Evolve Files for a Ethereum ETF After Launching its Bitcoin ETF Last Month

Evolve Files for a Ethereum ETF After Launching its Bitcoin ETF Last Month

Evolve Funds Group has filed for an Ether exchange-traded fund (ETF) with the Canadian Securities regulators.

After launching the Bitcoin ETF (EBIT) on the Toronto Stock exchange, just a day after the first Bitcoin exchange-traded fund ever — Purpose Bitcoin ETF which gained the first-mover advantage and raised $421 million in just two days of its debut.

As a result, last week Evolve lowered the management fee on EBIT to attract investors. EBIT currently has $40 million in assets under management, as at March 1, 2021.

Now, Evolve with $1.7 billion in AUM is aiming to be the first mover in Ether ETF and has filed a preliminary prospectus to provide investors exposure to the world’s second-largest cryptocurrency.

The price of Ether is currently trading around $1,550, up over 113% YTD. Raj Lala, President, and CEO, at Evolve said,

“Ether is a digital asset that is not issued by any government, bank or central organization and was intended to complement rather than compete with bitcoin.”

ETHR aims to provide investors with exposure to the daily price movements of the U.S. dollar price of Ether which will be based on the ETHUSD_RR, a once-a-day benchmark index price for Ether administered CF Benchmarks which is currently the settlement index for futures contracts listed by CME Group as well.

ETHR will offer Canadian dollar-denominated unhedged units (“CAD Units”) and U.S. dollar-denominated unhedged units (“USD Units”). Elliot Johnson, CIO, and COO at Evolve says,

“Ether is the building block for a revolution in digital finance which is still in its infancy.”

“Ethereum is the most actively used blockchain with Ether being used to pay for transaction fees and computational services.”

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Author: AnTy

This Ethereum-based ‘Non-Volatile’ Stablecoin is on a Roller Coaster Ride

This Ethereum-based ‘Non-Volatile’ Stablecoin is on a Roller Coaster Ride

Just last week yet again Dynamic Set Dollar (DSD) 275% only to crash 91% to under $0.3.

The latest stablecoin which is all the rage right now is Dynamic Set Dollar (DSD) which is a sophisticated algorithmic stablecoin.

Launched less than a month back, the price journey of this stablecoin has been extremely volatile. Rising just above $80 on its first day of coming into existence, much like any other DeFi attraction, DSD dropped to $31 the same day.

On Dec. 2nd, a new high at $86.57 was set, as per CoinGecko. From here, it started tanking, going to about $0.66 on Dec. 12.

Last week, the stablecoin, yet again, rallied 275% only to crash 91% to under $0.3.

As of writing, DSD has been trading at $0.36.

The price action of this Ethereum-based stablecoin surely got many people REKT. But it isn’t all over as the circulating supply of DSD will be increasing by about 1/3 today which “could generate heavy selling.”

It was to fulfill DeFi’s needed functionality while “reliably maintaining its peg” that the team launched DSD.

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Based on the popular rebasing method, the token supply increases and decreases with every rebase by directly adjusting the number of tokens in every token holder’s wallet.

Whenever DSD trades below the $1 peg, token holders are incentivized to contract the token supply to bring the spot price back to the peg for which Coupons (debt) is issued. Users burn their DSD to purchase Coupons, which have an expiry of 360 epochs and the debt ratio capped at 35%, thereby reducing the supply. When DSD goes above $1, new DSD are minted to push the supply down.

DSD allows for 12 potential supply extension or contraction events per day.

In its official announcement, the team defined DSD as a “non-volatile digital asset pegged to the dollar, so the risk of liquidation through volatile price action is low.”

However, the stablecoin is anything but non-volatile as seen in the price movement and currently gaining a lot of interest.

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Author: AnTy

Grayscale Buys 13x of Bitcoin’s New Supply; 7% More than Last Week’s Purchase

Grayscale Buys 13x of Bitcoin’s New Supply; 7% More than Last Week’s Purchase

GBTC premium breaks mid-February high to make a new yearly high at 41%.

