Analysts Warn that Government closure may cause delays in Solana ETF approval

Despite the delays, some experts believe that several altcoin exchange-traded funds, such as Solana’s ETF, will be approved. “really 100% now.”

Industry analysts have warned of a possible U.S. shutdown that could delay the approvals for spot Solana ETFs (SOL).

Experts are unsure how fast the Securities and Exchange Commission will move under the new standards.

Bitcoin ETFs are stalled by the threat of a shutdown

In the last couple of months, a number of asset managers actively engaged the SEC by updating their S-1 Registration Forms. The SEC often views these revisions as an indication that it is close to approving a new investment product.

The federal government shutdown could halt most of the progress. Nate Geraci is the president of NovaDius Wealth Management. wrote He said on X three issuers think that the next week is a reasonable window for a SOL ETF to be approved, but he also cautioned against the possibility of a government shutdown disrupting this process. James Seyffart expressed the same sentiment. suggesting There are many ways that you could go wrong. “wonky.”

The Congress is yet to agree on a budget for the next fiscal year. If the deadline comes and goes without an agreement, there will be a government shutdown in the United States. The SEC would have to suspend its operations in order for funding to be restored.

Financial watchdog confirmed In a statement released on September 30, the company said that, if there is a government shutdown, the agency will not be able to approve registrations statements such as S-1 filings.

The SEC database will continue to accept submissions in such an event, however, staff furloughs may result in the suspension of non-essential evaluations. Crypto ETFs will not be taken into consideration “essential,” Their review process will be put on hold till normal operations return.

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The new listing guidelines could affect the timeframe

These investment products are not only influenced by a possible shutdown of the government. Journalist Eleanor Terrett reported The SEC asked LTC and XRP ETFs, as well as SOL, ADA and DOGE ETFs, to remove their 19b-4 submissions, since they are no longer needed under the generic listing standards.

It is unclear, however, how fast the regulator will take action on the pending applications. According to the old process, several ETFs such as SOL, XRP or DOGE were expected to have deadlines this month.

Franklin Templeton and Fidelity are among the companies that have submitted S-1 amendments to include stake provisions. Grayscale, VanEck and Canary Capital also entered the race by submitting S-1s to the SEC. Bloomberg ETF Analyst Eric Balchunas was quick to comment on the news. said The odds of altcoin ETF approval were “really 100% now.”