A potential U.S. government shutdown this week threatens to delay several highly anticipated cryptocurrency exchange-traded funds (ETFs), including spot Solana (SOL) and Litecoin (LTC) ETFs, just as they approach final approval. Multiple asset managers have been actively working with the Securities and Exchange Commission (SEC) in recent months, submitting revised S-1 registration statements typically seen as precursors to regulatory approval. However, a federal shutdown would suspend most SEC operations.
Industry sources suggest some ETF approvals could occur as early as next week if the government remains operational. Spot Solana ETF applications appear particularly advanced, with multiple rounds of SEC feedback already addressed. Issuers are expected to file final S-1 forms shortly.
The SEC recently requested exchanges to withdraw and resubmit 19b-4 filings under newly approved General Listing Standards, signaling potential readiness to approve new crypto products. October features numerous decision deadlines, including Canary Capital's Litecoin ETF on October 2 and several others between October 10-24, all now at risk if Congress fails to pass funding legislation.
A government shutdown would furlough most SEC staff, potentially pausing ETF reviews unless deemed essential to market stability. While speculation exists that the SEC may have completed paperwork internally, allowing approvals during a shutdown, this remains uncertain. Issuers and exchanges now anxiously monitor Congressional developments.
The crypto ETF competition intensified in 2025 following 2024's surprise Bitcoin ETF approvals, with major firms now pursuing Solana and Litecoin products to expand regulated crypto investment options. Political decisions will ultimately determine the timeline for these landmark financial products.