US Shutdown Could Exceed 40 Days, Stalling Key Crypto ETF Approvals
The current American government has been heading towards over 40 days of shutdown, so far the longest in the history of the country.
Quick overview
- The U.S. government is approaching a historic 40-day shutdown, impacting financial and regulatory functions significantly.
- Investor interest in cryptocurrency remains strong, with multiple ETF proposals pending approval from the SEC.
- Charles Schwab reports a 90% annual increase in traffic to its crypto portal, indicating heightened retail and institutional interest.
- Analysts predict a surge in ETF approvals post-shutdown, potentially boosting altcoin values and trading volumes.
The current American government has been heading towards over 40 days of shutdown, so far the longest in the history of the country. Kalshi data shows 53% chances that the shutdown would continue over 42 days. The period is almost five times more than the history of federal shutdowns indicating substantial inconveniences in financial and regulatory functions.
A long closure would further postpone the acceptance of cryptocurrency exchange-traded funds (ETFs), such as XRP, staked Ethereum (stETH) and other high-profile apps that await feedback on by the U.S. Securities and Exchange Commission (SEC).
Crypto ETF Demand Surges
Even with delays in regulations, there is strong investor interest in the cryptocurrency market:
💥BREAKING: 🇺🇸 The U.S. government shutdown is now forecasted to last over 40 days. ⚠️ #US #Politics #Markets #GovernmentShutdown #Crypto
Impact on crypto market:
•Neutral to slightly bullish – Extended political gridlock may weaken confidence in traditional systems, boosting… pic.twitter.com/uiOHR7qLu2— SinghEconomics (@SinghEconomics) October 18, 2025
- There are six XRP ETF proposals pending between October 18- 25.
- VanEck submitted a Lido issued Ethereum ETF (stETH).
- 21Shares filed a proposal of a 2x leveraged HYPE ETF.
- Several altcoin-backed and leveraged ETF filings have been filed last week.
Charles Schwab CEO Rick Wurster pointed out that crypto is still one of the most discussed topics among investors. The number of Schwab clients as the holders of U.S.-listed crypto ETFs has reached 20%. The website traffic to the crypto portal of Schwab increased 90 percent annually, which shows the retail and institutional excitement. Analysts say that these approvals of ETFs will ramp up faster after the shutdown is over, which may lead to a rebound in the markets of altcoins and digital assets.
Post shutdown Market Outlook
According to financial analysts, the ETF pipelines will experience a flood of approvals, as the SEC comes back into operation. Key points include:
US GOVT SHUTDOWN SET TO LAST OVER 40 DAYS — THE LONGEST IN HISTORY. MARKETS BRACE FOR ESCALATING IMPACT ON GDP & FED POLICY.
— iNewsroom (@iNewsroom) October 18, 2025
- The pending crypto ETFs may undergo a faster vetting process when offices are open.
- The confidence of the investors has not diminished due to the regulatory sluggishness.
- The spike of ETFs could affect the values of altcoins and their trade volumes.
The closure highlights the interplay between government policy and financial innovation. Although a potential ETF freeze due to regulatory inactivity is short-lived, as demand on the market shows, ETF investment in cryptocurrency will grow as soon as approvals are received. To the investors, this itself could be a good strategic entry time before there could be a post-shutdown rally.
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