Bitcoin bears are going to get crushed.

Grayscale’s Bitcoin Trust added yet another 12,319 BTC to its product in a single day. This one-day accumulation by GBTC has been more than 11,512 BTC the world’s largest crypto asset manager added in the entire last week that saw BTC breaking above its ATH, $24,300.

This BTC accumulation is about 13x of the Bitcoin’s new supply that is mined as miners are generating 900 BTC per day since the halving in May.

In the past six months, up until this last week, Grayscale added 210,000 BTC to its stash, more than the 185,000 BTC that has been mined during the same period.

A clear sign of a supply crisis.

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Grayscale Bitcoin Trust’s latest BTC accumulation came amidst the fund temporarily not accepting any new institutional clients. In total, GBTC now holds 588,970 BTC, 3.17% of Bitcoin’s total circulating supply, up from 365k BTC just six months back.

It has also pushed the GBTC premium to 41% making a new yearly high by breaking mid-February’s high. Before this, the premium was highest in July 2019 at 43.21% while the week was set in May 2017 at above 132%.

This premium is thanks to the SEC’s refusal to approve a Bitcoin ETF. Ryan Selkis of Messari noted, This has,

“led to the exploitation of an esoteric loophole now known throughout the industry as “The Grayscale Trade,” where the asset manager’s investment vehicles serve as manna from crypto fund heaven and ticking time bombs for public markets investors.”

“They’ve also led to 5x growth in Grayscale’s AUM this year.”

All the demand from institutional investors and the continued bullish price movement has Grayscale’s assets under management surging to another record of nearly $16 billion.

Selkis sees Grayscale doubling its AUM next year without a price rally. Bringing the price rally into the mix, things could get explosive as “Grayscale does $1 billion in annualized EBITDA at $100k BTC.”

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Author: AnTy

Tether’s Exchange Supply & $900B US Stimulus Deal Offers Fuel to Bitcoin Bulls

After the monster weekly candle last week while being on track to beat 2Q17 to become the second-best quarter after 4Q17, today the market is in red but the bulls might not back down yet.

Last week was a wild one for Bitcoin.

The digital asset capped one of the biggest weeks with a monster candle that pushed us from about $18,950 to above $24,000.

There have been only a handful of times when Bitcoin BTC -4.74% Bitcoin / USD BTCUSD $ 22 930,0532
-1,086.88 -4.74
Volume 47.02 b Change -1,086.88 Open $22 930,0532 Circulating 18.58 m Market Cap 425.98 b
1 h Crypto Exchange EXMO Hacked; BTC, ETH, XRP, ZEC, USDT, and ETC Stolen By Attacker
recorded more gains than what we posted last week.

This quarter, which is still 10 days from its end, has recorded the third-largest quarterly gains of 121% beaten by 125.32% in Q2 of 2017 and of course the 10.13% gains in Q4 of the same year, as per crypto data provider Skew.

The world’s largest cryptocurrency made yet another new high early Monday, as it jumped past $24,300 following Tesla CEO Elon Musk’s Bitcoin meme and inquiry about “larger transactions” required to convert $100 billion of USD in Tesla’s balance sheet to BTC.

According to Hxro Labs, “With a break of 24k, it looks like the next such cluster of objectives lay in wait up around the $26,750-$26,650 area.”

But the weakness in the price of the digital asset seen last night and today has some feeling a bit cautious.

And, today the price of the Bitcoin went down to about $21,885 level and is currently trading around $22,800 in red.

Interestingly, amidst the ongoing bullish price action, the number of Bitcoin holders with 1,000 or more BTC continues its upward momentum. Unlike these multi-millionaires, addresses with under 1,000 BTC have been selling off their stash since Wednesday, the day BTC price breached the all-time high of $20k only to continue to break past several levels.

