What’s The Correlation Between BTC And The Government?
The price of Bitcoin (BTC), which showed signs of recovery the previous day, has turned downward again. It is interpreted that this was influenced by news that the U.S. government plans to sell $240 million worth of BTC.
As of 9:20 AM on the 27th, the BTC price on CoinMarketCap is recorded at $60,859, down 1.48% from the same time the previous day.
According to CoinTelegraph on the 26th, $240 million worth of BTC was transferred from a wallet reportedly owned by the U.S. government to Coinbase. Transferring BTC to an exchange is typically interpreted as an act of selling.
According to blockchain data company Arcane, the total amount of BTC sent to Coinbase totals 3,940 BTC. Concerning this, Unfolded stated, “The U.S. government received permission from the court to sell BTC and deposited approximately 4,000 BTC into Coinbase within a day.”
However, even if 3,940 BTC is released into the market, the impact is expected to be minimal. CEO and Co-founder of CryptoQuant Ju Ki Young said via X, “Although the U.S. government did not sell 4,000 BTC immediately today, even if they did, the potential impact on the market is low,” adding, “When substantial funds flow in through a spot ETF, Coinbase Prime alone processes between 20,000 to 49,000 BTC in a day.” This indicates that the 3,940 BTC from the U.S. government is not large enough to significantly affect the market.
Also, the size of net outflows from BTC exchange-traded funds (ETFs) has significantly decreased. On the 25th, it temporarily switched to net inflow. This means that more funds came in through ETFs than went out. Although it reverted to net outflows on the 26th, the amount was relatively small, around $600,000. The reduction in net outflows and the brief shift to net inflows are positive signals for the market.
Ethereum Spot ETF Coming Soon?
There are predictions that the U.S. Ethereum spot ETF could receive final approval as of July 4 and begin trading.
A prominent media outlet cited industry sources knowledgeable about the matter in its report. It is currently understood that the U.S. Securities and Exchange Commission (SEC) is nearing the final stages of approval for the Ethereum Spot ETF.
On the 21st, among the asset management companies were VanEck, BlackRock, Grayscale Investment, and Invesco Galaxy Digital. They applied for the approval of the Ethereum Spot ETF to the U.S. Securities and Exchange Commission (SEC) and submitted an amended Securities Registration Statement (S-1) to the SEC.
In May, the U.S. SEC approved the official review request (19b-4) for the Ethereum Spot ETF applied by eight asset management companies including BlackRock, Fidelity, and Grayscale. However, for the Ethereum Spot ETF to be traded on the U.S. securities market, it must also receive approval for the S-1 (Securities Registration Statement).
Spot Ethereum Spot ETF To Attract $15 Billion By The End Of 2025
It is expected that the launch of the U.S. Ethereum Spot ETF will attract a large amount of capital to the cryptocurrency market.
Matt Hougan, Chief Investment Officer of Bitwise, said via X, “The Ethereum ETP (Exchange Traded Product) is expected to attract $15 billion in funds within the first 18 months after launch.”
He considered the difference in market capitalization compared to BTC, the overall size of the ETP market, and other factors to arrive at their results.
He then forecasted, “The funds flowing in through the BTC ETP are expected to reach $100 billion by the end of 2025.”
Animoca Brands To Challenge Hong Kong Stock Exchange Listing Next Year
Animoca Brands, well-known as a blockchain game development and investment company, is reportedly planning to list on the Hong Kong and Middle East stock exchanges as early as next year.
Yat Siu, Co-founder of Animoca Brands, told The Information on the 26th, “We have been negotiating with investment banks for the stock market listing, but we have not yet hired an advisor.”
This listing is the second attempt by Animoca Brands. The company had previously been listed on the Australian Securities Exchange (ASX) but was delisted in 2020 due to delayed financial audit report submissions.
As of 2022, Animoca Brands recorded a market capitalization of approximately $5.9 billion.
