As the US government shutdown nears its end, institutional cryptocurrency buying increases.

Expectations for ETF market activation and XRP listing

The U.S. Senate reported on the 11th that institutional investors have increased their cryptocurrency purchases ahead of the end of the 40-day government shutdown. This outlook reduces financial uncertainty and raises expectations for a market recovery.

The Senate held a procedural vote on ending the government shutdown on the 11th, with a final vote scheduled for Monday. Investors are anticipating that the reopening of the government will lead to a resurgence of aid announcements from key federal agencies. "The end of the shutdown will ease financial uncertainty and encourage global investor participation," explained Nikolai Zindergaard, research analyst at cryptocurrency information platform Nansen.

According to cryptocurrency information platform CryptoQuant, institutional investors have resumed buying Ethereum (ETH) at $3,616. If Ethereum's price remains above the $3,000 to $3,400 range, a period of "low volatility accumulation" is likely to emerge. However, a market-wide recovery hinges on inflows into Bitcoin (BTC) and Ethereum exchange-traded funds (ETFs), according to the derivatives trading desk at Nomura Group's Razer Digital.

The prospect of an altcoin ETF flood has also increased, fueled by expectations of an end to the government shutdown. ETF analyst Nate Geraci commented on Official X that "the end of the government shutdown = the floodgates open for spot cryptocurrency ETFs." He also mentioned the possibility of the first spot XRP ETF based on the Securities Act of 1933, following Ripple's $2.54 price. The 21Shares fund would be the first XRP exchange-traded product (ETP) based on the Securities Act of 1933 and the fourth altcoin ETP.

At least 16 cryptocurrency ETF applications are currently pending approval, with some approvals being delayed due to the U.S. government shutdown.

Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr