The crypto market is flying high even as Washington politics stall one of its most anticipated products.
Litecoin investors are still waiting for regulators to greenlight the first U.S. ETF tied to the asset, but the government shutdown has thrown the process into disarray.
In the meantime, traders are enjoying a broad rally. Bitcoin has smashed through the $120,000 milestone and Ethereum is back above $4,500, pushing total market capitalization to $4.16 trillion after a sharp 4% daily gain. XRP, too, is basking in the momentum, overtaking Tether to claim third place with a market value of $184 billion. The token now trades around $3.07 after climbing 12% this week.
A Process Without a Timeline
The issue with Litecoin’s ETF isn’t lack of demand but rather shifting regulatory mechanics. Last month, the SEC asked issuers to scrap their existing filings and resubmit under a newly adopted generic framework. That change effectively blurred deadlines, leaving companies unsure when, or if, their proposals would be reviewed. With the agency operating on minimal staff during the shutdown, analysts say there’s no telling what paperwork is even being considered.
Bloomberg’s James Seyffart noted that this situation has fueled confusion among clients, who are pressing for updates on Canary Funds’ Litecoin proposal. His assessment is blunt: the ETF will likely come eventually, but for now, the political gridlock “throws a wrench into everything.”
Dozens of Other Funds Frozen
Litecoin isn’t the only one caught in the crossfire. More than 90 crypto ETFs – ranging from spot Solana and XRP funds to multi-asset strategies – are waiting for signoff. Market watchers had expected October to be a breakthrough month for altcoin-linked ETFs, but the calendar may now be meaningless. “ETF Cryptober,” as some dubbed it, looks more like “ETF on pause.”
The holdup is not just bureaucratic. The shutdown itself stems from an intensifying battle in Washington, where President Donald Trump’s administration has moved to slash $26 billion in federal funding earmarked for Democrat-led states. The standoff has rippled across multiple sectors, suspending regulatory work, research initiatives, and financial oversight – all of which filter back into the crypto space.
For now, the crypto market continues to roar ahead, but the fate of Litecoin’s ETF is tied less to investor appetite and more to how long Washington remains gridlocked.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/u-s-shutdown-chaos-freezes-litecoin-etf-while-xrp-surges-to-third-place/
