Ethereum

ETH remains stable despite Ethereum Spot ETFs going live

Published

4 months ago

23 July, 2024

ETH remains stable despite Ethereum Spot ETFs going live

The web3 community speculates on the performance of the new ETF asset class.

On July 23, nine Ethereum spot exchange-traded funds (ETFs) began trading after a Russian mountains an accumulation of several months.

This milestone comes after BlackRock, Franklin Templeton, Fidelity, VanEck, Bitwise, 21Shares and Invesco all received final approval. approval of their S-1 registration statements yesterday. Grayscale proposes to convert its Ethereum Trust into an ETF and launch the Grayscale Ethereum Mini Trust were also green light Today.

James Seyffart, ETF analyst at Bloomberg, note that the sector started with assets under management of $10.25 billion, 90% of which is held in the Grayscale Ethereum Trust.

“The launch of an Ethereum spot ETF in the United States marks a critical development, highlighting the growing maturity of the cryptocurrency asset class and its relevance in retail and institutional portfolio management,” said Cristiano Ventricelli, vice president of digital economy at Moody’s Ratings.

“The approval of crypto spot ETFs marks another turning point in the global shift toward digital assets,” said Brett Tejpaul, Head of Coinbase Institutional. “This wave of interest isn’t just a trend; it’s a transformative force, reshaping the financial system and solidifying cryptocurrencies’ enduring presence in the financial landscape.”

The launch of the spot Ether ETFs comes just over a year after spot Bitcoin ETFs became the fastest-growing ETF asset class since their launch nine months ago.

“Spot Bitcoin ETFs have already become the fastest-growing ETFs of all time, with $17 billion in net inflows since their approval earlier this year,” Tejpaul continued. “The approval of ETH ETFs continues this momentum and provides investors with another way to invest in the increasingly mainstream crypto economy.”

ETH Sideways Trends Following ETF Launch

The launch has so far defied expectations that funds entering the market would trigger a sell-off event following the news for ETH. Ether Price is up 0.1% over the past 24 hours, last trading at $3,495, according to The Defiant’s cryptocurrency price feed.

ETH also gained 1.7% against BTC over the past day to 0.0525 BTC, and is up 17% since its low of 0.045 BTC in mid-May.

ETH/BTC. Source: CoinGecko.

Matt Hougan, CIO of Bitwise, an Ether ETF issuer, note Premarket trading volume for Ethereum exchange-traded products (ETPs) was “significantly lower than premarket trading for BTC ETPs” on the day of their launch. “Nevertheless, it is good to see trading activity from the larger players expected before markets open,” he added.

Philipp Pieper, co-founder of Swarm Markets, said he expected a disappointing initial market response to the fund’s launch.

“To get a sense of what this will look like in the short term, we can look to the Bitcoin ETF experience earlier this year,” Pieper said. “Based on that, we imagine the market reaction will be initially muted, even with some selling pressure.”

However, Pieper anticipates a “major reallocation of capital” into ETH in the medium term, which will likely put upward pressure on Ethereum prices.

Wintermute, a digital asset trading firm, predicts annualized inflows of between $3.2 billion and $4 billion, which could push the price of ETH by 18% to 24% by 2025.

Estimates of inflows

Analysts offer widely varying estimates of how much capital is expected to flow into Ether ETFs.

Ryan Lee, chief analyst at Bitget Research, told The Defiant that spot Ether ETFs will quickly capture around 2.5% of Ethereum market cap — or about $10.6 billion.

Bloomberg ETF analysts Eric Balchunas and James Seyffart estimate Ether funds are expected to accumulate between $5 billion and $6 billion in their first year, which is equivalent to 20% of the inflows to Bitcoin ETFs. Galaxy Digital also said predicted that $5 billion will enter the sector over five months.

Others anticipate the funds will generate slower growth, with Steven McClurg, head of U.S. asset management at CoinShares, tip These Ether ETFs will only host 10% of the inflows to Bitcoin funds.

Danny Chong, co-founder of Tranchess, suggested that lower inflows to Ether ETFs could have a bigger impact on the Ethereum market given its smaller capitalization compared to Bitcoin.

“Spot ETF inflows could have a bigger impact on Ether than Bitcoin due to Ethereum’s growing ecosystem,” Chong said. “The Ether/BTC price ratio has already seen a positive trend.”

However, Chong also acknowledged that Hong Kong based Ether ETFs were “slow to meet industry expectations” when they launched earlier this year.

ETF Fees

All but two of the funds are offering temporary trading fee breaks lasting between about six and 12 months. All of the funds started out fee-free, except BlackRock’s iShares Ethereum Trust, Invesco Galaxy Ethereum ETM and Grayscale’s Ethereum Trust (ETHE), which charge fees of 0.12%, 0.25% and 2.5%, respectively, according to Bloomberg ETF analyst James Seyffart.

Once the waivers expire, funds will charge fees ranging from 0.19% to 0.25%, with the exception of ETHE and the Grayscale Mini Ethereum Trust, which will charge 0.15% and 2.5%.

On July 22, Bitwise announcement It will donate 10% of its profits generated by the Bitwise Ethereum ETF between Protocol Guildan organization that supports Ethereum core developers, and the PBS Foundation, a nonprofit that funds open source block relays and related research.

This decision follows that of VanEck committing to 10% of its ETF profits to Protocol Guild for the first 10 years of the fund’s operation.

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Ethereum

QCP sees Ethereum as a safe bet amid Bitcoin stagnation

Published

4 months ago

31 July, 2024

Chain Feed Staff

QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.

Read on to find out how you can benefit from it.

Bitcoin’s Struggle: The $70,000 Barrier

For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.

Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.

QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.

The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.

Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.

A glimmer of hope

QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.

QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.

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Ethereum

Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum records $17.9 billion in spot volume despite 3% drop

An Ethereum ICO participant has emerged from nearly a decade of inactivity.

Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.

The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.

Screenshot 2024 07 30 at 171307

This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.

Recent Transactions and Movements

The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.

Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.

Why are whales reactivating?

It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.

In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.

At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Ethereum

Only Bitcoin and Ethereum are viable for ETFs in the near future

Published

4 months ago

31 July, 2024

Chain Feed Staff

BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future

Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.

In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”

Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.

BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.

Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.

Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.

Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.

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Ethereum

Ethereum Posts First Consecutive Monthly Losses Since August 2023 on New ETFs

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum sees first monthly consecutive losses since August 2023 amid new ETFs

Available exclusively via

Bitcoin ETF vs Ethereum: A Detailed Comparison of IBIT and ETHA

Andjela Radmilac · 3 days ago

CryptoSlate’s latest market report takes an in-depth look at the technical and practical differences between IBIT and BlackRock’s ETHA to explain how these products work.

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