We are witnessing an unexpected showdown in the crypto world. On one side stands Larry Fink, co-founder and CEO of BlackRock, the world’s largest asset manager. On the opposite side is Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC). The bone of contention? Fink is pushing for Ethereum spot ETFs, while Gensler seems largely opposed. Over the next few months, we will see who emerges victorious in this clash. Our bet is still on Fink.

This showdown is crucial in the coming weeks and months. An Ethereum spot ETF could be a game-changer for Ethereum, mirroring the impact spot ETFs had on Bitcoin. It will also reveal how far the SEC might continue its aggressive stance towards crypto.

It is crucial to note that over the last five trading days, Bitcoin spot ETFs have seen net outflows, mainly driven by Grayscale’s Bitcoin Trust ETF. This trend is primarily attributed to Genesis Trading offloading assets amid its bankruptcy proceedings. Although Grayscale is expected to settle its debts using bitcoins rather than cash, which in theory should not directly affect Bitcoin’s market price, the market has felt an indirect impact, as investors are looking to Bitcoin spot ETFs for market direction cues. Given that Genesis is likely the main force behind the recent sell-offs and possibly has few shares left to offload – as suggested by the smallest outflow occurring on Friday – we anticipate a shift towards modest positive inflows this week, potentially renewing a positive market sentiment.

Guided by our expectation of modest inflows or outflows in the ETFs, our market outlook, consistent with last week’s Crypto Crisp, indicates that the accumulation phase is expected to continue for a few more weeks, with minimal price volatility. Despite a quiet outlook for the coming weeks, we find no substantial evidence to suggest that the bullish trend in the crypto market is over.