XRP Today News: Government Shutdown ETF Stuck in Serious Deadlock, Facing a Life-and-Death Battle at $2.4

XRP today's news focuses on the impact of the U.S. government shutdown on day 21 regarding ETF approval. XRP ends a three-day pump streak, as the SEC delays during the government shutdown, with the final decision deadline for Grayscale, 21Shares, and Bitwise's XRP Spot ETF having passed, and the expectation of approving all seven ETF plans by October 17 has fallen through.

U.S. government shutdown delays XRP ETF approval for 21 days

The deadlock in the U.S. Senate continues into its 21st day, with the launch of the XRP Spot ETF being continuously delayed, previously expected to start trading on Monday, October 20. Due to traders locking in profits, the token failed to break through $2.5, leading to a pullback to the $2.4 level. This profit-taking behavior indicates that the market's disappointment over the ETF delay is turning into actual selling pressure.

The final decision deadlines for Grayscale, 21Shares, and Bitwise are October 18, 19, and 20, respectively. Importantly, analysts had anticipated that the U.S. Securities and Exchange Commission would approve all seven Spot ETFs on October 17 to prevent any first-mover advantage. This “synchronized approval” strategy has been employed in the approval of Bitcoin and Ethereum ETFs, with the aim of avoiding a single product monopolizing the market due to first-mover advantage.

However, the government shutdown forced most SEC employees to take leave, with only a few staff members remaining to maintain core functions. In this situation, the approval of new products and other non-urgent matters have been indefinitely postponed. For XRP ETF issuers, each day's delay means missing the first-mover advantage and the risk of market enthusiasm fading.

Canary Capital, CoinShares, and WisdomTree's S-1 filings may face approval delays, thereby postponing the anticipated institutional influx of funds into the XRP Spot ETF. The S-1 form is a core document for securities registration in the United States, containing detailed information about product structure, fees, custody arrangements, and risk disclosures. The SEC needs to review these documents and may request modifications, a process that typically takes several weeks or even months under normal circumstances. During government shutdowns, this process comes to a complete halt.

It is worth noting that the deadlock in the U.S. Senate and the delay in the issuance of the XRP Spot ETF have overshadowed news of Evernorth's plan to establish a $1 billion XRP treasury reserve. Market experts predict that the strong demand for XRP as a treasury reserve asset will be key to future price increases. However, this long-term bullish sentiment is temporarily suppressed in the face of short-term political uncertainty.

Competition for 155 Crypto ETP Applications Heats Up

For issuers of the XRP Spot ETF, the SEC's approval delay may mean intensified competition with other cryptocurrency Spot ETFs, potentially suppressing demand. Bloomberg Industry Research senior ETF analyst Eric Balchunas shared details about the upcoming cryptocurrency Spot ETFs, noting: “Currently, there are 155 cryptocurrency ETP applications tracking 35 different digital assets. Within the next 12 months, the market is likely to see the influx of over 200 ETPs. This rush to market has swept across the globe.”

This number is shocking. 155 applications mean that there are more than 4 competing products for each asset, and the market will be highly fragmented. According to a list compiled by Bloomberg industry research ETF analyst James Seyffart, since 2024, the Solana Spot ETF and BTC Spot ETF have had 23 applications each, topping the list. The total number of XRP Spot ETF applications is 20, while the total number of ETH Spot ETF applications is 10. Such a large number highlights the competitive landscape.

Cryptocurrency ETF Application Competition Ranking:

Solana and BTC: 23 applications each, the competition is the fiercest.

XRP: 20 applications, the third most popular target

ETH: 10 applications, with competition for products on the market relatively eased.

The SEC's Ripple case has concluded after the appeal was withdrawn, raising expectations for the rapid approval of the XRP Spot ETF. However, the SEC has rejected the approval of the Spot ETF, meaning that issuers of the XRP Spot ETF may face severe competition. The SEC may approve all cryptocurrency Spot ETFs to prevent a single token from having a first-mover advantage.

Nate Geraci, President of NovaDius Wealth Management, commented on the number of cryptocurrency Spot ETFs planned for launch: “My conclusion is… I am highly optimistic about index-based and actively managed cryptocurrency ETFs. TradeFi investors are unlikely to be prepared to navigate all these single tokens. They will adopt a diversified and decentralized strategy towards this emerging asset class. This seems to be quite obvious.”

This perspective has important implications for the news today on [XRP]/sell-ripple-xrp(. If the market ultimately sees more than 155 single asset ETFs, investors may feel confused by the excess choices and turn to investing in index ETFs that cover multiple crypto assets. In this case, the capital attraction of a single XRP ETF may not be as expected.

) Technical Analysis: $2.4 Support and $3 Target

![XRP/USD Daily Chart]###https://img-cdn.gateio.im/webp-social/moments-87a9b3933a-b5010829a8-153d09-69ad2a.webp(

(Source: Trading View)

On October 21, XRP fell by 2.95%, partially reversing the previous day's 4.47% pump, closing at $2.4242. The token's performance lagged behind the overall cryptocurrency market, which dropped by 2.13%. This pullback caused XRP's trading price to fall well below the 50-day and 200-day Exponential Moving Averages (EMA), further confirming the bearish tendency.

Key technical levels to watch include support levels at $2.4, $2.0, and $1.9, with technical resistance at the 200-day EMA at $2.6154, the 50-day EMA at $2.7226, as well as resistance levels at $2.5, $2.7, and $3.0. The current price is trading below the 50-day and 200-day EMA, indicating a typical bearish technical structure. To reverse this pattern, XRP must first reclaim $2.5 and then challenge the 200-day EMA at $2.6154.

In the upcoming trading days, several catalysts may affect the recent price trend. Bullish scenarios include the signing of a trade agreement between the United States and China, the U.S. Senate passing a temporary funding bill to reopen the government, BlackRock submitting an S-1 filing for the iShares XRP Trust, blue-chip companies establishing XRP holdings for financial purposes, Ripple obtaining a U.S. chartered banking license, progress on market structure legislation in Congress, and the XRPL gaining popularity as a challenge to SWIFT's market dominance. These bullish scenarios could drive XRP to break through the $2.5 mark, ultimately reaching $2.7. If it continues to break through $2.7, it may test the resistance level of $3.0.

The bearish scenario includes BlackRock abandoning its XRP Spot ETF plan, the ongoing government shutdown in the United States, opposition from the U.S. Senate to cryptocurrency-friendly legislation, blue-chip companies downplaying their XRP holdings, the OCC delaying or rejecting Ripple's banking license, and SWIFT maintaining its market share in global remittances. These bearish events could push XRP down to the $2.4 level, and falling below $2.4 may lead bears to target the psychological support level of $2.0.

The Capitol holds the key to the next move of XRP. The Senate's vote on the temporary funding bill could determine whether XRP rebounds to $3 or falls towards $2. If the U.S. Senate passes the temporary funding bill, the price of XRP may approach and break through the $3.0 mark. The government's economic reboot could create a “perfect storm,” with analysts betting that the Federal Reserve will cut interest rates multiple times, the listing of the XRP Spot ETF, and an increase in XRP reserves for the treasury. Crucially, the government's reboot will also bring the Market Structure Bill into focus. Legislation favorable to cryptocurrencies could boost market sentiment and potentially drive XRP to new highs.