Over 20 new crypto ETF filings flood the SEC, from SUI to BCH and DOGE, but approvals stall as the U.S. government shutdown halts agency operations.
Wave of new crypto ETF filings hits the SEC, but shutdown freezes progress
At least two dozen new crypto exchange-traded funds (ETFs) were filed with the U.S. Securities and Exchange Commission (SEC) on Friday, as the market awaits formal approval from the regulator.
REX Shares and Osprey Funds filed 21 prospectuses at once, including funds tracking SUI, BCH, HYPE and other assets with staking components. Meanwhile, Defiance ETFs LLC announced the creation of leveraged funds that will track not only crypto assets, but also shares of Tesla and Amazon.
“The market is just going crazy,” Bloomberg Intelligence analyst James Seyffart wrote in a post on X.
SEC opens door to crypto funds
The regulator is currently reviewing dozens of applications for new crypto funds, from DOGE and XRP to LTC, filed after the SEC’s rhetoric softened since President Donald Trump took office in January.
On Friday, the SEC approved listing standards proposed by three exchanges that would change the rules for trading in commodity-backed trust shares. The decision eliminates the need for the 19b-4 procedure, thereby reducing the time it takes for dozens of crypto funds to come to market.
Regulatory pause due to shutdown
Despite the rapid increase in filings, the US government shutdown, which began on Wednesday due to the budget failure in Congress, has frozen the SEC’s operations.
Unless the government reopens soon, the regulator will not be able to review applications or approve listings for new crypto funds. Even those ETFs that are in the final stages of being floated are on hold.
The last time the government was shut down was during a long shutdown in 2018, when it lasted 34 days.
Analysts believe that only direct intervention from SEC Chairman Paul Atkins could force the team to accelerate short-term decisions. For now, work on the applications is expected to be halted until the government reopens.
Related: SEC Holds Decision on Canary Capital’s Litecoin Spot ETF Due to Shutdown Uncertainty
