U.S. listed spot XRP ETF products surpassed $1.21 billion in total net assets by Dec. 19. The funds launched in mid-November and continued to attract inflows. Demand held firm despite broader weakness across the crypto market, pointing to interest beyond Bitcoin and Ethereum. XRP ETFs Draw Retail and Institutional Flows Token Relations founder and CEO
The post XRP ETFs Reach $1.21B as Asset Managers See a ‘Third Path’ Beyond Bitcoin appeared first on CoinGape.
]]>Elizabeth Warren Once Warned that Dogecoin Is for ‘Speculators And Fly-By-Night Investors’ — Today, Asset Managers Are Racing To Bring DOGE ETFs To Wall Street Benzinga
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Dogecoin Positioned To Dominate As Asset Manager’s Deep Dive Shows Major Potential | Bitcoinist.com Bitcoinist.com
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U.S. Asset Managers Compete to Launch Spot Dogecoin ETFs – Market HPBL
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The strong performance of Ethereum in recent days has caught the attention of experts. In several posts on X, prominent fund managers and industry leaders have projected a bullish outlook for Ethereum (ETH), positioning it to outperform Bitcoin (BTC) with a target price of $8,000. This optimism is underpinned by anticipated regulatory advancements for the decentralized finance (DeFi) ecosystem.
Why Ethereum Could Outperform Bitcoin
Raoul Pal, Founder and CEO of Global Macro Investor, articulated his perspective on ETH’s potential resurgence in a post that has garnered significant attention within the crypto community. “I’ve been expecting ETH to start gaining lost ground on BTC. It’s partly driven by the risk-taking cycle but it’s also driven by the election,” Pal stated.
Pal highlighted two primary factors contributing to ETH’s anticipated outperformance. The first one is the enhanced utility in DeFi: “Utility tokens in DeFi begin to offer yield or reward of underlying protocol which creates network value. Most of this is on ETH,” Pal explained.
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The second factor is the adoption by Traditional Finance (TradFi). “TradFi will likely begin to build larger use cases but on the most tested, adopted chain. Think of ETH (and the L2’s) as the Microsoft of web3. No one gets fired for using it,” Pal asserted.
These developments, according to Pal, are poised to “dramatically re-rate ETH and offset the current retail adoption on other chains,” with the added advantage that ETH yields will attract more institutional players. He emphasized the potential for constructing sophisticated financial products, such as guaranteed funds, under improved regulatory conditions. “With better regs this activity will explode,” Pal concluded.
Supporting Pal’s outlook, Dan Tapiero, founder and CEO of 10T Holdings—a growth equity fund specializing in mid-to-late stage investments within the digital asset ecosystem—commented on Pal’s post: “Yup. More eloquent version of what I posted last night. Very funny.”
Tapiero referenced his own earlier assertion that “Ethereum too cheap. Gonna explode from here. Gensler and Co killed Defi in the US in ’22-24. Not killed now. Long Live US Defi. Break of $4k going over $8k in the next year.”
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However, Pal also noted a hierarchical adoption landscape within the crypto space, suggesting that while ETH may outpace BTC, it might underperform Solana (SOL) and, subsequently, Sui (SUI). “My view is that ETH begins to outpace BTC for the rest of the cycle but underperforms SOL and SOL underperforms SUI as SUI is in the ultimate performance stage of adoption – early > proven. Let’s see,” he remarked.
The discourse around Ethereum’s prospects also attracted engagement from the broader crypto community. A user named Himura (@aceddeca1) proposed an alternative investment thesis: “ETH will be fine but if that is your thesis it would be better spent on UNI especially with Unichain … Uniswap going to own chain is the base token you wish Coinbase would launch.” Pal responded succinctly, “Interesting thought.”
Additionally, concerns regarding potential biases were raised by user Galavis (@FedericoGalavis): “Be careful with SUI folks as only 0.82% of the supply has been unlocked. Are you a paid SUI promoter Raoul? If you are you better disclose.” Pal countered, “You need to do more research on all your comments,” addressing the speculation over his impartiality.
