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Ethereum

Ethereum Still Stuck After Billion-Dollar ETF Launch?

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Ethereum Still Stuck After Billion-Dollar ETF Launch?

What Happened in Crypto Today: Is Ethereum Still Stuck After Its Billion-Dollar ETF Debut?

The long-awaited Ethereum ETFs have finally made their grand debut.

But wait, something is wrong.

As these new ETFs rake in billions, Ethereum’s price appears to be stalling.

What about it? Is this a “buy the rumor and sell the information” situation or is there something else at play?

Let’s dive into this cryptographic conundrum and see if we can make sense of it all.

Where is the market going?

Let’s first talk a little about ETH ETFs!

The Ethereum narrative just changed dramatically. With the arrival of spot ETFs, we are witnessing a potential inflection point in the market that could reshape the crypto landscape.

Analysts forecast capital inflows of between $1.5 billion (bearish scenario) and $5 billion (bullish scenario) by the end of 2024, suggesting significant institutional appetite.

This follows the launch of the Bitcoin Spot ETF in January 2024, which saw over $4 billion in inflows in its first month. The question now is whether Ethereum ETFs will live up to this enthusiasm.

Ethereum’s unique supply dynamics add an interesting twist. With much of it locked up in staking and smart contracts, its price could be more sensitive to these inflows than Bitcoin was.

Now let’s talk about the price of Bitcoin!

Analysis of market indicators reveals some interesting trends. The net unrealized profit/loss (NUPL) for Bitcoin is at 0.54. 0.7 is a key level to watch, as any reading above 0.8 signals a potential market top.

Source: bitbo.io

Let’s not forget the Pi Cycle Top indicator. It has been amazingly accurate in predicting past cycle peaks. Currently, there is still a large gap between the 111-day moving average and the 2x multiple of the 350-day moving average. When these two values ​​converge, it often indicates a local top.

Source: bitbo.io

Beyond these technical indicators, broader market factors come into play.

The global liquidity situation is a crucial factor. Historically, cryptocurrency cycles have closely followed liquidity cycles. Any change in central bank policies could have a significant impact on the direction of the market.

What should you do now?

Given current market dynamics, it is essential to stay informed and prepared.

Keep a close eye on Ethereum ETF inflows and compare them to Bitcoin ETF launch patterns.

Monitor key indicators such as NUPL and the Pi Cycle Top indicator (learn how to use this indicator) regularly. Associate these indicators with other tools like the CMC Fear and Greed Index to time your entry and exit.

They can provide valuable insight into market sentiment and potential trend reversals.

Stay up to date with global economic news, especially regarding liquidity and central bank policies, as these can have a significant impact on cryptocurrency markets.

The story continues

Remember that the cryptocurrency market can move quickly, so it is essential to have a clear strategy and risk management plan in place.

And… crypto news TL;DR

Speaking of staying up to date, we’re here to share the top crypto news of the day. Here’s the TL;DR:

  • BlackRock’s Bitcoin ETF eclipses tech giants. What stimulates Investor interest in the iShare Bitcoin Trust ETF? 🚀

  • Ethereum ETFs debut with a bang, but ETH price yawns. What is this How long will it take to wake up this sleeping giant? 💤

  • Kraken Completes Mt. Gox Payments But How much Bitcoins still waiting to be credited to wallets? 💰

  • Kamala Harris is crypto’s unexpected cheerleader, says Mark Cuban. But Why He thinks that? 🤔

  • Citi rates Coinbase stock a “buy.” But why so much confidence in Coinbase stock? 💑

Let’s dive in!

BlackRock’s Bitcoin ETF Outperforms Tech Giants

Bitcoin steals the spotlight from Silicon Valley’s best.

BlackRock’s iShares Bitcoin Trust ETF has raked in $19 billion in bitcoin this year. That’s more than the inflows into the stocks of the much-hyped “Magnificent Seven,” including tech giants Microsoft, Apple and Tesla.

