Holders of the flagship crypto just had their biggest three-day drop in non-empty wallets since right before the all-time high on March 14. Bitcoin sell-off is intensifying, with traders moving to liquidate out of fear that the price will keep dropping. Currently, Bitcoin is just below $66,000 on Coinmarketcap.
In the meantime, the number of Ethereum wallets keeps increasing, according to market intel platform Santiment’s post on X. An X user commented that ETH/BTC could go down further “and nuke the feelings of these new hodlers.”
SEC is expected to approve ETH ETFs in July
The first reason why Ethereum is gaining traction relative to Bitcoin is the SEC’s upcoming approval of spot ether ETFs. After a positive review by the Commission, Bloomberg analyst Eric Balchunas commented these ETFs would likely launch on July 2. This forecast aligns with SEC Chair Gary Gensler’s previous statement predicting approvals this summer.
Balchunas pointed out on X that the SEC’s recent feedback on ETF issuers’ S-1 filings was minor and mainly involved procedure. The SEC asked them for their responses within a week. This suggests that the regulator could issue ETF approval before July 4. Independence Day celebrations would make the launch more visible.
The fast approval is in sharp contrast with the Bitcoin ETF approval. The application process for spot Bitcoin ETFs began back in 2013 and finally ended when the SEC approved 11 ETFs in January 2024. Ethereum’s fast ETF journey could reflect differing market dynamics or evolving regulatory views.
Bitcoin ETFs are seeing significant outflows
Ethereum’s price has been relatively stable, while Bitcoin has been in a downward trend over the past month. Recent data shows major outflows from spot Bitcoin ETFs. On June 14, outflows amounted to just over $226 million.
The market is showing mixed signals
Ethereum’s price is increasing relative to Bitcoin’s. Santiment data shows social dominance metrics for both Bitcoin and Ethereum are on the rise, suggesting they are overvalued. However, there is no strong market momentum in either direction, as the Relative Strength Index (RSI) for Ethereum and Bitcoin remains flat.
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