Digital asset investment products have witnessed significant inflows totaling billion, marking a strong five-week streak that accumulates to .3 billion. As reported by Coinshares, this surge aligns with increased trading volumes and shifting monetary policy expectations. Record-Breaking Week for Digital Assets as U.S. Ethereum ETF Approval Sparks Billion Surge Digital asset investment products, […]
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Ethereum Futures Open Interest Hits All-Time High Following ETF Approvals
Ethereum has experienced a significant increase since the U.S. Securities and Exchange Commission (SEC) approved a group of spot ether exchange-traded funds (ETFs). This week, ether reached a high of ,980 per coin, which is approximately 18.4% below its all-time high. Amid fluctuating prices, ethereum futures markets have achieved a record high in open interest. […]
Bitcoin News
Despite Ethereum ETF Approvals, ‘Altcoin Season’ Remains Far Off
While the U.S. Securities and Exchange Commission (SEC) has approved several spot ethereum exchange-traded fund (ETF) 19b-4 filings, and ether alongside numerous digital assets have experienced double-digit increases over the past week, the much anticipated ‘altcoin season’ has not yet arrived. In fact, according to the Altcoin Season Index, the likelihood of such a season […]
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Solana Price Jumps 7% On Bitcoin And Ethereum ETF Approvals, Network Congestion Update
Solana’s price saw a notable recovery on Monday after a steep decline over the past seven days. This was supported by positive developments in the Bitcoin (BTC) and Ethereum (ETH) markets, which came alongside the approval of exchange-traded funds (ETFs) for both cryptocurrencies in Hong Kong.
Additionally, Solana addressed its ongoing network congestion issues with a new update, aiming to rectify transaction failures and outages.
New Update Tackling Implementation Bug
According to Mert Mumtaz, CEO of Helius Labs, Solana’s recent network congestion issues were attributed to an implementation bug rather than a fundamental design flaw. Mumtaz clarified that Solana’s current predicament results from a flaw in implementing a specific protocol.
According to Anza, a spin-off of Solana Labs, Solana has released a new update to its validator client software to combat this. The update, v1.17.31, aims to reduce network congestion and will be followed by further improvements in v1.18.
Anza emphasized the update’s significance, urging MainnetBeta validators to adopt it. The enhancements introduced in the update are expected to mitigate Solana’s ongoing network congestion issues.
Furthermore, validators were advised to upgrade their systems when there is less than 5% delinquent stake, ensuring they have sufficient time to monitor the node after the upgrade.
Any issues encountered during the upgrade were to be reported to mb-validators. Solana Status, a trusted source, corroborated the announcement, recommending the v1.17.31 release for general use.
Trent.sol, Solana’s developer and operations manager, emphasized that the effectiveness of the update would be proportional to its adoption across the network.
While the improvements primarily target Solana’s Stake Weighted Quality of Service (SWQOS) and may not result in significant changes to the reliability of unstacked Tensor processing units (TPU) traffic, Solana users were advised to keep delinquency below 5% during the upgrade process.
Furthermore, Anza hinted at additional enhancements in the pipeline, urging users to stay tuned for further updates.
Solana Price Rebounds With 7% Surge
After unveiling updates to enhance network efficiency, the Solana price has surged by over 7%. This surge has helped offset the ongoing downtrend experienced by Solana, which amounted to nearly 21% over the past month.
In addition, the Hong Kong SFC has officially approved several spot Bitcoin and Ethereum ETFs, including asset managers such as China Asset Management, Bosera Capital, HashKey Capital Limited, and an in-principle approval for Harvest Global Investments.
This regulatory approval has not only positively impacted the prices of Bitcoin and Ethereum but has also instilled a sense of positivity in the overall cryptocurrency market. As a result, the top 10 cryptocurrencies have witnessed significant uptrends, riding on the wave of these developments.
Despite the recent surge in Solana’s price, SOL’s trading volume has decreased by -44.70% in the last 24 hours, indicating a recent decline in market activity, according to CoinGecko data.
Solana’s current trading price of 1.40 presents the first obstacle in the cryptocurrency’s path toward further price gains. If this hurdle is surpassed, the next significant resistance lies at 0, which would signify a recovery of SOL’s gains recorded over the past month.
On the other hand, the 0 mark has proven to be a strong support level for Solana, representing the foundation of SOL’s one-month bullish structure, which propelled its price rally to nearly three-year highs of 0 on March 18.
