On Thursday (July 18), Bitcoin fell back to the $64,000 level, while Ethereum was above $3,400, with bulls holding the steering wheel tightly. The SEC made a rare turn, saying that the possibility of Ethereum spot ETF participating in pledge can be reconsidered. As S-1 documents poured in, BlackRock set the Ethereum spot ETF fee at 0.25%. Although the risk of creditor selling pressure from Mt.Gox, the former largest crypto exchange, still exists, Bitcoin whales are frantically entering the market to hoard.
US Securities and Exchange Commission member: Reconsider participating in "Ethereum staking"
Coinage founder Zack Guzmán posted on Twitter that Peirce, a member of the U.S. Securities and Exchange Commission, said that the possibility of Ethereum spot ETFs participating in staking could be reconsidered.
“Any feature of a product like collateral or product is open to rethinking,” Peirce said.
This will have significant implications for Wall Street, because Ethereum spot ETFs were previously considered not eligible for staking, which will significantly reduce investors’ willingness to enter the market because they will not be able to receive rewards for staking Ethereum while enjoying the rise in Ethereum prices.
BlackRock released a signal "in advance": Ethereum spot ETF fee is set at 0.25%
BlackRock, which manages $10 trillion, has set fees at 0.25% for its Ethereum spot ETF, which is expected to launch next week.
CoinTelegraph reported that BlackRock’s S-1 registration statement filed on July 17 explained that its fees will be accrued daily at an annual rate equal to 0.25% of the fund’s net asset value and paid at least every three months in U.S. dollars, in kind, or a combination of both.
The company said it could "waive all or part" of the fees for certain periods and plans to do so at launch.
Similar to the iShares Bitcoin Trust at launch, BlackRock’s Ethereum Spot ETF will begin trading with a fee of 0.12% until 12 months have passed or it has accumulated $2.5 billion in net assets.
Other companies also indicated their proposed fees and exemptions in heavily redacted S-1 registration forms.
Franklin Templeton’s Ethereum spot ETF charges the lowest fee at 0.19%, while the Bitwise Ethereum spot ETF and VanEck Ethereum spot ETF charge 0.20%.
The 21Shares Core Ethereum ETF’s fee is set at 0.21%, while Fidelity and Invesco Galaxy will offer the same 0.25% fee as BlackRock.
However, Bitwise, Fidelity, Franklin Templeton, 21Shares and VanEck have proposed cutting fees across the board first.
VanEck's fees will be waived in the first 12 months or after accumulating $1.5 billion in net assets.
Bitwise will waive fees for the first six months or $500 million in net assets, while Franklin set the threshold at Jan. 31, 2025, or $10 billion. Fidelity will waive fees until Jan. 1, 2025, after which the fee will increase to 0.25%.
Meanwhile, Grayscale is keeping its spot ether exchange-traded fund fees at 2.5%. However, its now-approved Grayscale Ethereum Mini Trust will offer a more competitive fee of 0.25%.
Grayscale said 10% of the Grayscale Ether spot ETF will be used to establish its Ethereum Mini Trust Fund, providing $1 billion in seed funding.
Bitcoin whales continue to hoard despite selling pressure from Mt.Gox
More than a third of the bitcoins owed to bankrupt creditors of the Mt. Gox exchange have been distributed, but Bitcoin whales are still unafraid to continue buying frantically. CryptoQuant's post pointed out: "The Mt. Gox trustee holds 141,686 bitcoins, which will be distributed over time. Through transactions, 36% of the bitcoins have been transferred to its former users."
Cryptocurrency investors have been concerned about the potential selling pressure that could come from the Mt. Gox repayments and potential downward pressure on bitcoin prices. About 127,000 Mt. Gox creditors, who are owed more than $9.4 billion worth of bitcoin, have been waiting for more than a decade to get their funds back.
CoinTelegraph noted that despite potential selling pressure from Mt. Gox creditors, Bitcoin whales continue to increase their holdings.
On Wednesday, a savvy whale bought 245 bitcoins, worth nearly $16 million. According to a Lookonchain post, the address has only traded bitcoin twice in the past year, making more than $30 million in profits from the transactions.
“From August 9 to December 18, 2023, he bought 718 bitcoins at $29,385 and sold them at $41,953, making $9 million. From February 7 to June 20, 2024, he bought 1,181 bitcoins at $48,822 and sold them at $66,792, making $21.2 million.”
Bitcoin Technical Analysis
CoinTelegraph said Bitcoin’s breakout above the 50-day simple moving average of $63,926 indicated that bulls were making a comeback.
The bears pulled the price back below the 50-day SMA on July 16, but the long tails on the candlestick chart suggest strong buying at lower levels. If the price sustains above the 50-day SMA, a rally to $70,000 is possible.
Conversely, if the price turns down and breaks below the 50-day SMA, it will suggest that demand has dried up at higher levels. The bears will then try to sink Bitcoin down to the 20-day EMA at $59,952.
