Altcoin
Will Solana And Ether Outperform Bitcoin In Near Term Amid ETF Hype?
As the launch of the spot Ethereum ETF nears, scheduled next week, the market seems to be taking attention from Bitcoin. If this wasn’t enough the announcement of VanEck filing for spot Solana ETF on Thursday, has drawn greater attention towards Solana. Amid all the ETF hype around these two altcoins, it is very likely that Solana and Ether will perform better than Bitcoin in the near future.
Solana and Ether Overshadow BTC Price Performance
With Bitcoin being on a significant downtrend throughout the month of June, both Ether and Solana have managed to outperform BTC over the past month, as reported by Bloomberg.
Soon after the news of the spot Solana ETF filing, the Solana price rallied all the way to $150 registering double-digital gains. The Bloomberg report notes just like Bitcoin enjoyed a massive bull run following the launch of spot Bitcoin ETFs earlier this year in January, Ether and Solana could follow a similar trajectory.
Also Read: Bloomberg Analyst Predicts Solana ETF To Launch In 2025
The US SEC Chairman Gary Gensler recently stated that the review process for spot Ethereum ETF applications is going smoothly. Some of the top market analysts are expecting the Ether ETFs to go live next week around July 2-4. Big players like VanEck have started making preparations beforehand by announcing zero fees for the spot Ether ETFs. As per Galaxy Digital Holdings LP, this investment product can see inflows of around $5 billion during the first six months of launch.
Also Read: Ethereum Price Eyeing $5,000 As $15B Spot Ethereum ETF Inflows Linger
Key Opportunities Ahead for SOL
On Thursday, June 27, cryptocurrency market maker GSR stated that the approval of the spot Solana ETF in the US has a higher chance if Donald Trump resumes power for the next term.
“Solana is poised for a spot ETF if and when additional spot digital asset ETFs are allowed in the U.S., and the impact on price may just be the largest yet,” the GSR report noted.
A recent report draws parallels between SOL’s potential price movement and Bitcoin’s surge following its own spot ETF approval. The report outlines three possible scenarios for Solana’s price increase:
- A bear case with a 1.4x price jump.
- A base case estimating a 3.4x increase.
- A “blue sky” scenario predicts an 8.9x rise, representing the most optimistic inflow estimates.
GSR has issued an “ETF Possibility Score” based on two factors: decentralization and potential demand. As per GSR, Solana scored positive on both metrics, ranking immediately after Ethereum. “Solana is next, should additional spot digital asset ETFs be permitted in the U.S.,” the report ultimately concludes.
Note that GSR itself holds a large amount of Solana (SOL). It noted that crypto has become a central issue for the upcoming 2024 US elections.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitwise has filed an amended S-1 form for its Ethereum exchange-traded fund (ETF) just days before its July 8 deadline. This move indicates that the product is nearly ready for launch. Analysts predict that these ETFs could begin listing within the next two weeks.
Bitwise Submits Amended S-1 for Ethereum ETF
Bitwise’s updated registration form was submitted on Wednesday. Analysts suggest that these products be listed by mid-July. A source close to the situation indicated the SEC might approve the final drafts by the end of next week.
The SEC approved 19b-4 forms for eight spot Ethereum ETFs, including Bitwise, on May 23. However, issuers need their S-1 statements to become effective before trading can begin. This two-step process has kept the market eagerly awaiting the launch.
Despite the light comments on the S-1 forms, the SEC has taken its time to get approvals. A single problematic issuer may need to be on time to process. Nevertheless, expectations remain high for a launch this month.
Also Read: Federal Reserve Forecasts “AI Will Be Deflationary” To Boost Economy
Analysts Confident in Near-Term ETF Launch
Bloomberg ETF analyst James Seyffart noted the frequent amendments in S-1 forms. He expects more filings from other issuers throughout the week. This pattern suggests a coordinated effort to meet regulatory requirements.
UPDATE: We’ve got another amended S-1 from @BitwiseInvest for their #Ethereum ETF. Expect more from other issuers throughout the rest of the week. We’re thinking these things could potentially list later next week or the week of the 15th at this point. pic.twitter.com/xqVlt9lSGy
— James Seyffart (@JSeyff) July 3, 2024
Senior Bloomberg ETF analyst Eric Balchunas expressed surprise at the SEC’s slow pace. He speculated on possible reasons, including summertime vacations. Despite this, he confirmed indications of a launch this month.
The SEC’s return of S-1 forms with light comments suggests minimal hurdles remain. Analysts view this as the final round of feedback. This has increased confidence in a near-term launch.
Bitwise made significant updates to its S-1 form. One notable change includes waiving the sponsor fee for the first $500 million assets. However, the firm still needs to disclose the fee after this threshold.
Another issuer, VanEck, also announced that fees would be waived initially. These moves suggest competitive strategies to attract initial investors. By waiving fees, these firms aim to lower the entry barriers for new investors.
The recent amendments highlight Bitwise’s proactive approach to regulatory compliance. The firm’s updates reflect a strategic positioning ahead of the anticipated market entry. This aligns with the broader trend among issuers to streamline their offerings.
Also Read: US Lawmaker French Hill Doubles Down On Trump’s Pro-Crypto Stance
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
UNI, the native token of the decentralized crypto exchange Uniswap is down alongside the other coins. The crypto market has declined again after a slight recovery at the start of the month. Digital assets continue a downward trajectory that saw losses last month reducing the overall sentiments in altcoins.