Meanwhile, the bullish sign for the Bitcoin bulls is the percentage of Tether supply on cryptocurrency exchange hitting a 4-month low on the weekend, as per Santiment.

At the same time, Congress reached a deal on the $900 billion coronavirus relief package. Congressional leaders announced the agreement on the bill on Sunday which will fund the government through Sept. 30.

“At long last, we have the bipartisan breakthrough the country has needed,” Senate Majority Leader Mitch McConnell, R-Ky., said on the Senate floor Sunday.

However, House Speaker Nancy Pelosi called the plan inadequate and that they would soon push for more spending after President-elect Joe Biden takes office a month later, on Jan. 20.

This relief plan includes direct payments of $600 to adults and $600 per child. These payments could make their way to Bitcoin, like the last time. The $1,200 check from last time is currently worth about $4,000 in Bitcoin.

The Democrats said it would put $240 billion into Paycheck Protection Program small business loans, and direct another $20 billion to small business grants and $15 billion to live event venues.

With all the money printing going on at “unprecedented levels,” Bitcoin price could see more action. According to Mike Belshe, the CEO of California-based cryptocurrency firm BitGo, BTC is “immune” to this money printing which is because the digital asset “got a level of scarcity that we really don’t have in any other market,” not even in gold, he said.

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Author: AnTy

USD Spoils the Party as Bitcoin, Precious Metals, & Stock Market Record Massive Reversals

After last week’s crazy performance, markets are experiencing a massive reversal on the first day of the week.

Starting with Bitcoin, the digital asset had made a yet new all-time high just last night, or for some early Monday morning, at about $24,300 amidst the heightened institutional interest.

But after surging 28% in just last week and breaking multiple levels, today it is bleeding red.

Dropping just under $22,400, BTC/USD rebounded some and is trading around $23,050, down about 2.5% on the back of $5.32 billion in ‘real’ volume.

In tandem with Bitcoin BTC -4.74% Bitcoin / USD BTCUSD $ 22 930,0532
-1,086.88 -4.74
Volume 47.02 b Change -1,086.88 Open $22 930,0532 Circulating 18.58 m Market Cap 425.98 b
1 h Crypto Exchange EXMO Hacked; BTC, ETH, XRP, ZEC, USDT, and ETC Stolen By Attacker
, altcoins are falling even harder.

ETH has gone down 6% to nearly $600 while Litecoin fell 11%, Bitcoin Cash 9%, Chainlink and XRP 8%, and Polkadot, Stellar, Tron, and Cardano are in the loss by over 7%.

More Volatility

This price action over the weekend was actually led by retail investors than institutional investors. The consistent decline in OI shows that institutional investors were taking profits and missed out on the latest rally.

As per CME’s latest report, asset managers’ long positions fell from 544 to 492, while short positions increased from 11 to 26. Leveraged funds’ long positions declined from 4,365 to 3,946, along with the short positions that declined from 9,354 to 8,702. Non-reportable accounts also increased in short positions from 506 to 606, while long positions fell from 3,403 to 3,134.

The jump in price came on the back of the high volume, which is rising rapidly. The futures market has been particularly active, with the aggregate weekly volume of BTC futures hitting $270 billion across derivatives exchanges. Open interest (OI) also reached a new ATH of $8.9 billion on Saturday.

This bullish price action has the BTC perpetual swaps price exceeding the index price with funding rates hitting a peak; excessive funding rates indicate rising leverage. With quarterly futures and options settlement coming up this Friday, more volatility is expected.

Other Markets

Much like digital gold, the risk-off market has precious metals, also having a bad day. Gold fell 2.7% to $1,854 before finding support around $1,874, for now. Silver meanwhile crashed over 9% to just under 25; currently, it is around 26.

S&P 500 futures plunged 2.5% on the first day of the week, right after the Index made a new ATH at 3,722 just before the weekend. Tesla fell 6.3% in pre-market trading on its first day on the S&P 500 index, after catapulting 731% this year.

