CryptoETHBitcoin and Ether Surge Amid Favorable Political

Bitcoin and Ether Surge Amid Favorable Political

Bitcoin (BTC) has maintained a strong upward trajectory this week, briefly surpassing $65,000 on Wednesday. The cryptocurrency has seen a notable 12% increase since last Friday, driven by growing optimism surrounding the potential re-election of crypto-friendly candidate Donald Trump and expectations of the U.S. Securities and Exchange Commission (SEC) approving spot ether (ETH) exchange-traded funds (ETFs).

Spot Ether ETFs Expected to Propel ETH to New Highs

Bitwise’s Chief Investment Officer, Matt Hougan, predicts that the introduction of spot ether ETFs will propel Ethereum’s native cryptocurrency to record highs exceeding $5,000. Hougan attributes this expected price surge partly to approximately 28% of the total ether supply being staked on the Ethereum network, rendering it unavailable for inclusion in these forthcoming ETFs. This staked ether is committed to contracts for a defined period, limiting its liquidity for sale. The ether held by the ETFs upon launch will remain unstaked, at least initially.

While anticipating initial volatility, Hougan remains bullish on ETH’s prospects, foreseeing new all-time highs by the end of the year. He previously projected that spot ether ETFs could attract inflows totaling $15 billion over the next 18 months.

Continued Strength in Spot Bitcoin ETF Inflows

Concurrently, U.S. spot bitcoin ETFs have witnessed ongoing strong inflows, with Tuesday marking the highest single-day influx since early June. Farside Investors reported $422.5 million entering these financial products on Tuesday alone, contributing to a total of $723.4 million for the week when combined with Monday’s figures.

Additionally, Grayscale, the operator of the second-largest spot bitcoin ETF (GBTC), announced on Wednesday the launch of its latest private placement product: the Grayscale Decentralized AI Fund. This new fund focuses on cryptocurrencies within the decentralized artificial intelligence (AI) sector, including tokens such as Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). The fund will undergo quarterly updates and rebalancing.

As both bitcoin and ether continue to benefit from favorable market conditions and regulatory developments, investors are closely monitoring their potential for further growth amidst evolving political landscapes and expanding ETF opportunities.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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