Ethereum
Gensler predicts approval of Ethereum ETFs by ‘end of summer’
Crypto markets fell after yesterday’s Fed statement revealed that policymakers now expect just one rate cut this year.
Crypto markets fell Thursday despite SEC Chairman Gary Gensler saying Ethereum ETFs would likely be approved by “late summer” in testimony delivered Thursday to a subcommittee of the Senate Appropriations Committee.
Bitcoin and Ethereum traded down about 4%, while Solana fell 7%, according to CoinGecko. data.
The SEC has already granted initial approval to several Ethereum ETF issuers, including VanEck and BlackRock. Once their pending S-1 forms are approved, these new ETFs can begin trading.
The bearish price action comes despite recent economic data indicating slowing U.S. inflation. The producer price index (PPI), which assesses what wholesalers pay for raw materials, decreases by 0.2% in May. Economists surveyed by Dow Jones expected the PPI to rise by 0.1%. The report follows May consumer price index (CPI) figures, released on Thursday, which showed slower growth than expected.
Michaël van de Poppe, founder and CEO of MN Trading, expects a rebound in Bitcoin.
“PPI data is out,” he says said. “This is ideal for possible rate cuts, which I hope will result in a positive market reaction for Bitcoin.”
Data from CoinGlass watch that more than 61,156 traders were liquidated in the last 24 hours, totaling $198.72 million.
Looking ahead, QCP Capital shared a positive outlook on US financial policy for the remainder of 2024.
“The FED dot chart remains ambiguous, making it difficult to predict whether policymakers will favor one or two rate cuts this year,” the company wrote on its Telegram channel. “We do, however, expect a rate cut in September, with the FED likely taking a wait-and-see approach for subsequent meetings in November and December.”
Across financial markets, the S&P 500 rose 0.2%, while the Nasdaq Composite rose 0.6% and the Dow Jones Industrial Average fell 0.4%.