Today’s winner is the US dollar, which breached above 91, from Friday’s low of 89.7. The USD is gaining against several currencies after European nations began imposing travel bans on the UK after it reported a more-infectious and “out of control” coronavirus variant.

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Author: AnTy

Crypto is the Only Way to Pay for Pornhub After Mastercard & Visa Drops Adult Platform

Last week, Mastercard and Visa announced that they would no longer allow their cards to be used on the popular adult website Pornhub.com. The decision came after the payment processors’ review of the website found unlawful content. Mastercard said in a statement,

“Our investigation over the past several days has confirmed violations of our standards prohibiting unlawful content on their site.”

“We instructed the financial institutions that connect the site to our network to terminate acceptance.”

Both the companies started the investigation after a New York Times column accused Pornhub of videos depicting child abuse and non-consensual violence, which the company said to be untrue.

In response, this week, Pornhub enacted safeguards including banning unverified uploaders from posting new content and eliminated downloads and partnered with non-profit organizations to combat illegal content. The company’s latest update reads,

“It is clear that Pornhub is being targeted not because of our policies and how we compare to our peers, but because we are an adult content platform.”

Regarding Mastercard and Visa severing its ties with the company, Pornhub said the move was “exceptionally disappointing,” adding that it affects hundreds of thousands of models who rely on the platform for their livelihoods.

Now, the website exclusively supports cryptocurrency as it has become the default payment method.

Currently, the supported digital currencies include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Dash, Monero (XMR), Ripple (XRP), NEM (XEM), Tron (TRX), Tether (USDT), Verge (XVG), Waves, and Zcash (ZEC).

This development is expected to help digital currencies gain further adoption as Nic Carter of Coin Metrics states, “financial infrastructure is already thoroughly politicized, from top to bottom.”

Pornhub attracts 3.5 billion visits a month, which is more than Amazon, Netflix, or Yahoo. Venture capitalist Paul Graham, co-founder of startup accelerator Y Combinator tweeted,

“Possible future scenario: Credit card companies become increasingly picky about who they’ll process transactions for, and this becomes the thing that tips the general public into using cryptocurrency in transactions, ultimately killing credit cards.”

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Author: AnTy

Ethereum Market Points to the “Start of a New Bull Cycle;” New Addresses Hits a 25-Month High

Last week, ETH touched $535 a couple of times, only to follow the Bitcoin bulls and make it back to $595.

Over the weekend, the surge in price also saw the number of new ETH addresses hitting a single-day, 25-month high, reaching 177.5k addresses.

“Notably, more addresses interacting on an asset’s network is a very promising indicator for bulls,” stated crypto data provider Santiment.

Today, however, the second-largest cryptocurrency went back to $582.

According to one trader, Ethereum is simply at the “start of a new bull cycle,” with points of interest for longs around $425-$460 with any dips to be bought. “The next higher high in the impulse wave is most likely going to be $850 or $1,150,” he added.

Despite more than double of Bitcoin’s gains in 2020, ETH is still 63% away from its all-time high.

The Bullish Signs

ETH’s outperformance also led miners to slowly offload their ETH, with their aggregate holdings declining from 1.13 million ETH to 1.016 million ETH since mid-October.

At the same time, there has been a 15.2% decline in the amount of ETH held by exchanges. This kind of decline was last seen during the 2017 bull run. This is likely to result from an increased focus on self-custody, long-term storage, and yield opportunities in DeFi. ~57% of ETH’s total supply hasn’t actually moved in a year.

Currently, there are over 7 million ETH locked in the DeFi space. Ethereum is the dominant smart contract platform, which, according to Coinbase, has proven to be “comparatively secure so far.”

However, it has its own drawbacks in the form of scaling and control, and flexibility. And projects like Polkadot and Cosmos are the front-runners as its competitors.

The Risk of Centralization

Amidst all the price action, the number of ETH locked in the ETH 2.0 deposit contract for staking continues to grow.

