End to US gov’t shutdown sparks institutional buying, ETF ‘floodgate’ hopes

Institutional demand for digital assets saw a significant uptick as investors digested news about the US Senate reaching a much-awaited deal that could soon end the 40-day government shutdown.

On Sunday, the

Institutions restart Ether accumulation fueled by the perspective of US government shutdown end

Following the news of the potential end of the 40-day government shutdown, institutional investors have restarted their Ether (ETH) accumulation based on the growing average spot order data.

Ethereum may be entering a period of “low-volatility accumulation” if Ether price manages to remain afloat above the $3,000 to $3,400 range, according to crypto intelligence platform CryptoQuant.

However, the broader market recovery will ultimately depend on the incoming Bitcoin (BTC) and Ether ETF inflows, which will ultimately determine whether this recovery will see “sustained institutional demand rather than just retail or short-term flows,” according to Nomura Group’s Laser Digital derivatives trading desk, in a report shared with Cointelegraph.

Looming end of government shutdown raises hopes of altcoin ETF “floodgates”

In the wider crypto space, ETF analyst Nate Geraci saw the end of the shutdown as a positive development that will open the ETF floodgates.

“Government shutdown ending = spot crypto ETF floodgates opening,” wrote Geraci in a Monday X post, adding that this may also introduce the first spot XRP (XRP) ETF under the Securities Act of 1933.

This would make the 21Shares fund the first XRP exchange-traded product and fourth altcoin ETP launched under the Act of 1933. The spot Bitcoin and Ether ETFs were also approved under the same framework, but listed under the Securities Exchange Act of 1934, which requires exchange oversight.

At least 16 crypto ETF applications are currently awaiting approval, delayed by the US government shutdown, now in its 40th day.

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