XRP News Today: Delays Mount on XRP-Spot ETFs Amid US Government Shutdown

Senate Gridlock Undermines XRP Uptober Rally

XRP briefly dipped below $2.4 support on Wednesday as a failed Senate vote on GOP funding threatens to push spot ETF launches into November, casting doubt on October’s anticipated ‘Uptober’ rally.

A Senate vote on the GOP funding bill fell short of the required 60 for the ninth time on Wednesday, October 15, fueling uncertainty about the timelines for October’s XRP-spot ETF launches. Staff furloughs during the shutdown leave the SEC with a skeleton staff, delaying review timelines.

ETF Launch Timeline in Jeopardy

Six XRP-spot ETF issuers have October final decision deadlines, with Grayscale’s XRP ETF final deadline of October 18 looming large. With Wednesday’s failed Senate vote extending the US government shutdown to 15 days, XRP-spot ETFs could launch in November.

XRP and the broader crypto market initially advanced in response to the shutdown on October 1. However, initial demand waned as the Senate stalemate will likely delay XRP-spot ETF launches until November.

The combined effects of the US government shutdown and rising US-China trade tensions sent XRP below $2.5, down 14.71% in October. Markets had bet on XRP reaching new heights in what was dubbed Uptober.

Several events could influence XRP demand. These include XRP-spot ETFs, Ripple receiving a US-chartered banking license, and a Senate vote on the Market Structure bill.

With XRP-spot ETF launches likely delayed until November, the Senate impasse has also stalled crypto legislation and the review of Ripple’s application for a banking license.

These delays have led investors to take profits until there are clear indications of the timelines for key votes and decisions that could trigger XRP’s next breakout.

Ripple Developments Overshadowed

Crucially, the likely delays to XRP-spot ETF launches have overshadowed other key Ripple-related developments, which would typically be bullish for XRP. These include:

• Fed Chair Powell signaled a potential end of quantitative tightening (QT) amid bets on October and December Fed rate cuts. Rate cuts typically boost demand for risk assets.
• CME Group launched CFTC-regulated contracts on XRP futures, indicating increased institutional appetite.
• Ripple Custody has partnered with South Africa’s Absa Bank.

Ripple President Monica Long shared the Absa announcement, stating:

“Last month, we announced RLUSD live on the African continent… and today so is Ripple Custody through our partnership with Absa Bank, one of South Africa’s leading financial institutions!”

Industry observers see deeper strategic implications, more directly related to XRP’s utility. Pro-crypto lawyer Bill Morgan commented on the Absa partnership, stating:

“This collaboration between Ripple and a pan-African Bank is not only about custody, but seems to be connected to broader demand for Ripple’s payment solutions in Africa. As always, with these announcements, there is more you want to know about behind the announcement.”

The partnership is another stepping stone toward mainstream financial institutional acceptance, potentially boosting interest in XRPL and other Ripple products. Importantly, partnerships with major financial institutions—under significant regulatory oversight—demonstrate that XRP can function within stringent regulatory frameworks. This is a key attribute, differentiating the token from other, more speculative altcoins.

Headwinds vs. Tailwinds

XRP’s October sell-off belies several tailwinds. These include spot ETFs, Main Street adoption, and a more crypto-friendly US regulatory landscape.

If the shutdown resolves quickly, the narrative could shift rapidly. Analysts expect strong demand for XRP-spot ETFs, given the token’s real-world utility. Robust inflows could send XRP to record highs, reversing October’s losses.

Price Action & Technical Analysis: Will XRP Hold $2.4?

XRP fell 3.72% on Wednesday, October 15, following the previous day’s 3.92% loss, closing at $2.4124. Despite heavy losses, XRP closed above the crucial $2.4 support level. However, the token underperformed the broader market (-2.44%) and continued trading below the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming a bearish bias.

Key technical levels to watch include:

• Support levels: $2.4, $2.0, and $1.9.
• Technical resistance levels: the 200-day EMA at $2.6296 and the 50-day EMA at $2.8130.
• Resistance levels: $2.7 and $3.0.

Catalysts & Scenarios

In the coming sessions, several key drivers could dictate near-term price trends:

• US-China trade headlines.
• The US government shutdown.
• XRP ETF news (delays or launches) and BlackRock’s position on an iShares XRP Trust.
• Blue-chip companies and demand for XRP as a treasury reserve asset.
• Regulatory milestones: Ripple’s application for a US-chartered bank license, the Market Structure Bill, and SWIFT-related news could also drive near-term price trends.

Bearish Scenario: Risks Below $2.4

• BlackRock remains silent on plans for an XRP-spot ETF.
• US Senate stalemate prolongs, delaying XRP-spot ETF launches.
• Lawmakers delay crypto-friendly legislation, including the Market Structure Bill.
• Blue-chip companies avoid XRP as a treasury reserve asset.
• OCC delays or rejects Ripple’s US-chartered bank license.
• SWIFT maintains its market share in the global remittance market, limiting Ripple’s market access.

These bearish scenarios could drag XRP back toward $2.4. A break below $2.4 would expose $2.0.

Bullish Scenario: Path to $3

• US-China trade tensions ease.
• US government reopens.
• BlackRock files an S-1 for an iShares XRP Trust, and the SEC greenlights XRP-spot ETFs.
• Blue-chip companies purchase XRP for treasury purposes, and more payment platforms integrate Ripple technology.
• Ripple secures a US-chartered bank license, and the Senate passes the Market Structure Bill.
• Ripple erodes SWIFT’s market dominance in the global remittance business.

These bullish scenarios could drive XRP to $2.7 and bring the key psychological resistance at the $3 level.

Political Gridlock and Trade Tensions

US lawmakers continue to dig in their heels, risking a lengthy US government shutdown. However, suggestions that Democrats are easing their stance and supporting a government reopening could trigger a rally. XRP-spot ETFs and the Market Structure Bill could become a reality if the government reopens in the coming sessions.

Meanwhile, US-China trade developments will continue to affect price trends as the APEC Summit looms. A de-escalation in the US-China trade war could lift sentiment, while rising tensions could send the token lower.

Final Thoughts

All eyes are on the Senate,. A tenth Senate vote could determine whether XRP reclaims $3 or drops back toward $2.0.

Traders should closely monitor Capitol Hill, US-China trade headlines, and Fed commentary.