Starknet rallies 43% and Trump‑backed WLFI spikes 28% as Senate moves to end 40‑day shutdown, paving way for ETF reviews

The Senate’s motion, announced late Tuesday evening, signaled that lawmakers expect a funding deal to be signed before the weekend, ending the longest shutdown in modern U.S. history. The news was relayed by CoinMarketCap in a tweet that quickly trended among traders and investors. “The market is reacting to the removal of a major macro‑risk factor,” said Sarah Liu, senior research analyst at Digital Asset Insights. “When the government is back in operation, the SEC can finally get back to its pending ETF agenda, and that optimism is reflected in the price spikes we’re seeing.”

Starknet, the Layer‑2 scaling solution built on Ethereum, has been gaining traction for its low‑cost, high‑throughput infrastructure that supports decentralized applications ranging from DeFi to gaming. The token’s 43 % surge pushed it past the $0.90 mark, a level not seen since early August. The jump coincided with a broader rally in Layer‑2 assets, as investors anticipate renewed capital inflows once ETF approvals resume.

On the other side of the spectrum, WLFI—a token marketed as a “Trump‑backed” political meme coin—experienced a 28 % surge, briefly breaching the $0.12 threshold. While the token’s fundamentals remain speculative, its price movement underscores how political narratives can amplify market sentiment, especially when legislative outcomes intersect with crypto‑focused regulatory timelines.

The Senate’s advance also has immediate implications for the SEC’s pending ETF pipeline. At least 16 applications—covering spot Bitcoin, Ethereum, and a suite of diversified crypto baskets—have been stalled since the shutdown halted the agency’s operations. With the government expected to resume normal functions, the SEC is poised to restart its review process, a step that could unlock billions of dollars of institutional capital. “ETF approval is the holy grail for crypto liquidity,” noted Marco Alvarez, partner at venture firm CryptoBridge. “A resumption of reviews signals that the market may soon see a new wave of institutional products, which would be a bullish catalyst for the entire ecosystem.”

Market participants are already positioning for a potential wave of approvals. Futures traders have increased open interest in Bitcoin and Ethereum, while several asset managers have filed supplemental paperwork to expedite their filings once the SEC reopens its docket. Meanwhile, DeFi platforms built on Starknet are preparing to integrate with upcoming ETF‑linked products, hoping to capture the influx of capital that could flow from traditional finance into decentralized protocols.

The broader crypto market mirrored the sentiment, with the total market cap climbing roughly 5 % in the hours following the Senate announcement. Bitcoin held steady around $68,300, while Ethereum nudged up to $4,850. Volume across major exchanges spiked, reflecting heightened trading activity driven by both speculative bets and strategic repositioning ahead of the anticipated regulatory shift.

As the Senate prepares to vote on the funding package later this week, the crypto community will be watching closely. A swift resolution could accelerate the SEC’s ETF timeline, while any further delays might reignite concerns over regulatory uncertainty. For now, the immediate market reaction suggests that investors are betting on a swift end to the shutdown and a return to regulatory normalcy.

Source: here