Chin Trump Assets Continue Rally After Shooting Incident
Ethereum Spot ETF Trading to Begin on 23rd
As the atmosphere predicting the return of former President Donald Trump, the Republican presidential candidate, to the White House spreads, Bitcoin, classified as a pro-Trump asset, continues to show strength.
On the 15th (local time), Bitcoin was trading at $64,752 on the global cryptocurrency exchange Coinbase at 7:45 PM Eastern Time, up 6.45% from the previous trading day. This is the largest increase in about two months since May 20. Bitcoin, which had struggled to surpass the $60,000 mark due to selling pressure from the Japanese cryptocurrency exchange Mt. Gox, appears to have overcome downward pressure.
Bitcoin emerged as a leading representative of the "Trump trade" after former President Trump, who has maintained a favorable stance toward the cryptocurrency industry, remained resilient even after being shot during a campaign event on the 13th. Bitcoin's price, which was in the $58,000 range just before the shooting incident, surged about 10% within two days after the event. Former President Trump is scheduled to speak at the "Bitcoin 2024" event held in Nashville, Tennessee, on the 27th.
The rise in Bitcoin also boosted the stock prices of related companies. On the same day, Coinbase's stock price rose 12%. In the first quarter, Bitcoin accounted for 33% of Coinbase's trading volume. The stock prices of Bitcoin mining companies Riot Platforms and its competitor Marathon Digital jumped 16% and 17%, respectively. MicroStrategy, known as the company holding the largest amount of Bitcoin, saw its stock price increase by 17%, rising about 150% since the beginning of this year.
Benjamin Sellermaier, an analyst at Magnet Capital, a digital asset investment management company, said, "The Republican Party has supported cryptocurrencies," adding, "The increased likelihood of former President Trump's election is the most positive factor for revitalizing the cryptocurrency market." Tony Sycamore, a market analyst at IG Australia, explained, "The shooting incident increased former President Trump's chances of re-election, which also gave Bitcoin momentum."
The news of the launch of the spot exchange-traded fund (ETF) for Ethereum, the world's second-largest cryptocurrency by market capitalization, also acted as a positive factor. Major foreign media outlets reported on the day, citing sources in the cryptocurrency industry, that the U.S. Securities and Exchange Commission (SEC) had given preliminary approval on the 23rd for three asset management companies?BlackRock, VanEck, and Franklin Templeton?to trade Ethereum ETFs. Sources predicted that if eight asset management companies pushing for the launch of the Ethereum spot ETF submit their final documents to regulators by the 21st, final approval would be granted the following day.
Industry opinions differ on whether the launch of the Ethereum ETF will lead to an additional rally in Ethereum. Market research firm Kaiko noted, "After the SEC gave initial approval for the Ethereum ETF, the indicator measuring the amount of Bitcoin needed to purchase one Ethereum rose from 0.045 to 0.05," suggesting that "Ethereum will outperform Bitcoin after the Ethereum ETF launch." Martin Reinbacher, digital asset product strategist at MarketVector Index, said, "It is important to lower expectations," predicting that since Ethereum's market size and trading volume are smaller than Bitcoin's, the inflow of funds through the ETF will be much less than when Bitcoin ETFs were launched.
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