Staking Investment Firm’s Features Fuels Interest in Ethereum ETFs

Larry Fink, Blackrock’s CEO, expressed his belief that a Spot Ethereum ETF will eventually be approved, despite the SEC’s classification of cryptocurrencies as securities. Previous concerns from various parties regarding this perspective may ultimately lead to the Spot Ethereum ETF not receiving approval.

Fidelity has submitted additional documents to the SEC to incorporate staking services into the Ethereum ETF currently under consideration. Staking rewards will be considered taxable income and contribute to the fund’s objectives.

Bitwise has submitted documents to the SEC to establish a Spot Ethereum ETF. While it trails other applicants, Bitwise stands among the earliest investment firms to be approved for a Spot Bitcoin ETF.

Grayscale expresses confidence that the Spot Ethereum ETF will be approved this May, citing several criteria such as creation and redemption processes, asset protection, and loss prevention. While the SEC may be aware of these factors, as seen in the approval of Bitcoin ETFs, applicants offering staking services might face delayed approvals.

The number of validators on the Ethereum network has reached 1 million, with a total of 32 million ETH coins staked. This accounts for 26% of the total supply. Of this amount, 30% is staked through Lido, a liquid staking platform.

The head of BlackRock’s digital asset division revealed that most clients prioritize investing in Bitcoin, while Ethereum is not as prevalent. At the same time, he reiterated that there are currently no plans to file for the establishment of ETFs for other coins.

The London Stock Exchange is preparing to launch cryptocurrency Exchange-traded Notes (ETNs) that track Bitcoin and Ethereum, exclusively available to professional investors. It is expected to commence on May 28th.

BlackRock’s Bitcoin ETF holds assets exceeding 250,000 BTC, valued at $17.7 billion, under management. According to BitMEX, the IBIT fund is the fastest-growing ETF in history. Meanwhile, Fidelity’s FBTC fund manages assets worth over $10 billion, equivalent to 143,000 BTC.

Glassnode reveals that over $10 billion worth of Bitcoin has flowed out of crypto exchanges since the introduction of Bitcoin ETFs. This outflow accounts for more than 136,000 BTC. Currently, there are 2,320,458 BTC remaining on exchanges, the lowest balance since April 2018. On March 27 alone, withdrawals exceeded 22,000 BTC.

Bitwise Asset Management believes that Bitcoin is currently in a prolonged bull market, unlike any seen before. The ongoing halving event is expected to have a significant impact on Bitcoin’s price. If global wealth managers allocate just 1% of their investment portfolios to Bitcoin, it could result in an influx of around $1 trillion in capital.

Grayscale Investments has introduced the Grayscale Dynamic Income Fund, a cryptocurrency fund aimed at generating returns through staking. It is available exclusively to clients with investments exceeding $1.1 million. The fund will allocate investments to coins such as Osmosis (OSMO) at 24%, Solana at 20%, and Polkadot at 14%, with the remaining 43% distributed among other coins.

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Weekly Technical Analysis: 2 – 8 April 2024

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Bitcoin (BTC)

BTC rebounds from its low point at 2,200,000 baht, potentially establishing this level as support. However, a breach of this level warrants caution, as prices may dip below 2,200,000 baht. Surpassing the initial resistance at 2,550,000 baht could lead to a retest of the previous high at 2,640,000.

Support : 2,200,000 THB Resistance : 2,640,000 THB

Support : 62,000 USD Resistance : 74,000 USD

Ethereum (ETH)

ETH is also moving sideways, awaiting a clear trend. It remains uncertain whether and when the Ethereum Spot ETF will be approved. Therefore, this sideways trend may continue for a while. Consider trading within the initial support level of 120,000 baht and taking profits at the first resistance level of 140,000 baht.

Support : 120,000 THB Resistance : 140,000 THB

Support : 3,250 USD Resistance : 3,800 USD

Velo (VELO)

VELO has surged by 43.97% in the past week, adjusting relatively quickly, and resulting in a strong contraction. Keep an eye on the support level at 0.26 baht. If it doesn’t hold, the recovery momentum may stall. Staying above this level presents an opportunity for buying, and targeting profits at the previous resistance level of 0.42 baht.

Support : 0.26 THB Resistance : 0.42 THB

Dogecoin (DOGE)

DOGE has surged by 23.68% in the past week, showing relatively high price volatility and requiring caution in trading. The strategy employed is “Buy On Dip,” to buy at the support level of 6.50 baht. If it holds, consider selling for short-term profits at the 9.50 baht level. Avoid chasing prices as the fluctuations have been significant.

Support : 6.50 THB Resistance : 9.50 THB

Support : 0.18 USD Resistance : 0.26 USD

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Trading and Investment Considerations For The Week

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The slightly higher-than-expected fourth-quarter GDP figures for the United States didn’t significantly impact the price of Bitcoin. While the price remains relatively stable, the downside potential is limited. The return of positive buying pressure on Bitcoin through ETFs still holds the market together to some extent. It’s still seen as an opportunity to gradually accumulate over the medium to long term.

The consecutive monthly positive closes for Bitcoin in July represent a new statistical milestone. The latest close above the previous high of $69,000 suggests resilience. Historically, when the monthly chart closes above the previous uptrend high, Bitcoin tends to gather strength. However, this is merely a past statistic, and future outcomes may vary.

The market sees a rotation of profit-generating coins among various groups, including meme coins, gaming tokens, DeFi, and most recently, Real World Assets (RWA) coins. RWAs, which closely align with the concept of bringing traditional world assets onto the blockchain, such as Maker, are beginning to attract buying pressure. It’s advisable to keep an eye on coins associated with RWAs.

On Wednesday, April 3, the Chairman of the Federal Reserve is scheduled to speak on monetary policy and the economic outlook. Any changes in the announcement from the previous stance could impact the market. On Friday, April 5, the Non-Farm Payroll figures are expected to be released, with the market anticipating 205,000 positions, down from the previous month’s 275,000. If the figures decrease as expected, it could have a positive impact on the market.

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Reference:

https://www.coindesk.com/business/2024/03/22/blackrock-seeing-only-a-little-bit-demand-for-ethereum-from-clients-says-head-of-digital-assets/?_gl=1*1pn792l*_up*MQ..*_ga*MTQ5NTI3NTgzNC4xNzExMzIxMDgx*_ga_VM3STRYVN8*MTcxMTMyMTA4MS4xLjAuMTcxMTMyMTA4MS4wLjAuMA

https://cointelegraph.com/news/london-stock-exchange-launch-crypto-etns-may-28

https://cointelegraph.com/news/bitwise-sec-spot-ether-etf

https://cointelegraph.com/news/fidelity-files-s-1-application-us-sec-spot-eth-eft-staking

https://www.coindesk.com/business/2024/03/27/blackrocks-fink-not-concerned-about-possibility-of-sec-designating-eth-a-security/

https://cointelegraph.com/news/bitwise-sec-spot-ether-etf

https://cointelegraph.com/news/ethereum-1-million-validators-too-much

https://www.theblock.co/post/285305/blackrock-spot-bitcoin-etf-250000-btc

https://cointelegraph.com/news/bitcoin-exchanges-btc-balances-dropped-10b-2024

https://news.bitcoin.com/bitwise-sees-raging-bitcoin-bull-market-expects-april-halving-to-be-the-most-impactful-weve-seen/

https://cointelegraph.com/news/grayscale-investments-dynamic-income-fund-gdic-crypto-solana-polkadot

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