October was supposed to be the month when the long-awaited crypto exchange-traded funds (ETFs) finally hit the US markets. Deadlines for the Securities and Exchange Commission (SEC) to approve or deny multiple crypto spot ETF applications have been aligned throughout the month. But when the US government shut down, the process froze – and the deadlines no longer mattered.
From now on, November could replace October. Many issuers use a procedural route that does not require active SEC approval. It’s the same approach that allowed four crypto ETFs – two from Canary Capital, one from Bitwise and one from Grayscale – to begin trading earlier this week despite regulatory paralysis.
Issuers file updated S-1 registration statements that include “no deferred amendment” language. Under U.S. Securities Act, these filings automatically become 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.
This success triggered a wave of new filings. On Thursday, Fidelity submitted an updated S-1 for its Solana spot ETF, and Canary Capital did the same for its XRP ETF. If the SEC continues to follow its current path and does not block the process, the market could see its first XRP fund as early as November 13.
However, there are limits to the scope of this workaround. Although the SEC has already reviewed filings related to the Solana, HBAR and Litecoin ETFs, it has not engaged extensively with XRP enforcement – a shortcoming that could prompt the agency to withhold its automatic approval.
“I think it’s possible that a number of funds will launch next month. And that could be true whether the government reopens or not. But there are funds filed that just haven’t received feedback from the SEC yet 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 number of them will probably launch next month, but there are some that are just unlikely to launch without the government reopening.”
For investors, the move marks a new phase in the years-long effort to introduce crypto ETFs to U.S. markets. Instead of waiting for formal SEC approval, issuers are using procedural mechanisms to move forward. Whether this momentum continues through November may depend less on market readiness and more on whether the government is back at work.
