Ethereum
Bitcoin Briefly Slips Below $60,000, SEC Abandons Ethereum Probe
Key takeaways
- The price of bitcoin continued its month of suffering, with the price briefly falling below $60,000 on Monday.
- Legacy Bitcoin exchange Mt. Gox has announced that distribution of funds owed to former customers will begin in early July.
- The Securities and Exchange Commission (SEC) has closed its investigation into Ethereum without filing charges against blockchain technology company Consensys.
- Crypto asset manager Hashdex has filed for a combined bitcoin-ether spot ETF.
- This week, analysts will be watching to see if bitcoin can halt its decline while keeping an eye on Thursday’s U.S. presidential debate.
June hasn’t been kind to Bitcoin: The cryptocurrency’s price briefly fell below the $60,000 level on Monday after looking like it might surpass the previous all-time high of over $73,000 earlier in the month.
The most recent negative news for Bitcoin comes in the form of an upcoming bitcoin distribution owed to former customers of the defunct bitcoin exchange Mount Goxwhich would involve up to 140,000 bitcoins being released to the market.
That said, last week wasn’t all bad news for crypto, as the U.S. Securities and Exchange Commission (SEC) concluded its investigation into Ethereum and blockchain technology company Consensys without filing charges. Additionally, crypto asset manager Hashdex filed spot crypto exchange-traded fund (ETF) which will focus on diversification.
Mt. Gox Repayment Plan Causes Bitcoin Jitters
Legacy bitcoin exchange Mt. Gox announced it would begin the long-awaited process of returning assets to its customers in July, more than a decade after filing for bankruptcy following several hacking incidents. The total amount of bitcoins to be distributed remains uncertain, with estimates ranging from 65,000 to 140,000 bitcoins, potentially valued at $9 billion.
While some investors worry that the influx of these bitcoins could depress prices, others argue that the potential selling pressure may be overestimated, noting that creditors have had years to sell their claims if they needed funds urgently. News of Mt. Gox’s impending redemptions caused the price of bitcoin to briefly fall below $60,000 on Monday, continuing its downward trend for the month.
According to data from Farside Investors, spot bitcoin ETFs have now suffered their largest outflows in a two-week period since US spot bitcoin ETFs were approved in January, with investors withdrawing a net $1.1 billion from these funds during this period.
SEC closes investigation into Ethereum 2.0
On June 18, blockchain Technology company Consensys announced that the SEC’s Enforcement Division has concluded its investigation into Ethereum 2.0. Despite the shutdown, the SEC’s position on whether etherthe native token of the Ethereum blockchain, described as a title, remains ambiguous.
According to Consensys, the regulator began its investigation into Ethereum last year and the company sued the SEC earlier this year, claiming that Ether was a commodity and that the SEC lacked jurisdiction to investigate.
Although SEC Chairman Gary Gensler has not definitively called ether a security, the Commodity Futures Trading Commission (CFTC) considers it a commodity. The closure of the investigation could indicate that the SEC tends to treat ether as a commodity, although the SEC’s future actions remain uncertain.
According to Fortune, Consensys’ legal battle with the SEC will continue despite the recent announcement. The conflict originally stems from the SEC’s scrutiny of the crypto wallet owned by Consensys. MetaMask, particularly its token swap capabilities and access to staking. The SEC says these functions constitute unlicensed brokerage activities involving unregistered crypto asset securities. Consensys indicated that while the closure of the Ethereum 2.0 investigation is a victory, it does not fully resolve the broader regulatory issues.
Hashdex files for combined Bitcoin-Ether ETF
With spot Bitcoin ETFs already trading in the US and spot ether ETFs seemingly around the corner, the next development could be a combined ETF comprising the two major cryptocurrencies. Hashdex, a crypto asset manager, is spearheading this effort with a recent filing for the Hashdex Nasdaq Crypto Index US ETF.
If approved, this ETF would be the first in the United States to directly hold both Bitcoin and Ether. According to Nasdaq’s SEC filing, the ETF will track the Nasdaq Crypto Index (NCI), which is weighted by market capitalization. Coinbase Custody and BitGo are expected to serve as custodians. The ETF aims to provide a passive investment strategic, providing investors with exposure to overall market performance. Hashdex already offers a similar product in Brazil.
Although the new ETF will initially focus on bitcoin and ether, the filing leaves open the possibility of including other crypto assets in the future, provided they meet regulatory criteria. Bloomberg analyst James Seyffart noted that the SEC’s final decision on Hashdex’s application is expected by early March 2025.
What to expect in the markets this week
Crypto market analysts will be watching Bitcoin price closely this week, hoping for signs that the bleeding will stop, especially amid high Bitcoin ETF outflows and upcoming distributions Mt. Gox.
However, some market observers, such as Custodia Bank founder and CEO Caitlin Long, say the falling bitcoin price is not a cause for concern amid the recent halving event. “It is normal for a price drop like this to occur after a reduce by half“Halvings are incredibly bullish, but bull markets usually don’t start until several months later, for fundamental reasons,” Long posted on X.
All eyes will now also turn to Thursday’s US presidential debate between Joe Biden and Donald Trump, as conversations about cryptocurrencies find momentum in the electoral campaign.
Former President Trump has changed his stance on bitcoin, now apparently supporting the cryptocurrency without making definitive comments on regulation or policy regarding digital assets. Due to the SEC’s aggressive enforcement actions during his administration, President Biden, by extension, has not been seen as crypto-friendly – an image his campaign is trying to distance itself from him, although he are no details on this camp’s crypto policy. either.