Last week, the inflation data released by the US injected a dose of strength into the market to cut interest rates and triggered a crazy rise in a number of risky assets. The cryptocurrency market also took advantage of the momentum to rebound.
Furthermore, an overnight rumor directly detonated the cryptocurrency market — industry analysts recently speculate that the US Securities and Exchange Commission may approve a spot Ethereum ETF this week.
People familiar with the matter revealed that the US Securities and Exchange (SEC) on Monday asked the issuer of a potential spot Ethereum ETF to update its 19b-4 filing. 19b-4 is a form used to notify the SEC of rule changes that allow funds to trade on exchanges. ETF issuers are required to obtain SEC-approved documentation and an S-1 registration statement before the product is officially launched.
According to CoinDesk, three sources said that the SEC asked the exchange to expedite the update of the 19b-4 documents on spot Ethereum ETFs, which indicates they may approve these applications by this Thursday. But that doesn't mean that Ethereum ETFs will be approved; potential issuers will also need to obtain S-1 application approval before these products can begin trading. A person familiar with the matter said it may take an uncertain period of time for the SEC to approve the S-1 file because there is no deadline.
Stimulated by this news, Bitcoin is back above $70,000, while Ethereum stands at $3,700.
Overnight, cryptocurrency concept stocks were also moved by the news.$Marathon Digital (MARA.US)$,$CleanSpark (CLSK.US)$An increase of more than 14%,$TeraWulf (WULF.US)$,$MicroStrategy (MSTR.US)$An increase of more than 9%,$Riot Platforms (RIOT.US)$,$Hut 8 (HUT.US)$,$Coinbase (COIN.US)$Up more than 8%.
It is worth noting that since May, these companies have also experienced a strong rebound.$MicroStrategy (MSTR.US)$The cumulative increase was more than 60%,$Iris Energy (IREN.US)$Up more than 46%,$Marathon Digital (MARA.US)$Up nearly 40%,$Hut 8 (HUT.US)$An increase of more than 25%.
In addition, Hong Kong cryptocurrency ETFs also rose strongly today.$ChinaAMC Ether ETF (03046.HK)$,$CSOP Ether Futures ETF (03068.HK)$,$Bosera HashKey Ether ETF (03009.HK)$,$Harvest Ether Spot ETF (03179.HK)$It surged more than 18%,$CSOP Bitcoin Futures ETF (03066.HK)$,$Bosera HashKey Bitcoin ETF (03008.HK)$,$ChinaAMC Bitcoin ETF (03042.HK)$An increase of more than 6%,$Harvest Bitcoin Spot ETF (03439.HK)$Up nearly 6%.
How do I find the ETF I want? The ETF section helps you! Cow friends can click Market>ETF>Major markets>Choose from different types of ETFs.
What do you think of the future of the cryptocurrency market?
Bloomberg News ETF analyst Eric Balchunas said that after they expected the probability of approval for spot Ethereum ETFs to be raised from 25% to 75%, the rise in ether increased.
Chris Newhouse, decentralized finance analyst at Cumberland Labs, said,
Traders and analysts on social media now speculate that the SEC is more likely to favor approval, so traders are scrambling to open positions, while many people previously completely ruled out the possibility of an Ethereum ETF being approved.
There was a clear sharp rise in trading volume and demand for spot and leveraged positions in the market, and Ether performed better than Bitcoin, indicating that Ethereum ETFs may be the main driving factor.
It was also pointed out that since another critical process may be indefinitely delayed by the US Securities and Exchange Commission, an Ether ETF may still not be able to go public quickly. However, the situation is less pessimistic, as the applicant may take legal action after being rejected, which will rekindle hopes for an Ether ETF to enter the trading market.
The CEO of Cube Exchange said:
The price of Ethereum surged shortly after rumors began circulating that the US Securities and Exchange Commission (SEC) might approve an Ethereum spot ETF this week.
Just like Bitcoin spot ETFs were approved earlier this year, but I think it's like a “buy rumor sell news” situation. I can imagine a rebound before this Thursday... and then at least a brief sell-off regardless of whether these funds are approved or not.
Additionally, investors should keep in mind that the other most noteworthy time points are August. August 3 is the deadline for Fidelity's Ethereum ETF, and August 7 is the deadline for BlackRock's Ethereum ETF.
However, in addition to this news, effects such as inelastic supply combined with demand shocks have also stimulated Bitcoin's strengthening.
Bitcoin exchange reserves hit a record low
Recently, Bitcoin exchange reserves once again hit a record low. “Exchange reserves” is a measure of the total amount of bitcoins currently stored in all centralized exchange wallets.
The balance in a cryptocurrency exchange is an analytical indicator used by investors to assess potential selling pressure in the market. Generally, when a large amount of cryptocurrency is transferred to an exchange, this may indicate that investors are preparing to sell these assets, thereby driving the currency price down; conversely, investors may want to hold it for a longer period of time, and then remit bitcoins to an external wallet.
Therefore, this recent downward trend may indicate that market participants are optimistic about future price trends, which may further support the steady rise in Bitcoin's price and have a positive impact on the entire crypto market.
The second wave of net Bitcoin ETF inflows may hit in the future
Last week, US spot Bitcoin exchange-traded fund (ETF) capital inflows showed a positive trend, with a net inflow of US$948.3 million. This increase, combined with the previous week's net inflow of $116.8 million, indicates that the ETF has successfully reversed the net outflow trend for four consecutive weeks since April.
Furthermore, according to HODL15Capital, the US spot Bitcoin ETF bought 14,389 bitcoins this week, worth about 1 billion US dollars, drastically reversing the previous sell-off trend.
However, the cryptocurrency market is extremely risky, and investors need to be wary of sharp rises and falls from time to time.
Editor/Somer