October was presupposed to be the month when long-awaited crypto exchange-traded funds (ETFs) lastly hit U.S. markets. Deadlines for the Securities and Trade Fee (SEC) to approve or deny a number of spot crypto ETF functions had been lined up all through the month. However when the U.S. authorities shut down, the method froze — and deadlines stopped mattering.

Now November might take October’s place. A number of issuers are utilizing a procedural route that doesn’t require an energetic SEC sign-off. It’s the identical strategy that allowed 4 crypto ETFs — two from Canary Capital, one from Bitwise and one from Grayscale — to begin buying and selling earlier this week regardless of the regulatory paralysis.

Issuers are submitting up to date S-1 registration statements that embrace “no delaying modification” language. Beneath U.S. securities legislation, these filings routinely grow to be efficient after 20 days except the SEC steps in to challenge a keep or request adjustments. For the 4 ETFs that listed this week, the SEC didn’t act, permitting them to go stay by default.

That success has sparked a wave of recent filings. On Thursday, Constancy submitted an up to date S-1 for its spot Solana ETF, and Canary Capital did the identical for its XRP ETF. If the SEC continues to observe its present observe and doesn’t block the method, the market might see its first XRP fund as quickly as November 13.

Nonetheless, there are limits to how far this workaround can go. Whereas the SEC has already reviewed filings tied to Solana, HBAR and Litecoin ETFs, it hasn’t engaged a lot with the XRP software — a spot that would immediate the company to halt its computerized approval.

“I feel it’s doable we see a bunch of the funds launch subsequent month. And that could possibly be true whether or not or not the federal government reopens. However there are funds with filings that merely haven’t but obtained any suggestions from the SEC on their S-1s (prospectuses) and I’m unsure that they will launch with out the SEC getting again to work,” stated James Seyffart, ETF analyst at Bloomberg Intelligence. “So sure a bunch will doubtless launch subsequent month however there are some which might be merely unlikely to launch with out the federal government reopening.”

For buyers, the shift marks a brand new section within the yearslong effort to deliver crypto ETFs to U.S. markets. As an alternative of ready for the SEC’s formal blessing, issuers are utilizing procedural mechanics to maneuver ahead. Whether or not that momentum carries by way of November might rely much less on market readiness — and extra on whether or not the federal government will get again to work.