Bitcoin and Ether Drop, U.S. Issuers Expect SEC Denial for Spot Ether ETFs, Tech Stocks Decline: Market Update
Bitcoin and Ether prices tumble as SEC expected to deny spot ETF applications
In a turbulent day for the cryptocurrency market, Bitcoin, the world’s largest cryptocurrency, saw a 4% drop in value to less than $64,000, while Ether experienced a significant 6% decline. The broader crypto market, as measured by the CoinDesk 20 Index, also lost 6% amid growing uncertainty.
According to Reuters, U.S. issuers are bracing for the Securities and Exchange Commission (SEC) to deny their applications to launch spot ether exchange-traded funds (ETFs) following discouraging meetings with the agency. This news comes as a blow to investors hoping for increased mainstream adoption of cryptocurrencies.
Meanwhile, in traditional markets, tech stocks took a hit after Meta’s first-quarter earnings report failed to meet high expectations. The disappointing performance of the social media giant had a ripple effect on the broader market, further adding to the day’s losses.
In the world of cryptocurrency ETFs, BlackRock’s spot bitcoin ETF, trading under the ticker IBIT on Nasdaq, saw a notable decline in investor interest. Preliminary data from Farside Investors revealed that the fund experienced its first day without any inflows since its launch on Jan. 11, breaking a 71-day streak. This trend was mirrored by seven of the other 10 funds, with Grayscale’s GBTC recording the highest outflow of $130.4 million.
On the regulatory front, U.S. House Representative Maxine Waters hinted at progress on a stablecoin bill, indicating that a final version could be ready soon. Waters emphasized the importance of protecting investors and ensuring that stablecoins are backed by sufficient assets. The potential for a new stablecoin law before the upcoming elections has increased, offering a glimmer of hope for regulatory clarity in the cryptocurrency space.
As the cryptocurrency market continues to navigate regulatory challenges and market volatility, investors are advised to exercise caution and stay informed on the latest developments shaping the industry.
