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OKX to Delist Cardano, Shiba Inu, and XRP Trading Pairs: Everything You Need to Know

by dave July 25, 2024

written by dave 9 minutes read

Major Crypto Exchange Moves To Delist Cardano, Shiba Inu, And XRP Pairs

A major cryptocurrency exchange, OKX, has announced plans to delist trading pairs for several crypto tokens, including Cardano (ADA), Shiba Inu (SHIB), and XRP. This decision follows a performance check by the crypto exchange, which shows that these trading pairs aren’t meeting expectations.

OKX To Delist These Trading Pairs

OKX announced in a blog post that it will delist spot trading pairs for ADA-ETH, XRP-ETH, SHIB-BTC, ADA-BTC, and XRP-BTC, among others. Other crypto tokens like Litecoin (LTC), Polygon (MATIC), Chainlink (LINK), Dogecoin (DOGE), and Polkadot (DOT) were also caught in the mix. OKX revealed plans to delist some spot trading pairs related to these tokens as well.

The crypto exchange explained that this move is part of their regular monitoring and review of all listed trading pairs. This review process helps them maintain a robust trading environment. According to OKX, they decided to delist these trading pairs because they do not fulfill their listing criteria. However, the exchange did not specify the exact reasons for this action.

Delisting Schedule and Details

OKX has outlined the dates and times when these spot trading pairs will be delisted. The ADA-ETH spot trading pair will be delisted on July 25 between 8 and 8:30 a.m. UTC. The XRP-ETH and SHIB-BTC spot trading pairs will be delisted on July 26 between 8 and 8:30 a.m. UTC.

Furthermore, the ADA-BTC and XRP-BTC spot trading pairs will be delisted on August 1 and 2, respectively, between 8 and 8:30 a.m. UTC. OKX has advised customers to cancel their orders relating to these pairs before the delisting date. If customers fail to do so, the system will automatically cancel these orders, although the exchange noted that cancellations might take 1 to 3 working days.

Maintaining a Robust Trading Environment

OKX emphasizes that their decision to delist certain trading pairs is part of their effort to maintain a robust spot trading environment. The exchange regularly monitors and reviews all listed trading pairs to ensure they meet their criteria. This ongoing review process helps them identify and remove underperforming trading pairs.

OKX’s listing criteria are designed to ensure that only the most reliable and popular trading pairs are available on their platform. By delisting pairs that do not meet these criteria, OKX aims to provide a better trading experience for its users.

Impact on Other Crypto Tokens

In addition to delisting Cardano, Shiba Inu, and XRP trading pairs, OKX is also planning to delist trading pairs related to other crypto tokens like Litecoin (LTC), Polygon (MATIC), Chainlink (LINK), Dogecoin (DOGE), and Polkadot (DOT). This move is part of the same review process aimed at maintaining a robust trading environment.

Users of these tokens should be aware of the potential impact of these delistings. It is important to monitor OKX’s announcements and take necessary actions to manage their trading activities accordingly.

Steps to Cancel Orders

To prepare for the delisting of certain trading pairs, OKX has provided instructions for canceling orders. Customers should log in to their OKX accounts and navigate to the trading pairs that will be delisted. From there, they can cancel any open orders related to these pairs.

If customers fail to cancel their orders before the delisting date, the system will automatically cancel them. However, this process might take 1 to 3 working days, so it is best to cancel orders manually to avoid any potential delays.

OKX Launches Telegram-based Game

OKX has been busy lately, not just with delisting trading pairs but also with new initiatives. The crypto exchange has launched a Telegram-based game called ‘OKX Racer.’ This game is centered on Bitcoin’s price movement, challenging gamers to correctly guess the flagship crypto’s price action within five-second intervals.

Jason Lau, Chief Innovation Officer at OKX, highlighted the growing popularity of Telegram’s mini-app platform. He stated that it is becoming a “can’t-miss venue” for those looking to engage the crypto community. OKX aims to embrace this user-friendly approach to “cultivate communities, incentivize participation, and encourage fun.”

Engaging the Crypto Community

The launch of OKX Racer is part of OKX’s efforts to engage the crypto community in new and exciting ways. Telegram mini-apps have become popular due to their potential for token airdrops, which can be distributed later to gamers. This model is similar to Notcoin’s NOT airdrop campaign, which successfully engaged users.

Although Jason Lau did not confirm if OKX plans to incentivize gamers through airdrops, the potential for such incentives could make the game even more appealing. By offering fun and interactive ways to engage with the crypto community, OKX hopes to strengthen its presence in the industry.

Potential Token Airdrops

Token airdrops have become a popular way to engage users in the crypto community. By distributing tokens to gamers, exchanges can incentivize participation and build stronger communities. OKX’s new initiatives, including the OKX Racer game, could potentially include token airdrops to reward users.

The success of previous airdrop campaigns, like Notcoin’s NOT airdrop, shows the effectiveness of this strategy. By offering similar incentives, OKX could attract more users and increase engagement on their platform.

Why is OKX Delisting Cardano, Shiba Inu, and XRP Pairs?

The decision to delist Cardano, Shiba Inu, and XRP trading pairs is based on OKX’s regular performance checks. These checks are part of the exchange’s efforts to maintain a robust trading environment. By removing underperforming pairs, OKX aims to provide a better experience for its users.

Although the exact reasons for the delisting were not specified, it is likely that these pairs did not meet OKX’s listing criteria. This could be due to low trading volumes, poor performance, or other factors that make them less attractive to traders.

What Are the Affected Trading Pairs?

OKX’s announcement includes several trading pairs that will be delisted. These pairs include ADA-ETH, XRP-ETH, SHIB-BTC, ADA-BTC, and XRP-BTC. Other trading pairs related to Litecoin (LTC), Polygon (MATIC), Chainlink (LINK), Dogecoin (DOGE), and Polkadot (DOT) are also affected.

It is important for traders to be aware of these changes and take necessary actions to manage their trading activities. Canceling orders related to these pairs before the delisting date can help avoid potential issues.

How to Prepare for the Delisting

To prepare for the delisting of certain trading pairs, customers should cancel their orders before the specified dates. Logging in to OKX and navigating to the affected pairs is the first step. From there, customers can manually cancel their open orders.

If orders are not canceled manually, the system will automatically cancel them after the delisting date. However, this process may take 1 to 3 working days, so manual cancellation is recommended to avoid any delays.

OKX’s Vision for the Future

OKX’s recent actions, including the delisting of certain trading pairs and the launch of the OKX Racer game, reflect the exchange’s vision for the future. By regularly reviewing and updating their platform, OKX aims to maintain a robust trading environment and provide the best experience for their users.

