrats to reach a funding agreement, with both sides stuck in a standoff over competing demands. Republican demands include cutting spending to reduce the growing national debt, which has surpassed $37.8 trillion, equivalent to approximately $111,000 per person in the US. They also want to increase funding for areas such as border surveillance.
On the other hand, Democrats reject cuts to healthcare and are pushing for an extension of expiring tax credits that make health insurance more affordable. With the Senate not scheduled to vote until Tuesday and the House not in session, there is no immediate possibility of ending the shutdown. For the shutdown to end, Congress must pass legislation to fund the government through a full budget or a continuing resolution, which would require the approval of both the House and Senate, followed by President Donald Trump’s signature.
This is the 11th government shutdown in US history and the first since the December 2018 to January 2019 shutdown, which lasted 35 days and remains the longest on record. The current shutdown has significant implications for various sectors, including the crypto industry, which is eagerly awaiting the approval of ETFs.
Impact on Altcoin Season
ETF analyst and president of NovaDius Wealth Management Nate Geraci predicts that once the government shutdown ends, there will be a flood of crypto ETF approvals. This could potentially open up new investment opportunities and increase exposure for altcoins, which could attract more investors and lead to a new altcoin season. Geraci notes that the irony of the situation lies in the fact that the growing national debt and political theater are holding back the approval of crypto ETFs, which aim to provide an alternative to traditional financial systems.
Bitfinex analysts had previously predicted that a new altcoin season could be on the horizon if all proposed ETFs were approved, as they offer lower-risk exposure to coins. The delay in ETF approvals due to the government shutdown has put this prediction on hold, leaving the crypto market in a state of uncertainty. As the shutdown continues, the crypto industry remains hopeful that the approval of ETFs will pave the way for increased investment and growth.
For more information on the US government shutdown and its impact on crypto ETF approvals, visit https://cointelegraph.com/news/us-government-shutdown-delays-crypto-etf-approvals?utm_source=rss_feed&utm_medium=rss_tag_blockchain&utm_campaign=rss_partner_inbound
