Ethereum
Spot Ethereum ETF approval not going as planned
Understanding Spot Ethereum ETFs
Before we get into the features of Ethereum spot ETFs, it is essential to point out that they have not yet been approved for trading in the United States, but Ethereum futures ETFs have been available for some time. It is therefore essential to understand the difference.
In a spot market, assets such as commodities, currencies, and securities are exchanged for immediate delivery. The same goes for the long-awaited spot Ethereum ETFs because they offer a simpler and more transparent approach than futures ETFs, which purchase derivatives without directly owning the asset. By purchasing cryptocurrencies directly, the fund more precisely tracks the price of the reference cryptocurrency. Thanks to a simpler purchasing process, such an investment offers greater profitability and reduced management costs. This is the reason for the public enthusiasm around the approval of the Ethereum spot ETF, scheduled for May 23, 2024.
So what about approvals?
The United States Securities and Exchange Commission (SEC) remains concerned that cryptocurrencies are often involved in fraud, which could cause speculative bubbles and cause investors to start viewing this type of currency as more valuable. safe after their approval. Spot Bitcoin ETFs were only approved after the United States Court of Appeals ruled against them in August 2023, essentially forcing it to take action.
“We assume that the US SEC remains conservative in its views,” said Kar Yong Ang, financial markets analyst at Octa.
At the time of writing, the filing process is transparent. The May 10, 2024 updated filing for Ethereum Spot ETFs shows that Ark Invest and 21Shares have opted out, meaning the funds are adapting to the regulator’s requirements. Pretty much the same thing happens with other apps. At the end of April, the commission postponed its review of Franklin Templeton’s application, with a deadline of June 11. In May, the SEC postponed its decision on Invesco and Galaxy’s request. Before that, the agency extended the review period for a similar request from BlackRock. May 2024 is the deadline for proposals from VanEck and Grayscale.
“After the decision on VanEck’s application, investors will be able to understand what will happen to other investment companies that applied,” commented Kar Yong Ang, financial markets analyst at brokerage Octa.
Breadcrumbs lead to fund launches
Despite skepticism over the legal side of the matter, two factors indirectly signal increased investor interest in the second most crucial cryptocurrency.
Grayscale Investments has withdrawn its request to create an Ethereum-based futures ETF. Grayscale Investments will focus on converting its Ethereum trust, the world’s largest, into spot exchange-traded products, according to CEO Michael Sonnenshein’s speech.
Traders dump Hong Kong Bitcoin and Ethereum ETFs. Thus, on May 13, 2024, a record was set for capital outflows from funds: derivatives lost $39.3 million in one day, assets backed by BTC lost $32.7 million and assets backed by ETFs lost $6.6 million.
“It is clear that the capital outflows are not solely due to the Bitcoin price correction during this period,” said Kar Yong Ang, financial markets analyst at brokerage Octa. “Such ETF flows suggest that investors are looking for more attractive and profitable funds,” he added.
The future of Ethereum spot ETFs looks bright due to the recent success of Bitcoin spot ETFs. However, this always depends on the decision of the regulator and the actions of representatives of investment funds. The decision to approve Ethereum spot ETFs could likely be postponed, which does not negate its approval. In our opinion, there is growth potential for these two cryptocurrencies in the combination of these factors and in the conditions of local correction of Bitcoin and Ethereum quotes.
About Octa
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already used by clients from 180 countries with over 42 million trading accounts. The free educational webinars, articles and analytical tools they offer help clients achieve their investment goals.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and short-term relief projects supporting local communities.
Octa has also won over 70 awards since its inception, including the “Best Educational Broker 2023” award from Global Forex Awards and the “Best Global Broker Asia 2022” award from International Business Magazine.
Ethereum
QCP sees Ethereum as a safe bet amid Bitcoin stagnation
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.
Ethereum
Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million
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.
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
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.
Ethereum
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