The launch of new initiatives, like the Telegram-based game, shows OKX’s commitment to innovation and community engagement. By embracing new technologies and offering fun ways to engage with the crypto community, OKX hopes to strengthen its position in the industry.

Conclusion

OKX’s decision to delist trading pairs for Cardano, Shiba Inu, and XRP, along with other crypto tokens, is part of their effort to maintain a robust trading environment. By regularly reviewing and updating their platform, OKX aims to provide the best experience for their users.

The launch of the OKX Racer game and potential token airdrops show OKX’s commitment to innovation and community engagement. By offering new and exciting ways to engage with the crypto community, OKX hopes to strengthen its presence in the industry and attract more users.

Traders should be aware of the upcoming delistings and take necessary actions to manage their trading activities. Canceling orders related to the affected pairs before the delisting date can help avoid potential issues and ensure a smooth transition.

As OKX continues to innovate and engage with the crypto community, their efforts to maintain a robust trading environment and provide a better experience for users will likely strengthen their position in the industry.

Bitcoin

Wall Street’s ETF Engine Roars with $17 Billion Bitcoin Haul: New Crypto Funds on the Horizon

by mei July 25, 2024

written by mei 5 minutes read

Wall Street’s ETF Engine Revs Up After $17 Billion Bitcoin Haul

Introduction

Wall Street’s ETF engine is roaring again, especially after a huge $17 billion Bitcoin haul. This surge has issuers eager to introduce new crypto funds, particularly after the recent debut of Ether ETFs. The demand for Bitcoin ETFs has skyrocketed, with net inflows reaching $17.5 billion.

Rush for New Crypto Funds

Just 48 hours after US regulators approved Ether ETFs, asset managers are scrambling to release new products for the digital-asset market. ProShares recently submitted paperwork for six new funds that would either go long or short on Bitcoin or Ether. Hashdex is also looking to create a fund that includes both Bitcoin and Ether. Additionally, VanEck announced plans to launch an ETF based on Solana, the fifth-largest cryptocurrency. However, analysts predict a challenging path for such a launch.

Growth in the ETF Market

The ETF market is buzzing with activity. Despite the SEC’s cautious stance, Bitcoin ETFs are among the top funds for inflows this year, surpassing even some well-known tech funds. According to Roxanna Islam from VettaFi, ETFs are known for pushing boundaries. She expects more creative crypto ETF filings as investor interest in traditional spot-crypto ETFs grows.

New Fund Launches and Closures

The US ETF market, worth $9.4 trillion, is seeing rapid growth in new fund launches. So far this year, over 330 new funds have started trading, compared to around 500 for the entire last year. However, the market is also seeing a significant number of fund closures, with more than 100 ETFs shutting down in 2024, similar to last year.

Successful Debuts of Bitcoin and Ether ETFs

The debut of Bitcoin and Ether ETFs has been surprisingly successful. Ether ETFs, launched just a week ago, have already seen substantial inflows. Eight out of nine Ether ETFs have attracted investments, with BlackRock and Bitwise’s products each taking in more than $200 million. However, both the ETFs and Ether itself experienced a drop on Thursday, which some market experts predicted as a “sell-the-news” event.

Bitcoin ETFs’ Massive Inflows

Bitcoin ETFs have performed exceptionally well, with net inflows of $17.5 billion year to date. These ETFs have been in the making for years, and their launch signifies a more favorable US regulatory environment for digital assets. This regulatory shift is encouraging asset managers to get more creative with their products.

Inverse and Leveraged ETFs Popularity

Inverse and leveraged ETFs have gained significant popularity over the past year. These ETFs use derivatives to either boost returns or pay out the opposite of a stock or index’s return. Retail investors are particularly drawn to these ETFs for their potential to double or triple gains, despite the risk of amplified losses. Leveraged ETFs have seen around $9 billion in inflows this year, on track to surpass last year’s $10.2 billion. A leveraged Bitcoin ETF, trading under the ticker BITX, has accumulated nearly $2 billion in inflows this year, with gains of 50%.

The Road Ahead for Crypto ETFs

The introduction of new crypto ETFs, especially those based on Bitcoin and Ether, has created a buzz in the market. Asset managers are keen to explore new opportunities in the digital-asset space, despite the challenges posed by the regulatory environment. The success of these ETFs indicates strong investor interest and a potential shift in the market dynamics.

Investor Interest and Market Dynamics

The growing interest in crypto ETFs reflects a broader trend of increased investor interest in digital assets. As more traditional spot-crypto ETFs gain traction, we can expect to see a wave of new filings for crypto strategies. This trend is likely to continue as investors seek to diversify their portfolios with innovative financial products.

Conclusion

Wall Street’s ETF engine is in full swing, driven by the massive $17 billion Bitcoin haul and the successful debut of Ether ETFs. Asset managers are racing to introduce new crypto funds, while investors are eager to explore these new opportunities. Despite the challenges, the future of crypto ETFs looks promising, with continued growth and innovation on the horizon.

Bitcoin

Gain EU Citizenship with Bitcoin Investment: Portugal’s Golden Visa Program

by muhammed July 25, 2024

written by muhammed 8 minutes read

Bitcoin Investment Fund Opens Doors to EU Citizenship

A new investment fund is now offering Bitcoin holders a chance to become European Union (EU) citizens through Portugal’s golden visa program. This opportunity has been introduced by Alessandro Palombo, the co-founder and CEO of Unbound Fund.

Portuguese Citizenship Through Bitcoin Investment

In a recent post, Alessandro Palombo announced that their fund is the first to allow investors to gain Portuguese citizenship by investing in Bitcoin (BTC). According to Palombo, this unique opportunity is possible through Portugal’s Golden Residence Permit Program.

Investing in Bitcoin for EU Citizenship

To qualify for this program, investors need to indirectly hold Bitcoin worth 500,000 euros (about $542,000) through the Unbound Fund. This investment will make them eligible for the Portugal Golden Residence Permit Program. This program is a five-year residence-by-investment program designed for non-EU nationals.

How the Fund Works

Palombo explained that the fund invests in companies that have a 100% passive Bitcoin holding strategy. This means the fund is not trying to time the markets to sell BTC. Additionally, the fund will invest in BlackRock exchange-traded funds (ETFs) to ensure security and simplicity.

Palombo’s Vision for Bitcoin and Freedom

Palombo believes that using Bitcoin as a tool for gaining freedom of movement is mutually beneficial for both the investors and Portugal. He has chosen to live in Portugal with his family and thinks the European citizen-by-investment program is the best for technical and strategic reasons.

Current Success and Future Plans

Palombo mentioned that the fund has already onboarded several customers and is in talks with complementary teams to expand their services.

