U.S Ether ETFs Imminent, Germany Sells Off Bitcoin, Mt. Gox Payments No Threat to Market Stability
Summary:
A Bloomberg ETF analyst projects the institution of Ether-focused ETFs in the U.S to be imminent. Meanwhile, the German Government continues to offload its Bitcoin stash, while the impending repayments of $8.5 billion in Bitcoin from Mt. Gox to creditors are not expected to severely disrupt the Bitcoin market.
A Bloomberg ETF expert predicts that the U.S will soon see the institution of exchange-traded funds (ETFs) that deal directly with Ether. Parallel to this, Germany has been liquidating its Bitcoin assets. Additionally, anticipated repayments to creditors by Mt. Gox is not predicted to greatly disturb the Bitcoin market.
VanEck, the investment manager, is nearing the creation of a live trading entity for spot Ether ETFs, having recently filed form 8-A with the U.S. Securities and Exchange Commission (SEC). Eric Balchunas from Bloomberg ETF suggests the SEC is heading toward approval of the Ether ETFs, judging by the timing of the paperwork. With the precedent from VanEck's Bitcoin ETF, Ether ETFs are expected to commence trading by July 2.
On May 23, despite conjecture about Ether potentially being identified as a security, the SEC sanctioned spot Ether ETF applications from several companies including VanEck, ARK 21Shares, Invesco Galaxy, and Franklin Templeton among others.
The German Government has recently unloaded a considerable amount of their Bitcoin assets, with transactions reaching over $54 million. The Bitcoin was sold in three separate transactions on June 25 with the first two going to the Coinbase and Kraken exchanges. The third recipient, an unknown wallet, has been the recipient of German Bitcoin before, arousing suspicions of possible government sales of Bitcoin.
Most of the Bitcoin was sent to centralized exchanges which suggests that Germany could be looking to sell Bitcoin systematically. Prior to this, about 50,000 BTC has been held by a government-labeled wallet, believed to be proceeds from Movie2K's seized assets.
Conversely, Mt. Gox's planned repayments to creditors of $8.5 billion in Bitcoin might not be as detrimental for Bitcoin as previously believed. Tony Sycamore from IG Markets explains that much of the speculative pressure of the Mt. Gox sell-off was preempted in the current market. He mentioned the negative market sentiment, technical selling, and withdrawals from Bitcoin ETFs as factors. Sycamore expanded that the crypto market has witnessed a departure towards "greener pastures" that is mega-companies like Apple and Nvidia.
Further, analysts from Galaxy Digital revealed that only about 65,000 of the total 141,000 Bitcoin might be fully released into the market from Mt. Gox - a figure much lower than anticipated. Alex Thorn from Galaxy Digital argues that Mt. Gox creditors might be less eager to trade than expected.
Published At
6/25/2024 10:23:42 PM
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