Good morning. Here’s what’s happening:

Prices Positive event spurred crypto market boost, altcoin rally. However, the subsequent corrections are to be expected. BTC is comfortably holding above $30K.

Insights The strong influx of retail buyers into Toronto’s Purpose ETF shows a high demand for these products. This is good news for U.S. firms with BTC applications pending with the SEC.


Bitcoin Continues to Hold Above $30K

As Asia starts its business week bitcoin maintains its position above $30,000. Ether has dropped below the $2,000 level.

According to CoinDesk, the world’s biggest digital asset, bitcoin, is currently trading sideways at $30,298 . Ether is also moving sideways at $1 927.

The unexpected rise in crypto prices last week was due to a positive ruling that a court made in the Ripple vs. SEC case. Joe DiPasquale said, however, in a recent note, that the market had overheated, and “corrections were expected”.

DiPasquale wrote in his article that, if there were a correction “we would not expect to see Bitcoin trade below $27K” for a long time and “the market is likely to remain around its current range for the moment.”

Where does the market go next? The week before last was busy with scheduled releases of economic data, but the market’s reaction to the XRP led altcoin rally made it even busier.

Johnny Teng Senior Researcher, LBank Labs said that, “With no major events scheduled or economic data released this week, we expect price action to be influenced primarily by open interest, which reflects trader sentiment and trends such as memes and AI,” he wrote in a report. Retail traders who missed last week’s price movements are likely to be more eager to get involved in the market.

Teng explained that despite the fewer short positions in Bitcoin, it is still expected to drop and then rise because of nearby short-term resistance and liquidity, while ether’s trading volume and other altcoins are likely to increase.

Coinglass data shows that short positions have been steadily increasing in the morning hours of Asia’s Monday business days. In the last 12 hour, 21 million dollars in long positions were liquidated compared to $8.21 millions in short positions.

This could be a part of a consolidation effort to keep bitcoins at $30,000 instead of allowing them to move up.

The Biggest Gainers

Biggest Losers


What Does the rising flow into Purpose’s Bitcoin ETF mean?

A spot bitcoin ETF is likely to be approved by the Securities and Exchange Commission . An optimistic market indicates that bitcoin is on the rise.

The SEC will not be the first to approve a bitcoin ETF, but it may become the first in the world. Purpose Investments, based in Ontario, Canada, holds the honor of being the first bitcoin ETF to be approved and launched by the Ontario Securities Commission.

Glassnode data indicates that investors are continuing to pour money into Purpose’s bitcoin ETF BTCC. In June and July, 5638 BTC moved in the ETF. Purpose has a huge advantage over potential competitors, and this growth also indicates a strong appetite for spot ETF bitcoin products among investors.

(Glassnode)

Factset data shows that BTCC is the largest bitcoin ETF in Ontario, and it’s almost exclusively held by retail traders. Institutional ownership, however, is only 0.03% – a single firm named Yorkville Asset Management.

These two data points indicate that the retail interest in bitcoin as an asset of ETF quality is a vibrant one. First mover advantage is significant.

Most Canadian brokerages offer U.S.-listed stocks. However, the U.S. has limited access to Canadian stocks. You can also put it this way: Canadians are able to buy U.S. bitcoin ETFs and ditch Toronto-listed BTCC, but American traders don’t seem to be buying up north.

This is why the continued flow of funds is so interesting. This shows that being the first to enter a market has a big advantage, since the customers are unlikely to move to your competitors. Instead, they’re buying more.

She said that the difference between the two markets for bitcoin ETFs was only a few days. The first product had assets of about one billion dollars, while the second product had less than 100 millions.

No one expected a Toronto-listed ETF would have more assets under management than its U.S. counterpart. Purpose’s BTCC has an AUM of $852.5 millions USD ($1.1 billion CAD), which is not bad. It’s also still growing.

Purpose’s first-mover edge is unlikely to be a winner-takes-all.


Important events.

10 a.m. SGT/HKT (or 2 a.m. GMT): China Industrial Production June/YoY


CoinDesk TV

If you haven’t seen it yet, here’s the latest episode of “First Mover” on CoinDesk TV.

XRP has surged in price after a U.S. court ruled that the sale of XRP on exchanges does not constitute an investment contract. Willkie Farr & Gallagher LLP Counsel Michael Selig and Attorney Alex Damsker gave their legal opinions about Ripple’s partial win in its battle with the U.S. Securities and Exchange Commission. Dave Weisberger, CEO and cofounder of CoinRoutes, discussed his analysis of the crypto markets. Arkham CEO Miguel Morel addressed concerns raised by privacy-focused crypto enthusiasts after announcing the launch of a new crypto data market.

Fir Tree’s Crypto Distress prompts the Hedge Fund to seek Profit from Turmoil: Fir Tree stated that it is rare to find situations where all three are present, but this is exactly what they are experiencing in the digital asset market right now.

XRP is the Star of the Week, displacing other crypto assets: Alongside XRP’s strong week, 172 out of 186 CoinDesk Indexes assets ended in positive territory.

Ripple’s Legal Victory Means Crypto Must Stand Up To The SEC: ConsenSys Director for Global Regulatory Matters Bill Hughes argues that the company’s partial win in court represents a turning point for the crypto regulatory battle.

Hollywood’s Angry Makers Show Why Web3 is Needed: Web2 Economics don’t work for writers and artists, according to CoinDesk’s Michael Casey.

Transparency is for the Whales and Privacy is for the Plebs. Identification of the owners of cryptocurrency wallets could level the playing fields for retail traders. If taken too far, it could be weaponized to target the weak.

This article has been written and edited solely to provide accurate information for the reader. CoinDesk could earn a commission if you click on the link provided by Glassnode. See our Ethics Policy for more information.

James Rubin is the editor.