Bitcoin Price Surge

On July 22, Bitcoin’s price reached its highest level in 40 days, peaking at $68,518 on some platforms. Analysts attribute this nearly 20% increase in 10 days to the end of the German government’s Bitcoin sell-off and growing confidence in the US Federal Reserve cutting interest rates in 2024.

The Portugal Golden Residence Permit Program

The Portugal Golden Residence Permit Program, often called the Portugal Golden Visa Program, is a five-year residence-by-investment program for non-EU nationals. This program allows investors to live, work, and study in Portugal and move freely within Europe’s Schengen Area.

Benefits of the Portuguese Golden Visa

Visa-free travel: Allows visa-free travel in Europe’s Schengen Area.
Work and Study: Gives the right to live, work, and study in Portugal.
Citizenship Eligibility: Investors can apply for citizenship after five years as legal residents while keeping their other citizenships.
Low Physical Presence Requirement: Only requires an average of seven days per year stay in Portugal over this period.
High Quality of Life: Portugal offers excellent international and Portuguese schools and universities, local cuisine, a mild climate, rich culture, and high-level security.
Healthcare: Provides access to international quality healthcare clinics and hospitals.

Requirements for the Portugal Golden Visa

Applicants can choose from several investment options in different categories:

Capital Transfer Options

Investment Fund or Venture Capital: Invest 500,000 euros in a fund dedicated to the capitalization of Portuguese companies with a five-year maturity and at least 60% of the investment portfolio in companies headquartered in Portugal.
Scientific Research: Invest 500,000 euros in public or private research activities within Portugal’s national scientific and technological system.
Low Population Density Area: Invest 400,000 euros in a low population density area.
Cultural Support: Invest 250,000 euros in artistic production or the recovery/maintenance of national cultural heritage.
Low Population Density Cultural Support: Invest 200,000 euros in cultural projects within a low population density area.

Business Investment Options

Job Creation: Create a minimum of ten new jobs or eight new jobs in a low population density area.
Commercial Company Incorporation: Invest 500,000 euros in setting up a commercial company in Portugal that creates at least five permanent jobs for three years or increases the share capital of an existing company, maintaining at least ten jobs for three years.

Low Population Density Area Definition

A low population density area in Portugal is defined as having less than 100 inhabitants per square kilometer or a GDP per capita below 75% of the national average.

Procedures and Time Frame for the Golden Visa

After receiving the residence permit, applicants must provide biometric data and updated original documents at each renewal. The initial permit is typically issued for one year but has been extended to two years due to the Covid-19 pandemic. Subsequent renewals are for two-year periods.

Application Process

The application process involves two trips to Portugal:

Initial Trip: To choose the qualifying investment, start the legal process, and open a bank account.
Second Trip: To provide biometric data and original documents.

The entire process to acquire a Portuguese residence permit through investment can take over 18 months.

Why Choose Portugal for Bitcoin Investment?

Portugal is an attractive destination for Bitcoin investment due to its favorable climate, rich culture, and strategic location in Europe. The country offers a high quality of life with excellent education and healthcare systems. The Golden Visa Program also provides a pathway to EU citizenship, making it a desirable option for investors looking to expand their opportunities in Europe.

Conclusion

The Unbound Fund, led by Alessandro Palombo, offers a groundbreaking opportunity for Bitcoin holders to gain EU citizenship through Portugal’s golden visa program. By investing in Bitcoin and meeting the program’s requirements, investors can enjoy the benefits of living, working, and traveling freely within the European Union. With the rising value of Bitcoin and the strategic advantages of the Portuguese Golden Visa Program, this initiative presents a unique and attractive investment avenue for non-EU nationals.

News

Coinbase UK Fined $4.5M for Onboarding High-Risk Customers: A New Era of Crypto Scrutiny?

by Tatjana July 25, 2024

written by Tatjana 5 minutes read

Coinbase UK Fined $4.5 Million

Background on the Fine

Coinbase, a well-known cryptocurrency exchange, has found itself in trouble in the UK. The UK’s Financial Conduct Authority (FCA) has fined Coinbase’s UK arm, CB Payments Limited (CBPL), a hefty $4.5 million. The reason? They failed to follow a voluntary agreement about customer onboarding.

In 2020, CBPL agreed with the FCA to not onboard customers who were considered “high-risk.” However, they ended up onboarding 13,416 high-risk customers, violating the agreement. The FCA saw this as a serious breach and decided to penalize them.

Details of the Violation

CBPL had weak controls in place, according to the FCA. These weaknesses made it easier for criminals to use CBPL for money laundering. Therese Chambers, the joint executive director of enforcement and market oversight at the FCA, said in a statement on July 25:

“CBPL’s controls had significant weaknesses and the FCA told it so, which is why the requirements were needed. CPBL, however, repeatedly breached those requirements. This increased the risk that criminals could use CBPL to launder the proceeds of crime. We will not tolerate such laxity, which jeopardizes the integrity of our markets.”

Implications for the Crypto Industry

The FCA’s decision to fine Coinbase UK could signal the start of more scrutiny for other cryptocurrency exchanges in the region. This increased scrutiny might lead some platforms to seek more crypto-friendly regulatory jurisdictions to operate in.

Related to this, the FCA fined Coinbase’s UK arm under the Electronic Money Regulations 2011. This fine is notable because it is the first time the FCA has taken enforcement action based on this regulation.

The Fine Details

The British regulator fined Coinbase Group’s CBPL 3,503,546 pounds, which is equivalent to $4.5 million. The FCA found that the breaches went undiscovered for the past two years due to a lack of initial monitoring practices for the firm’s voluntary agreement (VREQ).

Coinbase UK’s CBPL only onboarded a small percentage of high-risk customers. According to a statement shared by Coinbase, only 0.34% of the customers they onboarded were considered “high-risk.” CBPL claims these customers were “unintentionally onboarded” between October 30, 2020, and October 1, 2023. This led to the FCA’s investigation and subsequent action.

FCA’s Investigation Focus

The FCA’s investigation did not focus on crypto asset transactions. Instead, it looked into CBPL’s e-money transmitter services. CBPL has been authorized by the FCA since 2017 as an e-money institution and provides e-money and payment services to customers in certain jurisdictions. However, CBPL is not authorized by the FCA to conduct crypto asset transactions for customers. Therefore, the FCA’s investigation did not examine any crypto asset transactions.

Coinbase’s Response to the Fine

Coinbase has responded to the fine by stating that they unintentionally onboarded some high-risk customers. They emphasized that only a small fraction of their customers were affected. Additionally, they mentioned that the fine was reduced by 30% because they agreed to resolve the matter with the FCA.

