Today’s edition is brought to you by Incogni.
GM to all you crypto nuts. Crypto Nutshell #370 uncoverin’ the truth.. 🕵️🥜
We’re the crypto newsletter that’s more magical than a mysterious chocolate factory tour... 🍫🏭
What we’ve cooked up for you today…
🏦 VanEck makes a big move - Solana ETF
📈 This has been a game changer
🤔 What’s going on with long-term holders?
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:15am ET
Only the top 20 coins measured by market cap feature in this section
VANECK MAKES A BIG MOVE 🏦
BREAKING: Bitcoin ETF issuer VanEck files for Solana ETF in the US
Big news! 🚨
VanEck has filed for a Solana ETF.
It’s the first Solana ETF application in the United States.
Matthew Sigel, head of digital assets at VanEck made the announcement on Twitter.
In his post, Sigel outlined why VanEck believes Solana is a commodity and should have an ETF:
“We believe the native token, SOL, functions similarly to other digital commodities such as Bitcoin and Ether. It is utilized to pay for transaction fees and computational services on the blockchain. Like ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions.”
Continuing on, Sigel explained:
“SOL’s decentralized nature, high utility, and economic feasibility align with the characteristics of other established digital commodities, reinforcing our belief that SOL may be a valuable commodity with use cases for investors, builders, and entrepreneurs looking for alternatives to the duopoly app stores.”
A Solana ETF makes too much sense when you think about it…
But the big question is, will it be approved? 🤔
Well, since Ethereum was deemed a commodity and approved, we don’t see any reason why Solana shouldn’t get approved as well… (at the end of the day they do share many similarities)
But according to analysts, it’s very unlikely to be approved this year.
ETF analyst Eric Balchunas thinks there’s a chance of approval if we see a change over in staff at the SEC. (after the election)
ETF analyst James Seyffart believes that this Solana ETF only has a chance of approval in 2025.
“First SOL ETF filing in the U.S. Will be interesting to see if other issuers immediately follow suit. Early thoughts are that this only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC. Even then not guaranteed.”
And as you’d expect, the price of Solana shot up from $139 to $147 immediately as this news broke:
Big things are cooking for the crypto industry.
As always, we’ll keep you posted on any major developments.
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THIS HAS BEEN A GAME CHANGER 📈
The approval of the Bitcoin ETFs was perhaps one of the biggest developments in the history of Bitcoin.
That’s the latest out from Dan Tapiero.
For those of you who don’t know Dan Tapiero, he’s:
CEO & CIO at 1RoundTable Partners and 10T Holdings - a growth equity fund focused on digital asset
Co-founder of Gold Bullion International (GBI)
30+ years of experience in macro and commodity investing
In his latest interview, Dan recounted how the crypto industry has completely changed over the last year.
And it all starts with Larry Fink…
Larry Fink 2017 vs 2023
Larry Fink switching stances on Bitcoin was a HUGE moment for the industry.
Finally the ETFs could launch.
(BlackRock doesn’t lose when it comes to getting ETFs approved)
“January 11th, those ETFs came out. And that’s really been a game changer. It basically onboarded $50 - $100 trillion of available capital through equity accounts and brokerage accounts to Bitcoin.”
Previously to buy Bitcoin you needed to setup an exchange account on something like Coinbase.
And if you wanted to go down the cold storage route, things got even more complicated.
And not everyone was comfortable with that.
Especially the 60+ crowd…
But the majority of these older investors have stock brokerage accounts, meaning they can now purchase Bitcoin with the push of a button.
That was a BIG turning point for the industry - Bitcoin has now become accessible to basically everyone.
Dan then speaks on how he’s seen this shift through his firsthand experience:
“We have never marketed our funds ($1.4 billion AUM) directly to US institutions. And for the first time since launching, New York based financial institutions are interested in talking to me about what we do.”
The institutions now get Bitcoin and crypto.
They get the ETFs.
