Introduction
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Latest Prices
Bitcoin’s price recently dipped below $63,000 due to selling pressure from Mt. Gox. The cryptocurrency briefly tested the $65,000 mark before dropping 3% following a movement of nearly $3 billion worth of bitcoin from a Mt. Gox-associated wallet. This transfer is likely part of the exchange’s creditor repayment plan, raising concerns about potential sell-offs that could impact BTC’s price. Despite the dip, Bitcoin recovered to over $63,500, showing a 1.6% increase compared to 24 hours earlier. The broader crypto market, indicated by the CoinDesk 20 Index, also saw a rise of about 1.55%.
Spot Ether ETFs
There are indications that spot Ether ETFs may start trading in the U.S. as early as next Tuesday. According to sources, the Securities and Exchange Commission (SEC) has not raised any new concerns regarding the S-1 filings, and final versions are expected to be submitted by Wednesday. If all goes well, these ETFs could be listed on exchanges by July 23. Ether experienced a 7.3% gain recently, outperforming Bitcoin. At the time of writing, ETH is valued at around $3,410, representing a 2.2% increase in the last 24 hours.
Potential Inflows for Ether ETFs
A research report by Citi suggests that Ether ETFs could attract inflows that are 30%-35% of what Bitcoin products have seen. This could translate to net inflows of $4.7 billion to $5.4 billion over six months. However, Citi also notes that actual inflows might be lower due to Ether’s current lack of diversification benefits compared to Bitcoin. Investors may choose to split their crypto allocations between Bitcoin and Ether ETFs rather than allocating new funds specifically for Ether. Additionally, the absence of staking in the ETFs could limit potential inflows.
Chart of the Day
– Omkar Godbole