Notably, Pal serves as a Board Member at the Sui Foundation, a fact that may inform perceptions of his commentary on SUI.
At press time, ETH traded at $2,916.
Featured image created with DALL.E, chart from TradingView.com
In a significant development, talks between U.S. regulators and major asset managers regarding Bitcoin Spot ETF have progressed to crucial technical details. This signals a potential shift in the Securities and Exchange Commission’s (SEC) stance toward approving exchange-traded funds (ETFs) tracking the BTC price.
Meanwhile, 13 firms including Grayscale, BlackRock, Invesco, and ARK Investments, with pending applications, are at the forefront of these discussions.
Bitcoin Spot ETF Discussions Progress As SEC Engages In Advanced Talks
The SEC, historically cautious about approving cryptocurrency-related products, is now delving into intricate aspects like custody arrangements, creation and redemption mechanisms, and investor risk disclosures, Reuters reported citing industry executives. Meanwhile, this shift follows a court ruling stating the SEC’s error in rejecting Grayscale’s ETF application, prompting the SEC to engage more substantively with ETF issuers.
Investors eyeing regulated avenues to invest in Bitcoin see ETFs as an optimal solution. A Bitcoin Spot ETF approval would open the gates for wary investors to access the cryptocurrency through the tightly regulated stock market, with an anticipated demand of up to $3 billion in the initial days.
Meanwhile, executives from major firms, including BlackRock, Grayscale, Invesco, and 21 Shares, working with ARK, have been meeting with SEC staff since September. According to the report, recent discussions, previously focused on Bitcoin’s susceptibility to manipulation, now encompass nuanced technicalities.
In addition, memos reveal an acceleration in the SEC’s information requests and meetings even at the office of SEC Chair Gary Gensler. Notably, the recent bullish trend in Bitcoin prices aligns with the positive trajectory of these discussions.
Meanwhile, the SEC must make a conclusive decision on ARK’s filing by January 10, given its priority status. According to the industry executives, the in-depth nature of these discussions suggests a potential approval of ARK’s application and possibly several others among the remaining 12 in the coming New Year.
Also Read: India May Have Its Crypto Or Web3 Bill By 2025
Challenges And Future Prospects
While optimism surrounds these developments, the SEC remains tight-lipped about potential approvals. Key concerns, such as the settlement mechanism of whether cash or “in-kind”, still pose challenges. In addition, SEC Chair Gary Gensler, a crypto skeptic, has not provided a timeline for decision-making but acknowledged the agency’s consideration of Bitcoin ETF filings.
However, some see the Grayscale ruling as limiting grounds for rejections, adding to the momentum. Notably, issuers, confident in addressing market manipulation concerns through surveillance arrangements with exchanges like Coinbase, await a potential breakthrough.
Meanwhile, the evolving dynamics between the SEC and ETF issuers suggest a paradigm shift in the regulatory landscape, opening new avenues for investors to engage with Bitcoin.
Also Read: JPMorgan Could Launch A Bitcoin ETF, Says ETF Expert Nate Geraci
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The asset managers’ long positions in Bitcoin futures have surged to a record high, reflecting a bullish stance on the cryptocurrency’s future. According to InspoCrypto, asset managers have amassed long positions amounting to $1.82 billion, signaling their strong belief in Bitcoin’s potential for success. However, this confidence starkly contrasts the cautionary tale of history, where substantial price drops followed previous peaks in long positions.
Hedge Funds: A Contrarian Viewpoint
Conversely, hedge funds seem to be preparing for a different scenario. As they approach their all-time high in short positions, with the current volume at $2.15 billion, hedge funds anticipate a downturn in Bitcoin’s value. This approach aligns with the market’s past performance, where substantial bets against Bitcoin have preceded market corrections.
Coingape highlights an intriguing aspect of the current Bitcoin landscape: the dwindling available supply. Despite the uptick in market price, the open interest on perpetual exchanges has seen a surprising dip. This pattern divergence from historical trends, where rising Bitcoin prices typically drove up open interest, raises questions about market sentiment.
