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PLUS: BlackRock ETFs, will there be more?
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What we’ve cooked up for you today…
👨⚖️ SEC targets Uniswap
🤔 Will there be other ETFs?
🚂 Plenty of steam left
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:15am ET
Only the top 20 coins measured by market cap feature in this section
SEC TARGETS UNISWAP 👨⚖️
BREAKING: SEC issues Wells notice against Uniswap over securities laws issues
The SEC has issued a Wells notice to decentralised exchange Uniswap.
Ouch. 🤕
Uniswap’s founder, Hayden Adams, posted the following to Twitter:
A Wells notice is the SEC’s preliminary announcement that it intends to pursue legal action (lawsuit) against an entity.
But the notice does give the recipient an opportunity to provide reasons as to why legal action should not be taken.
This is pretty similar to what the SEC has done in the past with Coinbase and Binance.
Uniswap’s Chief Legal Officer Marvin Ammori commented on the situation:
“If the SEC had authority over our self-custodial, non-intermediated products, it could tell us how to register them. It can't and so it doesn't. It has provided no clarity and no guidance – as several SEC commissioners have stated in multiple dissents.
It’s the same story we’ve seen time and time again.
The SEC is taking legal action for rules that don’t even exist. (or are unclear)
Everyone just wants regulatory clarity for the digital asset industry.
Why is that so hard for the SEC?
Unfortunately, Uniswap’s token (UNI) fell ~15.8% off the back of this news.
Hitting it’s lowest price since late February.
Hayden Adams also mentioned that legal proceedings like these could take years to resolve.
However Uniswap is prepared to fight, even if that means going to the Supreme court.
As Uniswap is the largest decentralised exchange on Ethereum, this most likely doesn’t bode well for an Ethereum ETF approval in May…
We’ll keep you updated on any further developments.
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WILL THERE BE OTHER ETFS? 🤔
Bitcoin is the number one focus.
There’s very little interest in anything else.
That’s the latest out from Robert Mitchnick.
For those of you who don’t know Robert, he’s the Head of Digital Assets at BlackRock.
He’s also known on the streets as the man that orange-pilled Larry Fink. 👏
Speaking at Bitcoin Investor Day, Robert gave some unique insights into the Bitcoin ETFs.
The number one question on everyones mind, now that the Bitcoin ETFs have been approved, is will we see other digital asset ETFs?
(Besides Ethereum)
This was Robert’s response:
“For our client base, Bitcoin is overwhelmingly their number one focus, a little bit in Ethereum and very, very little everything else.”
Robert was even asked about an ETF for popular memecoin DogWifHat.
“Crypto Twitter would love to believe that a DogWifHat ETF is coming next, I actually don’t know what DogWifHat even is.”
The reasoning behind this is simple.
Let’s take a look at the current market dominance for the three most popular cryptocurrencies:
Bitcoin: 54%
Ethereum: 17%
Solana: 3%
Besides Ethereum, all other digital assets are tiny. (in relative market cap)
Continuing on, Robert explained why we aren’t going to see ETFs for these smaller cryptocurrencies (at least in the short-term):
“There’s just worlds apart there in terms of track record, liquidity, product market fit, investor narrative, clarity, all these things. There’s some misplaced speculation that theres going to be a long-tail of others [ETFs] from us and thats really not where we are focused.”
So besides Ethereum, which we know is coming (BlackRock doesn’t take L’s), it doesn’t look like we’ll be seeing a Solana, XRP or any other crypto ETF anytime soon.
Plan accordingly. ✍️
PLENTY OF STEAM LEFT 🚂
Time for a check in on the MVRV Z-Score.
This metric compares the market value to the realized value.
Market Value (Market cap): current price of Bitcoin multiplied by the circulating supply
Realized Value: the value of all coins at the price they were last moved
A market top (red zone) is categorised by market value being significantly higher than the realized value.
A market bottom (green zone) is categorised by market value being significantly lower than the realized value. (also the best time to scoop up cheap Bitcoin)
This metric provides a nice visual of where we currently are in the cycle.
Since the cycle bottom in November 2022, MVRV has been rallying. With some dips along the way of course.
Currently it’s at 2.78 (Two weeks ago it was at 2.80)
But what exactly does this mean?
Well, even though Bitcoin is trading around its all-time high.
It’s still in-between the green and red zones. (and trending upwards)
Which indicates that this bull run still has plenty of steam left. 🚂
(Based on this metric, we’re almost at the mid-point of the cycle)
CRACKING CRYPTO 🥜
Independent financial advisors start disclosing Bitcoin exposure via ETFs. Two financial advisors disclosed investments in spot Bitcoin ETFs on April 9.
SEC issues Wells notice to DeFi protocol Uniswap. The decentralized exchange becomes the latest crypto project to receive the SEC notice.
This Bitcoin halving will be different — the institutions are here. The fourth Bitcoin halving will be unlike any other that came before: Professional investors have entered crypto.
Hong Kong's Incoming Spot Bitcoin ETFs Could Be 'Big Deal.' Here's What Analysts Say. Massive demand for a China-listed gold ETF sent its premium soaring to 30% earlier this week.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE
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 often is Bitcoin's mining difficulty adjusted? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: A) Every two weeks 🥳
The difficulty is adjusted every 2016 blocks based on the time it took to find the previous 2016 blocks. At 10 minutes per block, this comes out to every two weeks.
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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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