Crypto ETFs Remain Frozen as U.S. Shutdown Hampers Investment Flow

With the ongoing U.S. government shutdown, the approval pipeline for crypto Exchange-Traded Funds (ETFs) has come to a standstill, leaving investors in limbo and the cryptocurrency sector facing uncertainty. The SEC, responsible for regulating financial markets, is operating with significantly reduced staff capacity due to funding lapses since October 1st. This has resulted in hundreds of applications, particularly those seeking approval for spot crypto ETFs, tokenized assets, and leveraged products, being frozen in a backlog that analysts estimate may extend beyond 40 days.