Experts Warn Potential Government Shutdown Could Delay Solana ETF Approvals
Industry analysts express concerns that a U.S. government shutdown may hinder the approval process for several altcoin ETFs, particularly Solana.
Experts Warn Potential Government Shutdown Could Delay Solana ETF Approvals
Industry observers have alerted that a possible U.S. government shutdown could push back the approval of spot Solana (SOL) ETF submissions past October.
The recent establishment of new listing standards also raises further doubts regarding the timeline since experts are uncertain about how quickly the SEC will respond under these new regulations.
Shutdown Risk Stalls Crypto ETF Momentum
In recent months, numerous asset managers have actively engaged with the SEC and updated their S-1 registration forms. These amendments are typically viewed as indicators that the regulator may soon approve an investment product.
However, a federal shutdown would halt most progress in this area. Nate Geraci, the president of NovaDius Wealth Management, noted on X that three issuers anticipate that next week could present a realistic opportunity for SOL ETF approval, although the impending government shutdown may disrupt the process. James Seyffart shared a similar perspective, indicating that developments could become “troublesome.”
Congress has yet to finalize the budget for the new fiscal year, and failure to reach an agreement by the deadline may initiate a government shutdown, suspending many federal agencies, including the SEC.
The financial regulator confirmed on September 30 that a government standstill would impede its ability to expedite the approval of registration statements, such as S-1 filings.
While submissions would continue to be received by the SEC’s database, staff furloughs would lead to the suspension of non-essential reviews. Given that crypto ETFs are unlikely deemed “essential,” their review process would be stalled until regular operations resume.
New Listing Guidelines Could Affect Timeline
The looming government shutdown is not the sole factor influencing the launch schedule for these investment products. Journalist Eleanor Terrett reported that the SEC has requested issuers of LTC, XRP, SOL, ADA, and DOGE ETFs to withdraw their 19b-4 filings, as these are no longer mandatory under the newly established generic listing standards.
Withdrawal actions might commence soon, but the exact pace at which the regulator will handle pending applications remains uncertain. Under the previous protocol, deadlines for various ETFs, including SOL, XRP, and DOGE, were expected to initiate this month.
Entity firms such as Franklin Templeton, Fidelity, CoinShares, Bitwise, Grayscale, VanEck, and Canary Capital are currently competing to launch spot SOL ETFs, having submitted revised S-1 documents that now include staking provisions to the SEC last week. Following this development, Bloomberg ETF analyst Eric Balchunas mentioned on X that the approval prospects for altcoin ETFs are “virtually certain” at this point.