Future of Crypto Regulation in the UK

This fine could mark the beginning of a broader crackdown on cryptocurrency services providers in the UK. The FCA’s decision might lead to more stringent regulations for the crypto industry, which could impact how these businesses operate.

Summary of Key Points

Coinbase UK’s arm, CBPL, was fined $4.5 million by the FCA.
The fine was for onboarding 13,416 high-risk customers, which violated a voluntary agreement with the FCA.
The FCA highlighted weaknesses in CBPL’s controls, raising concerns about money laundering risks.
This fine is the first enforcement action by the FCA under the Electronic Money Regulations 2011.
The FCA’s investigation focused on e-money transmitter services, not crypto asset transactions.
Coinbase stated that only 0.34% of customers were high-risk and unintentionally onboarded.
The fine was reduced by 30% as Coinbase agreed to resolve the matter.

Conclusion

The FCA’s action against Coinbase UK serves as a warning to other cryptocurrency exchanges about the importance of adhering to regulatory agreements. As the crypto industry continues to grow, it is likely that regulators will increase their scrutiny to ensure compliance and protect the integrity of financial markets. For Coinbase and other exchanges, this means implementing stronger controls and monitoring practices to avoid similar fines and ensure they operate within the bounds of the law.

Ethereum

Ethereum Price Tanks 8% After Spot ETF Launch: Sell-the-News Event or Short-Term Dip?

by dave July 25, 2024

written by dave 8 minutes read

Ethereum Price Tanks After Spot ETF Launch.

Just a day after the launch of the US spot Ethereum ETF, Ethereum’s price has dropped significantly. The price fell more than 8%, hitting as low as $3,150. This sharp decline caused many investors to lose money, leading to substantial liquidations of long positions in Ethereum.

Ethereum Liquidations Surge

Data from Coinglass shows that Ethereum liquidations have surged past those of Bitcoin in the last day. Ethereum liquidations have reached an astounding $97.8 million, compared to Bitcoin’s $80.9 million. This is a significant difference, showing the impact of the ETF launch on Ethereum.

Long Positions Heavily Liquidated

Breaking down the Ethereum liquidations, a large portion, $94.4 million, were long positions. Only $43.3 million targeted short positions. Most of these liquidations happened within the past four hours, matching the intense selling pressure on Ethereum.

Sell-the-News Event?

Some analysts believe that the approval of the spot Ethereum ETF might have triggered a “sell-the-news” event. This is similar to what happened with Bitcoin in January this year. In July, Ethereum’s price reached $3,500. Now, investors seem to be cashing out due to the excitement around the ETF launch.

ETH Whale Activity and Market Pressures

On-chain data reveals that a big Ethereum whale sold a large amount of coins on July 24th. According to Spot on Chain, this whale deposited 10,000 ETH on Kraken, worth $34.2 million, just before the price drop. The whale made a profit of $173 million from the sale. This whale had bought these coins at $1,580 in September 2022 from Coinbase.

Moreover, 10xResearch suggests that ongoing distributions from Mt. Gox are putting extra pressure on the broader cryptocurrency market. They think that Ethereum, due to stagnant or declining fundamentals, might be the weakest link in this situation.

Recovery on the Horizon?

Crypto analyst Michael van de Poppe remains optimistic. He suggests that Ethereum might see a reversal amidst strong outflows from the Grayscale Ethereum Trust. He predicts a two-week downward trend for ETH before it starts to rally towards new highs. The price may find support around $3,150 before bouncing back.

Mixed Performance in Spot Ethereum ETFs

While spot Ethereum ETFs started strong with nearly $107 million in net inflows, data from Farside Investors shows a decline on the second day. Investors withdrew about $133 million.

Fidelity’s Ethereum Fund (FETH) led the pack, attracting $74.5 million in net inflows. It surpassed BlackRock’s iShares Ethereum Trust (ETHA), which gathered $17.5 million on Wednesday.

Grayscale’s Ethereum Trust Outflows

In contrast to the success of other ETFs, Grayscale’s Ethereum Trust (ETHE) saw significant outflows. These outflows totaled nearly $327 million, bringing the cumulative outflow since launch to $811 million. As a result, ETHE’s assets under management have dropped to $8.3 billion from $9 billion before the launch.

Other Ethereum ETFs See Positive Inflows

However, there were some bright spots. Grayscale’s Ethereum Mini Trust (ETH) recorded about $46 million in inflows, making it one of the most affordable spot Ethereum products in the US market. Similarly, Bitwise’s Ethereum ETF (ETHW) and VanEck’s Ethereum ETF (ETHV) reported net inflows of more than $29 million and $20 million, respectively. Other positive performers included Franklin’s EZET and Invesco/Galaxy’s QETH.

Market Downturn

The broader market also experienced a decline. Bitcoin’s price dropped 2.52% to $64,200, and the overall crypto market fell nearly 4%. This slump coincided with a decline in the US stock market, with the Nasdaq Composite and S&P 500 experiencing their worst days since October and December 2022, respectively.

Spot Ethereum ETFs Post $113M of Outflows on Second Day of Launch

The “newborn” eight ETFs didn’t manage to beat the $327 million of outflows from Grayscale’s recently converted Ethereum Trust.

Second-Day Performance of Ether ETFs

United States-based spot Ether exchange-traded funds (ETFs) returned net outflows of $113.3 million on their second trading day. This was mainly due to heavy losses from Grayscale’s Ethereum Trust.

Seven of the eight “newborn” spot Ether ETFs posted net inflows on day two of trading. The Fidelity Ethereum Fund (FETH) and the Bitwise Ethereum ETF (BITW) led with the largest net inflows, posting $74.5 million and $29.6 million, respectively.

BlackRock’s iShares Ethereum Trust (ETHA), which had the most robust inflows on July 23, only collected $17.4 million from investors on July 24.

Heavy Selling from Grayscale’s Ethereum Trust

The new ETFs were weighed down by another heavy day of selling from the recently converted Grayscale Ethereum Trust (ETHE), which saw $326.9 million in outflows.

Impact of Grayscale’s Ethereum Trust Conversion

Launched by Grayscale in 2017, ETHE allowed institutional investors to purchase ETH. However, it imposed a six-month lock-up period on all investments. Upon its conversion to a spot Ether fund on July 22, investors have been able to sell their ETH more easily.

In the two days following its conversion, ETHE has seen $811 million in outflows. This means that existing ETHE investors have now sold off just over 9% of the fund’s holdings.

Related: Ethereum ETFs Start Strong but Lag Bitcoin ETF Launch

The recent Ether ETF performance isn’t unprecedented. Spot Bitcoin ETFs posted cumulative net outflows for six out of 10 of their first trading days. Many blame outflows from the Grayscale Bitcoin Trust ETF.

