0
0
Daily Brief

All Eyes on Bitcoin

Weekly recap: Waiting for spot ether ETFs, Arbitrum's revenge.
0
0
Jan 6, 20246 min read
All Eyes on Bitcoin
Published on Jan 6, 2023
View in Browser

Sponsor: Kraken — Sign up for an account and see what crypto can be.

.  .  .
THIS WEEK IN MARKETS
What's Next for BTC?

📊 Pins and needles. All eyes are on Bitcoin, with spot ETF approval slated for next week. Despite a healthy 10% mid-week correction, BTC is finishing the week off strong, up 3.8%! Where does BTC go from here?

Prices as of 10am ET 24hr 7d
Crypto $1.65T ↘ 0.1% 0.0%
BTC $43,835 ↗ 0.5% ↗ 3.8%
ETH $2,242 ↗ 0.4% ↘ 2.5%
.  .  .
WEEKLY RECAP
ETF Rumor Roller Coaster

1️⃣ Will the spot BTC ETF get approved?

It's in the SEC's hands now. The final filings are in, and Crypto Twitter is expecting a euphoric next week with multiple approvals. The confidence was tested throughout the week as the market dealt with mixed signals and crossed timelines.

The biggest shock was a report from the analytics firm Matrixport signaling that spot ETF applications were unlikely to be approved. The report's wide release was believed by some to have triggered a crypto selloff that momentarily gave crypto one of its worst single-day declines in more than a year.

But as news emerged Friday of continued negotiations between applicants and the SEC, the broader consensus shifted towards optimism, believing that the SEC has been boxed into a corner and will have to ship some approvals early next week. We shall see!

2️⃣ What about the spot ether ETF?

Amid all of the Bitcoin ETF chatter, there have been whispers about whether its approval would mean that a spot ETH ETF is inevitable as well. There are some mixed signals here, too.

This week, Bloomberg ETF analyst James Seyffart said that spot ETH ETF approval was still likely this year since the SEC had basically accepted ETH as a commodity by approving the ETH futures ETF.

But the approval situations are still quite different, according to industry insiders.

From The Block:

A high-placed executive at an issuer claimed that the notion of a spot ether ETF is still up in the air... The source said that the SEC's approval of futures-based bitcoin ETFs forced its hand to eventually approve a spot fund. This is because the agency disapproved previous proposals based on price manipulation, which issuers for a spot fund were able to address. It also provided a legal basis to fight for a spot fund, which was evident in Grayscale’s fight with the SEC.

As for ETH, the SEC hasn’t provided disapproval for such a fund and thereby has not back itself into a corner.

3️⃣ Solana NFTs beat out ETH's Dec volumes

ETH's relative underperformance to SOL in this bull run is being felt by NFT traders in those ecosystems, too.

Solana NFT trading saw more volume in December compared to NFTs on Ethereum, according to CryptoSlam, with $366.5 million versus $353.2 million. These numbers filtered out transactions flagged as "wash trading" by the analytics platform.

This volume flippening comes as NFT traders also have begun more earnestly chasing volumes on Bitcoin Ordinals.

4️⃣ Arbitrum's revenge

While Arbitrum spent much of 2023 playing second fiddle to Optimism narratives around the Superchain, the network has been on a tear over the past month, amassing TVL and seeing its native token reach new ATHs.

Arbitrum crossed the $2.5 billion TVL marker this week, and its native token ARB hit a new all-time high at $2.08 before retracing some of those gains on Friday. The token is currently trading at a $17.7 billion FDV.

5️⃣ Celestia's TIA keeps climbing

Celestia continues to be one of the hottest networks in crypto. Despite a mixed week for most native tokens, TIA is up nearly 30% on the week as traders continue to ape into Cosmos ecosystem tokens and other tokens that fit the "modular blockchain" narrative.

Stay tuned to the Daily Brief next week, where we'll have a guide on staking TIA!


FRIEND & SPONSOR: KRAKEN

Kraken is one of the largest and most secure crypto platforms in the world. They've been in the crypto game for over a decade, and now they're inviting us all on a journey to see what crypto can be.

.  .  .
GET CAUGHT UP
What We Published

📰 Articles:

2024 Crypto Metas on Bankless
6 metas that may dominate crypto in 2024!
Where Bitcoin Goes Next on Bankless
It’s a new bull market for Bitcoin, but some big questions remain!
David’s 2024 Predictions on Bankless
My top 5 predictions for crypto this year
Bankless Review: Drift on Bankless
We go hands-on with the Solana’s top trading hub

📺 Shows:

ROLLUP: Bitcoin ETF Rumors | IRS Tax Rules | Ethereum Dencun on Bankless
Bankless Weekly Rollup First Week of 2024
2024 Crypto Investment Themes on Bankless
Welcome back to Bankless Takes! This week, the first week of 2024… we have 6 Predictions for the major investment themes ahead for this year.
203 - ETH in 2024 on Bankless
Where does Ethereum go from here? What does 2024 have in store for ETH the asset and Ethereum the network?
.  .  .
GO BANKLESS
Earn Airdrops!

Many Bankless Citizens who completed the Jito quests in our Airdrop Hunter app just earned $10k+ airdrop paydays!

It's airdrop season and plenty of other protocols are preparing to reward early users. Get on their lists. Start hunting!

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Account Light mode Log Out