Featured image from Shutterstock, chart from TradingView.com
Recent Approvals of Spot Bitcoin ETFs May Prompt Release of Third Iteration of ‘Token Safe Harbor Proposals’ – Hester Pierce
Approval of spot bitcoin exchange-traded funds may necessitate the release of a third iteration of the Token Safe Harbor Proposal, Hester Pierce, a commissioner with the U.S. Securities and Exchange Commission, has said. The commissioner argued that it’s illogical to subject a nascent token project to the same disclosure rules applicable to a company with […]
Bitcoin News
Bitcoin plummets 20% post-ETF approvals: what’s behind the crash?
The recent approval of several spot Bitcoin exchange-traded funds (ETFs) by the SEC was expected to usher in an era of mainstream adoption and sky-high prices for the flagship Cryptocurrency. Instead, Bitcoin has crashed over 20% from its 2024 high of ,000 to just under ,000 at the time of writing.
Where is the bottom of this crash? Is this a buy the dip opportunity? And most importantly, is this sharp correction the end of the bull market in Crypto? We explore the factors behind the selloff, and why this could ultimately lead to more bullish price action in the top Cryptocurrency by market cap.
Miners selling Bitcoin at the same time
One major factor driving the decline is miners offloading their Bitcoin onto exchanges at a pace not seen since the FTX collapse in November 2022. The amount of BTC held by miners has plunged, indicating they are selling their newly minted coins instead of the typical strategy of accumulating them as a long-term investment. This surge of sell pressure from miners has overwhelmed buying demand, even as major ETF providers snap up Bitcoin to back their newly launched funds.
Grayscale outflows adding fuel to the fire
Grayscale Bitcoin Trust has been sending billions in BTC to Coinbase. Grayscale is one of the world’s largest holders of BTC, causing the substantial outflows to have a notable impact on price action. GBTC outflows are being driven by particularly high 1.5% expense fees compared to other spot ETF alternatives in the US. The situation was made worse when FTX’s estate redeemed nearly billion in GBTC. When GTBC holders cash out their shares, a corresponding BTC sale is made.
Looming Mt. Gox payouts spooking investors
Also contributing to the skittish sentiment is the long-running Mt. Gox repayment plan nearing its conclusion. The defunct exchange is preparing to distribute 137,000 BTC to holders as restitution for funds lost in its infamous 2014 hack. Many recipients are expected to cash out immediately and could flood the market with sell orders. This impending overhang has investors worrying about whether Bitcoin has enough demand to absorb the extra supply.
Ongoing macroeconomic headwinds
Bitcoin’s ties to risky asset classes mean it has suffered collateral damage from the Federal Reserve’s relentless interest rate hikes and the strong US dollar squeezing alternative assets. Until inflation shows clear signs of slowing down, investors are unlikely to find refuge in Crypto. The Fed’s actions have dashed hopes that loosening monetary policy could stoke Bitcoin’s next bull run.
There may be light at the end of the tunnel
But there are reasons to be optimistic about Bitcoin’s future. For one, miner balances have fallen so dramatically that they are now lower than during last November’s FTX-induced meltdown. This signals that much of the excess selling pressure has already been expended.
As for the Mt. Gox payouts, creditors have held Bitcoin for nearly a decade and may opt to continue holding now that the Crypto winter seems to be thawing, rather than cash out at depressed prices below k.
ETFs now account for 0.5% of BTC supply
Most importantly, each newly approved ETF has greedily snapped up the Bitcoin sold into the market over the past weeks, evidenced by their substantial and rapidly growing holdings.
BlackRock’s spot Bitcoin ETF took in a staggering 44,000 BTC worth .75 billion within two weeks of launch. At Fidelity’s current pace, its ETF holds 30,000 BTC. With another over 30,000 BTC already under management across the remaining SEC-approved ETFs, these funds combined now hold over 100,000 BTC and counting.
Considering Bitcoin’s max supply is only 21 million, over 0.5% of all Bitcoin in existence is now locked up in just a handful of investment vehicles catering to institutional investors. And the appetite for Bitcoin exposure is only set to grow as more mega-asset managers file for spot ETFs to meet rising demand.
The looming Bitcoin halving could upend the status quo
With miners offloading coins ahead of the Bitcoin halving, and validation rewards about to be cut 50% from 6.25 Bitcoin per block to 3.125 Bitcoin per block this April, Bitcoin’s already decreasing issuance rate is set to drop drastically lower. This quadrennial event has historically choked the influx of new Bitcoins, as only half the number of coins enter circulation post-halving.
Yet despite the turmoil in Crypto markets presently, institutional intrigue in Bitcoin is continuing to scale up. Major asset managers have finally secured SEC approval for spot Bitcoin ETFs to meet surging demand from institutional investors seeking Crypto exposure.
