U.S. Shutdown Delays ETF Approvals but Sets Stage for Post-Rally Acceleration

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We view the ongoing U.S. government shutdown as a temporary regulatory hiccup that has stalled SEC reviews on at least 16 pending crypto ETF filings, including those tied to Solana, XRP, Litecoin, and Dogecoin.

If the impasse is resolved quickly, approvals are likely to be pushed into late October or November.

While this delay may weigh on short-term sentiment by keeping billions in institutional capital sidelined, it ultimately highlights how far the ecosystem has matured.

The groundwork for streamlined listings is already in place, setting the stage for a surge of ETF launches once the regulatory machinery restarts.

This comes against a macro backdrop of dovish signals from the Federal Reserve, with Chair Paulson hinting at two additional 25-bps cuts this year to support the labor market.

Traders would do well to focus on these liquidity tailwinds rather than short-term regulatory noise, using dips to position ahead of ETF-driven inflows while hedging volatility with diversified portfolios.

With the Fear & Greed Index hovering around 42 in fear territory, vulnerability remains elevated due to uncertainty surrounding shutdowns.

Historically, however, such levels have aligned with buy-the-dip opportunities, suggesting substantial upside once approvals resume.

A wave of ETF greenlights could ignite an altcoin season and attract fresh institutional flows, sustaining bullish momentum into year-end.

Vugar Usi Zade, COO at Bitget


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

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