The United States government has been in a shutdown since the beginning of October, leading to limited operations for official institutions. This shutdown has impacted various sectors, including the cryptocurrency market, causing delays in expected ETF approvals for altcoins such as XRP and Solana (SOL).
Increased Altcoin ETF Applications Expected
As a result of the ongoing government shutdown in the US, the Securities and Exchange Commission (SEC) has not yet announced final approval decisions for a number of altcoin ETFs. It appears that the number of altcoin ETFs awaiting final decisions will likely increase in the near future.
Analyst Predictions for ETF Growth
Eric Balchunas, a senior ETF analyst at Bloomberg, shared his predictions in a post, forecasting that more than 200 crypto ETPs (Exchange-Traded Products) could be launched within a year. Currently, there are 155 ETFs available in the market that track 35 different cryptocurrencies. Balchunas anticipates that over 200 new ETFs are likely to be introduced in the next 12 months.
The cryptocurrencies with the highest number of associated ETFs are Solana (SOL) and Bitcoin (BTC), followed by XRP and Ethereum (ETH). Other popular altcoins, including Litecoin (LTC), Avalanche (AVAX), and Dogecoin (DOGE), also feature prominently on the list of cryptocurrencies with multiple ETFs.
Analysts are optimistic that the SEC's approval of crypto ETFs will encourage more institutional investors to enter the market.