Five Things to Know in Crypto This Week: ETH-Spot ETFs and BTC-Spot ETF Inflows
Crypto
Key Points:
- Bitcoin (BTC): Despite potential losses, BTC managed to avoid significant declines during the week. This was partly due to increased market flows in the US BTC-spot ETF sector, which helped counterbalance the impact of Mt. Gox transfers to exchanges.
- Ethereum (ETH): The US ETH-spot ETF market launched on Tuesday, July 23, leading to changes in ETH demand. Investors closely monitored this development as it influenced the overall market sentiment.
- Ripple (XRP): XRP briefly reached a high of $0.6334 amid speculation about a potential settlement between Ripple and the US Securities and Exchange Commission (SEC). Traders and investors kept a close eye on any news related to the ongoing legal case.
BTC Faced Selling Pressure as Mt. Gox Sent BTC to Trustee Exchanges
Bitcoin (BTC) was up 0.47 to $67,969 from Monday, July 22 to Saturday, July 27.
Early in the week, Mt. Gox transfers to trustee crypto exchanges Kraken and Bitstamp spooked investors.
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However, the crypto market has not experienced an oversupply from Mt. Gox’s creditors to impact BTC price trends.
Several other factors likely contributed to the BTC price recovery, including:
- US BTC-spot ETF market flow trends.
- US politics.
BTC Weekly Chart 270724
US BTC-Spot ETF Market Extends Weekly Inflow Streak to Four
The US BTC-spot ETF market emphasized its importance to BTC and the broader crypto market. In the week ending July 26, the US BTC-spot ETF market extended its weekly net inflow streak to four weeks.
According to Farside Investors,
- The US BTC-spot ETF market reported total net inflows of $535.3 million in the week ending July 26. (Previous week: $1,245.1 million).
- Grayscale Bitcoin Trust (GBTC) had total net outflows of $48.9 million. (Previous week: -$56.1 million).
- iShares Bitcoin Trust (IBIT) saw total net inflows of $758.5 million. (Previous week: +$706.7 million).
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported total net inflows of $29.6 million. (Previous week: +$243.8 million).
Significantly, US BTC-spot ETF market flow trends countered investor concerns about Mt. Gox’s repayments to creditors and the risk of a surge in BTC sales.
On Saturday, July 27, Mt. Gox had 80,128 BTC, equivalent to $5.43 billion, to transfer to exchanges.
US Presidential Election Race: Bitcoin Reserve Pledge
The 2024 US Presidential Election continued to influence BTC price trends.
Rumors of Donald Trump planning to announce a Bitcoin Reserve Policy if elected, drove BTC demand. Trump will speak at Bitcoin 2024 on Saturday, July 27. If Trump turns the US into a BTC buyer, BTC could reach new highs.
The crypto vote could be crucial in the 2024 race to the White House, with Democratic Party front-runner Kamala Harris aiming to woo crypto voters from the Trump camp.
While bipartisan support for the US crypto space could boost BTC demand, a US Bitcoin Reserve Policy could be a game changer.
SEC vs. Ripple: Settlement Hopes Wane After SEC Closed Meeting
Speculation about a settlement in the SEC vs. Ripple case drove XRP to a July 17 high of $0.6378.
Investors reacted to the SEC announcing a closed meeting, speculating that Ripple could attend to discuss settlement terms.
However, there were no updates from the closed meeting to signal a settlement. XRP dropped below $0.60 as settlement hopes waned.
Pro-crypto lawyer Bill Morgan also poured cold water on the chances of a settlement, saying,“This is unlikely to happen but if it does it is a compromise not a big win. It means both parties give up something.”
A settlement would end SEC plans to appeal against the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
XRP could return to $1.00 on news of an SEC settlement. Conversely, an SEC appeal against the Programmatic Sales of XRP ruling could send XRP below the $0.40 level.
From Monday, July 22, to Saturday, July 27, XRP was up 0.17% to $0.5989.
