A long-awaited Litecoin exchange-traded fund (ETF) is still on the horizon, but the US government shutdown has clouded the approval timeline. This has left issuers and investors guessing what could be the next move.
The global digital assets market printed green indexes all around amid the rising uncertainties. The cumulative crypto market cap jumped almost 4% over the last 24 hours to stand at $4.16 trillion. Bitcoin price ran up to breach $120k mark while Ethereum regained $4,500.
Confusion grows over Litecoin ETF deadline
Eleanor Terrett, in a post, stated that the Securities and Exchange Commission still needs to sign off on the S-1 filing for the Litecoin ETF . With the agency running on a skeleton crew, she noted, “it’s unclear what remaining staff are working or what their priorities are at the moment.”
The confusion stems partly from a recent procedural change. In September, the SEC asked issuers to withdraw their 19b-4 filings after adopting a new generic listing standard. That shift technically makes deadlines less rigid. Terrett hinted that the Litecoin ETF’s “due date” may no longer matter. She added that the commission is not able to respond to many press inquiries due to the shutdown.
Bloomberg analyst James Seyffart echoed that point in a post on X. He fielded a flood of client questions about Canary Funds’ Litecoin filing . “As multiple people have reported, it looks like the SEC wants everyone to file under the new generic listing standards. This suggests that the deadline date might not matter at all,” he wrote. He added that the shutdown “really throws a wrench into things.”
Despite the uncertainty, analysts remain confident the ETF will eventually launch. “We do still think they’ll come in the near future,” Seyffart said.
Shutdown freezes 90+ crypto ETF filings
October had been seen as a breakout month for altcoin ETFs. However, the applications are pending for products tied to Solana, XRP, and Dogecoin, too. But the shutdown is slowing that momentum. “ETF Cryptober might be on hold for a bit,” said Nate Geraci, co-founder of the ETF Institute. A prolonged freeze “would definitely impact the launch of new spot crypto ETFs,” he added.
The SEC itself has made clear that during the closure, it will not review or approve applications. More than 90 digital asset products are currently pending. This includes single-token ETFs to complex multi-coin strategies. Bloomberg’s ETF desk has projected that approvals could begin with Solana-linked funds as early as October, but only if the regulator resumes normal operations.
For now, the timetable depends less on market appetite and more on Washington politics. President Donald Trump’s administration has already used the standoff to cut $26 billion in federal funding for Democratic-led states. This move has escalated the partisan fight. The broader shutdown has also suspended scientific research, financial oversight, and a wide range of regulatory activities.
The ongoing upward run has pushed Ripple’s XRP to grab the 3rd spot in the tally of the biggest cryptos. XRP took over Tether’s USDT with a market cap of $184 billion. XRP price is up by 12% in the last 7 days. It is trading at an average price of $3.07 at the press time.
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