The crypto market experienced a notable surge on June 20, driven by two significant developments. The launch of a Bitcoin ETF on Australia’s leading securities exchange and the SEC’s clearance of Ethereum contributed to a 1.70% increase in net capitalization, reaching $2.35 trillion.
These developments sparked excitement across the crypto community, signaling positive momentum in the market.
VanEck Bitcoin ETF Launches on ASX
The VanEck Bitcoin ETF (VBTC) has made its debut on the Australian Securities Exchange (ASX), marking a significant milestone for the country’s crypto investment landscape. On its first day of trading, the VBTC recorded a trading volume of $1.3 million USD (1.9 million AUD). This initial figure, while modest compared to U.S. counterparts, reflects growing retail interest in Bitcoin among Australian investors.
VBTC daily performance chart. Source: ASX
VanEck remains optimistic about the ETF’s future, aiming to replicate the success seen in the U.S. Despite the smaller market size and predominantly retail investor base in Australia, VanEck sees potential for substantial growth as more investors seek exposure to Bitcoin through the ASX.
Rebecca Sin, Senior ETF Analyst at Bloomberg Intelligence, forecasts robust growth in virtual-asset ETFs across the Asia-Pacific region, estimating potential assets exceeding $3 billion in the coming years. This expansion is expected to benefit markets like Australia, Hong Kong, and South Korea, positioning them as key players in the crypto ETF space.
The approval and launch of the VBTC on ASX underscore Bitcoin’s increasing recognition as a legitimate and valuable asset class, contributing to today’s rally in the broader crypto market.
Crypto Market Rebounds Following SEC’s Ethereum Decision
The crypto market has seen a rebound rally starting from June 19, driven by significant regulatory developments surrounding Ethereum (ETH). The U.S. Securities and Exchange Commission (SEC) concluded its investigation and clarified that Ether, the second-largest cryptocurrency by market cap, is not considered a security.
This pivotal decision by the SEC coincided closely with the approval of 19b-4 filings from major Wall Street firms such as VanEck, BlackRock, and Fidelity. These approvals pave the way for the listing and trading of spot Ether ETFs on their respective exchanges, marking a milestone in crypto investment accessibility.
According to Bloomberg analyst Eric Balchunas, trading of these Ether ETFs is set to commence on July 2. K33 Research projects substantial investor interest, predicting inflows of $4 billion into these investment products within the first five months. This forecast highlights strong market demand for ETH tokens among institutional and retail investors alike, contributing to the recent gains in the crypto market.
Technical Analysis of Today’s Crypto Market Gains
Today’s gains in the crypto market are part of a rebound that initiated from a significant support confluence. This confluence includes several technical indicators: the lower trendline of the current symmetrical triangle pattern, the 0.236 Fibonacci retracement level, and the 100-day exponential moving average (100-day EMA, represented by the purple wave).
Market analysis suggests that a decisive close above the 50-day exponential moving average (50-day EMA, represented by the red wave) around $2.39 trillion could trigger a broader rebound rally. This rally aims to target the upper trendline of the symmetrical triangle pattern, coinciding with the 0.618 Fibonacci retracement level at approximately $2.475 trillion. This target represents a potential increase of 5.51% from the current market valuation by the end of June.
TOTAL crypto market capitalization. Source: TradingView
However, failure to break above the 50-day EMA may exert downward pressure on the crypto market capitalization, potentially leading it back towards the support confluence point at around $2.30 trillion. This scenario suggests a critical level to watch for market participants amid ongoing volatility and technical developments in the crypto space.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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