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GM to all you crypto nuts. Crypto Nutshell #377 feelin’ hopeful… 😇 🥜

We’re the crypto newsletter that's more epic than a journey to Mount Doom to destroy the One Ring... 💍🌋

What we’ve cooked up for you today…

• 📈 Smart money is buying

• 🤔 What about Solana?

• 📉 We’ve been here before

• 💰 And more…

MARKET WATCH ⚖️

Only the top 20 coins measured by market cap feature in this section

SMART MONEY IS BUYING 📈

BREAKING: Spot Bitcoin ETFs see largest inflows in over a month, post-July 4 dip

While all the short-term holders were panic selling, the ETFs stepped up BIG.

July 5th saw the largest net inflow in over a month at $143.1 million.

This was despite $28.6 million in outflows from Grayscale.

Here’s the breakdown:

1. Fidelity FBTC: $117.4 million 🥇

2. Bitwise BITB: $30.2 million 🥈

3. VanEck HODL: $12.8 million 🥉

This was always going to be a test for the ETFs…

Many were speculating that Bitcoin’s first big correction (more on this later) this cycle would see substantial selling from the ETFs.

But that wasn’t the case.

In fact they did the exact opposite.

ETF investors treated this sudden dip as a great buying opportunity.

Sound like institutional investors and large-scale buyers aren’t phased by Bitcoin’s short-term price action…

They’re in it for the long-run.

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WHAT ABOUT SOLANA? 🤔

Now that Ethereum has been approved for an ETF, there’s no reason that we shouldn’t see Solana ETFs in the future.

That’s the latest out from VanEck’s head of digital asset research, Matthew Sigel.

Appearing on Bloomberg, Sigel was asked some questions regarding VanEck’s Solana ETF application.

First up, Sigel made the point that Solana and Ethereum are fundamentally very similar:

With faster transactions and lower fees, Sigel believes that Solana has huge upside potential when compared to Ethereum.

But before the Bitcoin and soon to be Ethereum ETFs launched they had one major advantage.

They both had regulated futures markets.

Solana doesn’t have this… (in the United States)

So many believe that a Solana ETF cannot be approved under current regulations.

But this doesn’t seem to worry Sigel.

In Sigel’s opinion, if the Ethereum ETFs have been approved, then there should be no reason that a Solana ETF won’t also be approved. (after all they are extremely similar products)

Sigel went as far as to call the futures market requirement a “Gensler psyop”.

Numerous other ETFs currently trade where the futures market is irrelevant (Shipping, Uranium, power ETFs etc.)

So we’ve seen Bitcoin ETFs, Ethereum ETFs and now potentially Solana ETFs.

What comes next? 🤔

Sigel wasn’t able to give a direct answer on this question but he did mention we might see crypto “basket” ETFs in the future…

And if we look at VanEck’s ETF lineup in Europe, we can see that they currently offer the “VanEck Crypto Leaders ETP”.

This ETF is an index play on the market with the following exposures:

• Bitcoin: 30.67%

• Ethereum: 30.66%

• Solana: 25.29%

• Cardano: 5.47%

• Avalanche: 4.41%

• Polkadot: 3.50%

If something like that were to launch in the US, it’d certainly be interesting…

WE’VE BEEN HERE BEFORE 📉

Many hear “bull market” and think the price can only go up.

But…

That’s not how it works.

Price corrections like these are common. 📉

Historically, bull market uptrends see price corrections greater than -25% from the local high.

We’ve even seen some corrections exceed -60%. 😱

The chart below visually breaks down Bull Market Correction Drawdowns of previous cycles.

The coloured bars coming down from the top of the chart indicate the relative size of corrections from local highs. (the longer the bars, the larger the correction)

Here’s the largest drawdown’s we’ve seen during previous cycles:

• 🟠 Genesis to 2011: -49.45%

• 🔴 2011 to 2013: -71.15%

• 🔵 2015 to 2017: -36.01%

• 🟢 2018 to 2021: -62.62%

• ⚫️ 2022+: -22.39% (current drawdown)

The current correction is at -22.39%

It’s the largest drawdown we’ve seen so far this cycle.

But still a long way off of previous cycle drawdowns.

So what’s the takeaway from this data?

If this is your first bull cycle, it’s understandable to be a little spooked by corrections like this.

But just know that they’re perfectly normal.

If this isn’t your first cycle, then you’ve been here before…

CRACKING CRYPTO 🥜

Bitcoin traders eye Trump victory as potential market boost. The concept of a "Trump trade" is gaining traction among crypto traders due to the former President's "perceived pro-crypto stance."

UK crypto advocates call for consistent policy after Labour landslide. New U.K. Prime Minister Keir Starmer has begun appointing members to his government after the Labour Party won a majority of seats in the House of Commons.

Crypto Crash Pushes Fear & Greed Index to Lowest Since Bitcoin Traded at $17K in Early 2023. The widely-followed sentiment metric hit extreme greed levels earlier in March near the local top of the crypto market, but now is pushing its limits in the opposite direction.

German Politician Criticizes the Government's Bitcoin Sell-Off Strategy. German politician Joana Cotar would rather see the government hold its seized Bitcoin "in the state treasury."

WHAT WE’RE READING 📚

Want to get even smarter? Check these out.

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• Raremints (link) - Daily crypto news

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• Bullseye Trades (link) - Daily stock market tips

• Crypto Pragmatist (link) - Actionable alpha 3x a week

• The Hustle (link) - Get Smarter on Business and Tech

• Your Next Breakthrough (link) - Personal growth with Mark Manson

• The Neuron (link) - AI trends and tools to keep you ahead

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”)

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,” for a record breaking $69.3 million.

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HOW DID WE DO? 🤷

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NUTCASE REVIEW OF THE DAY 🔍

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.