Analysis

Market Overview (Jan 15–Jan 21): Ethereum ETF Decision and Market Resilience

Key Points

The SEC postponed Fidelity’s Ethereum ETF decision; Bitfinex and Binance prevented a market manipulation attempt.
The Monetary Authority of Singapore highlighted cryptocurrency volatility; BlackRock and Fidelity’s Bitcoin Spot ETFs surpassed $1 billion in assets.
Crypto supporters Ron DeSantis and Vivek Ramaswamy endorsed Donald Trump for the 2024 presidential race.

Discover updates on Ethereum ETFs, Bitcoin volatility, economic updates, crypto market forecasts, and upcoming Q1 trends.

Last week’s highlights big news (Jan 15–Jan 21)

The US SEC has postponed its decision on Fidelity’s Ethereum ETF until March 5, keeping investors on their toes. Meanwhile, Proshares has applied for 1.5X and 2X (long and short) leveraged products based on Bitcoin Spot ETFs, indicating the growing interest in such financial instruments.

On the institutional front, Franklin Templeton has made its interest in cryptocurrency explicit. Franklin has established over $1.6 trillion in assets and a dedicated crypto unit focusing on crypto, blockchain, and Web3.

However, not all countries are equally enthusiastic. The SEC of Thailand, for example, has announced that they will not allow securities firms to establish Bitcoin Spot ETF funds.

In Argentina, a rental contract has been priced in Bitcoin for the first time in history, marking a significant milestone in the adoption of cryptocurrency. This contract was registered in Rosario, the third-most populous city in the country.

Crypto exchanges Bitfinex and Binance successfully thwarted a market manipulation attempt involving the transfer of 25.6 billion fake XRP tokens, demonstrating the industry’s resilience against fraudulent activities.

Meanwhile, the Monetary Authority of Singapore (MAS) has warned that Bitcoin and other cryptocurrencies are highly volatile and not suitable for non-specialist investors, highlighting the need for investor education and caution in the crypto space.

The BNB chain recently completed its 26th token burn, destroying 2.14 million BNB, which is equivalent to about $636 million USD. Meanwhile, Tether recently added 8,888 bitcoins (around $380 million USD) to its holdings, bringing its total BTC holdings to approximately 66,465 BTC (~$2.8 billion USD).

More than ten investment fund providers in Hong Kong are consulting with the Securities and Futures Commission (SFC) on creating Bitcoin Spot ETF funds, showing the region’s growing interest in digital assets.

According to Bloomberg, BlackRock and Fidelity have become the first companies to have Bitcoin Spot ETF funds surpass $1 billion in assets under management, a significant milestone for the crypto industry.

In other news, the European Parliament and the EU Council have agreed on new rules to prevent money laundering in the crypto sector. These rules require crypto companies to verify customer identities for transactions over 1,000 euros.

Macroeconomics (Jan 15–Jan 21)

In a surprising turn of events, Ron DeSantis and Vivek Ramaswamy, both well-known crypto supporters, have withdrawn from the 2024 presidential race. Instead of running, they have chosen to endorse Donald Trump, a move that could potentially have a significant impact on the political landscape.

DeSantis and Ramaswamy’s withdrawal from the race and subsequent endorsement of Trump signals a shift in their political strategy. As influential figures in the world of cryptocurrency, their support could potentially garner Trump additional backing from the crypto community.

In other financial news, Robert Holzmann, a board member of the European Central Bank, has suggested that there may be no interest rate cuts this year. This announcement is specific to the European Central Bank and should not be confused with the policies of the U.S. Federal Reserve. The stability of the interest rate could have implications for the European economy and beyond.

Prediction Market Crypto (Jan 15–Jan 21)

The first trading week of the Bitcoin ETF funds for 11 newly approved companies has ended on a significant note. On the very first trading day, the total volume astonishingly reached 4.6 billion USD. Grayscale’s GBTC was a notable player, accounting for around 50% of this volume, reaching 2.3 billion USD.

Despite the substantial trading volume on the first day, the amount of Bitcoin under the management of the funds is not as large as one might expect. The future capital attraction to Bitcoin ETFs will depend on several factors and have long-term implications.

In Q1, keep an eye on the potential impact of the upcoming decun update on ETH, LSD, and L2, rumors about an ETH spot ETF, and the gaming and NFT sectors, with many big games launching. There’s anticipated growth in the gaming and NFT sectors as well, with many big games preparing to launch in Q1 and Binance listing more gaming stocks.

In addition, Binance has been backing many new projects and launching pools, possibly as a strategy to boost BNB and related stocks. Notable projects include LayerZero, Xterio, and Polyhedra, among others.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Tommy

With a passion for blockchain and crypto, I write articles on market news, in-depth analysis, and guides on safe and effective investing. My goal is to bring accurate, up-to-date, and useful information about crypto to the community, helping everyone understand the potential of blockchain technology and how to invest effectively.