What Just Happened?

Friday saw a flood of filings for cryptocurrency‑related exchange‑traded funds (ETFs). REX Shares and Osprey Funds put forward prospectuses for 21 ETFs covering everything from Hedera Hashgraph (HBAR) to Bitcoin Cash (BCH), SUI, and even a product called HYPE. Many of these proposals also include staking features, which could change how investors gain yield from ETFs.

Defiance ETFs joined the race too, submitting leveraged ETF applications that don’t just cover crypto but also traditional tech names like Tesla and Amazon. Bloomberg Intelligence analyst James Seyffart summed it up simply: “Things are getting wild.”

Why the SEC Matters Here?

The U.S. Securities and Exchange Commission (SEC) is the ultimate gatekeeper for these products. Recently, the agency approved listing standards proposed by three exchanges. These changes mean that dozens of crypto ETF applications won’t have to go through the slow‑moving 19b‑4 process, which historically dragged timelines out for months. In other words, the road to launch just got shorter and smoother.

This regulatory shift is crucial, especially since the SEC has been sitting on a backlog of ETF applications tied to tokens like DOGE, XRP, and LTC. The friendlier stance from regulators since Trump’s return to office has created the most favorable environment yet for crypto ETFs.

What Could Delay the Launch?

Here’s the catch: the U.S. government shut down on Wednesday after Congress failed to agree on funding. The shutdown halts much of the SEC’s work, leaving the agency with limited resources. That means ETF filings could stall until the government reopens.

Some ETFs already in the pipeline were nearing decision deadlines in the coming weeks. Without active staff pushing papers forward, those deadlines may slip. Unless SEC Chairman Paul Atkins prioritizes crypto ETFs and directs staff to fast‑track short‑term approvals, everything is effectively on hold.

What This Means for Investors?

If these ETFs eventually clear the SEC’s desk, investors could see one of the broadest ranges of crypto ETFs ever offered in the U.S. market. Beyond just Bitcoin and Ethereum, there could be regulated access to assets like Hedera, Bitcoin Cash, and newer projects like SUI or HYPE. Add in staking components, and the appeal widens even further, as investors might capture both price exposure and yield in a regulated wrapper.

But timing is everything. The regulatory green light has never been closer, yet political gridlock could delay the party. For now, investors and issuers alike are left waiting to see how quickly Washington gets back to work.