Markets
Bitcoin Steady Near $67K as Crypto Investors Watch Ethereum ETF Decisions This Week
(Kitco News) – Monday morning we saw Bitcoin (Bitcoin) price recovers from a brief drop to $66,000 support following breaking news on Sunday that Iran’s President Ebrahim Raisi died in a helicopter crash.
So far, the event does not appear likely to further exacerbate tensions in the Middle East and Europe, which has given investors a reason to breathe easier, as evidenced by the stock market’s upward trend at the start of the week following the major indices closed at record values. highs on Friday.
After hitting a low of $65,856 on Sunday afternoon, Bitcoin rose back to a high of $67,540 on Monday morning and was trading at $67,440 at the time of writing.
BTC/USD Chart by TradingView
Next week includes multiple statements from Fed officials on the state of the US economy and the outlook for interest rates. At the same time, stock watchers are keeping an eye on Nvidia’s quarterly earnings report on Wednesday, which is seen as a critical catalyst for the stock’s rally.
For crypto, the overall trend is bullish after Bitcoin closed last week at approximately $66,300, marking a 7.8% increase from the previous week’s closing value of approximately $61,500. “The week was characterized by low daily volatility, with most of the price increase occurring on Wednesday, while the rest of the week exhibited stable price action,” said Matteo Greco, research analyst at Fineqia International.
“Last week’s positive price movement was also driven by increased demand for BTC Spot ETFs,” he noted. “After five weeks of low demand resulting in about $1 billion in cumulative net outflows, BTC Spot ETFs recorded about $950 million in net inflows last week, reflecting a level of demand not seen since March.”
It was the first week in over a month that saw five consecutive days of positive inflows, as even Grayscale’s ETF, GBTC, “which traded as a trust before being converted to an ETF in January 2024, experienced its first weekly net inflow,” Greco said. This suggests that the trend in outflows, which have totaled around $17.6 billion since January, may be reversing, bringing GBTC’s entry/exit patterns into line with those of its competitors.”
“The trading volume of BTC ETFs has remained relatively stable, with the cumulative trading volume since inception reaching $262.6 billion and recording $8.6 billion during the week,” he added. “Trading volume is in line with numbers from recent weeks, maintaining stability in the range of $1.5 to $2 billion in daily volume, following a period of exceptionally high trading activity in February and March.
ETF talk will likely be the focus of attention this week as the final decision date for several Ethereum (ETH) ETFs occurs.
“Regarding ETFs, the Securities and Exchange Commission (SEC) is expected to make a final decision on Spot Ethereum (ETH) ETFs this week, with deadlines for the VanEck and Ark 21Shares filings on Aug. 23 and 24. May, respectively,” said Greco. . “This decision could trigger a series of approvals or rejections, as the SEC will likely apply the same criteria to all seven Spot ETH ETF applications.”
“Market participants expect the SEC to withhold approval of these products despite having approved BTC ETFs in January,” he noted. “Concerns about the liquidity of ETH’s spot and futures markets, coupled with its previous classification as a security by the SEC, contribute to skepticism about quick approval. If rejected, issuers would need to resubmit filings, potentially leading to approval in Q4 2024 or Q1 2025 at best.”
“Another emerging scenario involves approving 19b-4 filings while ‘playing the slow game’ with S-1s,” Greco added. “Both the 19b-4 and S-1 must be approved by the SEC to launch Spot ETH ETFs.”
“The 19b-4s registration allows national security exchanges (e.g. NYSE or Nasdaq) to list new products such as Spot ETH ETFs,” he explained. “S-1s are the initial registration forms required for new securities offered to the public, providing detailed information about the company’s operations and products.”
Greco suggested that “the SEC may approve the listing on exchanges while delaying the initial registration form to gather more information about the ETH market and necessary risk mitigations.” This decision could be favorable for issuers as traditional financial investors appear to remain heavily focused on BTC, potentially reducing market activity around ETH Spot ETFs if launched next week.”
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