Bitcoin
Drops to $69K as Ether retreats after ETF hype rises By Investing.com
Investing.com – The price fell slightly on Wednesday as anticipation of more signals on U.S. interest rates caused traders to lock in gains from a recent rally due to optimism over a spot fund trading in Ether exchange.
The world’s No. 2 cryptocurrency, Ether, also gave up some gains after hitting a more than two-month high, boosted by reports this week indicating some progress toward approval of spot ETFs by the Securities and Exchange Commission. The regulator is expected to make a long-awaited decision on the possible approval of ETFs later this week.
But warnings about sticky US inflation and higher interest rates for longer have kept traders cautious about crypto markets and also stripped Bitcoin of recent gains.
Bitcoin fell 2.1% in the last 24 hours to $69,763.0 at 08:48 ET (12:48 GMT).
Ether retreats after hitting 2-month high; SEC ETF Ruling in Focus
Ether fell 3% in the last 24 hours to $3,663.08 after approaching its highest level since early March. The token rose as much as 18% on Monday.
The surge was fueled by media reports suggesting that the SEC had asked exchanges to adjust their registrations for spot Ether ETFs on Monday, ahead of a crucial decision on their approval later this week.
The move marks some progress in approving ETFs, although the SEC could still deny applications as it has not engaged with any of the applicants to date.
Still, analysts said the SEC’s move reflected a greater likelihood of an eventual approval of a spot Ether ETF. The approval is expected to trigger a rally in cryptocurrency prices, similar to what was seen with the approval of spot Bitcoin ETFs earlier this year.
Bitcoin struggles to maintain gains, more Fed signals awaited
The token rose as high as $71,000 on Tuesday before falling back to a $60,000 to $70,000 trading range seen for most of the past two months.
Sentiment towards crypto, despite optimism regarding an Ether ETF in sight, was still limited by lingering concerns about US interest rates.
Several Fed officials warned this week that the central bank needed more confidence that inflation was coming down before it could start cutting interest rates.
The focus was now on , for more hints on when the central bank might start cutting interest rates.
High rates for longer periods bode poorly for crypto markets as they limit the appeal of high-risk and highly speculative assets.
Crypto Price Today: Altcoin Rally Cools Down
Broader altcoin prices also cooled as Bitcoin pulled back, while traders remained largely biased towards Ether in the altcoin complex. The dollar’s resilience has also limited any major upside in crypto.
fell 1.6%, while it fell 2.3%. Among meme coins, SHIB lost 2.8% each.
BlackRock (NYSE:) Bitcoin ETF sees biggest inflows since April
IBIT, BlackRock’s spot Bitcoin ETF, is witnessing increased activity after a quiet few weeks, with Bitcoin trading above the $70,000 level for the first time in a month.
Specifically, IBIT recorded inflows exceeding $290 million on Tuesday, according to preliminary data from Farside Investors, marking its largest single-day inflow this month and the largest since April 5. This number is nearly three times the previous monthly high of $93 million recorded on May 16.
As a result, IBIT’s total holdings have now increased to over $19 billion, as stated on its product page.
Tuesday’s inflows are notably large compared to earlier this month, where IBIT recorded low or no inflows prior to May 15. In April, IBIT recorded its first day of outflows, contributing to some bearish sentiment for Bitcoin at the time.
Elsewhere, asset manager WisdomTree has received approval from the Financial Conduct Authority (FCA) to list crypto exchange-traded products (ETPs) on the London Stock Exchange (LSE).
WisdomTree said it is among the first applicants to have its prospectus approved by the UK regulator.
The Physical Bitcoin (BTCW) and Physical (ETHW) ETPs are scheduled to begin trading on May 28, available exclusively to professional investors. These ETPs will have fees of 35 basis points, according to an announcement made on Wednesday.