Flat at $66.5k: Spot Ether ETF Generates Minimal Price Movement

Bitcoin’s price remained stable on Wednesday, following a week of losses driven by a lackluster risk appetite stemming from uncertainty in the U.S. political landscape. This situation has made traders reluctant to engage with cryptocurrencies.

The introduction of spot exchange-traded funds (ETFs) tracking Ether failed to boost market sentiment, leading to a decline in prices on Tuesday and a flat trading pattern on Wednesday. Bitcoin was trading at approximately $66,450.2 at 09:15 ET, showing little change over the past 24 hours. After peaking at around $69,000 over the weekend, its value has been steadily decreasing.

### Bitcoin Faces Pressure from Political Uncertainty

Bitcoin is facing challenges due to rising uncertainty regarding the upcoming U.S. presidential race, particularly after President Joe Biden announced he would not seek reelection and endorsed Vice President Kamala Harris. Harris is quickly garnering support within the Democratic Party and is anticipated to become the party’s presidential nominee.

This sets the stage for a possible match-up with Republican candidate Donald Trump, who had been leading in polls against both Biden and Harris before the endorsement. While expectations of a Trump presidency had previously contributed to some gains in the crypto market due to his favorable views on the sector, recent polling indicates that Harris is now showing stronger numbers against Trump, according to a recent survey by Reuters/Ipsos.

### Spot Ether ETFs Have Strong Initial Volumes but Limited Impact

On Tuesday, six ETFs that track Ether’s price began trading in U.S. markets, with over $1 billion in trading volume on their first day. However, this figure pales in comparison to the $4.6 billion traded during the debut of spot Bitcoin ETFs earlier this year. Ether’s price also fell by 1% on Wednesday to $3,460.38. Although the launch of these spot Ether ETFs is expected to draw more institutional investors into the cryptocurrency realm, there is uncertainty regarding the level of actual demand for them. Trading volumes for spot Bitcoin ETFs have also seen a significant decline since their launch.

### Altcoins Experience Minimal Movement

In the broader cryptocurrency market, major altcoins also showed limited movement on Wednesday, reflecting the ongoing weakness for risk-sensitive assets. Some altcoins saw slight increases, with two notable ones rising by 1.6% and 5.8%, while another experienced a minor drop of 0.1%. Meme tokens had mixed results, with one losing 0.5% and another gaining 1%.

### Ferrari to Introduce Crypto Payment System in Europe

In other news, Ferrari announced that it will expand its cryptocurrency payment options for luxury sports cars to its European dealer network by the end of this month, following a successful introduction in the U.S. last year. The Italian automotive company plans to extend this option to additional international dealers in regions where cryptocurrencies are legally accepted by the end of 2024.

Despite the volatility associated with cryptocurrencies, Ferrari began accepting these payments in the U.S. in response to demand from wealthy clients. The company emphasized that the European rollout is aimed at enhancing support for dealers and adapting to the changing preferences of its customers. For its U.S. launch, Ferrari collaborated with a leading cryptocurrency payment processor to enable transactions in bitcoin, ether, and USDC, allowing dealers to convert crypto payments into traditional currency to mitigate price fluctuations and minimize additional fees for customers. Ferrari has not disclosed whether it will partner with other payment processors in Europe or other regions but aims to address evolving customer needs through this expanded payment option.