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- Ethereum is up +19% in 24 hours. Why?
Hello Investors!
Let’s see what’s moving the markets today.
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Ethereum is up +19% in 24 hours. Why?
Source: Leonardo.AI
Yesterday, the famous Bloomberg ETF analysts updated their chances of the SEC approving ETH ETFs from 25% to 75%.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… x.com/i/web/status/1…
— Eric Balchunas (@EricBalchunas)
7:20 PM • May 20, 2024
This results in immediate pump and ride to $3,700 levels.
The SEC has asked exchanges to update their 19b-4 filings ‘on an accelerated basis’ for spot Ethereum ETFs.
The deadline is in 2 days, we are waiting for the decision.
BTC and SOL follow, both raising in price and squeezing short positions.
Learn more: Coindesk, Cointelegraph, TheBlock
Thoughts
I mentioned in my latest post that it’s one of the last chances to buy. This approval is something inevitable, it’s again a question of when rather than if.
No matter what happens, we should expect high volatility this week.
If the SEC declines the applications, we might get another chance to buy. If they approve, then it depends on the inflows and how the market reacts —> post Hong Kong’s approval the BTC dropped because of low interest.
5 of 7 on-chain indicators suggest the bull run is just beginning.
Bitcoin market dominance is above 55%, signaling the altseason is yet to start.
Bitcoin MVRV-Z Score is still under 6. This indicator compares BTC's current market value to its historical average value and usually tops at around six during cycle peaks. Now around 2.
HODL Waves charts show a falloff in selling pressure, suggesting more room for growth.
Learn more: Cointelegraph
Thoughts
These on-chain metrics can seem misleading but, they are a great way to analyze what is happening and I suggest everyone to consider these together with the big macro picture.
I’ve written a piece on the most important charts here, which you can leverage to understand what we are looking at and where to find the charts.
Deutsche Bank is looking to tokenization to “future-proof” the legacy banking industry.
Source: Forbes
Deutsche Bank has joined Project Guardian, a tokenization initiative led by the Monetary Authority of Singapore.
The bank will launch a follow-up to its 2023 Digital Assets Management Access (DAMA) project, which explored token issuance and transfer on the Ethereum blockchain.
The bank will collaborate with Memento Blockchain and Interop Labs to develop zero-knowledge Layer 2 scaling solutions and ensure secure blockchain interoperability.
Learn more: The Defiant
Thoughts
I’ve been waiting almost 2 weeks to get some funds from my broker. Tokenization is the future of finance. Nearly instant settlement and clearing, without the need to wait 5+ days to get the funds.
Franklin Templeton, HSBC, JP Morgan, UBS Asset Management, and many more are already exploring the use cases under the Project Guardian, and separately.
It is difficult to get direct exposure, but the fact that these companies are considering public smart chains, mainly Ethereum and Avalanche, is a strong bullish case for this upcoming bull market.
How did you like this piece? |
Elsewhere…
ZkSync hints airdrop by the end of June
Steve Cohen's hedge fund, Point72, is the latest firm to disclose it has a bitcoin ETF position.
52% of the US largest hedge funds own BTC ETF
Grayscale CEO Michael Sonnenshein resigned and will be replaced by Goldman Sachs' Peter Mintzberg on Aug. 15.
Tether Treasury mints 1B $USDT; a total of 31B in the past year.
Chainlink finishes tests with major US banks to accelerate tokenization of funds.
CME Group exploring the launch of Bitcoin trading.
All the best,
 | Matt Curda |
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