Ethereum
Mt. Gox Bitcoin Distributions Won’t Be So Bad and Ethereum ETF Could Surprise: Galaxy Research
Crypto Analyst Alex Thorn of Galaxy research predicts lower market impact than expected next Mt. Gox Bitcoin BTC/USD distributions, while remaining cautiously optimistic about Ethereum ETH/USD ETF Entries.
What happened: In a recent Unchained podcast episodeGalaxy Research Director Alex Thorn predicted that only 64,000 Bitcoins out of a total 142,000 BTC will be distributed to individual creditors, and that a large portion of these Bitcoins will likely not be sold immediately.
“I don’t think Mt. Gox sales could really be that big,” Thorn said, suggesting the impact on the market might be minimal. He noted that many of Mt. Gox’s creditors are likely long-term Bitcoin holders who have resisted selling their claims for years.
“If we use naive assumptions, you know, if we say 10% of 65,000 are sold, that’s still 6,500 pieces that could be dumped into the market,” Thorn said, noting that even though there will be sales, they will likely be lower than many expect.
Concerning Ethereum ETFThorn forecasts potential inflows of about $1 billion per month over the first five months, for a total of $5 billion. This estimate is based on a comparison of various Bitcoin and Ethereum exposure products. “I think a lot of people are pessimistic about Bitcoin ETF inflows,” he noted.
He did, however, suggest that Ethereum ETFs could potentially perform better than expected, drawing parallels with the successful launch of Bitcoin ETFs.
Read also : Why will Bitcoin rally again in July
Why is this important: The analysis calls into question current market concerns regarding significant selling pressure from Mt. Gox distributions. It also offers a more optimistic outlook on Ethereum ETF demand than some other analysts have suggested.
Thorn sees the American election and potential regulatory changes as the main catalysts for crypto markets through the end of the year. “It’s very difficult for me to take a strong directional view on this market between now and November,” he said.
He also highlighted the recent Solana ETF The CEO also expressed skepticism that VanEck’s application could be approved in the near term, given the SEC’s current stance on Solana as a potential security. “It is very unlikely that this request will be approved,” Thorn concluded.
And after: The influence of Bitcoin as an institutional asset class should be explored in depth in the next The future of digital assets event on November 19.
Read next: Mt. Gox to Start Reimbursing Bitcoin in July: $9 Billion Selling Pressure Ahead?
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