Crypto Market Surge Driven by Australian Bitcoin ETF Debut and SEC's Verdict on Ethereum
Summary:
On June 20, the cryptocurrency market ramped up by 1.7%, with two pivotal events propelling this rise: the debut of Australia's first Bitcoin ETF on the ASX, and the SEC's conclusion of its investigation into Ethereum, labelling it a non-security. Despite a comparably lower initial trading volume, experts predict that Australia's Bitcoin ETF could replicate the success of U.S. counterparts. This surge in the crypto market represents a technical rebound which experts believe could lead to a broader rally if it successfully closes above the 50-day EMA.
The cryptocurrency market experienced a substantial increase on June 20 with its total value growing by 1.70% to reach $2.35 trillion. This rise was primarily prompted by two critical events that enthralled crypto enthusiasts. TOTAL cryptocurrency market valuation daily performance chart from TradingView.
Australia's primary stock exchange, the Australian Securities Exchange (ASX), launched VanEck Bitcoin ETF (VBTC), the nation's first Bitcoin exchange-traded fund (ETF). It ended its debut day with a trading volume of $1.3 million USD (1.9 million AUD). VBTC daily performance chart from ASX.
In comparison to the debut of U.S.'s spot Bitcoin ETFs, which collectively generated $4.5 billion in trading volume across ten funds, each approximating $450 million, the Australian figure seemed relatively insufficient.
VanEck, the company managing the VBTC Bitcoin ETF, expressed optimism that, despite the differences in the initial trading volumes and the size of the markets, the success of Australian Bitcoin ETFs would eventually mirror that of their U.S. counterparts. Jamie Hannah, VanEck's Deputy Head of Investments and Capital Markets, shared his thoughts with Cointelegraph, saying a significant number of retail and professional investors had indicated strong interest in gaining exposure to Bitcoin via the ASX.
Bloomberg Intelligence Senior ETF Analyst, Rebecca Sin, estimated the potential for digital-assets ETFs in the Asia-Pacific region could surpass $3 billion in the upcoming years, likely being divided evenly between Australia, Hong Kong, and South Korea.
The approval and successful kick-off of the Bitcoin ETF on the ASX underscored the significance of Bitcoin as an emerging asset class, a factor that contributed to the stimulation of the recent crypto market rally.
The SEC, following its conclusion of the investigation into Ethereum, characterised Ether (ETH) as non-security, indirectly leading to gains in the crypto market that initiated on June 19. Surprisingly, the SEC decision was followed by the approval of 19b-4 filings from companies like VanEck, BlackRock and Fidelity, permitting the listing and trading of spot Ether ETFs on their respective platforms.
Eric Balchunas, Bloomberg analyst, suggests Ether ETFs could start trading as early as July 2. K33 Research further forecasts that these investment products might draw in $4 billion within the first five months, mirroring a strong latent demand for ETH tokens.
From a technical point of view, the crypto market's surge signals a rebound from a supportive confluence. Bitcoin price rebound expected in 10 days has Fed liquidity 'rips higher'. With this confluence consisting of the lower trendline of the prevailing symmetrical triangle pattern, the 100-day exponential moving average (100-day EMA; purple wave), and the 0.236 Fibonacci retracement level from TOTAL crypto market valuation.
Market experts predict a significant closure above the 50-day EMA (red wave) around 2.39 trillion to prepare for a widespread rebound rally drawing closer to the triangle's upper trendline. By month-end, this target aligns with the 0.618 Fib line at approximately $2.475 trillion—a 5.51% increase from the present valuation.
Yet a failure to surpass the 50-day EMA could lead to the crypto market capitalisation falling back towards the support confluence point around $2.30 trillion.
This document does not provide investment advice or suggestions. All investments and trading actions carry a risk. Thus, readers ought to engage in their research before making any decisions.
Published At
6/20/2024 1:52:53 PM
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