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GM to all you crypto nuts. Crypto Nutshell #394 ridin’ in... 🚵 🥜

We’re the crypto newsletter that's more adventurous than a treasure hunt led by a history professor... 🏺🗺️

What we’ve cooked up for you today…

• 🚀 Launch day

• 📈 Building a diversified portfolio

• 🤔 What’s up with Bitcoin?

• 💰 And more…

MARKET WATCH ⚖️

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

LAUNCH DAY 🚀

BREAKING: Spot Ethereum ETFs kick things off with over $1B in trade volume

The Ethereum ETFs are live! 🥳 

We’ve been waiting for this day for what feels like forever.

So let’s see how they performed.

But first, yesterday we asked for your opinion:

Would the initial flows into the Ethereum ETFs be over or underwhelming?

And 56.27% of you believe the ETH ETFs will be underwhelming…

Where’s the optimism guys?

Now, onto trading volume.

And the ETH ETFs started with a bang, doing over $1 billion in total volume on their first day of trading.

ETF analyst Eric Balchunas was asked if this was a positive or disappointing day one.

And he simply responded with “Positive. Letter grade: A”.

So that’s total volume. But what were the actual inflows on day 1?

Well, the Ethereum ETFs saw $106.8 million in net inflows.

The large majority of the outflows were $484.1 million from Grayscale.

Here’s the breakdown:

1. BlackRock ETHA: $266.5 million 🥇

2. Bitwise ETHW: $204.0 million 🥈

3. Fidelity FETH: $71.3 million 🥉

These outflows from Grayscale seemed to catch everyone off guard.

We knew they’d be coming.

But we didn’t expect ~5% of the total fund to exit on day one. (Grayscale Ethereum Trust launched with ~$9 billion in assets)

Interestingly, the price of ETH is almost in the exact same spot as when the ETH ETFs launched.

At the time of writing, ETH is down 0.63% in the last 24 hours.

So far, this is all pretty positive for a day 1 launch.

Remember, Bitcoin’s price dropped for weeks after its ETFs launched.

Will we see the same situation play out with Ethereum like many were calling?

So far, so good.

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BUILDING A DIVERSIFIED PORTFOLIO 📈 

The crypto ETFs have been a game changer.

Now everyone has access to the crypto market.

That’s the latest message out from Matt Hougan.

Matt Hougan is the Chief Investment Officer at Bitwise, the 5th largest Bitcoin ETF issuer.

Every week, Matt releases a market commentary memo.

This week Matt focused on how to build a diversified crypto portfolio.

The launch of the Bitcoin and Ethereum ETFs has been a game changer.

The Ethereum ETFs were the missing piece of the puzzle.

Now investors can capture the largest moves in crypto with three low cost ETFs.

Here’s the portfolio Matt recommends as a starting point:

• Bitcoin ETF: 60% allocation

• Ethereum ETF: 30% allocation

• Crypto Equities ETF: 10% allocation

A crypto Equities ETF refers to an ETF that invests in companies involved in crypto, such as Coinbase.

But why build a diversified crypto portfolio instead of just investing in Bitcoin?

Well, crypto isn’t just one thing. It is a breakthrough technology that has many use cases:

• New monetary asset (digital gold)

• Build a more efficient financial industry (DeFi)

• Transfer dollar-backed assets more efficiently (stablecoins)

• Speed up settlement of stocks and bonds (tokenisation)

• The list goes on…

Matt explains:

If you want exposure to what all of crypto has to offer, you need all three: Bitcoin, Ethereum and crypto companies.

The reasoning behind the 60-30-10 split is that it broadly reflects the market cap of each asset.

Matt believes this portfolio consisting of three ETFs is the perfect place to start.

WHAT’S UP WITH BITCOIN? 🤔 

With all of this Ethereum talk lately…

What’s been going on with Bitcoin?

Well quite a lot actually.

Firstly the Bitcoin ETFs have been crushing it recently.

Here is Monday’s breakdown:

1. BlackRock IBIT: $526.7 million 🥇 

2. Fidelity FBTC: $23.7 million 🥈 

3. Invesco Galaxy BTCO: $13.7 million 🥉 

In total, the Bitcoin ETFs saw net inflows of $485.9 million on Monday.

And BlackRock’s $526.7 million was it’s highest single-day tally since March.

But here’s one for you…

BlackRock’s IBIT has surpassed the Invesco QQQ in year-to-date net flows.

This is despite IBIT’s total assets of ~$22 billion being significantly less than QQQ’s of $287 billion.

The Invesco QQQ tracks the Nasdaq-100 index, which is made up of the 100 largest non-financial companies listed on the Nasdaq stock exchange.

IBIT being ahead of this is a BIG deal.

And just goes to show how insane the demand has been for the Bitcoin ETFs.

IBIT is now fourth in terms of ETF inflows this year. (all

And Fidelity’s Bitcoin ETF is firmly sitting in eleventh place.

In other news…

According to Arkham, Mt. Gox distributed 5,110 BTC to Bitstamp on July 23rd.

Bitstamp is one of the 5 exchanges that Mt. Gox is working with to repay creditors.

And according to reports from The Block, Kraken users have began receiving Mt. Gox distributions.

Kraken received 48,641 BTC (~$3 billion) on July 16 and payouts were expected within one to two weeks.

Bitcoin’s price fell ~2.18% in the last 24 hours off the back of this news.

Remember, this is a one-off selling event.

Once Mt. Gox has fully distributed, it’s over and the market can move forward.

CRACKING CRYPTO 🥜

Mt Gox continues moving Bitcoin, sends $340 million BTC to Bitstamp. Bankrupt Mt. Gox shifts $2.85 billion worth of Bitcoin to new wallets.

BlackRock Bitcoin ETF inflows surpass 'magnificent 7' stocks as trader eyes $88K. Bitcoin price could rally above $88,000 by September, driven by continued Bitcoin ETF inflows.

Shark Tank's Kevin O'Leary on Crypto Investing, Ether ETFs and Gary Gensler. "What I saw with Gensler was consistency. I watched him getting absolutely fried like a chicken in front of the Senate and he held his ground."

Coinbase files motion to compel the SEC and Chair Gensler to hand over documents related to its case. Coinbase is asking a New York court to order the U.S. SEC to hand over documents involving internal discussions made by Chair Gary Gensler. 

WHAT WE’RE READING 📚

Want to get even smarter? Check these out.

p.s. all completely FREE (one click subscribe link)

• Raremints (link) - Daily crypto news

• Seven Point Sunday (link) - Learn to build your career every Sunday

• 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) The process of confirming transactions and adding them to the blockchain 🥳

Click here to learn more about Bitcoin mining.

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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.