News
Bitcoin Tests $65K, Ether ETF Expected Next Week
Key points
- Bitcoin price is trading slightly lower in the early afternoon on Tuesday, after breaking above the $65,000 level in the late session on Monday.
- Republican presidential candidate Donald Trump has chosen Ohio Senator JD Vance, who is considered “pro-crypto,” as his running mate.
- Spot ether ETFs are expected to launch next week, once issuers have completed final filings for these products.
- Cryptocurrency exchange Kraken has received more than $3 billion in bitcoin from Mt. Gox Trustee to distribute to former customers of the failed exchange.
The price of bitcoin (BTC) fell slightly on Tuesday afternoon, after breaking above the $65,000 level during Monday trading.
Bitcoin traded above $64,000 on Tuesday after cryptocurrency exchange Kraken received more than $3 billion in bitcoin for distribution in the next few weeks for Mount Gox customers, according to a report by The Block.
Two major developments in the past 24 hours — the selection of Republican presidential candidate Donald Trump as his running mate and the potential approval of a spot ether ETF next week — may have sent bitcoin higher and led to gains in cryptocurrency-related stocks as well.
Riot Platforms Actions (REVOLT) gained more than 5%, Marathon Digital (MARA) increased by 4%, MicroStrategy (MSTR) added 2% and Coinbase (CURRENCY) was up more than 1% as of 1:15 p.m. ET on Tuesday.
Trump Picks ‘Pro-Crypto’ Vance as Running Mate
Former President Donald Trump is making an effort to gain the attention of the cryptocurrency industry. Even as the rising odds of his victory sent the price of bitcoin soaring yesterday, Trump announced JD Vance as his running mate for the 2024 US presidential election.
A Republican senator from Ohio, Vance is also a bitcoin investor. He previously said he held between $100,000 and $250,000 worth of bitcoin in 2022, and more recently authored industry-friendly cryptocurrency legislation, according to Politico.
And some members of the cryptocurrency sector immediately supported this candidacy.
“Trump-Vance is a phenomenal ticket,” wrote Brian Morgenstern, head of public policy at Riot Platforms, on X. “But it’s a dream come true for #Bitcoin and Bitcoiners, and the broader crypto community.”
Spot Ether ETFs Could Start Trading Next Week
The demand created by bitcoin spot exchange-traded funds (ETFs)) is credited with fueling a rally in bitcoin prices in the first half of the year. While spot ether ETFs may not inspire a similar rush of investment, optimism surrounding their approval could push bitcoin prices higher.
According to Eric Balchunas, senior ETF analyst at Bloomberg, discussions between the United States Securities and Exchange Commission (SEC)) and potential issuers of spot ether ETFs with respect to related S-1 Presentations have progressed to the point that the launch of this new financial instrument is now scheduled for next week.
“The SEC finally responded to issuers today, requiring them to return FINAL S-1s on Wednesday (including fees) and then file for effectiveness on Monday after the close for a TUESDAY 7/23 LAUNCH,” Balchunas wrote on X. “That’s assuming there are no unpredictable last-minute issuances, of course!”
The price of ether (ETH), which is the underlying cryptocurrency of the Ethereal network, is largely unchanged from Balchunas’ post. However, it is worth noting that the approval of several spot ether ETFs this summer has been already planned.