Mt. Gox Selling Pressure Continues, BTC at $66K

Bitcoin (BTC) exchange-traded funds (ETFs) snapped a 12-day streak of inflows as investors pulled a net $78 million from U.S.-listed products, according to SoSoValue data. Despite the outflows, BTC prices have remained stable above $66,000, down slightly over 0.5% in the past 24 hours. The CoinDesk 20 (CD20) Index is down 0.6% in the same period. Investors are betting that the current lull in price action could continue until the U.S. presidential candidates make a statement on cryptocurrency regulation. “The market is still waiting for a few key catalysts to play out,” said Alice Liu, head of research at CoinMarketCap. “The market is in a wait-and-see mode ahead of Trump’s speech at the Nashville Conference on July 25, where he is expected to make a statement on whether BTC can be used in national reserves.”

According to data from Bloomberg, investors began trading more than $1 billion worth of shares of newly launched ether exchange-traded funds (ETFs) on the first day. Trading volume represents the dollar amount of shares traded and does not provide any indication of whether the trades represent inflows or outflows. It is also unclear whether the investments are made with a long-term vision or for short-term gains, such as arbitrage transactions. Grayscale’s Ethereum Trust (ETHE) was the most traded product on the first day, with volume of about $458 million, accounting for almost half of the total volume.

Financial services company Canaccord wrote in a report yesterday that there are few bitcoin miners as powerful as Iris Energy. “The company is building 510 MW of data centers by 2024, providing 2,160 MW of power capacity and has a 1 GW pipeline,” the report said. “We believe management can expand the use cases of our data centers beyond bitcoin mining and are prepared to do so in terms of power, cooling and networking,” Canaccord said, raising its target price for the company’s shares from $12 to $15. Iris shares fell 14% earlier this month after its facility in Childress, Texas, was reportedly unsuitable for artificial intelligence or high-performance computing. It is currently trading at $11.23 in premarket trading on the Nasdaq.

The chart shows the difference between ETH futures and spot prices. Futures are currently trading at a significantly lower premium to Q1 levels. This could reduce the motivation of “carry or basis traders” and weaken interest in U.S.-listed spot ETH ETFs. Launched in January, sports BTC ETFs continue to be favored by carry traders who seek to profit from price differences between spot and futures markets.