Ether remained stable after the U.S. SEC approved ETH ETFs on Monday. The cryptocurrency was trading around $3,500, slightly up by 0.2% from the previous day. This performance was better than the broader digital asset market, which was down by 1.3% according to the CoinDesk 20 Index (CD20). Analysts believe that the listing of ETFs could push the price of ether to $6,500, although the inflows may not be as high as those seen for bitcoin ETFs. Steno Research estimates that the ETFs could attract $15 billion-$20 billion in the first year, similar to what bitcoin ETFs have garnered in just seven months.
Bitcoin saw a slight retreat after reaching $68,000 on Monday, dropping to around $66,000 in early European trading as Mt. Gox transferred a new batch of BTC to Bitstamp. Previous transfers of BTC for creditor repayments have triggered sell-offs in the crypto market. At the time of reporting, bitcoin was sitting just below $66,700, down by 1.1% from the previous day. Mt. Gox has been repaying creditors affected by a 2014 hack, with over $9 billion worth of BTC and $73 million of bitcoin cash (BCH) set to be distributed in the coming months.
Citi upgraded its rating for Coinbase shares to buy from neutral, with a new price target of $345, up from $260. The bank cited a potential positive response from the stock due to an improved regulatory landscape following the U.S. elections in November and increased confidence in its legal strategy after the Supreme Court overturned the Chevron Deference Doctrine. Citi analysts believe that the risk/reward balance for Coinbase has significantly improved recently, especially in relation to its defense against the SEC lawsuit. Despite a 52% increase in the stock’s value year-to-date, Citi sees significant upside potential from a more favorable regulatory environment, which could attract institutional capital and foster greater collaboration between crypto-native and traditional finance sectors.
In other news, data from Coinglass shows a significant net outflow of XRP from centralized exchange wallets last week, amounting to $94.75 million, the largest since April. This trend suggests that investors are leaning towards a long-term holding strategy for XRP.
It is important to note that CoinDesk, the media outlet that provided this information, was acquired by the Bullish group in November 2023. The Bullish group, majority-owned by Block.one, operates a regulated digital assets exchange and has interests in various blockchain and digital asset businesses. CoinDesk remains an independent subsidiary with an editorial committee to ensure journalistic independence, and employees, including journalists, may receive compensation options in the Bullish group.