The US SEC entered a government-funding shutdown status starting 10/1 at the beginning of the new fiscal year, and the review of new crypto ETFs was halted as well.
What exactly got stopped (KuCoin news, ChainCatcher, etc.):
· Registration statements cannot go into effect, and no new comment letters are being issued
· Both paths are paused: the exchanges’ submitted 19b-4 filings and the issuers’ submitted S-1 filings
· More than 90 crypto ETF applications in the queue are now stalled, with some deadlines falling in early October
What remains normal: existing products already listed—such as IBIT, FBTC, and Grayscale—are not affected in terms of trading, subscriptions, or redemptions.
A few things that happened this week happen to line up with this timing:
· On 10/2, Canary filed an S-1 amendment for its PEPE spot ETF. The documents were submitted, but the effective date will have to wait until the SEC resumes operations
· Grayscale’s ZCSH saw its first weekly net outflow of $93.56 million this week; the capital flows for already-listed products continue to be published daily as usual
· The spot NEAR ETF that began trading on 9/29 got in before the gap
According to ETF analyst Nate Geraci: this is a delay, not a rejection.
Industry insiders had originally dubbed October “ETF Cryptober,” but now the timeline will be pushed back overall.
One detail worth watching: during the funding gap, no new products can launch; the already-listed comparable products will get an extra stretch of exclusivity.
After the review resumes, what category of coins do you think the first batch of ETFs will come from?
#SECpauses crypto ETF reviews due to a funding shutdown
What exactly got stopped (KuCoin news, ChainCatcher, etc.):
· Registration statements cannot go into effect, and no new comment letters are being issued
· Both paths are paused: the exchanges’ submitted 19b-4 filings and the issuers’ submitted S-1 filings
· More than 90 crypto ETF applications in the queue are now stalled, with some deadlines falling in early October
What remains normal: existing products already listed—such as IBIT, FBTC, and Grayscale—are not affected in terms of trading, subscriptions, or redemptions.
A few things that happened this week happen to line up with this timing:
· On 10/2, Canary filed an S-1 amendment for its PEPE spot ETF. The documents were submitted, but the effective date will have to wait until the SEC resumes operations
· Grayscale’s ZCSH saw its first weekly net outflow of $93.56 million this week; the capital flows for already-listed products continue to be published daily as usual
· The spot NEAR ETF that began trading on 9/29 got in before the gap
According to ETF analyst Nate Geraci: this is a delay, not a rejection.
Industry insiders had originally dubbed October “ETF Cryptober,” but now the timeline will be pushed back overall.
One detail worth watching: during the funding gap, no new products can launch; the already-listed comparable products will get an extra stretch of exclusivity.
After the review resumes, what category of coins do you think the first batch of ETFs will come from?
#SECpauses crypto ETF reviews due to a funding shutdown
