Ethereum

How certain is SEC approval of an ether ETF?

Published

8 months ago

24 May, 2024

How certain is SEC approval of an ether ETF?

The Securities and Exchange Commission (SEC) is quickly approaching its Thursday deadline. whether to approve an ether ETF. Prices of cryptocurrencies including Ethereum (ETH-USD), have been rallying this week to the hopes of a new investment offer, following in the footsteps of the bitcoin spot (BTC-USD) ETFs will get the green light in early 2024.

Matt Ballensweig, BitGo Go Network Lead and Managing Director, Joins Asking for a Trend Host Josh Lipton to explain his confidence that the SEC will eventually approve an ether ETF and what demand for such a product might look like.

“There appears to be, I think, an intentional pivot by the current administration to actually signal support for digital currencies. We saw the Senate strike down SAB 121 last week, which would have made it very difficult for banks and large traders to hold cryptocurrencies on their balance sheets,” explains Ballensweig. “Obviously this still has to go through the president, but there was also overwhelming approval yesterday in the House of Representatives for the Financial Innovation and Crypto Technology for the 21st Century Act. [FIT21] which had the support of both Democrats and Republicans.

For more expert insights and the latest market action, click here to watch this full episode of Asking for a Trend.

This message was written by Luke Carberry Mogan.

Video transcription

Spot Ethereum, ETF S. Matt.

What do you think?

Will they get the green light?

Thank you very much for inviting me.

Um, it’s great to be here.

I think they’re going to get the green light here.

I mean, I will say, um, you know, I’m actively watching Crypto Twitter as we speak and I’m hearing rumors that this could happen.

Um you know, just after 5 p.m.

I’ve heard other reports that it might take a few more hours, but all, all signals point to this being approved today.

Can I tell you, Matt, if this is approved?

I was completely wrong because I really thought I was interested in your opinion.

I was really thinking of Se C President Gary Gensler.

I mean, he didn’t want this Bitcoin ETF spot.

He had to be trained there.

Matt, it took a trial.

Honestly, I thought it was going to take another trial.

If you were to give the green light to an ETF position, you might have seen it differently.

Matt, look, I’m going to, I’m going to say this from a trader’s perspective and, and from the institutional side of crypto, I think we’ve all been very, very shocked at how quickly things have developed this week.

Um, you know, especially just in terms of knowing the pace at which the Bitcoin ETF, uh you know, has been going.

So hearing the news earlier this week that the SEC was requiring some of these ETF issuers to amend 19 4 filings for one-time ETF approval was very, very surprising and not at all taken into account by the market.

The story continues

I mean, the theory was trading around 3,000 and immediately shot up to 3,700.

Um, you know, and it’s not just about the approval of the E ETF, but you know, there seems to be, I think, an intentional pivot on the part of the current administration to actually signal a support for digital currencies.

We saw the Senate overturn SAAB 121 last week, which would have made it very difficult for banks and large brokers to hold crypto on their balance sheets. Obviously, this still has to go through the president.

Um, but there was also overwhelming approval yesterday in the House of Representatives for the 21st Century Financial Innovation and Crypto Technology Bill, uh, which had support from both Democrats and Republicans .

So you know Baton is now in the Senate, but whatever the catalysts are.

Um, you know, it’s becoming clear that I think Congress wants to be on the right side of history here.

Um, and that we’re really at the forefront of this movement with, you know, innovations in finance and technology on a global scale, as we always have been.

So I think it clearly matters to voters.

Um, we also have an election coming up.

So, you know, whatever these catalysts are, I think everyone in the institutional crypto world is very surprised at how this has progressed.

Um But, but very happy and Matt, let’s say you see the point, if your S ETFs get the green light, they’re approved.

What do you think about Matt pulling out the crystal ball?

What do you think the demand looks like?

And where do you think the demand comes from?

Yeah, that’s a great question.

I mean, I think you can use, you know, the Bitcoin ETF as a proxy and sort of, you know, as a guide to understanding this at some point.