Jeroen Blokland of Blockland Smart Asset Fund announced this on X. He pointed out that BlackRock’s Bitcoin ETF is even outperforming Invesco’s Nasdaq 100 ETF, which includes all those AI-powered tech darlings.

So what’s driving investor interest in the iShare Bitcoin Trust ETF? Are other Bitcoin ETFs performing well, or is it just BlackRock’s? Read the full story!

Ethereum ETFs Debut at $1 Billion, But ETH Price Remains Unchanged

The Ethereum ETF launch was a success, but ETH itself seems to remain quiet.

These new ETFs generated over $1 billion in trading volume on their first day. That’s like selling out stadium concert tickets in minutes. But Ethereum? It’s just doing business as usual.

ETH is currently at $3,447, down about 0.8% over the past 24 hours.

Eric Balchunas called the volume from the “new eight” (i.e. all new ETFs except Grayscale) “healthy.” He expects a good portion of that volume to translate into real inflows.

But how does trading volume differ from actual inflows? And which of these metrics can impact the price of Ethereum? Read the full story!

Kraken Closes Mt. Gox Chapter

We finally see the light at the end of the Mt. Gox tunnel.

Kraken CEO Dave Ripley just announced that they have successfully distributed Bitcoin and Bitcoin Cash to Mt. Gox creditors.

But that’s just the tip of the iceberg. We’re talking about over $7 billion in crypto and fiat currency that is still waiting to be returned to creditors.

Kraken is not alone in this crypto rescue mission. Bitstamp, SBI VC Trade, Bitbank, and Coincheck are also on the case. But they are keeping their cards close to their chests as to when the funds will actually arrive in the creditors’ wallets.

So how many Bitcoins are still waiting to be credited to wallets? Read the full story!

Kamala Harris, the unexpected ally of cryptocurrencies?

Mark Cuban has some interesting thoughts on Kamala Harris.

The billionaire investor believes Harris could be much more tech and crypto friendly than Biden.

He told Politico that Harris could be “much more open to business, artificial intelligence, cryptography and government as a service.”

But why does he think that? Wasn’t the Biden administration crypto again? Read the full story!

The Love Story Between Citi and Coinbase

Citi has a new crush, and its name is Coinbase.

The banking giant has just upgraded COIN from “neutral” to “buy”, with a price target of $345.

So what makes Citi so excited?

This is the Supreme Court’s recent decision to overturn deference to Chevron.

Citi analysts believe the legal decision could be a game-changer in regulatory risks for Coinbase.

COIN stock is up 65% year-to-date, even surpassing Bitcoin’s impressive 50% rise.

The move could challenge the SEC’s beloved Howey test. You know, that test it uses to determine whether something is a security or not?

But why so much confidence in Coinbase stock? Are there other reasons for this optimism? Read the full story!

Before you go, take a second to sign up for our newsletter below, and we’ll deliver the hottest crypto stories straight to your inbox!

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We are the editorial team of Blocksight, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on Blocksight, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Ethereum

Crypto Token Ether (ETH) Rebounds Following Complaint About SEC Investigation Into Ethereum

Blocksight Staff

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Crypto Token Ether (ETH) Rebounds Following Complaint About SEC Investigation Into Ethereum

The Ether token posted its best gain this week amid speculation that U.S. regulatory oversight of the blockchain ecosystem underlying the second-largest digital asset could ease.

The token climbed as much as 3.6% on Wednesday before paring some of its advance to trade at $3,562 as of 12:53 p.m. in Singapore. The rally was a modest tailwind for market leader Bitcoin and a string of smaller rivals.

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Ethereum

Will they capture the same buzz in the market?

Blocksight Staff

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Will they capture the same buzz in the market?

The launch of Ethereum spot exchange traded funds Exchange traded funds (ETFs) attracted significant market interest on July 23, with initial inflows surpassing $100 million. This is a notable change from the previous four days of outflows for U.S. spot Ether ETFs, which saw a total of $33.67 million in new investments.

This figure was, however, partly offset by an outflow of $120.28 million from Grayscale’s Ethereum Trust (ETHE). However, many crypto analysts believe that the Ethereum ETF will soon follow bitcoin’s path.

