The approval of the US spot ether ETFs to start trading this week has been the weekly highlight of the crypto space, with deliberations on how it may benefit the sector in the future.
Amidst numerous other events in the crypto sector, the approval of the US spot ether ETFs was the most important one this week. With the development, the spot ether ETFs now trade along with the spot Bitcoin ETFs in the US. The event could be a turning point for the crypto ecosystem. It could also lead to a major shift for traditional investors from other asset classes to crypto.
Spot crypto ETFs have the potential to significantly increase mainstream awareness and acceptance of crypto. By offering exposure to crypto through a familiar investment product, ETFs can help to demystify the asset class and attract a wider range of investors. This is exactly what happened this week. The event may have also contributed to a recovery in the crypto sector. Although the market dipped mid-week, it picked up pace by July 26.
Discussions on the ETFs also emerged at the Bitcoin 2024 event in the US. The event has an interesting line-up of speakers from all spheres, from politics to industry, to calibrate on the crypto sector.
Meanwhile, one of the ETFs’ backers, asset management firm VanEck, has revised its price predictions for Bitcoin. In a recent report, the firm described a long-term crypto overview with a target year of 2050. Their crypto overview report targeted a mammoth $2.9 million price for 1BTC by that year.
The firm stated, “It is conceivable that by 2050, Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade. This scenario would result in central banks holding 2.5% of their assets in BTC.“
It added that BTC would have a market cap of $61 trillion once it touches that price level. Such an optimistic outlook could surely bode well for the long term prospects of crypto.
The report also detailed the current shift in the international monetary system, where countries were looking for alternatives to present reserve currencies.
On the other hand, a couple of other events also made the headlines in the crypto landscape this week. Tokenization continues to leap forward, with an Italian bank launching a digital bond on the Polygon blockchain. The subject of crypto payments has also been trending this week, with popular automobile firm Ferrari expanding the feature to Europe.
In the crypto market, the latest recovery has been a bright spot. If major tokens sustain the current price levels over the weekend, an initial price jump next week is possible. However, signs of consolidation for BTC above $67,000 are not visible yet.
This week, the following tokens posted the highest gains:
But these tokens lost the most value:
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