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Chinese cryptocurrency journalist and blogger Colin Wu has tweeted that the current situation with the bankrupt Mt. Gox crypto exchange and the funds in Bitcoin and Bitcoin Cash it owes to creditors may be beneficial for spot Ethereum exchange-traded funds recently approved by the U.S. Securities and Exchange Commission (SEC).
Ethereum may potentially benefit from Mt. Gox uncertainty
Wu quoted a post from the QCP Capital’s Telegram channel. The message says that the uncertainty about the Bitcoin payouts, which are to be made by Mt. Gox to its creditors in October, has the potential to benefit Ethereum when spot ETH ETFs are launched and begin trading.
QCP: Uncertainty about potential Mt Gox BTC supply hitting the market by October could hinder BTC, potentially benefiting ETH upon the launch of the ETH Spot ETF. The desk observes bullishness in ETH, with sizeable buyers of 4k/5k ETH Call Spreads for end June 2024.…
— Wu Blockchain (@WuBlockchain) May 30, 2024
Now that the first approval of the ETFs took place last week and the final one is expected to be announced after the approaching SEC meeting in June, large whales are starting to accumulate the second largest cryptocurrency, Ethereum.
According to a recent tweet published by the popular crypto analyst Ali Martinez, there is now a massive increase in the number of new ETH wallets that hold 10,000 ETH or more. This indicates a shift from selling to accumulation, the analyst pointed out.
Mt. Gox is not selling Bitcoin now, former CEO says
Earlier this week, the news of Mt. Gox transferring billions of worth of Bitcoin from its wallet sent ripples throughout the crypto community and hit the market, pushing the BTC price by almost 4.6%, falling from the just-regained $70,000 level.
According to Whale Alert, more than $5.1 billion worth of Bitcoin was moved from the exchange to a new wallet. Experts began sharing opinions on the X app that the embattled exchange had finally begun repaying its debt to creditors, who suffered immense financial losses when Mt. Gox collapsed in 2014.
However, the platform’s former CEO, Mark Karpeles, tweeted that the funds were just being moved to a new wallet, and no immediate Bitcoin selling was happening by Mt. Gox. Currently, the new unmarked blockchain wallet created by Mt. Gox for further payouts to creditors holds 141,686 BTC, evaluated at roughly $9.62 billion. These were the first transfers to this wallet since 2019.
The Mt. Gox-related address may have transferred all BTC to this unmarked address: 1JbezD...KLAPs6, no further transfer has occurred yet. This is the first transfer out of the Mt. Gox-related address since July 2019. 1JbezD...KLAPs6 currently holds a total of 141.686k BTC, worth… https://t.co/JnDeNmxVgb
— Wu Blockchain (@WuBlockchain) May 28, 2024
A total of 142,000 BTC and 143,000 BCH are expected to be distributed to creditors before the end of October this year.