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- 🥜 Don't sleep on Ethereum
🥜 Don't sleep on Ethereum
PLUS: Charles Schwab to join the race?
GM to all 42,274 of you. Crypto Nutshell #219 hoppin’ by. 🐸 🥜
We’re the crypto newsletter that's as heartwarming as a group of penguins finding love and family in the icy Antarctic landscape... 🐧 ❤️
What we’ve cooked up for you today…
🤔 Who’s donating to the ETFs?
🗝️ $7 Trillion about to be unlocked
👀 All eyes are on Ethereum
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:25am ET
Only the top 20 coins measured by market cap feature in this section
WHO’S DONATING TO THE ETFs? 🤔
BREAKING: Bitwise executive confirms ETF received over $400 of unsolicited Bitcoin
Two days ago we covered the bizarre phenomenon of people donating Bitcoin to Bitwise’s ETF address.
However we were left with more questions than answers. (we’re still unsure why anyone would do this?)
Until today.
CTO and Co-founder Hong Kim came forward to clarify how this works.
The short answer: donations simply increase the value of the ETF.
“[It’s] negligible compared to the [fund’s assets under management] (~$511 million as of yesterday) but those sats are added to [net asset value] and accrue to the benefit of shareholders.”
Bitwise received 0.00998085 BTC worth ~$420 over two days.
Still, no one knows the reasons for these donations.
The most likely answer is “for the hell of it”. 😂
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$7 TRILLION ABOUT TO BE UNLOCKED 🗝️
In the world of asset managers, BlackRock is top dog.
They have $9.4 trillion dollars under management.
However, not far behind is Charles Schwab.
They have $7.3 trillion under management.
And ETF analysts believe they are about to join the Bitcoin race.
With 11 spot Bitcoin ETFs launching, there were 2 notable exceptions:
Vanguard - who outright banned access to the Bitcoin ETFs on their platform
Charles Schwab - who chose to sit & watch from the sidelines
However, Bloomberg ETF analyst, Eric Balchunas, believes that’s about to change.
Balchunas believes Charles Schwab is going to launch their own Bitcoin ETF, using their scale & offering extremely low fees.
“They may shock the world and offer something that is 10-basis-points in a few months.”
Another ETF analyst, Nate Geraci, agrees.
It all comes down to competition.
Charles Schwab’s biggest rival is Fidelity. Schwab is well aware of how much money Fidelity will be generating via fees from their newly launched Bitcoin ETFs.
They want a slice of the pie. 🥧
“Simply put… Schwab is not gonna sit around & let Fidelity control the crypto narrative. Period. Too much $$$ at stake with these brokerage platforms.”
Charles Schwab joining the Bitcoin push is another major catalyst we could see play out in 2024.
Another $7+ trillion unlocked for Bitcoin.
Analysts think it’s going to happen sooner rather than later.
We’ll keep you updated with any developments. 🫡
ALL EYES ARE ON ETHEREUM 👀
As soon as the Bitcoin ETFs were approved, all eyes shifted towards Ethereum.
2023 was a great year for Bitcoin. (was also a good year for Ethereum, just not as good.)
But today we’ve got some interesting charts to show you.
These charts indicate that 2024 may be the year of Ethereum…
Kicking things off, the chart below shows the ETH/BTC Ratio.
Interestingly, the ETH/BTC ratio surged 20.7% following the approval of the Bitcoin ETFs. The strongest performance since late 2022 on a quarterly, monthly and weekly basis.
(An improving ETH / BTC ratio indicates that Ethereum’s price performance is stronger than Bitcoin)
This performance also coincided with a small increase in Ethereum’s market cap dominance.
Here’s the stats as they currently stand:
Bitcoin: 73.2%
Ethereum: 26.8% (up 2.9% since the Bitcoin ETF approval)
With Ethereum’s recent price performance, it’s only natural that some investors locked in profits. 🤑
Profit taking reached a peak of over $900 million a day on the 13th of January.
This was the highest level of profit taking we’ve seen since early 2022.
Since the price didn’t drastically crash, buy-side demand is clearly strong enough to absorb this selling.
Here’s where it gets juicy though.
Ethereum’s Short Term Holder Net Unrealized Profit / Loss has crossed above 0.25 for the first time since the November 2021 all-time high.
This suggests that optimism has returned to the market.
Ethereum’s recent price performance relative to Bitcoin is looking great.
All indicators are pointing towards an imminent uptrend.
Don’t sleep on Ethereum. 😴
CRACKING CRYPTO 🥜
Bitwise executive confirms ETF received $400 of unsolicited Bitcoin. A top Bitwise executive acknowledged on Jan. 26 that his firm’s spot Bitcoin ETF has received hundreds of dollars of unsolicited Bitcoin.
Bitcoin bounces even as ETF outflows mount. Analysts are cautiously optimistic that bitcoin’s ETF-driven selloff could be easing even as outflows continue, mostly from GBTC.
Tesla missed out on $300M profit after Bitcoin sales. Elon Musk’s auto company has liquidated 70% of its Bitcoin portfolio, which wasn’t a great move in retrospect.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
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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”)
When is the next Bitcoin halving scheduled to take place? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) April 2024 🥳
The next Bitcoin halving will occur when the number of blocks reaches 840,000 in April 2024. The reward per block will decrease from 6.25 to 3.125 BTC at that time.
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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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