Glassnode’s report throws light on the “available supply” of Bitcoin reaching historic lows while “supply storage” rates soar, now 2.4 times higher than the new Bitcoin being issued. This supply squeeze is noteworthy, given that it comes at a time when Bitcoin’s price has recently increased nearly 5% over the last week, even with a slight decline in the past 24 hours.
Market Cap vs. Market Skepticism
Despite the current price of Bitcoin standing at $36,328.91, the skepticism in the market is palpable, with the aggregate open interest lower than expected. The current market cap of Bitcoin is $709 billion, yet the reluctance of traders to engage in futures contracts suggests a wary outlook.
The cryptocurrency market remains a fascinating spectacle of conflicting sentiments and strategic plays by different market participants. As institutional behaviors oscillate between optimism and caution, the only certainty is the volatility and unpredictability of Bitcoin’s journey ahead.
Also read: https://coingape.com/bitcoin-btc-is-entering-the-first-bull-phase-top-analyst-says/
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Traditional financial institutions that have filed crypto ETF applications have focused on a particular market (spot or futures). However, a recent NASDAQ application suggests that the asset manager Hashdex is taking a different approach, which could be a game changer in the Ethereum ETF race.
NASDAQ Proposes To List Ethereum ETF
According to the application filed with the US Securities and Exchange Commission (SEC), the stock exchange plans to list and trade shares of the Hashdex Nasdaq Ethereum ETF, which will be managed and controlled by Toroso Investments LLC.
Interestingly, the fund will hold both Ether futures contracts and Spot Ether. This move from asset manager Hashdex is novel, considering that other asset managers have either applied to offer a Spot Ether ETF or Ether futures ETF or filed applications to offer both separately. However, Hashdex wants to offer a fund holding both Ether futures contracts and a Spot Ethereum ETF.
The fund’s sponsors believe that combining Ether Futures Contracts and Spot Ether will help mitigate the risk of market manipulation (a major concern of the SEC) and provide the market with a “regulated product” that tracks Ethereum’s price. This fund will help US investors gain exposure to Spot Ether without relying on “unregulated products, offshore regulated products, or indirect strategies such as investing in publicly traded companies that hold Ether.”
In fulfillment of the requirement of having a surveillance-sharing agreement (SSA) for the proposed ETF, Nasdaq stated in the application that the Chicago Mercantile Exchange (CME) will be used to track the price of Ethereum as the CME represents a “regulated market of significant size.”
Furthermore, the fund is expected to hold physical Ether. However, the sponsors do not intend to purchase these tokens from “unregulated ether spot exchanges” but from the CME Market’s Exchange for Physical (EFP) transactions.
This move is similar to Hashdex’s application to combine a spot Bitcoin ETF with its existing Bitcoin futures ETF. Hashdex, in its application, stated that the CME will be used to track Spot Bitcoin’s price and that all Bitcoin purchases will be from the CME’s EFP.
ETH kicks off Wednesday on a volatile note | Source: ETHUSD on Tradingview.com
Hashdex Throwing Other Asset Managers Under The Bus?
Nasdaq’s application mentions the phrase “unregulated spot exchanges” multiple times in what seems to be a direct attack on Coinbase and the applications of other asset managers. It is worth mentioning some of the other asset managers, including Ark Invest, who have filed to offer an Ethereum-related ETF, have chosen Coinbase as their custodian.
As such, Hashdex labeling Coinbase as an “unregulated spot exchange” doesn’t seem right, as this could undoubtedly influence the SEC’s decision when dealing with these applications.
Furthermore, asset managers like BlackRock picking Coinbase for their SSA and custodian had already sparked controversy as many had stated that the SEC would not be so inclined to approve an application in which Coinbase is directly or indirectly involved since it has an ongoing lawsuit against the crypto exchange.
While many may commend Hashdex’s “innovative approach,” there is a need to be wary of how this approach could hinder the application of others and the eventual effect on the crypto industry in general.
Featured image from iStock, chart from Tradingview.com
Why Fund Managers Plan to Add Big Eyes Coin, Dogecoin, and Solana to Their Portfolios? – RVCJ Media RVCJ Media
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