Major cryptocurrencies edged lower in early trading on Thursday as the odds of a U.S. government shutdown rose on betting platforms.

Ethereum led the declines, slipping 0.3% to $4,033.24, according to CoinGecko data, while Bitcoin was down 0.6% at $111,832, and the BNB token was down 1.6% over the past 24 hours. XRP was up 0.3% as it found support amid hopes of further inflows from pending ETFs focused on the token.

According to Polymarket data, the odds of a U.S. government shutdown rose to 76%, the highest since the contract was launched. The betting website also showed that 64% traders expect the U.S. Office of Personnel Management to declare a government shutdown by Oct. 1.

On Wednesday, Politico reported that the White House budget office is asking federal agencies to prepare reduction-in-force plans for mass layoffs during a possible government shutdown, specifically targeting employees who work for programs not aligned with the Trump administration.

Prominent crypto investor Ted Pillows warned that there will be high volatility in the coming weeks as shutdown risks rise. According to SoSoValue data, Ethereum spot ETFs logged outflows of $79.36 million, marking the third consecutive day on which investors withdrew more funds than they invested in the ETFs.

Retail sentiment on Stocktwits about Ethereum was in the ‘neutral’ territory at the time of writing.

The U.S. government could run out of money by the end of September, and the U.S. Congress needs to pass short-term measures to avoid a shutdown.

Separately, investment advisor Nate Geraci noted that the Hashdex Nasdaq Crypto Index US ETF will now be able to hold other tokens, such as Solana, Cardano, and XRP, in order to comply with new Securities and Exchange Commission guidelines. The SEC, under the leadership of Paul Atkins, is seeking to expedite the process of crypto ETF listings in line with the Trump administration’s crypto-friendly policies.  

Also See: Citi Stock Gains After Agreeing To Sell Stake In Banamex Unit For $2.3B To Mexican Tycoon

For updates and corrections, email newsroom[at]stocktwits[dot]com.