US Government Resumption Could Unleash Crypto ETF Approvals

The US government's return to normal legislative operations following the shutdown could trigger a wave of new crypto exchange-traded fund (ETF) approvals by the Securities and Exchange Commission (SEC) in 2026, according to market analysts.

Matt Hougan, chief investment officer at Bitwise, stated to CNBC that there is “huge” demand for crypto ETFs and exchange-traded products (ETPs). He predicts “ETF-palooza in crypto land,” with over 100 launches expected, including single-asset and index-based crypto ETPs. Hougan anticipates that demand for crypto index ETFs will be driven by investors seeking small, passive crypto exposure. Crypto ETFs have the potential to redirect capital from traditional financial markets into digital assets, potentially driving prices higher. Some analysts believe that recent shifts in crypto market dynamics are attributable to capital inflows from these ETFs.

Crypto ETF Outflows Pressure Markets

Despite strong investor interest, significant capital outflows from crypto ETFs are adding downward pressure on cryptocurrency prices. Canary Capital’s XRP ETF (XRPC) launched with a record-breaking $58 million in first-day trading volume, making it the most successful ETF launch of 2025. Despite this impressive volume, the price of XRP (XRP) has declined by roughly 13% over the past week, according to CoinMarketCap.

Bitcoin (BTC) ETFs are facing similar headwinds, with approximately $1.1 billion in outflows so far in November, according to Farside Investors. This puts the investment vehicle on track for its worst month on record. Glassnode analyst Sean Rose reports that the total average cost basis for Bitcoin ETFs is around $89,600, a level that Bitcoin has recently fallen below, leaving the average ETF investor underwater.

Bloomberg ETF analyst Eric Balchunas noted that Bitcoin ETF investors remained resilient during October’s market crash, with the ETFs experiencing approximately $1 billion in outflows in the month following the crash. He attributed the majority of BTC sold during that period to long-term BTC whales. However, the crypto market’s decline has intensified, and ETF outflows have continued since his initial assessment.


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Latest news

Sunday, 29 March 2026

Indices

BTC News Today: Bitcoin Recovers to $67,400 After Sharp Dip Below $65,000

Sunday, 29 March 2026

Indices

Gold price today, March 30: Gold market is currently in a corrective phase, XAU/USD rises to $4,568.50

Tuesday, 24 March 2026

Indices

NVIDIA GTC 2026 Keynote Highlights: Jensen Huang Predicts $1 Trillion AI Demand Through 2027

Tuesday, 24 March 2026

Indices

Top performing cryptos today: Siren (SIREN), Bittensor (TAO), Stellar (XLM)

Tuesday, 24 March 2026

Indices

Gold price today, March 25: Gold Surges Over $4,580 as XAUUSD Jumps 2.5% Amid Softer Dollar Pressure

Tuesday, 24 March 2026

Indices

Forex expo Dubai 2026: What is the investment event in Dubai 2026?

Monday, 23 March 2026

Indices

Commodity Market Today: Business Body Warns Middle East Conflict Could Derail SA’s 2026 Economic Recovery

Monday, 23 March 2026

Indices

Gold price today, March 24: Gold extends slide, XAU/USD price crashes below $4,200

Sunday, 22 March 2026

Indices

Gold price today, March 23: Gold drops, XAU/USD price plunges below $4,278

Sunday, 22 March 2026

Indices

BTC news today: Bitcoin keeps falling, what’s going on with bitcoin?