And if you just look at the flows of the Bitcoin ETF over the first few months of trading, you know, it’s been a funnel of capital into the ecosystem.

Um, we’ve seen, I think we’ve seen 1.1 billion net streams in the last five days alone.

Um, and about 13.5 billion in net new demand overall for this asset.

Um, so there’s obviously a huge institutional demand pool, uh I think, you know, demand pool there and you know, Ethereum is going to be something similar to that, you know, that, maybe that it will be a fraction of that.

Um, but obviously, I think there are a lot of interested parties who now have the rails in place to add Ethereum into their portfolio.

Um, but it’s even more important than just being, you know, the actual channel of capital into the asset.

I think it’s really the initiation of a whole new class of investors who are learning about the ecosystem.

Um, you have people, you know, you’ve had people like Larry Fink, right, explaining the value of Bitcoin as a decentralized, straight, non-sovereign, internet-based, inflation-resistant currency and what it means.

And now, you know, investors are going to have to go a little deeper down the rabbit hole to understand.

Well, what about the Ethereum ecosystem?

You know, what is, what is a smart contract for programmability?

How did decentralized exchanges work?

You know, what are the other alternative layers?

And how do you balance things like consensus and speed?

So all of these questions that you know, we in the institutional crypto world have been exploring for some time, will now become mainstream.

And I think this will be a huge benefit not only to e, but to many other layer 1 protocols in the space.

Um, you know, as time goes on and I think we’re going to see a lot of capital come into the crypto crypto ecosystem as a result of this approval of the Ethereum spot ETF and Matt, I’m going to get you out of here at this subject.

Let’s say we do the, we see a spot Ethereum ETF approved, it gets the green light.

How does this impact and influence the price of Ethereum Matt?

In your opinion ?

I mean, in 12 months.

Give me a target.

Yeah, every 1212 months.

Um, I think, I think we will, will definitely be a challenge if it doesn’t reach unprecedented heights.

Um, it wouldn’t shock me to see a handful of 5000, uh, in 12 months.

Um, so I’ll, I’ll, I’ll stick to that.

Mast.

Thank you so much for joining the show today.

It was great.

I appreciate your time.

My pleasure.

Thank you very much for inviting me.

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We are the editorial team of Altcoin Updates, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on Altcoin Updates, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Ethereum

Cryptocurrency liquidations surpass $200 million as Ethereum and Bitcoin plummet

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

Bitcoin and Ethereum Tank as Crypto Liquidations Reach $150 Million

Cryptocurrency market liquidations hit their highest level in a week on Wednesday as the price of Bitcoin fell below $60,000.

Over the past 24 hours, over 74,000 traders have been liquidated for $208 million, CoinGlass the data shows it.

The majority of those losses, about $184 million, went to investors holding long positions who had bet on a price rise.

The largest liquidations hit Ethereum investors, at $55.5 million, almost entirely on long positions, the data showed.

Current issues surrounding US monetary policy, geopolitical tensions, and the upcoming US presidential election in November are expected to impact the price of the leading cryptocurrency throughout 2024.

Bitcoin abandoned The stock price fell from $62,200 to $59,425 intraday. The asset has since recovered its losses above $60,200, but is still down 3% over the past 24 hours.

In the meantime, Ethereum East down 3% During the same period, the stock price fell from a high of $3,425 on Wednesday to a low of $3,254. It is now trading at $3,300.

Solana, the world’s fifth-largest cryptocurrency by market capitalization, was the worst hit among the top 10 cryptocurrencies, down about 8% to $140. Solana had been riding high on New York investment management firm VanEck’s filing of its Solana Trust exchange-traded fund late last month.

Major cryptocurrencies have been falling over the past month. Ethereum has fallen more than 12% over 30 days despite growing interest in the launch of Ethereum spot ETFs.

Some analysts predict that new financial products could begin marketing in mid-Julywith at least one company predicting that the price of ETH will then take offBitcoin is down 12% over the same period.

Certainly, analysts always see further price increases this yearThe current market cooling represents a precursor to another major price surge in the coming months, Decrypt reported Monday.

