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- 🥜 3 Reasons You Need Ethereum
🥜 3 Reasons You Need Ethereum
PLUS: T-Mobile begins Bitcoin mining
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GM to all you crypto nuts. Crypto Nutshell #360 spreadin’ the love... 🫶🥜
We’re the crypto newsletter that’s more adventurous than a group of misfits on a mission to save the galaxy... 🚀🌌
What we’ve cooked up for you today…
🏦 Here they come
🧠 3 reasons you need Ethereum
😢 The streak is over
💰 And more…
MARKET WATCH ⚖️
Prices as at 8:05am ET
Only the top 20 coins measured by market cap feature in this section
HERE THEY COME 🏦
BREAKING: Telecom Giant and T-Mobile Parent Deutsche Telekom Plans to Mine Bitcoin
Here’s some pretty big news for you…
Telecommunication giant Deutsche Telekom, (parent company of T-Mobile) announced that it has been running a Bitcoin node since 2023.
Speaking at Bitcoin Prague, Dirk Röder Head of web3 infrastructure at T-Mobile had this to say:
“Since 2023, we [have been] running a Bitcoin node and we are running Bitcoin Lightning nodes as well.”
But it doesn’t stop there…
Dirk Röder closed out his presentation with the following:
“With a heart full of… pride, I would like to let you in on a little secret; we will engage in digital monetary photosynthesis soon.”
If you’re like us you’re probably wondering what on earth “digital monetary photosynthesis” even means. 🤨
Well the host also had the exact same question and asked Dirk to clarify:
“Is T-Mobile mining Bitcoin?”
Dirk replied “We will”.
That is HUGE.
T-Mobile is one of the largest US telco’s with a market cap of ~$208 billion.
And now they’ve decided to join the Bitcoin mining game…
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3 REASONS YOU NEED ETHEREUM 🧠
According to analysts, the Ethereum ETFs could launch by July 2nd.
That means investors need to be adding Ethereum to their portfolios now.
That's the latest takeaway out from Matt Hougan.
Matt Hougan is the Chief Investment Officer at Bitwise - the 4th largest Bitcoin ETF issuer.
In his latest investment memo, Hougan broke down 3 reasons why you should consider adding ETH to your portfolio.
Reason #1: Diversification
One of the first lessons every investor learns is to diversify.
Don’t own one stock; own a basket.
The same can be said about crypto.
It’s very hard to know exactly just how crypto will change the world, so the default approach should be to “own the market”.
Here’s how Matt explains it:
“Today, the market cap for ETH, the crypto asset that powers the Ethereum blockchain, is about $420 billion. That’s about one-third the size of Bitcoin’s $1.3 trillion. The starting place should therefore be about 75% Bitcoin and 25% ETH.”
Reason #2: Bitcoin and Ethereum Target Different Use Cases
Bitcoin & Ethereum are not the same.
Bitcoin is the best form of money that has ever existed.
On the other hand, Ethereum makes money programmable.
Two very different use cases.
By having both Bitcoin & Ethereum in your portfolio, you cover all your bases.
“Again, it is early in the crypto revolution. That makes it difficult to know exactly which applications will matter over the long term. Adding ETH to your Bitcoin simply gives you broader exposure to what public blockchains can do.”
Reason #3: Historical Analysis Says You Should
Historically, adding ETH to your portfolio has boosted both absolute and risk-adjusted returns compared to BTC only.
The table below looks at the impact a 5% allocation to crypto has had on a traditional portfolio of 60% stocks and 40% bonds over the past four years, using both a Bitcoin-only and a split 75% BTC / 25% ETH strategy.
The table makes 2 points clear:
Allocating to crypto in general boosted both absolute and risk-adjusted returns
Adding ETH exposure resulted in even higher absolute and risk-adjusted returns
Matt explains:
“You even get a smaller maximum drawdown despite the higher overall returns, thanks to the benefits of diversification.”
We think the writing is on the wall - adding at least some Ethereum to your portfolio is a no-brainer. 🧠
Smaller drawdowns and bigger returns? Count us in.
However - one thing to note is that Bitcoin dipped following the launch of the Bitcoin ETFs.
It then rocketed to new all-time highs. 🚀
We wouldn’t be surprised to see Ethereum follow a similar pattern.
THE STREAK IS OVER 😢
Time for our weekly check in on digital asset fund flows. (globally, not just the US ETFs)
And the inflow streak is over…
Last week saw net outflows of $600 million.
The largest weekly outflow since March 22nd, 2024.
As always, Bitcoin was the focus with $621 million in outflows last week.
Bearish sentiment also resulted in Short-Bitcoin experiencing inflows of $1.8 million. (investors betting the price of Bitcoin will drop)
But unlike Bitcoin, Ethereum saw inflows of $13.1 million.
XRP and Litecoin also experienced inflows of $1.1m & $0.8m respectively.
And you probably saw this coming as well…
The US saw most of the outflows, totalling $565 million for the week.
Switzerland, Sweden and Canada all saw outflows of $23.7m, $14.9m & $14.9m respectively.
Whilst Germany, Australia and Brazil experienced inflows of $17.4m, $1.7m & $0.7m respectively.
Unfortunately, last week wasn’t the greatest for digital asset funds.
CoinShares notes that this weekly outflow was similar to the one seen on March 22, 2024.
A period of sustained inflows followed by the Fed announcing that they are keeping rates the same.
The good news?
The Bitcoin price has been holding up well, considering the flows.
Still within a stones throw of all-time highs. 🪨
CRACKING CRYPTO 🥜
Bitcoin transaction fees will surpass block subsidy predicts Marathon CEO Fred Thiel. Thiel outlines Marathon’s global foray and views on Bitcoin’s economic and political landscape.
Dogecoin, Solana Lead Crypto Majors Plunge as Bitcoin Falls Below $66K. The lack of immediate catalysts to prop up markets in the near-term are likely weighing down token prices, one trader said.
Tether launches gold-backed, US dollar stablecoin Alloy. Tether has introduced a new gold-backed stablecoin pegged to the USD Alloy that will be minted on the Alloy by Tether platform.
VanEck to Launch First Bitcoin ETF on Australian Securities Exchange. After three years of effort, the firm is bringing Bitcoin ETFs to Australia's largest trading exchange on Thursday.
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
Which crypto is currently the 4th largest measured by market cap? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: A) BNB 🥳
BNB is currently the fourth launch crypto with a market cap of ~$89 billion.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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