Delayed Launch for Ether ETFs in US: Potential Bitcoin Spike Could Shift Market
Summary:
Ether (ETH) exchange-traded funds (ETFs) may face a delay in their US launch, according to SEC Chair Gary Gensler. In another development, a potential Bitcoin spike to $72,000 could trigger mass liquidations, possibly leading to a breakthrough beyond $75,000. Meanwhile, Bitcoin ETFs in the US logged their second-highest net inflow. Gensler criticized cryptocurrency firms for illegal activities, reinforcing the SEC's approach to crypto-focused enforcement. This comes as Bitcoin witnessed a 3.15% increase over 24 hours.
The launch of Ether (ETH) exchange-traded funds (ETFs) in the United States might face a delay, with an expected launch timeline still undefined. Analysts are looking at the potential for Bitcoin to reach a $72,000 mark, a significant move that could trigger mass liquidations and breach the $75,000 threshold. Meanwhile, Bitcoin ETFs, based in the US, have experienced their second most prominent net inflow.
Commenting on the launch of Ether ETFs, Gary Gensler, Chair of the Securities and Exchange Commission (SEC) stated that this process will require time, indicating several necessary steps before the products become publicly accessible. This hint suggests that it may take months before these products find their place on the exchange listings. On May 23, approval was given to a number of Ether ETFs from eminent firms like BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This decision followed five months after the SEC approval of a raft of Bitcoin (BTC) ETFs, which managed to attract significant institutional capital.
In his interview, Gensler expressed disapproval over cryptocurrency firms involved in unlawful activities, reinforcing the unchanging stance of the SEC towards crypto-focused enforcement. The SEC has historically taken legal action against notable crypto exchanges such as Coinbase, Binance, and Kraken.
When it comes to Bitcoin, its price reaching $72,000 is seen as a crucial catalyst to accomplish new record highs. According to analyst Willy Woo, this significant hit will prompt a volley of mass liquidations, encouraging an ascent toward all-time heights. Bitcoin saw an increase of 3.15% over 24 hours, marking its value at $71,124 at the end of this period.
Spot Bitcoin ETFs located in the US witnessed their second-highest cumulative day with a net inflow of $886.6 million, as per Farside Investors data. The inflows for Fidelity, BlackRock, and the joint ARK and 21Shares fund were $378.7 million, $274.4 million, and $138.7 million respectively.
Meanwhile, Grayscale's Bitcoin ETF experienced an unusual inflow of $28.2 million, marking only the seventh occurrence of an inflow since it was converted into a spot ETF on Jan. 11. During this time, Bitcoin has surged 2.9% to $71,000 within the past 24 hours.
Published At
6/5/2024 9:23:52 PM
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