KEYTAKEAWAYS
- Bitcoin's price correction to $60,000 indicates a possible local bottom, with future U.S. economic data likely to influence short-term market trends.
- VanEck's anticipated approval for an Ethereum ETF could attract approximately $2.8 billion, reflecting preparedness and optimism in the market.
- a16z crypto's discussion on decentralization outlines how technological, economic, and legal shifts could exempt Web3 systems from traditional securities laws.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
BITCOIN NEARS LOCAL BOTTOM AFTER 15% DROP
CryptoQuant reports that Bitcoin experienced a 15% drop from the $70,000 to the $60,000 range over the last three weeks, hinting at a possible local bottom. In the futures market, open interest fell by about $3 billion, mainly due to the closing of long positions. Funding rates for perpetual contracts are close to zero, suggesting a balanced market sentiment and a less speculative price structure.
Despite a slight negative profitability, the price has surpassed the short-term holders’ realized price of $62,600, a sign that historically supports an upward trend. Upcoming U.S. economic reports including GDP and jobless claims, followed by inflation data, are likely to impact market sentiment shortly. These factors suggest that a local bottom may be forming.
VANECK MEETS SEC, MARKET READY FOR ETHEREUM ETF APPROVAL
Markus Thielen, CEO of 10x Research, disclosed on the X platform that the CEO of VanEck met with the U.S. Securities and Exchange Commission (SEC) on Monday. Given that VanEck had filed Form 8-A seven days before their Bitcoin ETF was approved, there is a possibility that an Ethereum ETF might be approved by next Tuesday, July 2.
1-3) ETH ETFs could be approved any day now with potential launch next week. VanEck’s CEO met SEC on Monday and their ETF will waive fees until $1.5bn AUM is reached or until some time next year, then charge only 0.2%. https://t.co/pZS75X2RmZ pic.twitter.com/xc5YeVLvo3
— Markus Thielen (@thielen10x) June 26, 2024
VanEck’s Bitcoin ETF currently manages assets worth $600 million. The market expects the Ethereum ETF to attract approximately 15-20% of the funds invested in the Bitcoin ETF, amounting to $2.8 billion, which corresponds to the increase in Ethereum perpetual futures open interest since May 20. The market is thus prepared for this approval.
WEB3 SYSTEMS MAY BYPASS SECURITIES LAWS WITH DECENTRALIZATION
In the article “3 Ways to Organize Decentralization in Your Startup,” a16z crypto explored different aspects of implementing decentralization:
- Technological Decentralization:
Utilizes blockchain and smart contracts.
Creates a trustless, autonomous ecosystem.
- Economic Decentralization:
Prevents excessive value accumulation by any single participant.
Mitigates risks of price manipulation that could compromise network security and utility.
- Legal Decentralization:
Aims to minimize the risks associated with asset trading.
Focuses on reducing dependency on centralized management structures.
The publication emphasized that a Web3 system that effectively removes significant information asymmetries and reliance on centralized management might be decentralized enough to bypass the necessity for securities laws. However, the concept of legal decentralization often presents confusion among founders, compounded by the lack of clear regulatory guidelines from the SEC.
