October was supposed to be the month when long-awaited crypto exchange-traded funds (ETFs) finally hit the US markets. Deadlines for the Securities and Exchange Commission (SEC) to approve or reject several spot crypto ETF applications were set during the month. But when the US government shut down, the process froze – and deadlines stopped meaning.
Now November could take October’s place. Several issuers use a procedural route that does not require an active SEC sign-off. It’s the same approach that allowed four crypto ETFs — two from Canary Capital, one from Bitwise and one from Grayscale — to start trading earlier this week despite the regulatory paralysis.
Issuers file updated S-1 registration statements that include the “no delaying amendment” language. Under US securities laws, these filings are automatically effective after 20 days unless the SEC intervenes to issue a stay or request amendments. For the four ETFs listed this week, the SEC did not act, allowing them to go live by default.
That success has sparked a wave of new applications. On Thursday, Fidelity filed an updated S-1 for its spot Solana ETF, and Canary Capital did the same for its XRP ETF. If the SEC continues on its current track and does not block the process, the market could see its first XRP fund as soon as November 13.
Still, there are limits to how far this solution can go. While the SEC has already reviewed applications linked to Solana, HBAR and Litecoin ETFs, it has not dealt much with the XRP application – a loophole that could prompt the agency to halt its automatic approval.
“I think it’s possible we’ll see a lot of the funds launch next month. And that could be true whether the government reopens or not. But there are funds with filings that simply haven’t yet received any feedback from the SEC on their S-1s (prospectuses), and I’m not sure they can launch without the SEC getting back to work,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “So yes, a bunch are likely to launch next month, but there are some that are simply unlikely to launch without the government reopening.”
For investors, the move marks a new phase in the years-long effort to bring crypto ETFs to US markets. Instead of waiting for the SEC’s formal blessing, issuers use procedural mechanics to move forward. Whether that momentum continues through November may depend less on market readiness – and more on whether the government gets back to work.
