Newsletter 75
24th May 2024
THE MARKET THIS WEEK
Ether ETFs Pass a Significant Obstacle, But the SEC Hasn’t Approved Them for Trading YetOn Thursday, the second-largest cryptocurrency, spot ether (ETH) exchange-traded funds, achieved a significant milestone when the U.S. Securities and Exchange Commission authorized important regulatory filings related to them. However, they are not yet authorized to trade. The SEC approved the so-called 19b-4 forms associated with the ETFs; however, investors cannot purchase them until the agency has approved their S-1 filings. The decision comes after the markets regulator made an astounding 180-degree flip. The SEC didn’t seem to interact much with issuers on ether ETFs after approving spot bitcoin ETFs earlier this year. Recently, though, that has changed.
Congress passes a bill prohibiting the Federal Reserve from issuing CBDCs. But it’s unclear how the package will fare in the Senate. The United States House of Representatives mainly voted along party lines in order to stop the Federal Reserve from creating a digital currency. Majority Whip Tom Emmer (R-Minn.) introduced the CBDC Anti-Surveillance State Act in an attempt to prevent the US central bank from moving forward with its plans to create a digital dollar. Republicans voiced worries that Americans could be subjugated by a U.S. CBDC.
Approval of the Ethereum ETF Could Cause a 60% Rally as ETH Buying Rises The prediction reflects how the market responded to the approval of spot bitcoin ETFs in January. According to a research released on Wednesday by on-chain analytics company CryptoQuant, buying activity on both centralized and blockchain-based cryptocurrency exchanges surged. On Tuesday, holders purchased more over 100,000 ETH on spot exchanges, marking the largest day amount since September 2023.
Approved Ethereum ETF: Why aren’t we wealthy yet?
After the approval of spot Ether ETFs, cryptocurrency analysts speculate that there may be two reasons why the price of ETH hasn’t skyrocketed. The price of Ether has hardly changed despite the historic approval of spot Ether exchange-traded funds (ETF) in the US for two key reasons. In the last week, ether has already increased by 29% due to news indicating that the SEC may have changed its position on ETF approvals.
Growing open interest supports the upward trend of ether The rise in open long ETH holdings in the futures market is one element bolstering Ether’s upside. Following reports that the US Securities and Exchange Commission (SEC) was reversing course on approving spot Ethereum ETFs, Ethereum’s total open interest in the derivatives market surged from 2.8 to 3.2 million ETH in a matter of hours on May 20, according to data from on-chain market intelligence firm CryptoQuant. Since January 2023, this is the highest level of open interest.
KEY METRICS
Total Crypto Market Cap : $2.65T
Bitcoin Market Cap : $ 1.32T
Ethereum Market Cap : $ 421.48B
ETH/BTC Ratio : 0.05
Ethereum Gas Price : 6 gwei
DeFi TVL : $169.27b
Fear and Greed Index : 74 (Extreme Greed)
Federal Reserve Balance Sheet : $7.29 T
BATTLE OF THE BULL AND BEAR
After falling over 3% over the previous 24 hours, Bitcoin (BTC) fell below $68,000 during the early U.S. trading session. Earlier in the day, it was trading around $70,000. Ether Plunges in Unexpected Crypto Sell-Off as ETH ETF Determination Approaches AVAX, LINK, SHIB, and DOGE all saw price declines of more than 4% in less than an hour, indicating a widespread sell-off.
BTC price hits $80K, and an Ethereum ETF decision is expected in a few hours. maybe aim The Ether ETF decision is expected to cause volatility, making today crucial for the Bitcoin and Ethereum markets. Expectations that US regulators would approve Ethereum ETF products created an air of anticipation in the markets, which was much different from a few weeks ago.
Spot ETH ETF Decision Sets Off Wild Bitcoin and Ether Price Swings That Cause $350M in Liquidations Spot Ethereum ETFs were allowed to list by US regulators, but trading has not yet been authorized. Similar chaotic events occurred with Bitcoin (BTC), which dropped to lows in the mid-$66,000s, surged to $68,300, and then pared gains to $68,000. But ETH fared better, rising 1.5% in the last day as opposed to BTC’s over 3% decrease in the same time frame. Throughout the day, the broad-market CoinDesk 20 Index saw a 1.6% decrease.