But will we see ETFs for other digital assets like Solana?
Here’s what Dan has to say:
“Bitcoin and Ethereum are established assets, they are core assets… An Ethereum ETF is a big part of the future. The other cryptocurrencies are more ‘venture’ projects, more speculative. Solana is moving towards becoming a core asset - but it’s not there yet.”
Now that Bitcoin and Ethereum have been approved for ETFs, everyone has shifted their attention towards Solana.
And we have seen some movement on this front. (VanEck’s Solana ETF application as discussed earlier)
3iQ Corp also recently filed for a Solana ETF in Canada.
As it stands, no Solana based ETF has been approved in North America.
“I’m very bullish when the slowest part of our world, this US institutional world, they’re starting to pickup interest and i’m seeing it first hand.”
Closing out the interview, Dan gave a useful piece of advice for this bull run.
And it’s very simple:
“The worst thing you can do in this space is attempt to trade it… Or, you can sit back and do what I think you should do. Own Bitcoin, own Ethereum on a 10 year hold and walk away.”
That’s all there is to it.
Buy your crypto and walk away. 😎
WHAT’S GOING ON WITH LONG-TERM HOLDERS? 🤔
Time for a check in on one of our favourite charts.
The supply last active 1+ years ago metric is super simple to understand and extremely useful.
It categorises coins based on how long it’s been since they last moved on-chain. (as a percentage of the circulating supply)
Metrics rising: long-term holders are accumulating coins 📈
Metrics declining: long-term holders are selling coins 📉
Taking a look at the chart below you’ll notice significant dips in these metrics when Bitcoin reaches new all-time highs. (especially with the 1+ year age band)
Here’s the breakdown for each cohort (compared to what it was 2 weeks ago):
🔴 Supply last active 1+ years ago: 65.31% (down from 65.37%)
🟠 Supply last active 2+ years ago: 54.19% (no change)
🟢 Supply last active 3+ years ago: 45.99% (down from 46.13%)
🔵 Supply last active 5+ years ago: 30.63% (up from 30.53%)
Over the last two weeks, the 1+ and 3+ ages bands experienced slight decreases.
But the 5+ age band saw minor increases.
Whereas the 2+ age band interestingly saw no change.
During bull markets we expect some form of selling from long-term holders.
It’s only natural to take profits eventually…
And that’s what we’ve been seeing from the 1+ year age band.
However, looking at the chart above, selling from the 1+ year age band has began slowing down.
We only have to worry about this metric if we start seeing continuous selling from LTH’s - that signals a market top is forming.
All in all, long-term holders still have an extremely high conviction in Bitcoin.
Just take a look at the 3+ and 5+ age bands.
They’ve basically only ever trended upwards.
CRACKING CRYPTO 🥜
Marathon Digital diversifies revenue by mining Kaspa, aims for 16% global hash rate. Discover how Marathon Digital is diversifying revenue by mining Kaspa, a high-profitability blockchain network.
Spot Solana ETF might 9x the price of SOL. Solana’s price could increase by nearly nine times should the SEC allow the trading of a spot Solana ETF.
Crypto Unmentioned at First 2024 U.S Presidential Debate. The crypto industry hoped for a question about regulatory or related issues, but the lengthy debate focused on other matters.
Coinbase sues SEC, FDIC over FOIA requests, says federal regulators trying to cut out crypto. Coinbase filed lawsuits against the SEC and FDIC for not complying with FOIA, and has asked a court to force those agencies to comply.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
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Raremints (link) - Daily crypto news
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The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
Wild Golf (link) - Twice weekly Golf insights & tips
The Neuron (link) - AI trends and tools to keep you ahead
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”)
What is "Mining" in Bitcoin?
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: A) The process of confirming transactions and adding them to the blockchain 🥳
Bitcoin mining refers to the process where a global network of computers running the Bitcoin code work to ensure that transactions are legitimate and added correctly to the cryptocurrency's blockchain.
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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.