A total of 1,466,401 ETH worth more than $860 million have been sent to ETH2.0 deposit. This represents nearly 1.3% of ETH’s circulating supply, signaling strong demand for Proof of Stake participation.

However, this comes at the risk of centralization. Justin Drake, ETH 2.0 researcher at Ethereum Foundation, noted that 10.7% of validator deposits are from crypto exchange Kraken while other exchanges Coinbase and Bitfinex have 5.8x more ETH than Kraken. Drake said,

“Two exchanges could control 1/3 of the validators. Five exchanges could control 1/2 of the validators. Stake from home to avoid exchange fees and decentralise.”

According to Dune Analytics, these deposits came from 3,736 unique depositors.

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Author: AnTy

Bitcoin Retesting Resistance as Institutional Investors Take Profits & Reduce Holdings

Over the weekend, Bitcoin managed to recover the losses it suffered over the last week completely. From the low of $17,600 on Friday, on Sunday, the price of the digital asset went back to $19,500.

This strong rally is also reflected in the premium on futures, showing the market’s confidence in the price trend.

However, as per CME’s latest data, as of Dec. 12, institutional investors reduced their positions for risk control. While asset managers’ long positions fell from 626 to 544 and their short positions increased from 0 to 11, leveraged funds’ long positions declined from 4,509 to 4,365 along with their short positions from 9,375 to 9,354.

This reflects that institutional investors have taken off profits and reduced their holdings, as per Quandl.

At the time of writing, BTC/USD has been trading around $19,100 with a trading volume of $2.24 billion.

While people continue to hope for a deeper correction to sweep off even more of the BTC, the largest cryptocurrency is not giving the market a chance to do it.

As trader Credible Crypto noted, “Once a key area of resistance is broken, it typically acts as support.”

Last month, around Thanksgiving, Bitcoin went down to about $16,400, a drop of 16% from about $19,500. After going above $19,900, we had a dip last week of under 12% with no daily close below $17,100.

The trader expects bitcoin to do a repeat of it, retesting the $19,900 high from earlier this month to take a drop around $18,600 before we move on to rally off above $20,000.

“I think it’s the less likely scenario, but a sweep of the $20k ask liquidity before a dip back under to find the bid demand again would be a very Bitcoin thing to do. Would put us on pace for sustained ATHs in the 2nd half of Jan,” is another trader’s expected scenario.

For now, the bitcoin market is giving “encouraging signs” that says we can go higher.

As trader Jonny Moe notes, the Adam and Eve pattern we got on the low timeframe has broken to the upside; now the digital currency needs to fill out the ascending triangle to make a run for $20k by this upcoming weekend.

The market has turned bullish with the latest uptrend, and bulls are expected to be in charge as “the bears will want to wait for volume and momentum to fail prior to rushing in front of this freight train,” stated Hxro Labs, which called for the weekend’s rally.

But next year will be the most exciting when Bitcoin finally goes off above $20k and starts this bull rally in full effect.

And with institutions getting deep into Bitcoin, the moon targets have been getting higher and higher.

“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k,” said Robert Kiyosaki, the author of Rich Dad, Poor Dad.

According to Moe, “3500% > 1500% > 650% is roughly 40% of the prior move, and puts us right at $150,000.”

“Buckle up for a wild ~9 months folks,” he added.

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Author: AnTy

GBTC has Greater Market Penetration than the Most Popular S&P 500 ETF

Last week, Bitcoin hit a new high on several cryptocurrency exchanges, but it has been stuck in a range since then.

At the time of writing, BTC/USD has been trading around $19,000 with $1.86 billion in trading volume.

However, the digital asset is still up over 167% run-up YTD and made an all-time high weekly close over the weekend.

As we have been reporting, unlike the retail-driven bull run of 2017, 2020 is looking more institutional driven where the financial industry is playing a bigger role.

