Ethereum

What to expect if spot Ether ETFs are approved — TradingView News

Published

8 months ago

22 May, 2024

Satoshi Era Bitcoin Address Activated After Over a Decade – TradingView News

The US Securities and Exchange Commission’s (SEC) first deadline for a spot Ether ETF falls on May 23.

Its approval would be a significant event not only for investors, but it could also represent a significant change in the current status quo of US crypto regulation. Many in the crypto community did not expect the SEC to approve an Ether spot. ETHUSD ETFs.

But reports of the SEC requiring updates from applicants and changing filings by U.S. asset managers indicate that a spot Ether ETF could ultimately be approved.

Sebastian Heine, head of risk and compliance at institutional staking partner Northstake, explained to Cointelegraph how a spot Ether ETF would be a “game changer for the entire crypto ecosystem and traditional financial sectors.”

ETF analysts Eric Balchunas and James Seyffart believe the SEC could do a 180-degree about-face on an Ether ETF, even if it becomes an “increasingly political issue.”

What are the expected effects if the spot Ether ETF is approved?

Will Ether ETFs increase the price of ETH?

There is a widespread belief among crypto investors that the price of ETH will rise thanks to spot Ether ETFs, as this will open the door for a new influx of money from investors into traditional markets. Heine said:

“An ETH ETF approval would not only be optimistic for Ethereum but for the entire crypto market, especially in the United States, which holds the largest pool of capital in the world.”

The price of Ether surged more than 20% the day before the ETF deadline “demonstrates the significant amount of money waiting on the sidelines, ready to intervene on any significant catalyst,” Heine noted..

Solo Ceesay, a former securitization investment banker at Citi Bank, told Cointelegraph that he believes ETH’s sudden rise “underestimates” the potential inflow Ethereum could receive, as a lot of money has still not arrived on the ETH market.

Ceesay explained that the potential is significant, because “an ETF now allows rich pockets that were previously barred from investing in the asset to get in the game.”

But there could be a possible setback. Basel Ismail, CEO of investment analytics firm Blockcircle, told Cointelegraph that “the ETH ETF being approved is not yet properly valued.”

Related: Ether Safety Debate Continues as SEC ETF Decision Deadline Approaches

Ismail predicts a “short-lived” pullback similar to that following the approval of Bitcoin ETFs.

Peter M. Moricz, head of partnerships at Bridge DLC.Link and a former derivatives trader, told Cointelegraph that when the ETH ETF spot approval is announced, it will be followed by a purchase event of rumors and news selling.

Nick Cowan, CEO of fintech company Valereum, agreed there could be a pushback. He explained to Cointelegraph that “moves with such high volume are often followed by a sideways move or reversal followed by a sell pullback on the news.”

Cowan described how “retail buyers will flock [FOMO], offering large institutional holders a chance to dump their holdings. He said big investors need big news to change their big positions.

“The challenge is always how much power retailers have to maintain price levels once FOMO has subsided.”

Ismail said the Grayscale Ethereum Trust (ETHE) “still controls [over] $10 billion worth of ETH.

As with spot Bitcoin ETFs, Grayscale’s “management fees are extreme” and he expects ETHE to provide “significant cash outflow for a while until their fees are reduced to be competitive with alternative market options.

Ceesay agrees with Ismail that the market “will definitely see a more pronounced downward pullback.”

However, he believes inflows into ETFs will have a bullish effect on the price of ETH, similar to how BlackRock’s Bitcoin ETF (BTC) provided enough demand to push Bitcoin to new all-time highs.

Moricz said that “institutional money will flow slower to spot the ETH ETF than to spot the BTC ETF,” primarily due to institutional investors’ perception of Ethereum.

Manuel Villegas, digital assets specialist at private bank Julius Baer, told Cointelegraph that “Ethereum’s value proposition is certainly different from Bitcoin.”

Villegas explained how Bitcoin “quickly found its place in a portfolio context for institutional investors, whether as a yield enhancer, store of value or as an alternative asset with diversification potential.”

But as Moricz pointed out, “ETH is more complicated to describe because there are many other use cases.”

For Ethereum to receive consistent flows from a spot Ether ETF, its regulatory classification needs to become clearer so that institutional investors feel more comfortable investing in it.

Ether ETF Approval Could Mark Change in U.S. Regulations

No decision is made in a vacuum.

Crypto lawyer Jake Chervinsky said the policy was driven by politics and pointed out that crypto has won the political battle in recent months. Cointelegraph

Moricz said a recent Senate vote overturning an SEC banking rule — one that many believe would stifle crypto innovation — “could have helped shift sentiment toward faster approval of the ETH spot ETF “.

The sudden transformation of former President Donald Trump’s stance on crypto and open criticism of President Joe Biden and SEC Chairman Gary Gensler’s approach to crypto could also influence the regulator.

Ceesay believes Trump’s support for the crypto industry could force the SEC’s “grip on the asset class to loosen.”

It appears the SEC may try to classify Ether as a security, whereas in past litigation the Commodity Futures Trading Commission (CFTC) has labeled it as a commodity.

This inconsistent classification by U.S. regulators has led to jurisdictional conflicts between agencies and makes it difficult for businesses to expand, the argument goes.

For compliance manager Heine, “approval would signify a crucial change in crypto regulation, highlighting a move towards acceptance and integration.”

The SEC is the regulatory entity responsible for spot approval of Ether ETFs. Therefore, Heine believes that approval “would mark a significant change in their position, potentially signaling an end to the current destructive strategy of regulation by enforcement.”

What’s next after spot Ether ETFs are approved?

Cryptocurrency markets tend to be driven by the anticipation of an upcoming event. So when or if spot Ether ETFs are approved, what happens next?

Some participants in crypto markets, such as decentralized finance investor Cyril, who runs the Telegram channel Wealth Craft, said the markets may not have a successful event to look forward to.

Conversely, Ismail believes that the one-time approval of the Ether ETF could bring new events with “several key beneficiaries.”

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In his view, “the floodgates will reopen to competing and complementary layer 1s, layer 2s and sidechains, which will then trickle down to more speculative alternatives.”

For Ismail, there could also be future crypto ETFs comprising assets found in Grayscale’s existing pseudo-ETFs. He said the industry could see ETF products with XRP (XRP), Cardano (ADA), Polkadot (DOT) and more.

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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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