Ethereum ETF to Track Bitcoin

Katalin Tischhauser, head of investment research at Sygnum Bank and a former Goldman Sachs executive, predicted that Spot Ether exchange-traded funds could attract as much as $10 billion in assets under management in their first year.

She also predicted that Bitcoin ETFs could see inflows of $30 billion to $50 billion in their first 12 months, with Ethereum products likely following the same path.

Tischhauser noted that investing in Ethereum offers distinct advantages over Bitcoin. While Bitcoin is primarily viewed as a store of value, Ethereum’s value comes from revenue and cash flow. This makes Ether more relevant to traditional institutional investors compared to the perception of Bitcoin as “digital gold.”

Fee waivers to attract institutional investors

To attract institutional investors, several ETF issuers are waiving fees for their Ethereum spot funds. Franklin Templeton announced a 0.19% sponsorship fee, but will waive it for the first $10 billion in assets for six months. Meanwhile, Bitwise and VanEck will charge a 0.20% fee through 2025.

BlackRock revised its registration statement for its spot Ethereum ETF, ETHA, to include a 0.25% management fee. Grayscale launched its Grayscale Ethereum Mini Trust with the same 0.25% fee.

Ethereum ETFs Exclude Staking

The enthusiasm is, however, tempered by the lack of staking rewards of these ETFs. In May, BlackRock, Grayscale and Bitwise removed staking provisions from their SEC filings after discussions with the SEC.

As traditional investment institutions are limited by regulations and legal constraints, they can only invest through ETFs, without resorting to staking.

Also see: Crypto News Today: Bitcoin, Ethereum Brace for Volatility as Fed Holds Rates

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Ethereum

SEC Hints It May Approve Ethereum ETFs at Last Minute, But ‘No Issuers Are Ready’

Blocksight Staff

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SEC Hints It May Approve Ethereum ETFs at Last Minute, But 'No Issuers Are Ready'

It sounded like an almost certain rejection from the Securities and Exchange Commissionbut just hours before the May 23 deadline to rule on VanEck’s application to launch an Ethereum spot exchange traded fundIt appears that the SEC may reconsider its decision.

CoinDesk First reported On Monday, the nine potential issuers that had filed to list and trade the ETFs were “abruptly” asked by regulators to update their 19b-4 filings on an expedited basis. A 19b-4 is what an exchange like the NYSE requires for new product introductions — in other words, the applicants and the exchange ask the SEC for permission to add the ETFs to their platforms.

Since rumors began circulating Monday afternoon, the price of Ether has climbed nearly 20%, trading near $3,750 as of 1:30 p.m. ET Tuesday.

Since VanEck is the first exchange to file, its approval could hypothetically be a green light for others waiting to hear about their own 19b-4s. While rumors began circulating Monday that applications were being worked on, Bloomberg analysts updated their ratings from 25% to 75% approval.

But the news left issuers scratching their heads. Every issuer Bloomberg ETF analyst James Seyffart spoke to was “caught off guard by the SEC’s 180-degree turn,” he told Fortune. The agency reached out to filers for comment and updates just three days before the deadline, he said.

“This is not standard operating procedure, and everyone from issuers to exchanges to lawyers to market makers and more are scrambling to be ready for eventual approval and to meet SEC requirements,” Seyffart adds. The hasty nature of the pivot suggests it was likely a “political move,” the result of a “top-down decision” by the Biden administration, he speculates. “No issuer is ready,” he wrote on X.

So far, Grayscale is the only potential issuer to post an update 19b-4 to the New York Stock Exchange website, for its application to transfer its Ethereum Mini Trust ETF. Meanwhile, Fidelity has abandoned its plan to put Ether in its ETF, according to a S-1 Update The filing was made with the SEC early Tuesday. In previous filings, the company had said it intended to “stake a portion of the trust assets” to “one or more” infrastructure providers, but now it “will not stake Ether” stored with the custodian.

