Grayscale recently announced that it would reduce the management fee of its spot Ethereum mini ETF from 0.25% to 0.15%. This decision will undoubtedly have a profound impact on the market, especially in the context of increasingly fierce competition in the current cryptocurrency market.
Lower fees will directly increase the attractiveness of this product. Management fees are an important consideration for players when choosing an ETF. Lower fees mean higher net yields, which will attract more funds to Grayscale's Ethereum Mini ETF and increase its market share. In addition, Grayscale's move may also force other ETF providers to adjust their fee structures to remain competitive, thereby further lowering the overall fee level in the market and benefiting all players. However, it is worth noting that lower management fees may also have an impact on Grayscale's revenue. Although lower fees may attract more players, it remains to be seen whether they can make up for the resulting reduction in revenue. Grayscale needs to balance this through economies of scale and increasing the total amount of assets under management.
On July 18, 2024, South Korea officially approved the Virtual Asset User Protection Act, marking the full implementation of South Korea's first cryptocurrency regulatory framework. The implementation of this law is intended to improve the security of cryptocurrency players and bring greater transparency and stability to the market. The new law imposes stricter requirements on digital asset exchanges. First, exchanges must store at least 80% of user cryptocurrency deposits in cold wallets separated from their own funds to reduce hacker attacks and internal operational risks. In addition, users' cash deposits must be entrusted to local licensed banks for safekeeping, which will increase the security and liquidity of funds.
In addition, exchanges must maintain cryptocurrency reserves equal to the amount and type of customer deposits to ensure that customers' withdrawal needs can be met under any circumstances. This regulation will prevent crises caused by insufficient liquidity in exchanges. At the same time, exchanges are also required to take out sufficient insurance or establish reserve funds to deal with potential hacker attacks or liquidity crises. This series of measures will undoubtedly improve the security and stability of the Korean cryptocurrency market, but it will also increase the operating costs and compliance pressure of exchanges. In this context, some smaller exchanges may face greater challenges to survival. However, overall, the implementation of this law will help protect the interests of players and promote the healthy development of the market.
Bloomberg analyst Eric Balchunas expects that the S-1 for the spot Ethereum ETF will be signed next Monday, and trading is expected to start on July 23. If this news is true, it will mark an important progress for Ethereum in the financial market. Listing locations may include Nasdaq, New York Stock Exchange and Chicago Board Options Exchange, which are among the world's major trading platforms. The launch of the spot Ethereum ETF is expected to bring huge capital inflows to the market. According to Matt Hougan, Chief Information Officer of Bitwise, this ETF may attract up to $15 billion in funds in the first 18 months. This prediction is based on the strong market demand for Ethereum and its wide application in decentralized applications. In addition, the launch of the ETF will enable more institutions to easily enter the Ethereum market, further driving its price up.
The U.S. spot Bitcoin ETF had a net inflow of 1,324 coins yesterday, worth $84.8 million.
BTC: A cross line was closed at the daily level, and it is currently suppressed by the 120-day moving average. Yesterday's "cross star" pattern is an important turning signal, showing that the forces of both long and short sides are balanced, which often indicates the upcoming big market. MACD: Although the red bar has narrowed, the DIF and DEA lines continue to run above the 0 axis. Combined with the net inflow of 1,324 coins worth 84.8 million US dollars in the US spot Bitcoin ETF yesterday; in summary, the short-term correction space may be limited, and the overall bullish trend has not changed. Pressure reference: around 69,000;
ETH: A spinning hammer line was closed at the daily level. It is currently suppressed by the 60-day moving average and is still in the process of adjustment. It is expected to continue to strengthen after the adjustment. Please be more patient.
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