The US SEC has instructed all applicants for Spot Ethereum ETFs to submit their S-1 drafts by the end of May to proceed with further review for potential trading approval. However, the process may take several weeks.
JPMorgan predicts that the SEC may approve ETFs for other coins besides Ethereum, but only if clear regulations are established stating that all cryptocurrencies which are not securities will have a chance.
Australia is set to debut its first-ever Spot Bitcoin ETF trading in early June, under the name – The Monochrome Bitcoin ETF (IBTC). This ETF allows direct investment in Bitcoin and is certified by Australia’s regulatory body, the Australian Financial Services.
BlackRock Strategic Income Opportunities and BlackRock Strategic Global Bond funds have added iShares Bitcoin Trust (IBIT) to their portfolios, with values of 3.6 million USD and 486,000 USD, respectively.
According to Bloomberg, BlackRock’s IBIT holds a 26% share, while Fidelity’s FBTC (Fidelity Wise Origin Bitcoin Fund) holds 56% of the total inflows into ETF funds since the beginning of the year. IBIT has seen inflows of 16.6 billion USD, and FBTC has seen inflows of 8.9 billion USD.
Nansen reports that DBS, Singapore’s largest bank, holds 173,753 ETH, valued at over 650 million USD, with profits from holdings exceeding 200 million USD. DBS has obtained a license to trade cryptocurrencies in Singapore.
CCData has revealed that the market value of stablecoins has reached a new all-time high since April 2022, growing continuously for 8 consecutive months, touching the 161 billion USD mark. This indicates increasing confidence in the market.
The latest survey by Grayscale indicates that eligible US voters are increasingly interested in Bitcoin. 47% of American voters expect to include digital assets as part of their investment portfolios.
PayPal has chosen to integrate the Solana blockchain to expand the use of its PayPal USD Stablecoin beyond the Ethereum blockchain. Solana offers advantages such as faster transaction speeds and lower fees.
Weekly Technical Analysis: 4 – 10 June 2024
Bitcoin (BTC)
BTC is testing the 70,000 USD resistance once again without breaking through. Although it hasn’t been able to establish a new high, it also hasn’t made a new low. Expect sideways movement this week awaiting clear signals from macroeconomic figures and the approval of Spot Ethereum ETFs. Support is at 65,000 USD; if it breaks 70,000 USD, it will test the previous high at 74,000 USD.
Support 2,375,000 THB | Resistance 2,650,000 THB
Support 65,000 USD | Resistance 74,000 USD
Ethereum (ETH)
ETH is moving directionless, awaiting clear signals regarding the approval of an ETH ETF. Approval could come sooner rather than later. Downside is likely limited around 3,500 USD, while breaking 4,000 USD would test 4,200 USD. Accumulation opportunities may arise gradually.
Support 130,000 THB | Resistance 146,500 THB
Support 3,500 USD | Resistance 4,200 USD
Stargate Finance (STG)
STG has surged by 31.70% in the past week, but the strong upward adjustment has led to selling pressure. Keep an eye on the support level at 0.600 USD; if it holds, there’s potential for further upward adjustment. The initial resistance is at 0.700 USD; surpassing it could revisit previous highs and continue the uptrend.
Support 22 THB | Resistance 28 THB
Support 0.600 USD | Resistance 0.700 USD
Pixels (PIXEL)
PIXEL has surged by 23.43% in the past week, with the trend showing signs of a bullish reversal. Opportunities for buying on dips may arise as the price consolidates. The initial support is at 0.455 USD; if it holds, the short-term profit target could be 0.600 USD.
Support 17 THB | Resistance 21 THB
Support 0.455 USD | Resistance 0.600 USD
Trading and Investment Considerations For The Week
Bitcoin’s price in May generated a return of 11%, contrary to expectations of negative returns. The last time May yielded positive returns was in 2020, during the halving event.
This week, all eyes are on the economic figures, particularly the Non-Farm Payrolls report scheduled for June 7. The forecast predicts an increase to 185,000 positions from last month’s 175,000. If the actual figure falls below expectations, it could positively impact the market, including keeping the unemployment rate unchanged at the anticipated 3.9%.
The Non-Farm Payrolls figure released may affect the announcement of the CPI (Consumer Price Index) figures as well as the Federal Reserve’s monetary policy meeting scheduled for the same day on June 13. If the figure decreases, it could positively impact Bitcoin prices, even though it’s expected that the Fed will maintain interest rates at the current level during this meeting.
The market outlook has improved as inflows into Bitcoin ETFs turned positive again in May, rebounding from negative territory in April. However, they still remain significantly below the peak levels seen in March.
While the SEC ordered Spot Ethereum ETF applicants to amend their S-1 documents, submitted last Friday, it’s expected to take several weeks, or perhaps even months, for approval. Nonetheless, the market is eagerly anticipating the eventual approval of Spot Ethereum ETFs, which could potentially bolster market sentiment positively. If economic figures disappoint, we might witness a rally in the crypto market this June.
Reference:
- https://www.theblock.co/post/296845/jpmorgan-doubt-sec-approval-solana-other-crypto-etfs
- https://www.theblock.co/post/297202/two-blackrock-funds-added-the-firms-ibit-spot-bitcoin-etf-to-portfolio-in-q1
- https://cointelegraph.com/news/stablecoin-market-cap-rises-to-2-year-highs-as-dominance-slides-to-6-ccdata
- https://cointelegraph.com/news/paypal-expands-pyusd-solana-payment-use-cases
- https://www.theblock.co/post/297757/grayscale-files-amended-registration-statement-for-its-spot-ethererum-fund
- https://cointelegraph.com/news/ethereum-wallet-dbs-bank-650-million
- https://www.theblock.co/post/297263/bitcoin-increasingly-relevant-2024-election-grayscale
- https://cointelegraph.com/news/australia-first-spot-bitcoin-etf-monochrome
- https://cointelegraph.com/news/bitcoin-etf-blackrock-fidelity-bitcoin-etfs-account-large-share-total-flows
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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