US Government Shutdown's Possible Conclusion Fuels Institutional Crypto Investment Hopes
Investors are increasingly accumulating cryptocurrencies as the possibility of a pending end to the US government shutdown eases financial uncertainties.
The potential conclusion of the US government’s 40-day shutdown is alleviating “financial uncertainty” for investors, leading to an increase in institutional cryptocurrency investments.
On Sunday, the US Senate advanced a procedural vote aimed at resolving the shutdown, with a final vote anticipated on Monday, as outlined in the Senate’s schedule.
After the announcement, cryptocurrency markets experienced a rebound. The Starknet (STRK) token surged over 43%, emerging as the day’s top performer, followed by a 28% increase for the Trump-backed World Liberty Financial (WLFI) token, based on CoinMarketCap data.
According to Nicolai Sondergaard, a research analyst at crypto intelligence platform Nansen, the impending end of the shutdown could lower “financial uncertainty” for global investors and facilitate a recovery in the crypto market.
“For weeks, markets were effectively operating in the dark; key economic data releases, policy updates, and regulatory processes were all frozen during the shutdown.”
Once government operations resume, investors can incorporate “real fundamentals instead of speculation” in their evaluations, as crucial federal agency releases had been postponed due to the shutdown, Sondergaard noted.
Top 10 gainers by 24-hour performance. Source: CoinMarketCap
Related: James Wynn goes ‘all-in’ on shorting Bitcoin after 12 liquidations in 12 hours
Institutions Renew Ether Accumulation Amidst Likely Government Shutdown End
With the outlook of the government shutdown nearing its resolution, institutional investors have begun to restart their Ether (ETH) accumulation based on the rising average spot order data.
Experts anticipate Ethereum could be entering a phase of “low-volatility accumulation” if Ether’s price stays within the $3,000 to $3,400 range, according to insights from CryptoQuant.
Source: CryptoQuant
Nevertheless, the overall market recovery will heavily rely on the anticipated inflows from Bitcoin (BTC) and Ether ETFs, which will determine whether the recovery sees sustained institutional interest rather than just retail or short-term capital flows, as indicated in a report from Nomura Group’s Laser Digital derivatives trading desk shared with Cointelegraph.
Related: Michael Saylor’s Strategy kickstarts November with $45M Bitcoin buy
End of Government Shutdown Brings Optimism for Altcoin ETF “Floodgates”
In the broader cryptocurrency landscape, ETF analyst Nate Geraci perceives the end of the shutdown as a beneficial situation that could open up ETF “floodgates.”
“Government shutdown ending = spot crypto ETF floodgates opening,” Geraci remarked in a recent post on X, suggesting that this development might also enable the first spot XRP (XRP) ETF under the Securities Act of 1933.
This development would position the 21Shares fund as the inaugural XRP exchange-traded product and the fourth altcoin ETP launched under the Act of 1933. Spot Bitcoin and Ether ETFs were similarly approved under the same framework but listed under the Securities Exchange Act of 1934, which demands exchange oversight.
Currently, there are at least 16 crypto ETF applications pending approval, having been delayed due to the US government shutdown, which is now in its 40th day.
Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom
