On Tuesday (July 4) in the Asian market, Bitcoin maintained its bullish trend above $31,000 and challenged the $32,400 barrier in the short term. Nasdaq resubmitted the application for BlackRock's Bitcoin spot ETF and named Coinbase as a monitoring sharing partner as required by the U.S. Securities and Exchange Commission, laying the foundation for the prospect of passing the review. In the past seven weeks, whales have bought 154,500 bitcoins worth about $4.82 billion, sending a strong bullish signal to investors.
BlackRock resubmits Bitcoin spot ETF application
Nasdaq has resubmitted BlackRock’s proposed bitcoin spot ETF, naming U.S. exchange Coinbase as a market that will be monitored in a so-called surveillance-sharing agreement alongside its rival. The SEC reportedly told Wall Street institutions that the filing was “inadequate” without the names of partners in the surveillance-sharing agreement, which is supposed to help prevent market manipulation.
It now appears that Wall Street institutions are willing to follow regulations and resubmit their applications, showing a firm interest in entering the market.
According to new documents filed by Nasdaq, the exchange reached an agreement with Coinbase on a surveillance-sharing agreement on June 8. The documents show that Coinbase accounts for about 56% of dollar-to-bitcoin trading on the U.S. platform so far this year. The original document filed by BlackRock ETF on June 15 requested a surveillance-sharing agreement but did not specify which exchange would serve as a partner in the transaction.
On Friday, The Wall Street Journal (WSJ) cited unnamed sources as saying that SEC officials had told representatives of Nasdaq and the Chicago Board Options Exchange that their bitcoin ETF listing applications were "inadequate" because they omitted the names of surveillance-sharing partners.
Late Friday, the Chicago Board Options Exchange’s (Cboe) BZX exchange named Coinbase as a market for its surveillance-sharing agreement in its resubmission of a bitcoin spot ETF. Cboe is working with potential issuers Fidelity, Invesco, WisdomTree, VanEck and ARK Invest.
Fund managers hope to successfully launch a Bitcoin spot ETF, but the U.S. Securities and Exchange Commission has refused to do so for years. Now Wall Street institutions are challenging the clearance again, laying the foundation for the prospect of passing the review.
Hong Kong Cryptocurrency ETFs Growing in Popularity
On June 28, Peishan Li, CEO and board member of Hang Seng Investment Management, revealed in an interview that the crypto asset ETFs listed in Hong Kong have exceeded HK$12 billion, or about US$153.2 million. He pointed out: At present, there is no clear goal to create a virtual asset-themed ETF, but we are closely following the development of related asset classes and are studying the possibility of deploying virtual currency products in existing investment products. "
According to data provided by Li, the total management scale of Hong Kong's cryptocurrency ETFs has increased by 80% from December 2022, with a daily trading volume of HK$1.7 billion. This is equivalent to 6% of the daily trading volume of all stocks on the Hong Kong Stock Exchange. Hong Kong previously allowed the listing of crypto ETFs in July 2022, but it was difficult to gain attention at first.
Whales increased their holdings by US$4.82 billion
According to data from on-chain analytics firm Santiment, Bitcoin’s whale investors have engaged in further purchases over the past two weeks. So-called “whale” investors typically hold large amounts of funds in their wallets, and their token portfolios may be defined as ranging from 10 to 10,000 bitcoins.
The chart below shows how supply has changed for these investors over the past few months:
The distribution of Bitcoin supply in groups of 10-10,000 coins saw some declines earlier this year, but bottomed out in mid-April. Around the same time as the whales finished selling, the asset’s price reached a local top and fell over the next few months. While this decline has occurred, whales have once again begun to increase their holdings, suggesting that they have been buying on dips.
Later, when cryptocurrencies failed to show any signs of recovery, these investors’ supply stagnated, meaning these investors became hesitant to buy more Bitcoin. However, after the bottom in June, and the subsequent news related to the launch of new ETFs, whales began to show some strong accumulation.
Over the past seven weeks, whale investors have bought 154,500 Bitcoins, with a large portion of that purchases coming in the past few weeks. The value of the indicator has now reached 13 million Bitcoins, meaning that Bitcoin whales now own 67% of the total circulating supply.
Whales continue to show strong overall accumulation in the new rally, which could be a positive sign for things to come this month.
Bitcoin Technical Analysis
CoinTelegraph's view is similar to that of Santiment data, and the long tail on Bitcoin's July 2 candlestick indicates that bulls are buying on dips. Buyers will try to consolidate their positions by pushing and maintaining prices above the overhead resistance of $31,000.
If they succeed in doing this, Bitcoin could accelerate and start its march towards $40,000. The $32,400 level could be a minor hurdle, but it is likely to be crossed.
The rising 20-day EMA at $29,446 and the relative strength index (RSI) near the overbought zone suggest that buyers have the upper hand. Sellers must sink the price below the 20-day EMA to gain the upper hand in the near term. The pair can then drop to the 50-day simple moving average (SMA) at $27,704.
CMTrade analysis pointed out that from the 4-hour chart, Bitcoin bullish momentum is slowly rising at a high level, the market bullish sentiment continues, and there is a trend of continued upward in the short term. The MACD indicator is weak and hovers above the 0 axis, and the RSI indicator is weak and consolidated above the 50 balance line.
Resistance: 31467 31792
Support levels: 30545 30146
Trading strategy: bullish above 30944, targets 31467 31792
