Markets Strained as U.S. Shutdown Drags On: On Tuesday, October 1st, the U.S. government entered a shutdown that halted all non-essential operations after Congress failed to reach an agreement on 2026 funding legislation. What has followed is now the longest government shutdown in U.S. history.
The past week in particular has shaken investors, largely because the economic implications remain unclear. We are talking about potentially slower growth and reduced visibility into key economic indicators—for example, employment data have not been published during the shutdown. This uncertainty has hit riskier assets especially hard over recent weeks, with digital assets bearing the brunt of the selloff, as the first chart below illustrates.
There's reason for cautious optimism, though. Over the weekend and into Monday, it appears U.S. politicians are finally moving toward a deal to end the shutdown. The breakthrough came Sunday evening when the Senate voted 60-40 on a procedural measure to advance temporary funding legislation. Monday brought further progress when the White House expressed support for the bipartisan deal to end the impasse. At this point, it is expected that the shutdown will conclude by week's end.
Ripple Raises $500 Million at $40 Billion Valuation: Ripple, the crypto company behind XRP, announced last week that it raised $500 million at a $40 billion valuation. Fortress Investment Group and Citadel Securities led the round, with participation from Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
While Ripple built its reputation on XRP, the company has substantially broadened its footprint across the crypto ecosystem in recent years, moving into stablecoins, digital asset custody, and brokerage services.
Over Half of Hedge Funds Now Invest in Crypto: According to new survey data from the Alternative Investment Management Association (AIMA), 55% of traditional hedge funds currently hold crypto assets as of 2025—up from 47% in 2024. The survey captured responses from 122 hedge fund managers collectively overseeing $982 billion in assets.
AIMA found that hedge funds allocate an average of 7% of their portfolios to crypto assets. Also, 71% of respondents plan to increase their allocations over the next year. The data makes clear that institutional investors are steadily increasing their investment in crypto.