Ethereum Price Today

ETH is trading at $3,172 at the time of publication, down over 6.8% in the last 24 hours and 7.4% on the week, according to TradingView data.

Ether’s price drop happened during a wider sell-off in the equities market. The S&P 500 closed down 2.3% on July 24.

ETH’s Price Sensitivity to ETF Inflows

Notably, ETH fell more sharply compared to Bitcoin, which only dropped 2.6%. This matches Kaiko analyst Will Cai’s prediction that ETH’s price could be very “sensitive” to inflows following the launch of the ETFs.

Grayscale’s ETHE Shed $484.4 Million on First Trading Day

Grayscale’s ETHE lost $484.4 million on its first day of trading as a spot Ether ETF. However, strong inflows across the other eight products pushed cumulative net inflows to $106.6 million.

Ethereum’s Future Outlook

The future of Ethereum’s price remains uncertain. While some analysts predict a short-term dip, others see potential for a strong recovery. Investors should keep an eye on market trends, ETF performance, and whale activity to make informed decisions.

Conclusion

The launch of the US spot Ethereum ETF has significantly impacted Ethereum’s price and the broader crypto market. While there are mixed performances among different ETFs, the overall trend shows a substantial outflow from Grayscale’s Ethereum Trust. However, some analysts remain optimistic about Ethereum’s recovery. Investors need to stay informed and cautious as the market continues to evolve.

News

BlockFi to Return Bitcoin and Ethereum to Customers via Coinbase: What You Need to Know

by Tatjana July 25, 2024

written by Tatjana 8 minutes read

BlockFi Set to Return Bitcoin and Ethereum to Customers—Here’s How It Will Work

Introduction

BlockFi, a crypto lending firm, went bankrupt last year. Now, it is planning to return Bitcoin and Ethereum to its customers. The company will use Coinbase, the largest crypto exchange in America, to do this. This article explains how the process will work and what BlockFi customers need to know.

The BlockFi Collapse

BlockFi was a major crypto lender offering high-yield crypto accounts. However, it collapsed last year after the FTX fallout in 2022. BlockFi had over $1.2 billion tied up in FTX and its trading arm, Alameda Research. When FTX collapsed, BlockFi followed, filing for Chapter 11 bankruptcy in November 2022.

How Will BlockFi Repay Customers?

BlockFi will start paying back its former customers this month. The repayments will be made in cryptocurrency, specifically Bitcoin and Ethereum. To receive these payments, customers need to have a Coinbase account.

Using Coinbase for Repayments

Coinbase will handle the distribution of crypto assets. The exchange says it will attempt to distribute the funds on a weekly to monthly basis. This process will continue as long as the repayment program is active. However, there are some important details to keep in mind:

Coinbase Account Requirement## : Customers must have an eligible Coinbase account. The information on the Coinbase account must match the BlockFi credentials. Customers cannot use someone else’s Coinbase account to get their funds.
Email Notifications## : Customers will first get an email from BlockFi. Then, they will receive a notification from Coinbase about the deposit.
## Non-U.S. Customers## : Coinbase will not make distributions to non-U.S. customers. BlockFi is working with the Joint Liquidators of BlockFi International to find a repayment plan for these creditors.

Separate Claims for Cash Repayments

Some former BlockFi customers want to get their cash back instead of crypto. These claims will be handled separately by a financial advisory firm named Kroll and their payment processing partner, Digital Disbursements.

Best Possible Outcome for Customers

The administrator of the BlockFi wind-down said this week that the repayment plan is the best possible outcome for customers. The sale of BlockFi’s claims against FTX recovered enough funds to start repaying customers. These claims were sold at a substantial premium to their face value, which helped in gathering the necessary funds.

Impact of the FTX Fallout

The collapse of FTX had a massive impact on many crypto companies, including BlockFi. FTX was a huge player in the crypto world, and its sudden collapse caused a ripple effect. BlockFi, which had significant assets tied up in FTX, was severely affected. This led to a pause in withdrawals and eventually, the bankruptcy filing.

Steps to Recover Funds from BlockFi Collapse

If you are a former BlockFi customer, here are the steps you need to follow to recover your funds:

Create a Coinbase Account## : If you don’t already have one, you need to create an account on Coinbase. Make sure the information matches your BlockFi account.
Wait for Email Notification## : BlockFi will send you an email when they are ready to distribute your funds.
Receive Coinbase Notification## : After the email from BlockFi, you will get a notification from Coinbase about the deposit.
Check Your Coinbase Account## : Once you receive the notification, check your Coinbase account to confirm the deposit.
## Non-U.S. Customers## : If you are a non-U.S. customer, stay tuned for updates from BlockFi and the Joint Liquidators of BlockFi International.

High-Yield Crypto Accounts and Risks

BlockFi offered high-yield crypto accounts, which attracted many customers. However, these accounts also came with high risks. The collapse of FTX showed how vulnerable these investments can be. Many customers lost access to their funds when BlockFi paused withdrawals and eventually went bankrupt.

BlockFi Bankruptcy and Chapter 11 Filing

When BlockFi filed for Chapter 11 bankruptcy in November 2022, it was a significant blow to the crypto community. Chapter 11 allows companies to reorganize and attempt to pay back their creditors over time. For BlockFi customers, this meant a long wait to see if they would get their funds back.

The Role of Financial Advisory Firm Kroll

Kroll, a financial advisory firm, is playing a key role in handling cash repayments for BlockFi customers. They are working with Digital Disbursements to process these claims. Customers who want their funds back in cash will need to follow the instructions provided by Kroll.

Crypto Asset Distribution Schedule

Coinbase will distribute the crypto assets on a weekly to monthly basis. This schedule depends on the instructions from BlockFi and the eligibility of the customers’ Coinbase accounts. It is important for customers to regularly check their email and Coinbase account for updates.

BlockFi and FTX Fallout Impact on Creditors

The FTX fallout had a significant impact on BlockFi creditors. Many creditors were left wondering if they would ever see their funds again. The repayment plan through Coinbase is a step towards resolving these issues, but it highlights the risks associated with investing in crypto.

Handling BlockFi Claims with Financial Advisory Kroll

If you are handling your BlockFi claims through Kroll, make sure to follow their instructions carefully. Kroll is working to ensure that cash repayments are processed efficiently. Keep an eye on any communication from Kroll and Digital Disbursements for updates on your claim.

What Happened to BlockFi Customers’ Crypto Assets?

When BlockFi paused withdrawals and filed for bankruptcy, many customers were left in the dark about the status of their crypto assets. The company had significant investments in FTX, and the collapse of FTX severely impacted BlockFi’s ability to operate. The current repayment plan aims to return these crypto assets to their rightful owners.

