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- 🥜 The floodgates are open
🥜 The floodgates are open
PLUS: Ethereum ETF breakdown
Today’s edition is brought to you by Incogni.
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We’re the crypto newsletter that’s more riveting than a group of rebels fighting against a dystopian government... 🎭🔥
What we’ve cooked up for you today…
🤔 What’s next?
📈 Ethereum ETF breakdown
🪙 Checking in on stablecoins
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:00am ET
Only the top 20 coins measured by market cap feature in this section
WHAT’S NEXT? 🤔
BREAKING: SOL, XRP Could Be Possible Candidates for ETFs, Standard Chartered Says
Now that we have the Bitcoin and Ethereum ETFs, that begs the question:
What comes next?
Well according to multinational bank Standard Chartered, Solana and XRP are next in line.
BUT…
We likely won’t see them until 2025.
Geoffrey Kendrick, head of crypto research at Standard Chartered had this to say:
“For other coins (eg. SOL, XRP) markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story not a 2024 one,”
Since the SEC didn’t deem ETH a security, it’s they will eventually approve Solana and XRP ETFs.
Kendrick explains that the core technology of other cryptocurrencies is so similar to Ethereum that it would be difficult for the SEC to argue against them.
“Other ETH-like coins (a number of which the SEC claimed were securities in the 2023 XRP case) are also not securities… In several cases the core technology is so similar to ETH it would be difficult for the SEC to claim they were securities given the ETH position.”
The SEC may have just opened the floodgates to a whole bunch of crypto currency based ETFs…
How far does it go?
Will we see memecoin ETFs?
Your guess is as good as ours.
However, Solana and XRP ETFs do somewhat make sense.
Only time will tell. ⏳
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ETHEREUM ETF BREAKDOWN 📈
Yesterday the Ethereum ETFs were approved.
That’s a BIG deal.
But it may be months before we actually see them begin trading…
That’s the latest message out from James Seyffart.
In his latest interview, James Seyffart broke down the recent approval of the Ethereum ETFs.
BUT, on May 17 James posted the following tweet:
And just 6 days later the Ethereum ETFs were approved. 🤔
What happened?
Was this completely unexpected?
Here’s what James had to say on the approval:
“It’s the political winds, it has to be. People are trying to say this was always the case, that’s not what happened here. This is a complete shift… The Dem’s basically decided we can’t go this way.”
So… The SEC is supposed to be neutral when it comes to politics…
But Seyffart believes the approval of the Ethereum ETFs was politically motivated.
The last few weeks has seen crypto become a hot topic in congress:
Seyffart believes that the Democrats now realise that betting against crypto will harm their election hopes.
“Do I think the Dems are going to come around and be completely pro crypto? Absolutely not. Are they going to be as staunchly against? I don’t think so. This is a tide shift.”
Even though the Ethereum ETFs were approved on May 23rd, that doesn’t mean they can instantly begin trading.
The SEC still has to approve the S-1 filings.
And these S-1 filings are often hundreds of pages long…
“This is not something that is going to happen overnight. If they really want to accelerate it, the gap between the 19b-4 and S-1 approval could be weeks. But there are plenty of examples of this taking months... I think they’ll be faster than that.”
Seyffart also spoke on the amount of flows we can expect for these ETFs once they launch:
“I think the number of flows that are going to come into these Ethereum ETFs are probably going to be something like 20% of the flows that went into Bitcoin.”
The Bitcoin ETFs have been live for ~4 months.
And in those 4 months they’ve seen net inflows of ~$13.4 billion.
20% of that would be roughly $2.68 billion.
$2.68 billion in net inflows over the first 4 months may sound a little underwhelming…
But we have to remember the launch of the Bitcoin ETFs was ridiculous.
They literally broke every single record for an ETF launch ever.
$2.68 billion in net inflows after a few months of trading would still be a super successful ETF launch.
(the gold ETFs saw ~$1.6 billion in net inflows after 2 years of trading)
Fingers crossed James is right and they begin trading within the next couple of weeks. 🤞
CHECKING IN ON STABLECOINS 🪙
Let’s take a look at the stablecoin supply.
Stablecoin’s play an important role in the wider crypto market. They are often used on centralized and decentralized exchanges to purchase other digital assets.
By taking a look at the stablecoin market, we can gauge the demand for digital assets.
The chart below tracks the aggregate change in the total stablecoin market cap.
🟢 Increased stablecoin supply: increased demand and capital inflows into the digital asset space 🐂
🔴 Contractions in stablecoin supply: net capital outflows from digital assets 🐻
When we checked in on this metric two weeks ago, the stablecoin market cap was ~$149.93 billion.
Today the aggregate stablecoin market cap is ~$150.53 billion. 📈
And it’s been growing every single week since October 2023.
In fact, right now it’s only ~$12 billion short of surpassing it’s all-time high.
Every week, liquidity continues to pour back into the crypto industry.
This metric tells us one thing…
Demand continues to increase. 😎
CRACKING CRYPTO 🥜
Why staking was removed from Ethereum ETFs to get SEC approval. SEC's regulatory crackdown influences ETF issuers to exclude staking from proposals amid compliance concerns.
Ethereum lacks a 'simple one-liner' elevator pitch for boomers. Ethereum needs that “easy-to-understand” sound bite that will attract the baby boomer generation, suggests Eric Balchunas.
Kabosu, Dog Who Inspired Dogecoin and Shiba Inu, Is No More. A farewell party for the popular dog will be held on Sunday in a Narita city park.
Crypto custodians should learn from TradFi. Right now, crypto platforms and custody services live in the shadow of a legacy of security failures — and it shouldn’t be that way.
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”)
How much did Beeple's record breaking NFT sell for? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) $69 million 🥳
Beeple, sold “Everydays: The First 5000 Days,” an NFT-linked digital collage at Christie's for $69 million.
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