Bitcoin’s price spiked, and ETF inflows are on a tear as “Uptober” just gets started.
Analysis
Over the last two months, at least 31 crypto exchange-traded fund (ETF) applications were filed with the US Securities and Exchange Commission, 21 of which were filed in the first eight days of October.
This ETF wave comes amid increased optimism in crypto markets, which have seen impressive gains over the last month. The price action has started a familiar pattern of markets booming in October, dubbed “Uptober.”
This also coincides with major geopolitical developments that can affect the finance sector. In France, Prime Minister Sébastien Lecornu has stepped down after just 26 days, rocking the country’s financial markets. In the US, a government shutdown has put federal business on pause, including ETF considerations at the SEC.
Despite these headwinds, analysts are optimistic about the next month for crypto, with the “floodgates” set to open for crypto ETFs.
“Uptober” launches with 21 crypto ETF filings
The crypto-friendly pivot at the SEC has led to a slew of filings from fund managers seeking to list crypto-related ETFs. Bloomberg Intelligence ETF analyst James Seyffart noted that, as of Aug. 29, some 92 crypto exchange-traded products were .
At the time, NovaDius Wealth Management president Nate Geraci , “Look at all the crypto ETF filings out there… […] What I mean by ‘crypto ETF floodgates about to open soon.’”
That number has grown over September and the first week of October. Cointelegraph Research found that over the past two months, at least 31 crypto-related ETFs were filed. This includes 21 ETFs by REX Shares and Osprey Funds on Oct. 3.
Other funds include iShares Bitcoin Premium Income ETF, Bitwise Hyperliquid ETF, Grayscale Stellar Lumens Trust and Bitwise Avalanche ETF — all filed in September.
August saw ETF submissions containing a diverse range of cryptocurrencies, including Chainlink (), Solana (), Sei () and even Official Trump (), the president’s memecoin.
Interest in crypto ETFs has been growing. Iliya Kalchev, a dispatch analyst at digital asset platform Nexo, previously told Cointelegraph that the US Federal Reserve’s cutting interest rates has .
Demand for hedge assets further , when the US federal government shut down. Congressional Democrats could not agree with the funding proposal of President Donald Trump’s administration. As a result, thousands of federal employees are on furlough, and the doors of many federal agencies are shut.
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More than $5 billion flowed into ETFs tracking cryptocurrency in the week ending Oct. 4. “This level of investment highlights the growing recognition of digital assets as an alternative in times of uncertainty,” said CoinShares head of research James Butterfill.
Analysts have pointed to a number of signals that Uptober is set to continue. Onchain data provider CryptoQuant said that the relatively low stablecoin supply ratio in the market. It , “Rising stablecoin supply is a strong tailwind during bull markets.”
ETFs get simplified standards, but the shutdown could drag on
The US government shutdown has put ETF approvals on pause. The SEC is one of the many federal agencies that will be operating on a skeleton crew until lawmakers can agree on a budget. Still, October could shape up to be a big month for ETFs.
Several ETFs have October deadlines, and as of Sept. 17, the SEC has for crypto ETF approvals.
SEC Chair Paul Atkins , “This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.”
Grayscale head of research Zach Pandl told Cointelegraph on “” last week that, with these new rules, there are many cryptocurrencies that are “ready to go into an ETF wrapper as far as the SEC is concerned.”
Still, there’s no guarantee that the shutdown will be settled anytime soon. Democrats oppose Republicans’ proposed cuts to healthcare spending and want to see previous cuts to Medicaid reversed. Trump, who has already made cutting government spending a defining trait of his administration, has hinted that he will use the shutdown to institute further rollbacks on government spending.
In the past, government shutdowns rarely lasted longer than a few days. But Trump has already shown that he is especially willing to ride out a shutdown. His first administration holds the record for the longest US government shutdown in history, at 35 days, costing the federal government $5 billion and delaying $18 billion in federal spending.
While lawmakers continue to meet and debate spending proposals, it’s anyone’s guess as to when the SEC could open its doors again and make a decision on crypto ETFs. But when that does happen, observers are bullish that ETFs representing a more diverse range of cryptocurrencies will hit markets.
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