Staking involves committing Ether to secure the network in exchange for a yield, which is currently around 3%, according to data from staking service Lido. Ark and Franklin Templeton have also considered staking in their applications. In today’s 19b-4 update from Grayscale, the company confirmed that it would not participate in staking. The fact that Grayscale highlighted this and Fidelity omitted it suggests that the SEC may have asked that staking be banned. Vance Spencer, co-founder of Business executivestold Fortune he believed the SEC’s last-minute requests included advice on staking.

Staking the underlying Ether in the ETF has been seen as a reason the SEC could reject the applications, with Chairman Gary Gensler expressing concern in March that digital assets using staking protocols could be considered securities under federal law. Staking could be “a significant complication,” Bitwise CIO Matt Hougan said. previously said Fortune.

However, even if the SEC approves VanEck’s 19b-4 on Thursday, it doesn’t guarantee clearance, as exchanges will need S-1 filings from issuers before the products can begin trading. When filing to launch a new security, an S-1 is the form that describes to potential investors and the SEC the structure of the asset, how it will be managed and, in this case, how it plans to mirror the performance of the underlying asset, namely Ether tokens.

But S-1 projects could take “weeks, if not months” to be approved, Seyffart said. written on X“That said, if we are correct and see these theoretical approvals later this week, that should mean that S-1 approvals are a matter of ‘when’ and not ‘if.’”

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Ethereum

FOMC Holds Interest Rates Steady, Bitcoin and Ethereum Prices Fall

Blocksight Staff

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FOMC Holds Interest Rates Steady, Bitcoin and Ethereum Prices Fall

After Federal Reserve Chairman Jerome Powell said a September rate cut “could be on the cards,” stocks soared to session highs. The tech-heavy Nasdaq 100 climbed 3.3% and the S&P 500 climbed 2%. However, the king cryptocurrency Bitcoin (BTC) fell 1.3% to $66,088, and Ethereum (ETH) fell about 1.11% to $3,313. Over the past 24 hours, the global cryptocurrency market cap also fell 0.71% to $2.39 trillion.

However, market analysts believe that this is a short-term decline, as Bitcoin and other cryptocurrencies, despite being in a bearish situation, are showing bullish signals. Although BTC is still struggling to break the $70,000 mark, it will be interesting to see how BTC will react in August before the rate cuts.

Federal Reserve Decision

On July 31, the U.S. Federal Reserve concluded a two-day meeting of the Federal Open Market Committee (FOMC) by choosing to keep benchmark interest rates unchanged at 5.25%-5.50%, in line with Wall Street expectations. The decision marked the eighth consecutive meeting without a rate change.

Towards a market rebound?

According to SantimentThe FOMC’s decision to maintain current interest rates led to an initial decline in cryptocurrency prices. Traders were hoping for a rate cut, which hasn’t happened since March 2020. A future rate cut could signal bullish trends for stocks and cryptocurrencies, potentially boosting markets for the remainder of 2024. Despite the initial sell-off, markets are likely to stabilize unless another major event impacts the cryptocurrency sector.

In the meantime, aggressive accumulation by bulls and increasing negative sentiment among the crowd could set the stage for a substantial market rebound.

Understanding the broader impact

Despite the anticipation surrounding the FOMC meeting, the impact on cryptocurrencies was limited as the pause on rates had already been factored into prices. Previous Fed decisions have shown minimal major impact on Bitcoin prices.

Historically, FOMC actions affect all asset classes. In 2020 and 2021, Bitcoin and other altcoins soared when the Fed cut rates to zero, only to reverse course in 2022 when rates began to rise. Investors moved trillions of dollars into lower-risk assets, with money market funds amassing over $6.1 trillion, earning an average return of 5%.

Furthermore, Bitcoin’s immediate resistance is noted at $66,852, with support at $65,000. The RSI is signaling oversold conditions, suggesting further declines are possible if the price falls below $65,900.

Investors are now closely watching the FOMC meeting for clues about inflation and economic growth, which could influence Bitcoin’s next move.

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