NewsBriefs - Galaxy predicts $5B in net inflows for Ether spot ETFs in first five months
06/27/2024 16:48
Galaxy anticipates significant investor interest in Ether spot ETFs, expected to generate approximately $5 billion in net inflows over the initial five months following their approval, with a considerable share of demand coming from independent investment advisors and broker/dealer platforms. Despite challenges such as the absence of staking rewards and the potential drag from outflows from the Grayscale Ethereum Trust, Ether’s unique market position, with a large portion of its total supply locked up, makes it particularly sensitive to ETF-related inflows, differentiating it from Bitcoin spot ETFs. SEC approval could further boost the trading of these ETFs as early as July.
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Galaxy predicts $5B in net inflows for Ether spot ETFs in first five months
Galaxy anticipates significant investor interest in Ether spot ETFs, expected to generate approximately $5 billion in net inflows over the initial five months following their approval, with a considerable share of demand coming from independent investment advisors and broker/dealer platforms. Despite challenges such as the absence of staking rewards and the potential drag from outflows from the Grayscale Ethereum Trust, Ether’s unique market position, with a large portion of its total supply locked up, makes it particularly sensitive to ETF-related inflows, differentiating it from Bitcoin spot ETFs. SEC approval could further boost the trading of these ETFs as early as July.
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Galaxy predicts $5B in net inflows for Ether spot ETFs in first five months
Galaxy anticipates significant investor interest in Ether spot ETFs, expected to generate approximately $5 billion in net inflows over the initial five months following their approval, with a considerable share of demand coming from independent investment advisors and broker/dealer platforms. Despite challenges such as the absence of staking rewards and the potential drag from outflows from the Grayscale Ethereum Trust, Ether’s unique market position, with a large portion of its total supply locked up, makes it particularly sensitive to ETF-related inflows, differentiating it from Bitcoin spot ETFs. SEC approval could further boost the trading of these ETFs as early as July.
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SEC nears approval for Ethereum spot ETFs with possible July 4 start
The US Securities and Exchange Commission (SEC) is expected to approve several spot Ethereum ETFs by July 4, as final negotiations with asset managers conclude. This development follows the SEC's recent approval of registration statements for multiple Ethereum ETF initiatives. SEC chairman Gary Gensler confirmed that the approval process is progressing smoothly.
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US government moves 4,000 BTC to Coinbase amid market pressure
The US government transferred approximately 3,940 Bitcoin, valued at around $241 million, to Coinbase from a wallet associated with the Silk Road seizure. This move, part of broader activities involving large-scale crypto transactions by the government, could potentially influence Bitcoin's market dynamics as it adds to the selling pressure following similar transfers by other entities and ongoing payouts from the Mt. Gox repayment plan.
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Animoca Brands eyes 2025 for stock market return, explores new regions
Animoca Brands, a leading name in gaming and the metaverse, is considering a 2025 return to the public market, focusing on crypto-friendly areas like Hong Kong and the Middle East for its potential listing. The company, delisted by the Australian Securities Exchange in 2020 over crypto compliance issues, is also engaging in new funding strategies, including the tokenization of a historic violin for a multimillion-dollar loan. Amidst a fluctuating valuation, impacted by broader market downturns, Animoca continues to seek investments and adapt its financial strategies to navigate through challenging times in the crypto and gaming industries.
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Ripple Labs CEO claims SEC chairman Gensler's crypto stance could cost Biden the election
Ripple Labs CEO Brad Garlinghouse criticized SEC Chairman Gary Gensler's approach to crypto regulation, suggesting it might jeopardize President Joe Biden's reelection. According to Garlinghouse, Gensler's negative remarks about crypto executives and an alleged lack of oversight on major crypto firms represent a failure to protect American investors and could influence the upcoming election outcome.
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CertiK faces allegations of front-running bug bounty claims via OpenBounty
CertiK, a major player in smart contract auditing, is accused of misusing its OpenBounty platform to preemptively access and claim rewards from bug bounty reports, thereby breaching several crypto protocols' terms of service. This controversy follows recent criticism of CertiK for exploiting a vulnerability in Kraken’s system and the perceived inadequacy of their security audits.
