The latest rally of Bitcoin has whisked three-quarters of its short-term holders back into profitability. This upbeat momentum, as highlighted in a July 24 report by Glassnode, has been an important turn of events: "This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit." Before that, over 90% of the short-term holders were underwater at the end of July.
Despite a $3.9 billion BTC futures expiry, Bitcoin has settled above the crucial $65,000 support level. Crypto analyst Rekt Capital confirmed this in a July 26 post stating that Bitcoin's price is set to occupy the $65,000-$71,500 mark. However, important resistance hovers around the $68,000 level. Should Bitcoin break above this level, nearly $700 million in leveraged short positions could be liquidated, with potential liquidations exceeding $1 billion if prices break above $68,500.
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This all depends on the momentum of the US spot Bitcoin ETF inflows that have been on a slowdown since July 23, accumulating $31.1 million inflows on July 25.
BitFlyer Acquires FTX Japan to Launch Crypto-Based ETFs
BitFlyer Holdings has acquired 100 per cent of the outstanding shares of FTX Japan, hence making it a fully-owned subsidiary. On the other hand, the acquisition is expected to enhance BitFlyer's plans for the launch of crypto-based ETFs and crypto custody solutions targeting institutional investors, as stated on July 26 by CEO Yuzo Kano.
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FTX Japan was previously a sister company of the infamous exchange FTX that collapsed in November 2022, wiping out $8.9 billion worth of users' funds. BitFlyer aims to promote itself as an industry infrastructure player, touting security technology to hold the physical BTC backing the ETFs safely.
He further went on to add that Japan is on the verge of launching its first crypto ETFs, citing how ETFs drove investment into Bitcoin in the United States. Institutional funds started pouring in at an accelerated pace after the listing of the Bitcoin ETFs, and such a trend could play out in Japan.
On the other hand, Franklin Templeton is establishing a new crypto ETF management firm via its partnership with SBI Holdings. It plans to launch Japan's first spot crypto ETF if regulators allow this diversified array of investment products. This is weeks following the launch of the United States' first spot of Ether ETFs on July 23.
SEC Lists Grayscale Spot Bitcoin ETF On NYSE Arca
The United States Securities and Exchange Commission (SEC) greenlighted the listing of Grayscale's newest spot Bitcoin (BTC) exchange-traded fund (ETF), the Grayscale Bitcoin Mini Trust (GBTC), on the New York Stock Exchange's (NYSE) Arca electronic trading platform. The development was announced on July 26 and is viewed as quite significant for Grayscale. On July 19, the company announced its intention to spin off part of its flagship Bitcoin fund, Grayscale Bitcoin Trust, into the new Mini Trust.
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The new Mini Trust charges 0.15%, versus GBTC's 1.5% annual fee. Grayscale will seed the Mini Trust with 10% of the spot Bitcoin held in GBTC on July 31 and current GBTC shareholders will receive shares in the Mini Trust proportionate to their GBTC holdings. This spinoff ensures that GBTC holders retain the same amount of spot BTC, now distributed across two funds.
Grayscale announced on July 8 that it was creating the Grayscale Ethereum Mini Trust ETH ETF, spinning out a portion of its Grayscale Ethereum Trust ETHE ETF. Both GBTC and ETHE funds are among the longest-running spot BTC and Ethereum funds in the U.S., with GBTC holding more than $17 billion in assets.
