The end of the 43-day US government shutdown, the longest in history, is expected to have significant implications for the crypto industry, potentially unleashing a wave of new crypto exchange-traded funds (ETFs). With federal agencies, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), back to full capacity, the logjam of pending crypto ETF applications can now be processed. President Trump signed a stopgap funding bill to fund operations until January 30, 2026.
The SEC is already working to clear the backlog of filings that accumulated during the shutdown. The agency has clarified that issuers do not need to submit a delaying amendment following the reopening of government operations. This guidance is intended to provide clear information and reassurance to companies about their pending submissions.
Matt Hougan, chief investment officer at Bitwise, anticipates a surge in new crypto ETF approvals by the SEC, potentially leading to an "ETF-palooza" in the crypto space. He predicts the launch of over 100 crypto exchange-traded products (ETPs), including single-asset crypto ETPs and index-based crypto ETPs. Hougan believes the demand for crypto index ETFs will be driven by investors seeking a small, passive crypto allocation.
The market has already seen some movement with Canary Capital's XRP ETF (XRPC) launching and debuting to $58 million in first-day trading volume, making it the most successful ETF launch in 2025. Furthermore, the U.S. Treasury and IRS have approved staking-as-a-service for spot crypto ETFs, which could attract billions in inflows to proof-of-stake (PoS) based crypto funds.
The reopening of the government also allows the U.S. Treasury to continue reviewing public feedback on the stablecoin-focused GENIUS Act. This bill could shape future rules for dollar-pegged tokens and their issuers.
While the end of the shutdown is a positive development for the crypto industry, some analysts note that crypto prices have shown little immediate reaction. Bitcoin, for example, has traded mostly sideways around the $100,000 level. Moreover, Bitcoin ETFs have experienced outflows in November, putting pressure on the market.
Despite these challenges, the reopening of the US government is expected to bring regulatory clarity and renewed momentum to the crypto industry. With the SEC back in full operation, the path is cleared for further progress on ETF filings, stablecoin policy, and oversight of exchanges.