Retail interest also remains resilient. The stage is being set for a serious supply-demand imbalance to play out over 2024. This, in turn, could act as rocket fuel to propel prices higher, as liquid coins become increasingly scarce relative to the swell of new institutional and retail entrants.
If history is any indicator, Bitcoin’s previous halving events triggered spectacular bull runs that saw prices appreciate multiples higher over the following 12-18 months. Investor euphoria reached a fever pitch as mainstream media coverage pulled in waves of new buyers happy to purchase Bitcoin at ever-loftier prices.
The run-up to April’s halving could see a similar pattern emerge. The type of supply shock that may unfold as Bitcoin’s issuance falls off a cliff this spring, while interest continues rising unabated, has the potential to ignite the asset’s next parabolic ascent to new all-time highs.
Turbulence creates opportunity for bold traders
Riding out this period of volatility will require nerves of steel, but for seasoned traders, the swirling uncertainty presents an opportunity. Platforms like PrimeXBT allow traders to benefit from Bitcoin’s wild price swings in either direction through instruments like Crypto Futures contracts and adjustable leverage. Advanced risk management tools are also at traders’ disposal to customise exposure based on personal risk tolerance.
As Bitcoin emerges from its post-halving cocoon over the mid-2020s, this period may be looked back upon as a final cleansing plunge before ascending to new heights on the back of hyper-scarcity and institutional adoption. Those bold enough to take calculated risks could reap outsized returns if faith in Bitcoin’s enduring value proposition holds firm.
Socket Protocol Loses $3.3M in Exploit, Users Urged to Revoke Approvals
Following a serious exploit in the Socket protocol that drained .3 million, the company has halted specific operations and urged users to revoke all approvals as a precautionary measure.
Socket Responds to .3 Million Security Breach With Swift Action and Transparency
Socket, a cross-chain protocol, confirmed the loss of .3 million due to an exploit. This incident was acknowledged in a social media post on January 16. Socket, a component in today’s interconnected blockchain ecosystem, facilitates cross-chain interactions and is used in several Web3 applications, including Synthetix, Lyra, Kwenta, Superform, Plasma Finance, and Level Finance.
The exploit targeted users who had granted infinite approvals to Socket contracts. In a post on X the company stated, “Urgent. Socket has experienced a security incident which affected wallets with infinite approvals to Socket contracts.” Socket also swiftly paused the affected contracts to mitigate further damage.
Blockchain security firm Peckshield flagged the issue, revealing that the exploit was linked to a route in the Socket system introduced just three days before the attack. Following the breach, Socket immediately deactivated the problematic route to thwart further misuse, and also urged users to revoke all approvals
Due to the recent exploit, Socket urges all users to revoke all approvals to prevent loss of funds
We recommend all users to review approvals immediately while we investigate.
Check exposure to the exploit and revoke now
Revoke Now
https://t.co/fXzS6lONKX
— Socket (@SocketDotTeclh) January 17, 2024
Amidst this trouble, phishing scammers are attempting to exploit the situation. In response to Socket’s official announcement, a fraudulent Socket account posted links to a malicious app, misleading users to revoke their approvals through it. The counterfeit account, distinguishable by its misspelled handle @SocketDctTech instead of @SocketDocTech, was promptly removed from X.
Socket has assured its users that the paused contracts require no action from them. The company is also issuing regular updates and instructions to help its user base navigate through this crisis.
Do you think Socket has done a good job handling this situation? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Hits Peak Interest on Google Trends Following SEC’s ETF Approvals
In the week spanning Jan. 7th to the 13th, 2024, Google Trends revealed a peak interest score of 100 for the search term bitcoin. A closer examination of Google Trends over the past three months highlights that this interest surged to its apex on Jan. 11. This was the day after the U.S. Securities and Exchange Commission (SEC) sanctioned 11 spot bitcoin exchange-traded funds (ETFs). Following the buzz around the ETF approvals, attention is now shifting towards Bitcoin’s upcoming reward halving.
2024 Sees Bitcoin Reach New Heights in Online Searches Post-ETF Approval
Over the previous year, dating back to the week of Jan. 15th to 21st, 2023, the search term “bitcoin” garnered a rating of 55 out of a possible 100, as shown by Google Trends. Google’s service assigns a score from 1 to 100, reflecting the search interest for a given term in a specific time and location. The scoring is relative to the proportion of searches for a term like “bitcoin” against the total search volume during that period and place. A score of 100 signifies the term’s peak popularity. By the close of March 2023, the score for “bitcoin” had climbed to 65.
