Markets
Gensler expects Ethereum ETFs to be approved by the end of the summer
Cryptocurrency markets tumbled after yesterday’s Fed statement revealed that policymakers now expect a single rate cut this year.
Cryptocurrency markets tumbled on Thursday despite SEC Chairman Gary Gensler saying Ethereum ETFs will likely be approved by “late summer” testimony delivered Thursday to a subcommittee of the Senate Appropriations Committee.
According to CoinGecko, Bitcoin and Ethereum traded down about 4%, while Solana fell 7%. data.
The SEC has already granted initial approval to several Ethereum ETF issuers, including VanEck and BlackRock. Once the pending S-1 forms are approved, these new ETFs can begin trading.
The bearish price action comes despite recent economic data indicating easing inflation in the United States. The producer price index (PPI), which evaluates how much wholesalers pay for raw materials, refused by 0.2% in May. Economists polled by Dow Jones had forecast a 0.1% increase in PPI. The report came on the heels of consumer price index (CPI) data for May, released on Thursday, which showed slower-than-expected growth.
Michaël van de Poppe, founder and CEO of MN Trading, expects a Bitcoin rally.
“The PPI data is out,” he She said. “This is ideal for potential rate cuts, which I expect will lead to a positive market reaction for Bitcoin.”
Data from CoinGlass Shows that over 61,156 traders were liquidated in the last 24 hours, for a total of $198.72 million.
Looking ahead, QCP Capital shared a positive outlook on U.S. financial policy for the remainder of 2024.
“The Fed’s dot plot remains ambiguous, making it difficult to predict whether officials will favor one or two rate cuts this year,” the firm wrote on its Telegram channel. “However, we expect a rate cut in September, with the Fed likely taking a wait-and-see approach for subsequent meetings in November and December.”
In broader financial markets, the S&P 500 traded up 0.2%, while the Nasdaq Composite rose 0.6% and the Dow Jones Industrial Average fell 0.4%.