Steps to Recover Funds from BlockFi Collapse

Recovering funds from the BlockFi collapse involves several steps. First, customers need to ensure they have an eligible Coinbase account. Then, they need to wait for email notifications from BlockFi and Coinbase. Finally, they should check their Coinbase account to confirm the deposit.

BlockFi International Repayment Plan for Non-U.S. Customers

Non-U.S. customers of BlockFi are in a unique situation. Coinbase will not make distributions to them, but BlockFi is working with the Joint Liquidators of BlockFi International to find a solution. These customers should stay informed about any updates regarding the repayment plan.

Conclusion

BlockFi’s plan to return Bitcoin and Ethereum to its customers is a complex process involving multiple steps and coordination with Coinbase. Customers need to have an eligible Coinbase account and wait for notifications from both BlockFi and Coinbase. Non-U.S. customers will need to follow updates from BlockFi International for their repayment plan. Despite the challenges, this plan represents the best possible outcome for customers affected by the BlockFi collapse and the FTX fallout.

News

MonoSwap Hacked: Urgent Crypto Security Warning for Users

by muhammed July 24, 2024

written by muhammed 5 minutes read

Hack Announcement and Immediate Warning

On July 24, 2024, MonoSwap, a decentralized exchange and staking platform, announced a major hack. The platform warned users not to deposit any new funds or open new positions. This is because the future of MonoSwap is uncertain. They also urged users to withdraw their funds to avoid losses. A malicious link had been identified, and users were told not to interact with it.

What is MonoSwap

Per their platform documentation MonoSwap is a cutting-edge decentralized exchange (DEX) and launchpad, integrated with the robust Blast framework. It offers a highly efficient and customizable protocol that provides deep, sustainable, and adaptable liquidity. Designed to go beyond traditional DEX designs, MonoSwap emphasizes composability, which allows builders and users to leverage its bespoke infrastructure to create unique and sustainable financial solutions. The platform aims to empower the Blast ecosystem with innovative features that offer flexibility and control over liquidity and yield, facilitating the seamless launch of new protocols while ensuring sustained growth and yield.

MonoSwap features an advanced Automated Market Maker (AMM) with both volatile and stable swaps, introducing dynamic directional fees and customized pool configurations. Its V3 AMM integrates innovative spNFT and Maestro technologies for an enhanced trading experience. The platform also introduces a unique liquidity approach with non-fungible staked positions that offer dynamic handling of locks and yield boosts, improved capital efficiency, and versatile re-usability. Committed to permissionless interaction, MonoSwap allows protocols to engage directly without approval, using Maestro Pools for full incentive control. Its dual-token model with MONO and xMONO ensures long-term sustainability through strategic emissions and deflationary mechanisms, redistributing earnings to users and maintaining consistent value appreciation.

How the Hack Happened

According to MonoSwap, the hack occurred on July 23, 2024. One of the developers accidentally installed a phishing application. Scammers pretended to be venture capitalists and lured the developer into a call. During the call, they installed malicious software on the developer’s computer. This computer had access to all of MonoSwap’s wallets and contracts. The hackers were able to withdraw most of the staked liquidity from the platform.

Platform’s Response and Investigation

At the time of writing, MonoSwap is investigating the incident. They are trying to work with venture capitalists to build a better future for the platform. MonoSwap stated, “Unfortunate things happened, and now we are trying our best to solve this issue.” The platform is doing everything it can to recover from the hack and ensure the security of its users’ funds.

Rise in Crypto Hacks

Crypto hacks have been on the rise. On July 11, 2024, CoinGecko co-founder Bobby Ong warned the crypto community about increasing hacks. He cautioned users not to interact with crypto over the next several days. Ong believes the rise in attacks is due to Google’s sale of its domain business to Squarespace. This forced migration removed two-factor security authentication, creating a security vulnerability.

Recent High-Profile Hacks

Since Ong’s warning, several high-profile hacks have occurred. For example, on July 18, 2024, the Indian cryptocurrency exchange WazirX was hacked. Hackers drained $235 million from the exchange. It is believed that the North Korean Lazarus hacking group was responsible.

Security Measures and Precautions

The recent rise in hacks highlights the importance of security measures in the crypto industry. Users should always enable two-factor authentication and be cautious of phishing attempts. It’s crucial to avoid interacting with unknown links and to stay informed about the latest security threats.

Protecting Funds on Staking Platforms

Staking platforms like MonoSwap must ensure the safety of users’ funds. They need to implement strong security measures and regularly update their systems. Users should also be aware of the risks and only stake funds on trusted platforms.

Recovering from a Crypto Hack

Recovering from a crypto hack is challenging. Platforms need to work with security experts to understand how the hack occurred. They must also communicate transparently with their users. Recovery may involve legal actions and cooperation with law enforcement.

The Role of Venture Capitalists

Venture capitalists can play a vital role in helping platforms recover from hacks. They can provide the necessary funds and expertise to rebuild the platform. Their support can be crucial in restoring user confidence and ensuring the platform’s future.

The Importance of Onchain Sleuths

Onchain sleuths like ZackXBT are essential in identifying and alerting the community about security threats. They help uncover vulnerabilities and phishing attempts. Their work is crucial in keeping the crypto community safe.

Conclusion

The hack on MonoSwap is a stark reminder of the security challenges in the crypto industry. Users must be vigilant and platforms must prioritize security. By working together, the community can build a safer environment for everyone involved in cryptocurrency.

Bitcoin

Ferrari Expands Cryptocurrency Payments to Europe: What You Need to Know

by muhammed July 24, 2024

written by muhammed 5 minutes read

Ferrari Extends Cryptocurrency Payments to Europe After US Launch

Introduction

Ferrari announced on Wednesday that it would expand its cryptocurrency payment system to Europe. This follows the successful launch of the system in the United States last year. Starting at the end of this month, European dealers will begin accepting payments in cryptocurrency for Ferrari’s luxury sports cars. The Italian company plans to extend this scheme to other international dealers by the end of 2024, provided cryptocurrencies are legally accepted in those countries.

Expanding to Europe

Ferrari’s decision to expand its cryptocurrency payment system to Europe comes after a successful run in the United States. The company aims to support its European dealers in better addressing the evolving needs of their wealthy customers. According to Ferrari, most of its dealers in Europe have either already adopted the new payment system or are in the process of doing so.