On Wednesday, analytics firm CryptoQuant released a report examining Bitcoin Mining Metrics and highlighted the conditions for a return of prices to current levels.

Edited by Sebastian Sinclair.

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Ethereum

Volume up 90%: good for ETH price?

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

Ethereum (ETH) has emerged as a beacon in the sea of blockchains, with a staggering 92% increase in decentralized application (dApp) volume over the past week. But the news comes with a layer of complexity, revealing a landscape of both opportunity and potential setbacks for the leading blockchain.

Cheap gas fuels the fire

Analysts attribute the explosion in decentralized application volume to the Dencun upgrade in March, which significantly reduced gas costs – the cost associated with processing transactions on the Ethereum network.

Lower transaction fees have always attracted users, and this recent development seems to be no exception. The surge in activity suggests a revitalized Ethereum that is likely to attract new projects and foster a more vibrant dApp ecosystem.

NFT craze drives numbers up

While overall dApp volume (see chart below) paints a positive picture, a closer look reveals a more nuanced story. This surge appears to be driven primarily by an increase in NFT (non-fungible token) trading and staking activity.

Source: DappRadar

Apps like Blur and Uniswap’s NFT aggregator have seen significant surges, highlighting the rise of the NFT market on Ethereum. This trend indicates a thriving niche in the Ethereum dApp landscape, but raises questions about the platform’s diversification beyond NFTs.

A look at user engagement

A curious problem emerges when looking at user engagement metrics. Despite the impressive increase in volume, the number of unique active wallets (UAWs) on the Ethereum network has actually decreased.

Ethereum is now trading at $3,316. Chart: TradingView

This disconnect suggests that current activity could be driven by a smaller, more active user base. While high volume is certainly a positive indicator, seeing broader user participation is essential to ensuring the sustainability of the dApp ecosystem.

A glimmer of hope ?

A positive long-term indicator for Ethereum is the trend of decreasing holdings on the exchange, as reported by Glass nodeThis suggests that ETH holders are moving their assets off exchanges, potentially reducing selling pressure and contributing to price stability.

If this trend continues, ETH could potentially target $4,000 this quarter or even surpass its all-time high. However, this price prediction remains speculative and depends on various market forces.

Ether price expected to rise in coming weeks. Source: CoinCodex

Ethereum at a Crossroads

Ethereum is at a crossroads. Dencun Upgrade has clearly revitalized dApp activity, particularly in the NFT space. However, uneven dApp performance and the decline of the UAW are raising concerns about the long-term sustainability of this growth. Network growth, measured by the number of new addresses joining the network, is also slowing, according to Santiment, which could potentially hamper wider adoption.

The short-term price outlook for ETH remains uncertain. While long-term indicators, such as declining exchange holdings, suggest potential for price appreciation, slowing network growth could lead to a price decline in the short term.

Look forward to

The coming months will be crucial for Ethereum. The platform must capitalize on the renewed interest in dApps by attracting a broader user base and fostering a more diverse dApp ecosystem beyond NFTs. Addressing scalability issues and ensuring user-friendly interfaces will also be essential to sustain growth.

If Ethereum can overcome these challenges, it has the potential to cement its position as the premier platform for decentralized applications. However, if it fails to adapt, other waiting blockchains could capitalize on its shortcomings.

Featured image from Pexels, chart from TradingView

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Ethereum

Ethereum, Bitcoin, and XRP Behind $1.5 Billion Losses in Cryptocurrency Scams

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

Ethereum, Bitcoin, and XRP Behind $1.5 Billion Losses in Cryptocurrency Scams

The first half of 2024 has seen a surge in major hacks in the cryptocurrency sector. Ethereum (ETH)Bitcoin (BTC) and XRP have resulted in losses of over $1.5 billion due to cryptocurrency scams. This year, over 200 major incidents have resulted in losses of approximately $1.56 billion.

Cryptocurrency Scam Losses Reach $1.5 Billion

According to data from Peck Shield Alert, only $319 million in lost crypto funds have been recovered. Furthermore, this year’s losses represent a staggering 293% increase over the same period in 2023, when losses totaled $480 million.

