Market Update: Ether ETFs Approved, Bitcoin Dips Amid Mt. Gox Transfers

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Ether has remained relatively stable following the U.S. SEC’s approval of ETH exchange-traded funds (ETFs) on Monday. The second-largest cryptocurrency is currently trading at approximately $3,500, reflecting a slight increase of just 0.2% over the past 24 hours. Despite this modest change, ether has outperformed the broader digital asset market, which has seen a decline of 1.3% as indicated by the CoinDesk 20 Index (CD20). Some analysts are optimistic, predicting that the debut of these ETFs could propel the price of ether to as high as $6,500; however, they caution that inflows may not match those of their bitcoin counterparts. Steno Research estimates that the new ETFs could attract between $15 billion and $20 billion in inflows within the first year, a figure comparable to the $15 billion that bitcoin ETFs have garnered in just seven months.

In contrast, bitcoin experienced a dip after briefly surpassing $68,000 on Monday, falling back to around $66,000 in early European trading hours. This decline was influenced by Mt. Gox’s recent transfer of a significant amount of BTC to Bitstamp. These BTC transfers, part of the ongoing repayments to creditors, have historically triggered sell-offs in the cryptocurrency market. At the time of this report, bitcoin is trading just below $66,700, marking a decrease of approximately 1.1% from the previous day. Mt. Gox commenced its repayment process for creditors affected by the 2014 hack in early July, with plans to distribute over $9 billion worth of BTC and $73 million in bitcoin cash (BCH) over the coming months.

Citi has made a noteworthy upgrade to its rating for Coinbase shares, moving it from neutral to buy, while also increasing its price target from $260 to $345. The financial institution believes that the stock is likely to respond favorably to an improving regulatory environment as a result of the upcoming U.S. elections in November. Additionally, there is growing confidence in Coinbase’s legal strategy following the recent overturning of the Chevron Deference Doctrine by the Supreme Court. Analysts led by Peter Christiansen commented, “We believe the risk/reward setup for Coinbase, particularly regarding its defense against the SEC lawsuit, has significantly improved in recent weeks.” Although the stock has already surged by 52% year-to-date, Citi points out that the potential upside from a more favorable regulatory landscape could be substantial, potentially unlocking sidelined institutional capital, boosting investment, and fostering increased collaboration between crypto-native firms and traditional finance.

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