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- 🥜 Ethereum Explodes - Here's Why
🥜 Ethereum Explodes - Here's Why
PLUS: Bitcoin Supply Dynamics
GM to all 18,084 of you. Crypto Nutshell #140 comin’ at ya. 🎯 🥜
We’re the crypto newsletter that's more explosive than defusing bombs with an elite bomb disposal squad... 💣👨🚀
😲 Ethereum ETFs are coming
☀️ Ethereum’s future is bright
📈 The gap is widening…
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:00am ET
Only the top 20 coins measured by market cap feature in this section
ETHEREUM ETFS ARE COMING 😲
Breaking: BlackRock’s spot Ethereum ETF plan is confirmed after Nasdaq filing
Earlier today, BlackRock registered an Ethereum trust in the US state of Delaware.
This was BIG news.
Back in June, BlackRock similarly registered its Bitcoin trust before filing it's Bitcoin ETF a couple of days later.
And then a couple of hours later, the real BIG news came out.
The BlackRock spot Ethereum ETF application with the SEC was confirmed. BlackRock has officially joined the Ethereum ETF race. 😱
While everyone has been talking about and hyping up the Bitcoin ETFs, Ethereum has gone relatively under the radar (more on this in the next section).
BlackRock and other financial giants clearly have a lot of interest in cryptocurrency…
Bloomberg ETF analyst James Seyffart noted that there are at least five other firms with active ETH ETF applications:
Vaneck
ARK Invest / 21Shares
Hashdex
Invesco
Grayscale (conversion of Ethereum trust to ETF)
Off the back of this news Ethereum is up ~10% over the last 24 hours.
What a day for ETH bulls.🐂 🎉
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ETHEREUM’S FUTURE IS BRIGHT ☀️
Macroeconomic investor Raoul Pal called it.
With BlackRock’s plan to list an Ethereum ETF revealed, Ethereum surged ~10% to over $2,100.
Who ever could have seen this coming?
Raoul Pal did.
2 weeks ago, Raoul did an interview. Here’s what he had to say:
“Everyone's peak Bitcoin versus ETH right now. But then there's the magic of the ETF and people are so predictable. Right now everyone's front running the Bitcoin ETF… The next thing that's going to happen is it'll be the ETH ETF… All of that capital that was front running will just be washed into the ETH trade.”
Right on the money. 👏
Also, don’t say we didn’t warn you…
10 days ago, in our post - Time To Buy Ethereum? ⏰ - here’s what we said:
“All the attention is currently on Bitcoin. Which, ironically, could mean it’s the best moment to invest in Ethereum… We also have a high degree of confidence that another ETF is on the way... The Ethereum spot ETF.”
Here’s another prediction: this Ethereum move is far from over.
An Ethereum ETF is a much more compelling offering to institutions.
Why?
Unlike Bitcoin, Ethereum has a yield.
By owning and staking Ethereum, you can make a yield of ~4%.
Institutions can establish Ethereum ETF’s and pocket this yield, whilst passing on capital returns to investors.
Which means institutions have a strong incentive to promote an ETH ETF as an offering.
But wait… there’s more.
Just like Bitcoin, the supply dynamics of Ethereum have never been better.
Since the Merge, over a year ago, Ethereum has been deflationary.
Pre-Merge, Ethereum was inflating at ~4.09% per year.
Now? It’s deflating at ~0.187% per year.
On top of this, staked Ethereum continues to break all-time highs. Currently over 15% of the supply currently staked.
With supply dynamics never better & institutions making their interest clear, the future of Ethereum is extremely bright. ☀
THE GAP IS WIDENING 📈
Speaking of supply dynamics, something crazy is going on with Bitcoin…
There's been an unprecedented divergence between short and long term holders.
Today we'll be looking at Glassnode’s Long / Short-Term Holder Threshold chart. This chart is super useful for understanding Bitcoin’s supply dynamics.
Here’s how to understand this metric.
🔵 Long-term holders (LTH): The amount of Bitcoin held for longer than 155 days
🔴 Short-term holders (STH): The amount of Bitcoin held for less than 155 days
🟦 Long-term holder threshold
🟥 Short-term holders threshold
Glassnode uses 155 days as the cut-off point between short and long term holders. Statistically, coins that have been held for longer than 155 days typically remain dormant. If you’re interested in diving deeper into the math behind it click here.
All Bitcoin purchased from June 2023 onwards is classified as short-term supply.
As of today:
LTH supply currently at 14.9 million Bitcoin (just under it’s all-time high)
STH supply currently at 2.4 million Bitcoin (all-time low)
This bull run is seriously going to be different. 🐂
Compare the supply dynamics of today to that of the 2020 run up…
The gap between LTHs and STHs has never been this wide.
The Bitcoin supply is growing tighter every single day. Meaning, existing holders are refusing to let go of their coins. 😎
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
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CAN YOU CRACK THIS NUT? ✍️
Another day, another memory test.
Yesterday we looked at Bitcoin’s illiquid supply. How many coins are currently classified as illiquid?
A) 14.6 million
B) 12.1 million
C) 15.4 million
D) 21 million
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) 15.4 million 🥳
It’s pretty crazy that such a large percentage of the Bitcoin supply hasn’t moved in over a year. Checkout the full breakdown here.
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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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