The US Launch

Ferrari started accepting cryptocurrency payments in the United States last year. Despite the volatility of cryptocurrencies like Bitcoin and Ether, Ferrari responded to requests from its wealthy customers who preferred using digital currencies. For this launch, Ferrari partnered with BitPay, one of the biggest cryptocurrency payment processors. BitPay facilitated transactions in Bitcoin, Ether, and USDC, a stablecoin. This partnership ensured that cryptocurrency payments were immediately converted into traditional currency, protecting Ferrari dealers from price swings and excluding fees or surcharges for clients.

Cryptocurrency and Luxury Cars

While many blue-chip companies have avoided cryptocurrencies due to their volatility, Ferrari took a different approach. By accepting cryptocurrencies, Ferrari met the demands of its affluent clientele. This move highlights how luxury car manufacturers can adapt to changing market dynamics and customer preferences. As cryptocurrencies gain more acceptance, it’s likely that other high-end brands might follow Ferrari’s lead.

Challenges of Cryptocurrency Payments

Despite the advantages, there are challenges associated with using cryptocurrencies for payments. One major issue is the patchy regulation of digital currencies across different countries. For instance, countries like China have restricted the use of cryptocurrencies. Additionally, the high energy usage required for cryptocurrency transactions has also been a deterrent.

BitPay Partnership

BitPay played a crucial role in Ferrari’s cryptocurrency payment system. As a leading cryptocurrency payment processor, BitPay allowed Ferrari to handle transactions smoothly. By converting cryptocurrency payments into traditional currency, BitPay protected Ferrari dealers from the volatility of digital currencies. This partnership also ensured that clients were not charged additional fees or surcharges, making it easier for them to use cryptocurrencies for purchasing Ferrari cars.

Future Plans

Ferrari plans to expand its cryptocurrency payment system to other parts of the world by the end of 2024. However, this expansion will depend on the legal acceptance of cryptocurrencies in these regions. Ferrari has not yet provided details on whether it will continue to use BitPay or partner with other payment processors in Europe and other regions.

Addressing Customer Needs

Ferrari’s decision to accept cryptocurrency payments is a response to the evolving needs of its customers. Many wealthy clients prefer using digital currencies for transactions, and Ferrari aims to cater to these preferences. By offering an alternative payment system, Ferrari provides its clients with more flexibility and convenience.

Legal and Regulatory Aspects

The legal acceptance of cryptocurrencies varies from country to country. In some regions, digital currencies are widely accepted, while in others, they face significant restrictions. Ferrari’s expansion plan will take these legal and regulatory aspects into account. The company aims to ensure that it complies with all relevant laws and regulations in the countries where it operates.

Energy Consumption Concerns

High energy usage is another concern associated with cryptocurrency transactions. The process of mining and verifying transactions requires substantial computational power, which translates to high energy consumption. This has raised environmental concerns, which Ferrari will need to address as it expands its cryptocurrency payment system.

Conclusion

Ferrari’s decision to extend its cryptocurrency payment system to Europe marks an important step in the luxury car market. By embracing digital currencies, Ferrari caters to the preferences of its affluent clients and stays ahead of market trends. The partnership with BitPay has been instrumental in ensuring smooth transactions and protecting dealers from cryptocurrency volatility. As Ferrari looks to expand this system globally, it will need to navigate various legal, regulatory, and environmental challenges. However, by addressing these issues, Ferrari can continue to offer innovative solutions to its customers and maintain its position as a leader in the luxury car industry.

Bitcoin

Kraken Completes Bitcoin and Bitcoin Cash Distribution to Mt. Gox Creditors After Decade-Long Wait

by mei July 24, 2024

written by mei 5 minutes read

Kraken Distributes Bitcoin and Bitcoin Cash to Mt. Gox Creditors

On Tuesday, Kraken CEO Dave Ripley announced that Kraken had “successfully distributed” Bitcoin and Bitcoin Cash to customers affected by the Mt. Gox hack nearly a decade ago. Ripley said, “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty.”

History of the Mt. Gox Hack

Mt. Gox was once the largest cryptocurrency exchange in the world, handling over 70% of all Bitcoin transactions globally. However, in February 2014, hackers stole 850,000 Bitcoin, leading to the exchange filing for bankruptcy. At today’s rates, that stolen Bitcoin would be worth $56 billion. The Mt. Gox hack was one of the most significant events in the cryptocurrency industry’s history, causing widespread shock and financial loss to thousands of investors.

Kraken’s Role in the Recovery

Kraken was one of five exchanges selected to help return funds to some of the 127,000 creditors impacted by the Mt. Gox collapse. Kraken CEO Dave Ripley emphasized the responsibility Kraken felt in assisting with the recovery process. “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty.”

The Distribution Process

The distribution process involved returning Bitcoin and Bitcoin Cash to the rightful owners. While Kraken did not specify the total amount returned to Mt. Gox customers, their involvement marked a significant step in resolving one of the cryptocurrency industry’s most prolonged sagas. Alongside Kraken, other exchanges like Bitstamp, SBI VC Trade, Bitbank, and Coincheck were also involved in the distribution effort.

Amounts Distributed and Remaining

Blockchain analytics firm Arkham Intelligence reported that the Mt. Gox estate had started transferring $2.85 billion worth of Bitcoin to new wallets. Of this amount, $340 million was transferred to four separate addresses owned by Bitstamp. Arkham also noted that the Mt. Gox estate still holds approximately 85,234 BTC, valued at $5.7 billion.

Current Status of Funds

Creditors of Mt. Gox are awaiting more than $7 billion in Bitcoin, Bitcoin Cash, and fiat currency from various entities responsible for mediating the fund distribution process. The exact timeline for when creditors will receive their funds from these exchanges remains unclear, as none have provided comments on the matter.

The Involvement of Other Exchanges

Besides Kraken, the other exchanges involved in this effort include Bitstamp, SBI VC Trade, Bitbank, and Coincheck. These exchanges were selected to assist in returning funds to the creditors affected by the 2014 collapse. Each exchange has played a crucial role in ensuring that the distribution process is as smooth and efficient as possible.

The Significance of Kraken’s Involvement

Kraken’s involvement in the Mt. Gox recovery process highlights its commitment to the cryptocurrency community. By taking on the responsibility of distributing Bitcoin and Bitcoin Cash, Kraken has demonstrated its dedication to helping investors recover their lost assets. This move has also helped strengthen Kraken’s reputation as a reliable and trustworthy exchange in the cryptocurrency industry.

Challenges in the Distribution Process

The distribution process has not been without challenges. The sheer volume of funds to be returned and the complexity of tracking and verifying claims have made the process lengthy and intricate. Despite these challenges, Kraken and the other involved exchanges have worked diligently to ensure that creditors receive their due funds.