These aspirations coincided with new gains for Bitcoin and other cryptocurrencies, with Cointelegraph outlining prospective objectives that include $80,000 for BTC/USD.In an attempt to maintain 7.5% gains, Bitcoin analysis predicts that $74K will come next. After shooting up to new highs in May, the price action of Bitcoin has its skeptics, but some believe it will continue to rise until its price is discovered.
The Ether to Bitcoin Ratio Drops to Its Lowest Level Since April 2021. “Ether is a ‘lightning rod’ for negative sentiment from crypto native and external players and has several weak spots,” according to one analyst. Shortly before press time, the price of ETH/BTC dropped to 0.04563 on the cryptocurrency exchange Binance, which was the lowest since April 2021, according to trading portal TradingView. The ratio has decreased by about 16% so far this year, suggesting a preference for bitcoin or the top cryptocurrency based on market value. The decline to three-year lows is the result of a decline in interest in ether-tied exchange-traded products (ETPs).
WEEKLY REVIEW OF IC15
The global cryptocurrency market was trading at a marginal loss. The IC15 Index was down 120 points to 89,470 at 4 p.m. Major losers in the Index were Tron, Solana, Avalanche, and Shiba Inu in the 2–4% range, while Toncoin, Ethereum, and Polygon were the only gainers in the 1–3% range.
The US House of Representatives passed the FIT21 bill with a heavy margin of votes (279–136) despite concerns from the White House and SEC. The bill aims to form a transparent regulatory framework for the digital assets industry. Nigeria restructured the National Blockchain Policy Steering Committee (NBP-SC) to implement blockchain technology in various sectors of the economy
The Bank of England and the Financial Conduct Authority (FCA) launched the Digital Securities Sandbox to integrate emerging technologies like blockchain with traditional financial systems. Furthermore, the London Stock Exchange (LSE) will list crypto exchange-traded products (ETPs) for the first time after prospectuses from WisdomTree and 21Shares were approved by the FCA.
Switzerland’s highest authority launched a public consultation for its plans to introduce global crypto tax reporting standards to ensure equal treatment as regular assets. The Federal Council will implement the CryptoAsset Reporting Framework (CARF) to improve tax transparency. The governor of Oklahoma has signed a landmark bill into law to regulate crypto and blockchain in the state. The bill will protect miners and owners of crypto and attract more crypto players to the state.
WEEKLY SPOTLIGHT
The price of cryptocurrencies on the world market was slightly lower. At 4 p.m., the IC15 Index had dropped 120 points to 89,470. In the 2–4% area, Tron, Solana, Avalanche, and Shiba Inu were the Index’s biggest losers, while the sole winners in the 1–3% range were Toncoin, Ethereum, and Polygon.
FIT21 was approved by the US House of Representatives by a wide margin (279–136) in spite of opposition from the SEC and White House. The purpose of the law is to create an open regulatory environment for the digital assets sector. In order to integrate blockchain technology across several economic sectors, Nigeria reorganized the National Blockchain Policy Steering Committee (NBP-SC).
The Digital Securities Sandbox was established by the Bank of England and the Financial Conduct Authority (FCA) to help traditional financial institutions incorporate cutting-edge technologies like blockchain. Furthermore, following the FCA’s approval of the prospectuses from WisdomTree and 21Shares, the London Stock Exchange (LSE) will list cryptocurrency exchange-traded products (ETPs) for the first time.
In order to guarantee equal treatment with ordinary assets, the highest authority in Switzerland has opened public consultation on its plans to adopt worldwide crypto tax reporting rules. To increase tax transparency, the Federal Council will put the CryptoAsset Reporting Framework (CARF) into effect. A historic bill governing blockchain technology and cryptocurrency in Oklahoma has been signed into law by the governor. The bill will safeguard cryptocurrency miners and owners while drawing further participants to the state.