“The multitude of regulated crypto exchanges and custodians has eliminated the ‘career risk’ for institutional investors,” PwC’s Hong Kong-based Global Crypto Leader Henri Arslanian said in an interview with Bloomberg.

“In 2017, there was retail FOMO. The question is whether we will see institutional FOMO in 2021.”

GBTC’s the Way to Go

According to JPMorgan Chase strategist, Grayscale Bitcoin Trust (GBTC) points to the institutional demand, taking the crypto market beyond millennials’ retail demand.

GBTC’s “exponential” growth, which has swollen to over $10 million from $2 billion in Dec. last year, suggests that institutional investors like family offices and asset managers played a bigger role in the recent rally, a team of JPM strategies led by Nikolaos Panigirtzoglou wrote in a note.

GBTC is currently trading at a 27.52% premium to the price of Bitcoin.

The firm saw about $720 million of inflows in the third quarter, 81% of which came from hedge funds. According to Michael Sonnenshein, managing director of Grayscale Investments, the size of investment allocations is also growing.

GBTC actually stands out as a market leader in terms of market penetration, as per TradeBlock. GBTC’s AUM is just shy of 3% of the total BTC market cap, which is much larger than other investment trusts and ETFs in different markets. GBTC is followed by the most popular S&P 500 ETF, SPY, at 1.25% market penetration.

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Last month, Guggenheim Partners reserved the right for its $5.3 billion fund to invest in Bitcoin via GBTC.

“Institutional investors are keen on portfolio construction in the wake of Covid, and the ways they need to reposition themselves given how governments have injected stimulus into the system,” said Sonnenshein.

Compared to $52 trillion funds managed by institutional investors, the Bitcoin market at $355 billion and the crypto market at $570 billion are still very small.

But as legendary investor Paul Tudor Jones himself said, because of this gap between Bitcoin and the market of equity, gold, and other assets, the digital asset has immense potential for growth and upside.

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Author: AnTy

Bitcoin ATH Retest with ‘Negative Divergence’ Calls For a ‘Larger Corrective Risk Scenario’

Since the middle of last week, the price of Bitcoin has been struggling to decide whether it wants to break $20,000 or finally make the much-anticipated pullback.

The range BTC is trading in is getting narrower, which could bring some good movement. For now, BTC price is keeping around $19,000 with volume low at just around $2.3 billion.

Meanwhile, the US Dollar index remains weak, which, combined with the momentum behind talks on a coronavirus relief bill gaining some speed, should keep risk appetite higher.

But in the short term, the market expects a correction after Bitcoin rejected $20,000 to set up for a stronger base for another vertical move and not risk another “uglier” breakdown down the road.

As Sven Henrich, founder of NorthmanTrader, pointed out, the retest of 2017 highs came with that of “negative divergence on the RSI.”

In his opinion, “Should the divergence confirm here as well, then Bitcoin is at risk of a sizable retrace move of the recent rally.” However, this won’t necessarily be bearish.

According to him, a healthy retrace would be the most common one .382 fib, which offers “perfect confluence” with the 2019 high at $13,790. But this corrective risk scenario isn’t a given if $17,000 holds.

“So Bitcoin is in a watch phase now with the risk of a larger corrective scenario unfolding” with the bottomline that a corrective move is actually healthy and a “buying opportunity.”

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Bitcoin is already ready to start the New year on a high note, with $36,000 Bitcoin call options on Deribit being the leading strike at the moment, with 19,995 contracts having a national value of $378 million in open interest.

“The majority of this is on our monthly January 2021 options,” noted the derivatives platform.

However, as we have been seeing, 2020 is different from the last bull run, with institutions rushing in the market more heavily while the 2017 rally was retail-focused.

According to Teddy Fusaro, chief operating officer at Bitwise Asset Management, we’re seeing marginal buyers right now.

“Oftentimes, once you sit down and you study the asset class, and you do develop an opinion, you do become a buyer. And I think that’s really what we have started to see really since the late summer,” he said.

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Author: AnTy