Financial Institutions Aim to Invest in Ethereum Spot ETF
Blackrock has officially submitted a request to launch a Spot Ethereum ETF with the U.S. SEC, one week after establishing the iShares Ethereum Trust. They have chosen Coinbase to act as the Custody service.
Fidelity has also officially filed with the U.S. SEC to establish a Spot Ethereum ETF, becoming the second entity to do so after Blackrock. They expressed that if approved, it would be a significant victory for U.S. investors.
CBOE Digital launched Margin Futures products for Bitcoin and Ethereum, a first in the United States, offering both spot and leveraged derivatives trading on a single platform. Customers are allowed to trade Futures contracts without needing to deposit the full margin.
Tether issued more than 4 billion USDT in the past month, marking the highest growth in value this year. This year, Tether has issued a total of 22.75 billion USDT, with over 57% issued on the Tron chain, followed by the Ethereum chain.
Coinshare reported that the inflow into crypto funds like CoinShares, 21Shares, Bitwise, Grayscale, and ProShares has exceeded 1 billion dollars this year, ranking as the third-highest annual inflow in history. The total assets under management have increased by 9.6% in the past week and 99% since the beginning of the year.
L2Beat, a blockchain analytics platform, revealed that the total value locked (TVL) in Layer2 blockchains has reached 13 billion dollars and continues to grow. High transaction fees on the Ethereum chain are prompting users to seek cheaper and faster alternatives.
Cathie Wood, CEO of ARK Invest, believes that Solana has greater potential than Ethereum in terms of speed, cost-efficiency, and a broader ecosystem that is more applicable to real-world uses than Bitcoin.
Stani Kulechov, the founder of AAVE, has rebranded the company to Avara, planning to diversify its products beyond the existing DeFi Protocol, stablecoin, and SocialFi like Lens Protocol, focusing on developing an easy-to-access, user-friendly, and enjoyable blockchain.
PancakeSwap launched a Gaming Marketplace, a new platform that enables developers to create games with web3 elements like digital tokens and NFTs. They plan to launch two games on this platform soon and will support up to 9 blockchain chains.
Weekly Technical Analysis: 21 – 27 November 2023
BTC is moving sideways, causing the Bitcoin Dominance Index to decline, signaling a consolidation period that allows other cryptocurrencies to become more active. The support level is at $34,000, and resistance level is at $40,000. The RSI is beginning to decrease, which is favorable for an upward adjustment.
ETH is experiencing increased volatility due to news about the establishment of Ethereum Spot ETFs. This week, watch the support level at $1,900, anticipating buying interest in anticipation of the continuous establishment of ETFs. The mid-term resistance target is still at $2,200.
SNX increased by 25.5% in the past week, following news of the launch of a new product. The trend is for a gradual increase, with the first support level for this week at 108 THB and resistance at 136 THB.
WLD increased by 22.8% over the past week, possibly due to speculative news that Sam Altman, after leaving OpenAI, might focus more on developing this project. The support level at 80 THB is seen as a buying point, with an expected rise to test the resistance at 100 THB. If it breaks through, it could fully enter a bullish trend.
Trading and Investment Considerations For The Week
The U.S. inflation figures were announced at 3.2%, lower than the market expectations, leading to a weakening of the dollar towards the end of the week. Although this had a more positive effect on the stock market than on Bitcoin, it still acts as a supportive factor for the cryptocurrency market.
The U.S. SEC has not yet approved any Bitcoin ETFs for applicants, but this is as expected. The most probable time for an approval remains to be around January 10 of next year. If there are no new negative developments, the price of Bitcoin is expected to maintain its course until an official announcement is made.
This week, on November 21-22, the details of the recent U.S. Federal Reserve’s monetary policy meeting will be revealed. The market is closely watching the opinions of each committee member regarding the direction of monetary policy, which may indicate how interest rates will be handled in the next meeting.
The volume of trading and the amount of Stablecoin in the crypto market have increased for the second consecutive month, indicating that traders are starting to re-enter the market. Increased liquidity has facilitated speculative trading in Altcoins, especially in the DeFi sector, which continues to evolve, as well as in large market cap coins, where a buy-on-dip strategy can be applied.
Similar to Ethereum, it is advisable to accumulate gradually. The efforts to establish an Ethereum Spot ETF are expected to drive returns this year to be closer to those of Bitcoin, which currently has a difference of more than 50%.
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