According to U.Today, the ongoing uncertainty surrounding the bankrupt Mt. Gox crypto exchange could potentially benefit Ethereum, particularly in light of the recent approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). This insight was shared by Chinese cryptocurrency journalist and blogger Colin Wu. Wu referenced a post from QCP Capital’s Telegram channel, which suggested that the uncertainty about Bitcoin payouts due to be made by Mt. Gox to its creditors in October could potentially benefit Ethereum when spot ETH ETFs begin trading.
The first approval of the ETFs occurred last week, and the final approval is expected to be announced after the upcoming SEC meeting in June. In anticipation, large investors are beginning to accumulate Ethereum, the second largest cryptocurrency. Crypto analyst Ali Martinez recently tweeted about a significant increase in the number of new ETH wallets holding 10,000 ETH or more, indicating a shift from selling to accumulation.
Earlier this week, news that Mt. Gox had transferred billions of dollars worth of Bitcoin from its wallet caused a stir in the crypto community and impacted the market, causing the BTC price to drop by almost 4.6% from the recently regained $70,000 level. Whale Alert reported that over $5.1 billion worth of Bitcoin was moved from the exchange to a new wallet. This led to speculation that the beleaguered exchange had begun repaying its debt to creditors, who suffered significant financial losses when Mt. Gox collapsed in 2014.
However, the platform’s former CEO, Mark Karpeles, clarified via Twitter that the funds were merely being moved to a new wallet, and no immediate Bitcoin selling was taking place by Mt. Gox. The new unmarked blockchain wallet created by Mt. Gox for future payouts to creditors currently holds 141,686 BTC, valued at approximately $9.62 billion. These were the first transfers to this wallet since 2019. A total of 142,000 BTC and 143,000 BCH are expected to be distributed to creditors before the end of October this year.
