News
Ethereum ETFs, US CPI and more
This week, major news has caught the attention of investors and cryptocurrency enthusiasts. A potential spot approval of an Ethereum exchange-traded fund (ETF), the upcoming release of US CPI data, and other significant events are set to shape the cryptocurrency market.
These developments could have far-reaching implications, prompting market participants to remain vigilant and informed.
Major Cryptocurrency Legislation Faces Key Vote in Congress
This week, U.S. Lawmakers to Vote on H.J. Res. 109which seeks to overturn the controversial SEC Staff Accounting Bulletin 121 (SAB 121). House Majority Leader Steve Scalise’s weekly schedule suggests the resolution could be considered Tuesday or Wednesday.
This bulletin requires financial institutions to list their customers’ digital assets on their balance sheets. Critics argue that this rule keeps digital assets outside the U.S. financial system.
Both the House and Senate approved the repeal of SAB 121 in May. However, President Joe Biden vetoed the billstressing his administration’s commitment not to support “measures that jeopardize the well-being of consumers and investors.” Many industry experts and investors believe this will be a crucial vote for the broader cryptocurrency industry.
Spot Ethereum ETF Approval on the Horizon
Market watchers are abuzz with anticipation surrounding the potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs). After several asset managers updated their S-1 forms, Experts predict that these ETFs could be launched soon.
Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas suggest that these ETFs “could potentially list later next week or the week of July 15.” Nate Geraci, president of ETF Store, echoes that sentiment.
“Will be shocked if spot ETH ETFs don’t trade within the next 2 weeks. Later next week is a possibility, but I think the week of July 15th is more likely,” he said. noticed.
The SEC approval process remains critical for these ETFs to begin trading. While the SEC has approved Forms 19b-4, issuers still need to have their Form S-1s approved to proceed.
Despite the optimism surrounding the final approval of these ETFs, the price of ETH has dropped significantly since then. approval of forms 19b-4 as of late May. According to BeInCrypto data, ETH is now trading at $2,887, down about 26% since its preliminary approval date.
To know more: Ethereum ETF Explained: What It Is and How It Works
ETH price trend. Source: Being in Cryptocurrency
US CPI Data Release and Market Implications
Another critical event this week is the US Consumer Price Index (CPI) data, scheduled for release on July 11. The previous May CPI data showed no month-over-month increase, which offers some respite to inflation concerns.
The Federal Reserve Bank of Cleveland’s projections suggest that the monthly increase in headline CPI inflation for June will be 0.08%, with core CPI inflation, excluding food and energy, at 0.28%. While these estimates are not always precise, they are generally accurate in indicating where monthly inflation figures may lie.
However, the Federal Reserve will be closely monitoring the upcoming numbers to assess inflation trends and make informed policy decisions. These data will be taken into account at the central bank’s next policy meeting on July 30-31.
Lower inflation data could signal economic stability, potentially boosting investor confidence and driving capital into riskier assets like cryptocurrencies. Conversely, if inflation exceeds expectations, The Federal Reserve may decide to maintain or raise interest ratesinjecting uncertainty into the markets.
Due to their volatile nature, cryptocurrencies may experience significant price changes in response to these economic indicators. Therefore, investors should actively monitor CPI data and Fed decisions to navigate the market.
Jupiter’s Offer Reduction Proposal
Jupiter, a Solana-based decentralized exchange (DEX), is set to implement a significant change in its tokenomics with a proposal to reduce the total supply of its native token, JUP, by 30%. This proposal, shared by the pseudonymous co-founder Meow, includes a voluntary 30% team cut from allocated tokens and a corresponding reduction in Jupuary issuance. The governance vote on this proposal will happen somewhere in July.
Meow noted that these changes are possible because Jupiter has no direct investors, allowing the team to make bold moves to optimize the platform’s tokenomics. The proposed changes aim to address high levels of issuance, simplify the platform’s financial structure, and engage the community more deeply in Jupiter’s long-term vision.
To know more: Top 7 Projects on Solana with Huge Potential
Vela V2 Launch and Updates
Vela, a perpetual DEX native to Arbitrum, will be launch its Vela V2 on July 8. This version brings an updated tokenomics, a new trading competition, and improved features to the platform.
Vela V2 includes flexible vesting options, governance voteand a simplified staking page. Additionally, to incentivize participation and reward active users, Vela V2 will introduce a 500,000 ARB prize pool in Grand Prix Season 3.
Xai and other important tokens unlocked this week
Xai, a layer-3 (L3) solution designed for AAA gaming, will unlock nearly 200 million XAI tokens on July 9. The amount, worth approximately $55.18 million, represents 71.59% of its circulating supply. As such, this token unlock has sparked discussions in the crypto community about its potential impact on XAI’s price.
Additionally, Aptos will unlock a significant amount of its native token, ADAPT (Water and Water Supply)Data from TokenUnlocks shows that the layer-1 (L1) blockchain will distribute 11.3 million APT among community members, top contributors, and investors on July 12. This figure represents 2.49% of its circulating supply, valued at approximately $62.88 million based on the current market price.
Other projects like Immutable (IMMX-I …) will also keep token unlocks active during the same period. Read this article for more detailed information on the major crypto tokens unlocked this week.
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