Future Outlook for Mt. Gox Creditors

The future remains uncertain for Mt. Gox creditors. While significant progress has been made in the distribution of funds, there is still a long way to go. Creditors continue to wait for the remaining Bitcoin and Bitcoin Cash to be distributed, and the timeline for this process is still unclear. However, the involvement of exchanges like Kraken provides hope that the recovery process will eventually be completed.

Conclusion

The distribution of Bitcoin and Bitcoin Cash to Mt. Gox creditors marks a major milestone in the recovery process following the 2014 hack. Kraken’s role in this effort underscores its commitment to the cryptocurrency community and its dedication to helping investors recover their lost assets. While challenges remain, the progress made so far is a positive sign for the future of Mt. Gox creditors. As the recovery process continues, the involvement of reliable exchanges like Kraken will be crucial in ensuring that all creditors receive their due funds.

Ethereum

Ethereum ETFs Break $1 Billion Trading Volume on Launch Day: What It Means for Investors

by Tatjana July 24, 2024

written by Tatjana 6 minutes read

Introduction

Ethereum ETFs have made a big splash in the market by crossing the $1 billion mark in trading volume on their very first day. This exciting news has caught the attention of investors and analysts alike, who are eager to see how Ethereum ETFs will perform compared to Bitcoin ETFs. According to Matt Hougan from Bitwise, investors are likely to hold both Ethereum and Bitcoin in their portfolios for diversification. Let’s dive deeper into the details of this significant event and its implications.

Ethereum ETFs Trading Volume

Ethereum ETFs started trading after getting the green light from the Securities & Exchange Commission (SEC). The first-day trading volume for these ETFs reached an impressive $1 billion. This is about 23% of the volume that Bitcoin ETFs had on their first day. Some of the Ethereum ETFs that launched include:

iShares Ethereum Trust (ETHA), Fee: 0.25%
21Shares Core Ethereum ETF (CETH), Fee: 0.21%
VanEck Ethereum ETF (ETHV), Fee: 0.20%
Fidelity Ethereum Fund (FETH), Fee: 0.25%
Bitwise Ethereum ETF (ETHW), Fee: 0.20%
Invesco Galaxy Ethereum ETF (QETH), 0.25%
Grayscale Ethereum Trust (ETHE), Fee: 2.5%
Grayscale Ethereum Mini Trust (ETH), Fee after waiver 0.15%

Analysts’ Insights

Bloomberg analyst Eric Balchunas speculated that if BlackRock’s Ethereum ETF (ETHA) can reach $200 million in trading volume, Ethereum ETFs might outperform initial estimates. On their first day, ETHA did 25% of the volume of IBIT, a significant Bitcoin ETF. Balchunas also compared the volume of Ethereum ETFs with other ETFs launched in the past year. Excluding Bitcoin ETFs, Ethereum ETFs performed exceptionally well, with several making it to the top ranks.

Investment Strategies and Portfolio Diversification

Matt Hougan from Bitwise believes that investors will not replace Bitcoin with Ethereum but will hold both. He suggests a portfolio with 60% allocation to Bitcoin ETP, 30% to Ethereum ETP, and 10% to Crypto Equities ETP. This diversification strategy helps investors manage risks and capitalize on the growth potential of both cryptocurrencies.

Market Movers and Flows

The launch of Ethereum ETFs has attracted significant market interest. Some funds experienced inflows, while others saw outflows. For instance, Grayscale saw expected outflows, while Bitwise, Franklin, and 21Shares enjoyed good inflows. Vanguard, a trillion-dollar asset manager, reiterated its stance against offering spot ETH ETFs, similar to its position on Bitcoin ETFs. Vanguard prefers traditional investments like cash, bonds, and equities.

Technical Analysis and Price Action

On the day of the ETF launch, Ethereum (ETH) was trading around $3,460, down about 1%. Despite the launch, Ethereum’s price remained stable, with bulls and bears battling for control. The 24-hour liquidation for ETH was around $32.04 million, with long and short liquidations accounting for 60% and 40%, respectively.

Ethereum could see a price movement similar to Bitcoin’s post-ETF launch. Bitcoin experienced a brief decline before rebounding above its previous levels. Ethereum might follow this pattern, with current price action suggesting a potential rebound. Key support for Ethereum is at $3,205, which could ignite a recovery if tested.

Options Trading and Implied Volatility

Ethereum options implied volatility (IV) increased from 60% to 80% after the ETF launch. Many traders bought long-dated call contracts, betting on a bullish reversal in the long term. This rise in implied volatility indicates strong interest in Ethereum’s future price movements and suggests that traders are optimistic about its potential.

Ethereum ETFs Performance Comparison

Ethereum ETFs have performed exceptionally well compared to other ETFs launched in the past year. Excluding Bitcoin ETFs, Ethereum ETFs like ETHA, FETH, and ETHW ranked among the top in terms of day-one trading volume. This strong performance highlights the growing interest in Ethereum as an investment and the potential for these ETFs to attract significant inflows.

Market Outlook and Future Trends

The impressive launch of Ethereum ETFs sets the stage for future growth and adoption. As more investors become aware of these products, the inflows are expected to increase. Analysts and investors will closely watch the net inflows at the end of the first trading day, as this will provide crucial insights into market sentiment and the potential direction of Ethereum’s price.

Ethereum’s price could see a brief decline similar to Bitcoin’s post-ETF launch before potentially rebounding. The ongoing battle between bulls and bears will determine the short-term direction, while long-term trends will be influenced by factors like ETF inflows, market sentiment, and broader economic conditions.

Conclusion

The launch of Ethereum ETFs marks a significant milestone for the cryptocurrency market. With a trading volume of over $1 billion on the first day, these ETFs have demonstrated strong market interest and potential for growth. Analysts like Eric Balchunas and Matt Hougan provide valuable insights into the performance and future prospects of Ethereum ETFs. Investors are likely to include both Ethereum and Bitcoin in their portfolios for diversification, as recommended by experts.

As the market continues to evolve, the performance of Ethereum ETFs will be closely watched. The successful launch and strong trading volume are promising signs for the future of Ethereum as an investment. With the potential for further inflows and price movements, Ethereum ETFs could play a crucial role in the cryptocurrency market.

Investors and analysts will need to stay informed about the latest developments and trends in the Ethereum ETF market to make well-informed decisions. The strong performance of Ethereum ETFs compared to other recent ETF launches indicates a growing interest in cryptocurrency investments and a positive outlook for the future.

In summary, the launch of Ethereum ETFs with a $1 billion trading volume on the first day is a remarkable achievement. This event highlights the increasing acceptance and adoption of cryptocurrencies in traditional financial markets. As Ethereum ETFs continue to gain traction, they could significantly impact the overall market dynamics and offer new opportunities for investors.

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