Altcoins rallied despite the looming crypto ETF delay .
Key Takeaways
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Will the crypto ETF approvals delay?
The timeline will extend if the shutdown drags on longer.
What’s next for altcoins?
The altcoin market could follow BTC’s lead in Q4.
The ongoing U.S. government shutdown could affect the much-awaited crypto ETF approvals.
In a statement, the Securities and Exchange Commission (SEC) said that the ‘lapse in appropriations’ will only make it respond to ‘emergency situations’.
Source: X
For ETF analysts, this meant the crypto ETF approvals that were expected by mid-October could be delayed until the shutdown is over.
The same outlook was echoed by ETF Store’s Nate Geraci, cautioning that the awaited greenlight would be “on hold for a bit.”
Source: X
Will the delay go past October?
Over 100 spot crypto ETFs have been filed with the SEC. In particular, Solana [SOL] and Ripple [XRP] ETFs were on track for the regulator’s final decision by mid-October.
Another attempt by lawmakers to agree on the funding bills and end the shutdown on the 1st of October hit a snag, further putting the approval timeline in limbo.
According to the prediction site Polymarket, the shutdown would likely be resolved by mid-October or later.
Source: Polymarket
While that could allow the approvals to be signed off by this month, such an outcome was still unclear as of press time.
However, most of the altcoins shrugged off the hiccup and rallied following Bitcoin’s surge to $119K after the shutdown.
SOL surged 7% after the SEC’s update and cleared the $220 hurdle. It was valued at $224 as of writing and up 10% in the past five days of trading.
Source: Crypto market performance (large caps)
Cardano [ADA] also pumped about 6%, bringing its recent recovery to over 9%. For XRP, the rebound was about 6% over the five-day trading period.
Put differently, the altcoins reacted to the BTC direction rather than to the crypto ETF expectations.
In fact, analyst Alex Kruger projected that we’ve begun the uptrend phase of Q4, and an explosive BTC run above $120K was a matter of time.
If the outlook is validated, alongside a declining BTC dominance, then altcoins could still have an extra upside potential.
In such a case, any potential altcoin corrections from the ETF delay could be a ‘buy the dip’ moment.
Even so, ex-Ark Invest crypto lead, Chris Burniske, noted that holders may begin ‘booking some profits’ during the ‘Uptober’ rally.
The crypto fear and greed index also surged 14 points to a ‘greed’ level of 64, further reinforcing this possibility. Especially if it climbs to ‘extreme greed’ levels.
In other words, altcoins could have a very short window to rally despite the crypto ETF delay.
Next: ‘Insurance against Bitcoin’ – Naval Ravikant fuels Zcash’s 100% rally, but…
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