Overview of Cryptocurrency Scams in 2024, Source: PeckShieldAlert | X

Additionally, DeFi protocols have been the top targets for hackers, accounting for 59% of the total value stolen. More than 20 public chains have suffered major hacks during this period. Additionally, Ethereum, Bitcoin, and XRP top the list for the amount lost via cryptocurrency hacks.

Additionally, Ethereum and BNB Chain were the most frequently targeted, each accounting for 31.3% of the total hacks. Meanwhile, Arbitrum followed with 12.5% of the attacks. One of the most significant incidents occurred on June 3, 2024.

Bitcoin DMMa major Japanese cryptocurrency exchange, reported a major breach. Attackers stole 4,502.9 BTC, worth over $300 million at the time. The incident highlighted the vulnerabilities of exchanges, especially those that handle large volumes of digital assets.

Major XRP, ETH and BTC hacks

A week after the DMM Bitcoin attack on June 10, UwU Loana decentralized finance (DeFi) lending protocol, was compromised. The breach resulted in a loss of approximately $19.3 million in digital assets. The hack underscores the ongoing risks associated with DeFi platforms, which often operate with less regulatory oversight. The platform later offered a $5 million reward to catch the hacker.

Earlier this year, on February 3, 2024, Ripple co-founder Chris Larsen confirmed a major security breach involving his personal wallets. Initially, rumors circulated that Ripple itself was targeted. However, Larsen clarified that the hack involved his digital wallets and not Ripple’s corporate assets.

The hackers managed to transfer 213 million XRP tokens, worth approximately $112.5 million. Additionally, on-chain detective ZachXBT first alerted the community about the suspicious transactions. In response to the theft, Larsen and various cryptocurrency exchanges took swift action to mitigate the impact.

Several exchanges, including MEXC, Gate, Binance, Kraken, OKX, HTX, and HitBTC, collaborated to freeze a significant portion of the stolen funds. Binance alone froze $4.2 million worth of XRP to aid in the investigation.

Additionally, on April 2, 2024, FixedFloat, a Bitcoin Lightning-based exchange, experienced a security breach. Unauthorized transactions resulted in financial losses exceeding $3 million. This incident highlighted ongoing security issues for FixedFloat, following a similar breach earlier in the year.

The company has also faced significant challenges securing its platform against repeated attacks. Additionally, in February, hackers stole $26 million worth of Ethereum and Bitcoin from FixedFloat. These digital assets were then transferred to exchanges for profit.

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Ethereum

Ethereum’s Year-Over-Year Revenue Tops Charts, Hitting $2.7 Billion

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

Ethereum fees drop to seven-month low as L2 competition heats up

Ethereum blockchain has been in first place for a year incomesurpassing all major blockchains.

According to data provided by Lookonchain, Ethereum generated $2.72 billion in annual revenue, surpassing the Bitcoin network by a margin of $1.42 billion. The data shows that Bitcoin accumulated $1.3 billion in revenue over the same period.

Defi Llama Data watch that Ethereum is still the leader in decentralized finance (challenge) with a total value locked (TVL) of $58.4 billion, or 60.9% of the entire market. The blockchain recorded a 30-day fee revenue of $131 million, according to the data aggregator.

Bitcoin’s TVL is currently set at $1 billion.

The network of the second largest cryptocurrency, ETH, witness a 155% year-over-year increase in its fee revenue in the first quarter of this year, as the cryptocurrency market saw a bullish trend.

Tron comes in third with annual revenue of $459 million. Solana and BSC also recorded nine-figure revenues of $241 million and $176 million, respectively.

Notably, Tron is the second largest chain in the challenge scene with a TVL of $7.7 billion. BSC and Solana take third and fourth place with TVLs of $4.8 billion and $4.5 billion, according to Defi Llama.

Avalanche, zkSync Era, Optimism and Polygon reached the top 10 with $68 million, $59 million, $40 million and $23 million in year-over-year revenue, respectively.

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