The recent market has been filled with negative news, causing concerns for investors. Not only is there selling pressure from the distribution of bitcoin by Mt. Gox, but there are also reports of the German and American governments transferring and seizing bitcoins. As a result, the selling pressure on bitcoin has been heavy, with the price dropping to 58,402 at one point and reporting 60,973 at the time of writing, remaining below the moving average and unable to break through upwards in the short term.
The recent market sentiment surrounding Bitcoin (BTC) has experienced significant fluctuations, especially due to news of the American and German governments transferring bitcoins. This series of actions has raised concerns about the increased selling pressure on Bitcoin.
1. American government transferring bitcoins:
The bitcoins held by the American government are mainly obtained through the confiscation of criminal proceeds. Recently, there have been reports that the American government is transferring these bitcoins, potentially selling them on the market. This has raised concerns about potential supply increases in the market.
2. German government transferring bitcoins:
Similarly, the German government is transferring its holdings of bitcoins, which are also assets confiscated through legal proceedings. The market believes that these bitcoins may be sold, thereby increasing market supply.
The launch of Ethereum spot ETF brings about significant changes. The listing of the Ethereum spot ETF is of great significance, opening up a legal and strictly regulated investment channel for Ethereum. In the past, traditional financial institutions and investors may have been concerned about the lack of regulation and standards in the digital currency field. However, with the ETF as a bridge, their funds can flow into the Ethereum market in a relatively safe manner. The impact of this change is multifaceted. Firstly, the influx of a large amount of funds directly provides powerful momentum for the rise in Ethereum prices. Secondly, the regulatory guarantee enhances market confidence in Ethereum, making more investors willing to participate. Furthermore, the liquidity and transparency of the ETF greatly enhance the market’s trust and visibility of Ethereum.
Progress in the approval of the Ethereum spot ETF
On June 27th, Reuters cited industry executives and reported that negotiations between 8 asset management companies, including BlackRock, and regulatory agencies have entered the final stage, with only minor modifications remaining. It is expected that the U.S. SEC may approve the Ethereum spot ETF as early as July 4th.
Executives from the two companies stated that the process of revising the prospectus has progressed, only addressing “minor” issues. As the discussions are confidential, these executives requested anonymity. These documents must be approved before the ETF can be issued. A lawyer working with the issuer (also requesting anonymity) stated that the process has “entered the final stage” and the approval “may only take one or two weeks.”