Throughout much of 2023, the search interest for “bitcoin” searches remained consistently low, bottoming out at a score of 35 in the week of October 8th to 14th. However, following this period, interest in the term began to rise, achieving a score of 61 in the final week of October. The peak for 2023 came in the week of December 3rd to 9th, when “bitcoin” hit a high of 70 out of 100. It wasn’t until the second week of January 2024, however, that the search term finally reached its zenith with a perfect score of 100.
Delving deeper into a 90-day snapshot of global search popularity, Google Trends reveals that the peak score of 100 for “bitcoin” was attained on Jan. 11. Yet, by Jan. 15, this figure had fallen to 41. With the buzz around the spot bitcoin ETFs fading, the fervor in search interest has similarly waned. As we enter the third week of January 2024, El Salvador emerges as the leading region for “bitcoin” searches, followed by Nigeria, Switzerland, Austria, and the Netherlands.
The related topics and queries circling “bitcoin” predominantly focus on ETFs. “Exchange-traded fund,” for example, ranks highly, alongside the “U.S. Securities and Exchange Commission.” Other prominent topics include “Solana,” “Tether,” and “Bitcoin Dominance.” Key associated queries feature terms like “bitcoin etf approval,” “bitcoin ETFs,” “bitcoin etf news,” “bitcoin ETF approved,” and “ETF bitcoin.” Additional trending topics linked to “bitcoin” are “Blackrock” and “bitcoin price.”
The next significant milestone for BTC is its reward halving, anticipated in April 2024. Analyzing the specific query “bitcoin halving” reveals a similarly spiked interest recently. This more refined term also achieved a peak score of 100 on Jan. 11, 2024, following the ETF approvals. However, since then, interest, primarily from Slovenia, Cyprus, Switzerland, the Netherlands, and Austria, has significantly diminished. As of Jan. 15, 2024, the “bitcoin halving” search term registers a score of 49.
The surge in search popularity, driven by the SEC’s ETF approvals and anticipation of the reward halving, underscores the leading crypto asset’s evolving influence in finance, technology, and economic freedoms. As interest normalizes, it’s evident that bitcoin continues to captivate global attention, reflecting its growing integration in mainstream economic discussions and its potential future impact. Nonetheless, widespread acceptance and engagement with the censorship-resistant asset must persist to maintain public interest. Only time will reveal its enduring appeal.
What do you think about the interest in bitcoin rising amid the ETF approvals and the drop that followed? Share your thoughts and opinions about this subject in the comments section below.
Spot Bitcoin ETF Approvals, Ethereum’s Outperformance, BTC Mystery Transfer, and More — Week in Review
The SEC approved spot bitcoin ETFs, sparking a lukewarm market response despite ethereum’s rising prominence. Meanwhile, intrigue swirled around a mysterious .19 million bitcoin transfer to the genesis address linked to Bitcoin’s creator, Satoshi Nakamoto. The launch day of U.S. spot bitcoin ETFs saw a staggering .6 billion in trading volume, with Blackrock’s debut ETF alone accounting for billion. Amidst these market shifts, renowned financial expert Robert Kiyosaki bolstered his bitcoin holdings.
Mass Approvals: SEC Green-Lights 11 Spot Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) has approved 11 spot bitcoin exchange-traded funds (ETFs) for listing and trading on U.S. stock exchanges. In a historic move after years of anticipation and regulatory hurdles, the approved spot bitcoin ETFs are expected to start trading Thursday on NYSE Arca, Nasdaq, and Cboe BZX Exchange.
Ethereum Steals the Spotlight — SEC’s Approval of 11 Bitcoin ETFs Meets Tepid Market Reaction
In the 24 hours following the historic announcement of spot bitcoin ETF approvals, the price of bitcoin witnessed stale action. In striking contrast, ethereum rallied, marking a 9.1% rise on Wednesday, overshadowing bitcoin’s underperformance.
Mystery Transfer — Unidentified Wallet Sends .19 Million in Bitcoin to Satoshi Nakamoto’s Genesis Address
Two days after Bitcoin’s 15th anniversary, an unidentified wallet transferred roughly 26.917 bitcoin, valued at .19 million, into Satoshi Nakamoto’s Genesis wallet. Originating on Jan. 3, 2009, this wallet has primarily accumulated nominal dust transactions.
