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- 🥜 Reasons to be seriously bullish on Ethereum
🥜 Reasons to be seriously bullish on Ethereum
PLUS: ETFs ready to launch
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We’re the crypto newsletter that’s more mysterious than exploring an eerie town with dark secrets... 🌌🔦
What we’ve cooked up for you today…
🏦 Ethereum ETFs almost here
💨 Ethereum tailwinds
📈 It keeps getting better for Ethereum
💰 And more…
MARKET WATCH ⚖️
Prices as at 7:55am ET
Only the top 20 coins measured by market cap feature in this section
ETHEREUM ETFs ALMOST HERE 🏦
BREAKING: Asset managers update proposals for Ether ETFs, eyeing July launch
Here we go.
All asset managers have now submitted their updated Ethereum ETF S-1 filings.
This is the final missing piece of the puzzle.
Once these are approved, it’s game on. 👏
The Ethereum ETFs can finally begin trading.
The biggest thing to come out of these S-1 filings were the fees for VanEck and Franklin Templeton being revealed.
VanEck: 0.20%
Franklin Templeton: 0.19%
Nate Geraci, president of ETFStore still believes that the Ethereum ETFs could launch before July 4th.
“based on Bitwise filing yesterday, doesn’t look like anything noteworthy left for SEC to address/comment on. I’m still going w/ launch before July 4th.”
All we can do now is sit and wait.
The ball is in the SEC’s court.
Stay tuned, we’ll keep you updated on any major developments.
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ETHEREUM TAILWINDS 💨
In a recent Twitter post, Matt Hougan broke down some significant tail winds coming up for Ethereum in the second half 2024.
And when you lay it out like this…
It’s hard not to be extremely bullish…
Matt Hougan is the Chief Investment Officer at Bitwise, the 4th largest Bitcoin ETF issuer.
Here’s 3 tailwinds he laid out:
Significant New Demand
The launch of the Bitcoin ETFs was by far the most successful ETF launch of all time.
BlackRock’s IBIT was the fastest ETF ever to reach $20 billion in assets (137 days)
That is ridiculous.
Ethereum is currently 1/3 the size of Bitcoin (in terms of market cap).
It’s not unreasonable to think that the launch of the Ethereum ETFs will also be insanely successful.
A fresh wave of demand is coming for Ethereum. 🌊
Improved Regulatory Clarity
The approval of the Ethereum ETFs also made on thing clear:
Ethereum is now a commodity.
This was also backed up by the SEC dropping its lawsuit against Consensys (company behind MetaMask) over Ethereum’s security status.
And previously, regulatory uncertainty surrounding Ethereum has held professional investors back from getting involved.
Now things are changing…
Ethereum Network Activity
Ethereum’s recent Dencun upgrade has seemingly gone under the radar.
This upgrade drastically reduced the transaction fees for Ethereum Layer 2 solutions.
Layer 2s are seperate blockchains built on top of Ethereum that reduce transaction fees and increase transaction speed.
(addressing Ethereum’s two biggest complaints)
The most notable ones being Polygon, Base, Arbitrum and Optimism.
The rise of Layer 2’s has seen the amount of Ethereum network transactions increase by over 84.65% since last year.
Ethereum’s set up for the second half of the year is seriously solid.
But it get’s even better.
In the next section we’ll be breaking down Ethereum’s supply dynamics.
(spoiler alert: they are also insanely bullish)
IT KEEPS GETTING BETTER FOR ETH 📈
Continuing this talk on Ethereum, let’s take a look at the current supply dynamics.
One of Ethereum’s core features is it’s token burning mechanism.
When interacting with the Ethereum blockchain, users are required to pay a base fee. This base fee is then “burnt”, meaning it is permanently removed from the supply.
As of today 5,722,384 ETH have been burnt.
That’s over $20 billion at todays prices.
Due to this burning mechanism, the circulating supply has decreased over the last 2 years.
The chart below shows Ethereum’s circulating supply since The Merge.
Currently it’s at 119,826,862 ETH and depreciating at a rate of -0.164% per year.
Although you may notice that the circulating supply has been increasing since April this year.
But as discussed earlier, activity on the Ethereum network has been picking up due to the rise of Layer 2’s.
So on a long enough time frame, we can expect to see the circulating supply continue decreasing.
But here’s where it gets even better.
Another one of Ethereum’s core features is its ability to be staked.
This means users can “lock” it up and earn rewards for securing the network.
(A major benefit Ethereum has over Bitcoin)
To learn more about how staking works, click here.
As of today 46,687,005 ETH has been locked for staking. (that’s an all-time high by the way)
And, that’s also ~38.96% of the circulating supply.
A testament to the long-term conviction in Ethereum from it’s holders.
Here’s the main takeaway from all of this data:
Ethereum’s supply side dynamics are insanely good
Circulating Supply: 119,826,862 ETH
Ethereum Staked: 46,687,005 ETH (~38.96% of the circulating supply)
Exchange Balances: 12,253,958 ETH (~10.23% of the circulating supply)
We’ll say it again…
It’s hard not to be EXTREMELY bullish on Ethereum right now. 🐂
And the ETFs are just around the corner…
CRACKING CRYPTO 🥜
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Ripple CEO faces trial over alleged 'misleading statements' in 2017 interview. A judge has decided civil securities charges alleging Ripple CEO Brad Garlinghouse made "misleading statements" will go to trial.
WHAT WE’RE READING 📚
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