UNI price soared this year against the market as the community anticipated a vote amongst other factors. In the past weeks, the bullish drive for the asset has plunged leading to sharp losses. A major reason for the downward trend of Uniswap is the reduced transaction activity as assets take a tumble.
Uniswap Nears Double Digit Losses
Uniswap is down 2.12% in the last 24 hours while its price stands at $8.66. This slump takes weekly figures above 7% above other top assets with v slight numbers. UNI soared above multiple resistance levels this year after a strong crypto performance in Q1 2024. At the moment, a chunk of gains are lost with bears becoming main characters in the last 39 days.
Last month, UNI tanked over 9% longer-term figures. Despite sell-offs recorded these weeks, UNI holders on social media spaces express optimism towards an improved price this month. While several commentators believe a market rebound might occur in July, industry and macro factors must flip positively an upward price trajectory.
Interest rate cuts remain a major talking point this year as firms expect cuts between September and October. These factors can swing the tide in favor of the market.
Wider Assets Plunge
Like Uniswap, other crypto assets have plunged with the bearish sentiment. Market leader Bitcoin (BTC) fell below $60,000 before making a slight recovery above the mark. This downtrend for BTC has caused similar movements in altcoins. Ethereum trades at $3,288 plummeting 3.89% today while BNB and Solana are down 4% and 7% respectively.
Also Read: These Crypto Stocks Are Falling Amid Q2 2024 Optimism
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto Market Selloff: The digital asset sector has noted a sharp decline today, with the overall market retreating nearly 3% today in the last 24 hours. Meanwhile, the recent slump in the major cryptos like Bitcoin, Ethereum, DOGE, BNB, LINK, and others, has sparked discussions in the market over the potential reasons.
So, let’s take a look at the possible reasons that have fueled the recent crypto market selloff.
Potential Reasons Behind The Recent Crypto Market Selloff
A series of factors could have triggered the recent crypto market selloff today. Here we explore the top reasons that might have impacted the sentiment of the broader crypto market.
Bitcoin ETF Outflow Fuels Concern
The U.S. Spot Bitcoin ETF has reversed its track after noting inflows for five straight days through July 1. Over the last five days, the U.S. Bitcoin ETF has recorded the highest influx of $129.5 million on July 1. This move has fueled the market sentiment over regaining the confidence of the institutional interests towards the flagship crypto.
However, the overall scenario took a different turn on July 2, with U.S. Spot Bitcoin ETFs recording an outflow of $13.7 million. Despite inflows of $14.1 million and $5.4 million from BlackRock IBIT and Fidelity’s FBTC, the outflux of $32.4 million from GrayScale has allayed the gains.
This move might have once again weighed on the investors’ sentiment, who are still seeking clarity on the market momentum. The recent outflux after a five-day winning streak also indicates that the institutions are taking a pause before making further bets in the sector.
Friday Options Expiry
The Bitcoin ETF outflow has triggered volatility in BTC, potentially impacting the broader crypto market. Apart from that, the massive upcoming options expiry also seems to have impacted the risk-bet appetite of the investors.
Notably, the recent crypto market selloff could be primarily attributed to the upcoming expiration of significant BTC and ETH options. Data from Deribit reveals that BTC options with a notional value exceeding $1.04 billion and a put/call ratio of 0.80 are set to expire on Friday, July 5, with a maximum pain price of $63,000.
Similarly, ETH options worth $479.30 million, with a put/call ratio of 0.38 and a max pain price of $3,450, will also expire. The impending expiries are creating uncertainty and influencing market behavior, as traders adjust their positions ahead of the deadline.
Also Read: Ripple and Coinbase Use Binance Win to Contest SEC Claims
Ethereum ETF Launch Delay
The crypto market was highly anticipating the Spot Ethereum ETF approval by the U.S. SEC this week. However, a potential delay might have sparked concerns among the investors.
Meanwhile, looking at the latest market trends, ETF Store president Nate Geraci said that the U.S. Spot Ethereum ETF might launch on July 15. Besides, Bloomberg also hinted at a mid-July launch for the Ether ETF to go live in the U.S.
Crypto Market Faces Over $120M Liquidation
The recent selloff in the crypto market has caused a liquidation of $123.62 million over the last 24 hours, CoinGlass data showed. In the same timeframe, around 45,000 traders were liquidated with the largest single liquidation taking place on OKX – ETH-USDT-SWAP worth $3.36 million.
Bitcoin faces liquidation of $34.74 million, while Ethereum’s liquidation stood at $32.87 million. However, despite the recent crypto market selloff, some analysts are still optimistic about the future performance of the market. Given the declining value and anticipation over Ethereum ETF approval this month, the crypto market might witness robust gains in the coming days.
However, with Bitcoin price currently crossing the brief $61,000 mark, the risk still prevails in the market. In a recent analysis, popular crypto market expert Ali Martinez warned of over $1 billion liquidation if BTC hits the $62,600 mark.
As of writing, Ethereum price dropped nearly 3% in the last 24 hours, while Dogecoin price fell 1.3%. Simultaneously, the BNB price noted a slump of 2.5% to $566.23, and Shiba Inu price slipped 1.34% to $0.00001695.
Also, CoinGlass data showed that Bitcoin Futures Open Interest (OI) fell about 4% from yesterday, while Ethereum OI slipped about 1.4%. This data also highlights the gloomy sentiment dominating the crypto market.
Also Read: Genesis Digital Is Considering Going Public Via IPO In US
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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