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Slips to $69,000 as Ether retreats after ETF hype surges From Investing.com
Investing.com– The price fell slightly on Wednesday as anticipation of further U.S. interest rate signals saw traders lock in gains from a recent rally on optimism in an Ether exchange-traded fund.
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 the Securities and Exchange Commission’s approval of spot ETFs. The regulator will make a highly anticipated decision on the potential approval of ETFs later this week.
But warnings of sticky U.S. inflation and high interest rates for an extended period have kept traders wary of cryptocurrency markets and also caused Bitcoin to retreat from recent gains.
Bitcoin fell 2.1% over the past 24 hours to $69,763.0 as of 08:48 ET (12:48 GMT).
Ether retreats after hitting a 2-month high; Focus on the SEC’s ETF decision
Ether fell 3% in the past 24 hours to $3,663.08, after nearing its highest level since early March. The token rose as much as 18% on Monday.
The surge was fueled by media reports that the SEC would ask exchanges to finalize their filings for spot Ether ETFs on Monday, ahead of a crucial decision on their approval later this week.
The move marks some progress toward ETF approval, although the SEC may still reject the applications, as it has not engaged with any of the applicants so far.
However, analysts said the SEC’s move reflects a higher likelihood of an eventual approval of a spot Ether ETF. The approval is expected to spark a rally in cryptocurrency prices, similar to that seen with the approval of Bitcoin spot ETFs earlier this year.
Bitcoin struggles to maintain gains, further signals from the Fed are awaited
The token had risen as high as $71,000 on Tuesday, before falling back to a trading range between $60,000 and $70,000 seen for most of the past two months.
Crypto sentiment, despite optimism about a spot Ether ETF, was still limited by lingering US interest rate concerns.
Several Fed officials this week warned that the central bank needs more confidence that inflation is falling before it can start cutting interest rates.
Attention has now turned to , for further indication of when the central bank might start cutting interest rates.
High rates for longer periods do not bode well for cryptocurrency markets, as they limit the attractiveness of high-risk and highly speculative assets.
Cryptocurrency Price Today: Altcoin Rally Cools Down
Broader altcoin prices also cooled as Bitcoin retreated, while traders remained largely biased towards Ether across the altcoin complex. The dollar’s resilience has also limited any major rises in cryptocurrencies.
it slipped 1.6%, while it lost 2.3%. Among meme coins, and SHIB each lost 2.8%.
BlackRock (NYSE:) Bitcoin ETF Sees Biggest Inflows Since April
IBIT, BlackRock’s spot Bitcoin ETF, is seeing an increase in activity after a quiet few weeks, as Bitcoin trades above the $70,000 level for the first time in a month.
Specifically, IBIT recorded inflows of more than $290 million on Tuesday, according to preliminary data from Farside Investors, marking the highest single-day inflow this month and the largest since April 5. This figure is nearly three times the previous monthly high of $93 million recorded on April 25. May 16th.
As a result, IBIT’s total holdings have now risen to over $19 billion, as indicated on the product page.
Tuesday’s inflows are significantly elevated compared to earlier this month, when IBIT had seen little to no inflows prior to May 15. In April, IBIT recorded its first day of outflows, helping to create 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 will begin trading on May 28 and will be available exclusively to professional investors. These ETPs will carry fees of 35 basis points, according to the announcement made on Wednesday.