U.Today – Chinese cryptocurrency journalist and blogger Colin Wu wrote on Twitter that the current situation with failed cryptocurrency exchange Mt.Gox and the funds it owes to creditors could be beneficial for spot-traded funds recently approved by the US Securities and Exchange Commission. Securities Exchange Commission (SEC).
Ethereum could potentially benefit from the uncertainty surrounding Mt.Gox
Wu quoted a post from QCP Capital’s Telegram channel. The announcement says that uncertainty around the Bitcoin payouts that Mt.Gox is expected to pay to creditors in October could potentially benefit Ethereum once spot ETH ETFs are launched and trading begins.
Now, with the first ETF approval taking place last week and the final one expected to be announced after the upcoming SEC meeting in June, gigantic whales are starting to flock to the second-largest cryptocurrency, Ethereum.
According to a recent tweet posted by popular cryptocurrency analyst Ali Martinez, there is currently a huge escalate in the number of novel ETH wallets that hold 10,000 ETH or more. The analyst noted that this marks a shift from selling to accumulation.
Mt.Gox is not currently selling Bitcoin, says former CEO
Earlier this week, news of Mt.Gox moving billions worth of bitcoin from its wallet sent shock waves throughout the cryptocurrency community and hit the market, pushing the BTC price down almost 4.6%, falling from the just-recovered high of $70,000.
According to Whale Alert, over $5.1 billion worth of bitcoin was transferred from the exchange to the novel wallet. Experts have started sharing views on App X that the struggling stock exchange has finally started paying off its debt to creditors who suffered huge financial losses after the 2014 collapse of Mount Gox.
However, the platform’s former CEO, Mark Karpeles, wrote on Twitter that the funds had just been transferred to a novel wallet and there was no immediate Bitcoin sale on Mt.Gox. Currently, a novel unmarked blockchain wallet created by Mt.Gox for further payouts to creditors contains 141,686 BTC worth approximately $9.62 billion. These were the first transfers to this wallet since 2019.
A total of 142,000 BTC and 143,000 BCH are expected to be transferred to creditors by the end of October this year.
