Ethereum Spot ETFs Could Drive ETH Prices to New Highs

Ethereum Spot ETFs Could Propel ETH Prices to New Highs

A recent prediction has captured the attention of crypto market investors. Matt Hougan, the Chief Investment Officer at crypto asset manager Bitwise, has indicated that the introduction of Ethereum spot ETFs could have a significant impact on the market. According to Hougan, these new exchange-traded funds could drive Ethereum‘s price to surpass $5,000, although this may not happen immediately.

Hougan shared his forecasts in a note addressed to clients this Tuesday. He explained that the initial weeks following the launch of Ethereum spot ETFs will be “volatile” for the cryptocurrency, which ranks second in terms of market capitalization.

This period of instability is expected due to the potential transfer of funds from the Grayscale Ethereum Trust (ETHE), which manages assets worth approximately $11 billion, to the new ETFs.

“Despite the initial volatility, I am confident that new all-time highs will be reached by the end of the year,” Hougan asserted. He also mentioned that if investment flows exceed the expectations of many market commentators, Ethereum’s price could rise even further.

Accelerated Distribution of Bitcoin to Mt. Gox Creditors as Whales Continue Accumulating

In a recent update on the historic collapse of the Mt. Gox exchange, it was reported that more than one-third of the bitcoins owed to creditors have already been distributed. According to a post on CryptoQuant dated July 17, the trustee of Mt. Gox has managed the transfer of 36% of the bitcoins to its former users. This accounts for a significant portion of the 141,686 BTC that will be distributed over time.

This news has raised concerns among crypto investors, who fear that the repayment to Mt. Gox creditors could place significant selling pressure on Bitcoin’s price. In total, over $9.4 billion in Bitcoin is owed to around 127,000 creditors who have waited more than a decade to recover their funds.

However, amidst these concerns, large Bitcoin holders, known as “whales,” continue to accumulate without showing signs of fear. A notable example is a whale that purchased 245 BTC, valued at nearly $16 million, on July 17. According to Lookonchain, this address has made only two transactions in the past year, netting over $30 million in profits.

The concern over Mt. Gox repayments affecting Bitcoin’s market is not without merit. Given the significant amount of Bitcoin involved, any large-scale movement could trigger price volatility. Investors are watching closely as more updates about the distribution process emerge, highlighting the need for caution and strategic planning in the crypto space.

Trump Considers Jamie Dimon for Treasury Secretary and Plans to Retain Jerome Powell at the Federal Reserve

Former U.S. President and current Republican nominee Donald Trump has revealed that if re-elected, he is considering JPMorgan CEO Jamie Dimon for the position of Treasury Secretary. Additionally, Trump intends to keep Federal Reserve Chairman Jerome Powell in his role.

These comments were made by Trump during an interview with Bloomberg. However, it is unclear if his thoughts have changed following the assassination attempt on July 13.

This marks the first time Jamie Dimon has been publicly linked to a potential Trump administration. Over the years, the relationship between Trump and Dimon has been somewhat contentious. In November 2023, Trump labeled Dimon as a “highly overrated globalist” in a post on Truth Social. For his part, Dimon urged people to support Trump’s opponent, Nikki Haley, for the Republican nomination.

During the Bloomberg interview, Trump expressed, “I have a lot of respect for Jamie Dimon,” and mentioned that he would consider him for the Treasury Secretary position. While this does not necessarily indicate serious consideration, the fact that Dimon has not been dismissed could be a cause for concern for the cryptocurrency and blockchain communities.

Dimon’s potential role in a new Trump administration brings significant implications for financial policies, especially those affecting the banking sector and digital currencies. Dimon’s known skepticism about Bitcoin and other cryptocurrencies might influence regulatory stances and impact market dynamics.

King’s Speech at State Opening of Parliament Focuses on Economy, Skips Cryptocurrencies

The new Labour government in the UK has outlined its priorities, focusing on stability and economic growth, without explicitly mentioning policies related to digital assets. King Charles III, in his speech during the State Opening of Parliament, conveyed the incoming government’s intentions to introduce laws and policy goals.

Addressing members of Parliament on July 17, King Charles III read a speech written by the Labour government. The priorities mentioned included “ensuring economic growth,” “wealth creation,” and improving the nation’s infrastructure and housing.

Although the approximately 15-minute speech did not specifically address cryptocurrency and blockchain regulation, the King mentioned that legislators “will promote investment in industry, skills, and new technologies” and introduce legislation to regulate artificial intelligence. Additionally, plans to tackle border security, the climate crisis, and establish an “independent football regulator” were highlighted.

The Labour government’s approach to digital assets appears to differ from the Conservative Party’s stance. In May 2022, then-Prince Charles, speaking on behalf of Queen Elizabeth II, addressed the State Opening of Parliament for Conservative Prime Minister Boris Johnson, mentioning cryptocurrency regulation through the Financial Services and Markets Bill, as well as the Economic Crime and Corporate Transparency Bill.

The current Labour government’s focus on economic growth and new technologies, without direct mention of cryptocurrency regulation, suggests a potential shift in priorities. Investors and industry stakeholders are closely monitoring these developments to understand how future policies might impact the UK’s position in the global digital asset market.