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Bitwise CIO predicts $15 billion in inflows to Ethereum ETF by mid-2025
Matt Hougan, Chief Investment Officer at Bitwise, forecasts that Ethereum (ETH) exchange-traded products (ETPs) will attract $15 billion in net inflows within the first 18 months post-launch. Despite Ethereum's market cap being a substantial $432 billion, Ethereum ETPs are currently underperforming vis-a-vis Bitcoin ETPs in asset inflows, which are estimated to surpass $100 billion by 2025. Hougan emphasizes the potential for substantial asset inflow into Ethereum ETPs, aiming for an approximate parity with Bitcoin at around $35 billion; however, he notes the diminished profitability of the Ethereum carry trade, prompting a conservative estimation of inflows.
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VanEck aims to attract Ethereum ETF investors by waiving initial fees
VanEck plans to waive the initial fees for its upcoming spot Ethereum ETF to become a competitive leader in crypto ETF fees. The firm's strategy includes capturing high decentralized finance volumes to offset early financial losses. This incentive aims to draw more investors to consider Ethereum’s role in their portfolios, following recent US regulatory advancements towards trading approvals.
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SEC chair Gensler highlights compliance issues and centralization in the crypto sector
Gary Gensler, SEC chair, criticized the crypto sector for significant non-compliance with US laws and centralization, contradicting the ideal of decentralization. He mentioned ongoing issues such as trading violations and investor protection concerns, underscoring that many crypto tokens are effectively securities. Gensler’s assertions emphasize the legal actions taken by SEC against various crypto entities to protect public interests.
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Ava Labs introduces blockchain IP management for K-pop artists
Ava Labs is utilizing its Avalanche blockchain technology to provide intellectual property management for K-pop artists in South Korea. This innovation aims to improve transparency and efficiency in protecting artists' rights against underpayment and unauthorized use, amidst the music industry's evolution with technologies like artificial intelligence. The adoption of blockchain for digital rights management reflects a broader trend where recording artists can better control their creations, enhancing autonomy and revenue protection in a market projected to be worth $20 billion by 2031.
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VanEck prepares for imminent US Ethereum ETF launch
VanEck has filed an 8-A form for their Ethereum ETF, indicating a potential launch could happen within a week as similar timing was observed with their earlier Bitcoin ETF launch. With Ethereum ETFs approved to list on national exchanges, the launch is expected soon, with SEC chairman Gary Gensler noting approvals anticipated "over the course of this summer." Companies are actively promoting Ethereum’s potential, suggesting strong market readiness for these funds.
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Ethereum experiences longest inflationary phase post-Merge due to low base fees and increased layer-2 activity
Ethereum has entered its longest period of inflation since the Merge, lasting nearly 72 days and adding approximately 50,000 ETH to its supply. This inflationary trend is attributed to significantly lowered base fees following the Dencun update and a surge in layer-2 activity. Although the base fee reduction enhances user affordability and network efficiency, it simultaneously diminishes the deflationary mechanisms put in place post-Merge, resulting in a net increase in the total ETH supply.
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Core Scientific expands partnership with CoreWeave for 70 MW infrastructure boost
Core Scientific will enhance its infrastructure to provide an additional 70 MW to CoreWeave for hosting NVIDIA GPUs aimed at high-performance computing. This expansion is part of a larger 12-year, 200 MW agreement designed to bolster CoreWeave's computing capabilities, with all capital investment funded by CoreWeave. The modification aligns with Core Scientific's strategic direction to develop application-specific data centers that support advanced, high-density chip technologies.
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Phantom wallet from Solana adds Bitcoin support
Solana's Phantom wallet has expanded its compatibility by adding support for Bitcoin, with a notable inaugural Ordinal mint event scheduled in the Gamma market. The event will start on June 27 and end on July 1, during which users will only be required to pay the Bitcoin network fees. Phantom recommends users maintain $10-20 in BTC in their Native Segwit addresses to cover these fees.
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Ronin launches zkEVM testnet for Layer 2 solutions
Ronin has announced the launch of its zkEVM testnet, marking a significant development in its Layer 2 offerings. Users can now access the testnet block explorer, query RPC endpoints, and obtain testnet RON tokens and developer documentation. This launch aims to enhance the platform's efficiency and robustness, underscoring Ronin’s commitment to innovation in the blockchain space.
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