Spot ETH ETFs Expected to Enter the Market in Early Q3

Bloomberg analysts indicate that there is a chance for a Spot Ethereum ETF to start trading on the U.S. stock market by July 2. It has been noted that the U.S. SEC officials have not requested additional information and documents from the ETF applicants.

Gary Gensler, Chairman of the U.S. SEC, commented to legislators that about 8-9 Spot Ethereum ETF applicants could receive joint approval and are in their registration process, with approval expected by this summer.

Rob Marrocco, Vice President and Global Head of ETF Listings for Cboe (Chicago Board Options Exchange), believes that ETFs in cryptocurrencies other than Bitcoin and Ethereum will not be established until regulatory changes occur, starting with Futures ETFs. Thus, expecting spot ETFs for Solana (SOL) and Ripple (XRP) is unlikely in the short term.

Bernstein has raised its Bitcoin price target from 150,000 to 200,000 USD by the year 2025, with support from institutional investments through Spot Bitcoin ETFs. By 2033, the price is expected to exceed 1,000,000 USD.

CryptoQuant reports that over 3,000 BTC were mined and sent to exchanges, with another 1,200 BTC being traded over the counter (OTC). This represents the highest figures in two months from accelerated mining ahead of reduced miners’ revenue after the Bitcoin halving.

MicroStrategy is preparing to offer 500 million USD in convertible senior notes through a private offering that will mature in 2032. The fundraising aims to purchase additional Bitcoin for the company’s investment portfolio, with these notes convertible into common stock of the company.

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Weekly Technical Analysis: 18 – 24 June 2024

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Bitcoin (BTC)

BTC’s price has weakened over the past week, with the trend possibly dropping to the final support level at 60,000 USD. If it falls below this level, a sell-off may be necessary as the trend could turn bearish. However, if the price does not make a new low, it might rise to test the resistance at 72,000 USD for the fourth time. If it breaks through, the trend could turn bullish again.

• Support: 2,100,000 THB / 60,000 USD
• Resistance: 2,700,000 THB / 72,000 USD

Ethereum (ETH)

ETH’s price has weakened while awaiting clarity on the establishment of Spot Ethereum ETFs. Watch the support level at 3,300 USD, which can be used as a buying point. The resistance level to break through is 4,000 USD; only then will the trend turn bullish. The strategy is to follow and buy once it breaks through the resistance.

• Support: 105,000 THB / 3,300 USD
• Resistance: 145,000 THB / 4,000 USD

Ethereum Name Service (ENS)

ENS increased by 15.80% over the past week, with the trend turning bullish again. A price pullback provides a buying opportunity. The first support level is 18 USD. If it holds above this level, short-term profit can be taken at the previous high of 30 USD. However, if it falls below, it is recommended to sell and cut losses.

• Support: 700 THB / 18 USD
• Resistance: 1,100 THB / 30 USD

Lido DAO (LIDO)

LIDO increased by 13.83% over the past week, with the trend recovering from its lowest point. The recommended trading strategy is to buy on dip, looking for pullback opportunities at the first support level of 1.80 USD. If the price recovers, there is a profit-taking opportunity at the resistance level, which is the previous high of 2.70 USD.

• Support: 55 THB / 1.80 USD
• Resistance: 100 THB / 2.70 USD

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Trading and Investment Considerations For The Week

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U.S. inflation figures, or the Consumer Price Index (CPI), have shown a slight decrease in May. The market is now focusing on the FED Dot Plot, or the Federal Reserve’s interest rate projections, which indicate only one rate cut in 2024. This has caused the U.S. dollar to strengthen rapidly, putting pressure on Bitcoin prices.

Ethereum has outperformed Bitcoin in the short term, likely due to speculation about the Spot Ethereum ETF approval and appearance on the U.S. stock market within the next few weeks. Keep an eye on upcoming news to find opportunities for making your entries.

The Altcoin Season Index has dropped to its lowest levels since November 2023, with only 12 of the top 50 market cap coins outperforming Bitcoin, indicating a lack of investments in altcoins.

In the short term, news of the Spot Ethereum ETF approval could boost the cryptocurrency market. The U.S. economy remains strong, and inflation has not met the Federal Reserve’s targets. Additionally, the U.S. presidential election atmosphere, with upcoming speeches by Donald Trump and Joe Biden next week, could positively impact the crypto market if favorable points about cryptocurrencies are made.

If these two factors do not materialize, the market is expected to continue moving sideways. It is recommended to delay any investments because if the market lacks direction, there will be no short-term profit opportunities.

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References

• https://cointelegraph.com/news/spot-ethereum-etf-ether-eric-balchunas-bloomberg
• https://cointelegraph.com/news/sec-chair-spot-ether-etf-s1-approvals-summer
• https://cryptoslate.com/cboe-exec-says-solana-etfs-unlikely-without-futures-market-or-regulatory-clarity/
• https://www.theblock.co/post/300138/bernstein-bitcoin-price-target-2025
• https://cryptopotato.com/bitcoin-miners-are-selling-again-cryptoquant/
• https://cointelegraph.com/news/microstrategy-raise-500-million-stock-buy-bitcoin

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Disclaimers

• Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
• Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge and opinions are considered as contents that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither email nor content presented constitutes the investment advice.

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