Weekly Update: 24th of July
What happened between the 17th and 24th of July?
- Biden ended his re-election bid, endorsing Vice President Kamala Harris to succeed him. However, her position on the ballot is uncertain until she is officially announced as the democratic candidate at the Democratic National Convention. Read more
- Nine Ethereum spot ETFs started trading on traditional exchanges, officially introducing the second digital asset to US traditional financial markets. Read more
- Collapsed digital assets exchange FTX and the Commodity Futures Trading Commission agreed to a $12.7B settlement, allowing all funds to be reimbursed to FTX creditors. Read more
US election race takes another dramatic turn as Biden drops out
On July 21st, President Joe Biden announced the end of his re-election bid and endorsed Vice President Kamala Harris. Rumors about Biden dropping out had been circulating for weeks as more Democrats expressed concerns about his well-being. The debate between Biden and Trump seemed to initiate his decline, as he mumbled and lost his train of thought throughout the event. Although bookmakers give Harris a slightly better chance of winning than Biden, Trump remains the current favorite. Bitcoin and the overall market remained relatively stable after the news, with Bitcoin increasing by just under 1%. However, we expect the market to grow rapidly as Trump’s chances of winning increase due to his pro-digital assets stance.
The Ether spot ETF starts trading
On the 19th of July, the Chicago Board Options Exchange confirmed five Ethereum spot ETFs would begin trading on the 23rd of July. The five ETFs were 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. The others will trade on exchanges such as the New York Stock Exchange Arca and Nasdaq. On the 22nd of July, the Securities and Exchange Commission officially approved the latest filings, allowing the instruments to be traded on the 23rd, introducing the second digital asset to traditional US financial markets.
The ETFs saw a total inflow of approximately $106 million. While all ETFs experienced significant inflows, such as BlackRock with around $266.5 million, Grayscale's ETF witnessed outflows of about $484 million, similar to its Bitcoin ETF. In the upcoming weeks, the market will focus on the development of these ETFs as they might act as catalysts for an upward trend in the broader altcoin market.
FTX and the Commodity Futures Trading Commission reach a settlement of $12.7B
On the 17th of July, the Commodity Futures Trading Commission (CFTC) reached a $12.7 billion settlement with the collapsed digital assets exchange FTX. After a 19-month trial, the regulator decided not to seek civil monetary penalties, allowing the entire amount to be used to pay back FTX’s creditors. The settlement includes $8.7 billion in restitution and $4 billion in disgorgement. FTX’s proposed creditor plan allows creditors with claims under $50,000 to recover 118% of their lost assets. However, some creditors have requested reimbursement in digital assets, which offer higher returns. Creditors are currently voting on their preferred compensation method, with voting ending on August 16th. The final court decision will be made on October 7th.
In other digital assets news
- The Japanese investment and consulting firm Metaplanet announced that it has acquired an additional $1.2 million worth of Bitcoin, completing its plan of acquiring $6.26 million worth of Bitcoin. Since their first announcement of the investments in April, their stock has increased by over 810%.
- Meme tokens linked to Biden tanked by over 60% following his announcement that he will not be running for president again, while meme tokens linked to Kamala Harris surged.
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