US Spot Bitcoin ETFs Rack up .6 Billion in Trading Volume on Day 1 — Blackrock Debuts With Billion
U.S. spot bitcoin exchange-traded funds (ETFs) racked up .6 billion in total trading volume on their first day of trading. Blackrock, the world’s largest asset manager, debuted with more than billion in trading volume for its Ishares Bitcoin Trust. Grayscale’s spot bitcoin ETF, which converted from the Grayscale Bitcoin Trust, registered a total trading volume of .3 billion. This is “easily the biggest Day One splash in ETF history,” said an ETF analyst.
Robert Kiyosaki Increases BTC Holdings After SEC Approval of Spot Bitcoin ETFs
Rich Dad Poor Dad author Robert Kiyosaki has revealed that he bought additional bitcoin following the approval of spot bitcoin ETFs by the SEC.
Do you think the spot bitcoin ETF approvals will lead to significant inflows? Share your thoughts and opinions about this subject in the comments section below.
With Bitcoin ETF Approvals, Market Eyes Inflows and Potential Spot Ether ETF
The SEC’s approval of spot bitcoin ETFs marks a major milestone in cryptocurrency regulation, yet it’s ethereum that captures the market’s attention with a price rally, as investors and analysts now turn their eyes towards potential spot ether ETF approvals in the near future.
As SEC Ushers in New Era With ETF Approvals, Eyes on Bitcoin ETF Inflows and Ethereum’s Next Moves
In a historic turn of events, the United States Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs, marking a milestone in the regulatory landscape for cryptocurrencies. However, contrary to expectations, the market reaction to this long-awaited approval was surprisingly subdued. Bitcoin, the flagship cryptocurrency, didn’t exhibit the anticipated bullish surge, with its price movement remaining relatively stable.
Some of the muted response to the bitcoin ETF approval can likely be explained by various factors, from market participants front running the approval, to two misleading announcements – Cointelegraph’s incorrect report regarding Blackrock’s ETF and an erroneous SEC social media post – making participants more cautious.
In contrast to bitcoin, ethereum (ETH) experienced a significant jump in price, rising to ,527 per unit shortly after the bitcoin ETF approval. This increase, breaking the resistance at ,400, points to the market’s anticipation and potential front-running of approvals for ethereum-based ETFs. It will be telling if ethereum’s price jump holds and grows, or if much of it retraces.
The immediate focus post-approval for the next weeks and months will be on the expected inflows into these ETFs. Galaxy Research released an estimate of potential inflows, concluding that, “bn of inflows into a Bitcoin ETF in the first year following an ETF launch, ramping up to bn by the second year and bn by the third year post-launch.” Valkyrie co-founder and CIO Steven McClurg told Techcrunch that he, ”expects billion or more to enter spot bitcoin ETFs by the end of the year, with around billion to billion in the first anticipated week of trading.” Finally, Vance Spencer, co-founders of Framework Ventures, one of the largest venture capital firms in crypto, said in a recent Hidden Forces podcast:
Larry Fink is putting his reputation on the line to go out and get a bitcoin ETF done. If he has less than a billion dollars of inflows on the first day, I think he would consider that a failure.
By May, the focus will probably have shifted considerably to potential spot ether ETF approvals. Several firms, including Blackrock, Vaneck, ARK 21Shares, Fidelity, Invesco/Galaxy, Grayscale, and Hashdex, have filed applications for spot ether ETFs. The SEC’s decision deadlines span from May to August 2024, with the first decisions expected in late May.
New deadline to obsess over just dropped
May 23rd is the final deadline for decision on VanEck’s spot ETH ETF pic.twitter.com/dgi5EVbPeQ
— Will (@WClementeIII) January 10, 2024
Despite the SEC’s approval of ether futures ETFs, they have been hesitant to greenlight spot or mixed-type ethereum products. Recent delays in decisions on applications for ether ETFs, including those from Hashdex and Grayscale, indicate the agency’s cautious approach, seeking further public input.
Analysts like Bloomberg’s Eric Balchunas view the approval of spot bitcoin ETFs as a precursor to the likely approval of spot ether ETFs, with a high chance of approval by May. However, Joe Carlasare, a digital asset lawyer, suggests that the SEC might take a more measured approach, setting precedents that could impact future digital asset ETFs. On the other hand, as Bloomberg ETF analyst James Seyffart noted in this post on X, “All it takes is Gensler and SEC deciding to fight the battle of calling ETH a security. Or making other claims about why they aren’t ready.”
While bitcoin ETF approvals have been a landmark event, the focus now shifts to bitcoin ETF inflows and ethereum, with the crypto community eagerly awaiting the SEC’s decisions on spot ether ETFs.
Now that spot bitcoin ETFs have been approved, what are the chances of spot ether ETF approvals in 2024? Share your thoughts and opinions about this subject in the comments section below.