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How r/WallStreetBets Triggered DOGE Rally – Reasons for Bitcoin Sell-off

The crypto market seems to be astonished by yesterday’s season. Dogecoin (DOGE) threw every fundamental out of the window and smashed its way to the 5th position in the crypto top 10 by market cap. DOGE is trading at $0,27 with 20.6% losses in the daily chart.

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DOGE with heavy losses in the 24-hour chart. Source: DOGEUSDT Tradingview

DOGE reached an all-time high of $0,50 after a 500% pump. Chief Strategy Officer at CoinShares, Meltem Demiros, linked Dogecoin surge to the controversial subreddit r/WallStreetBets.

This group decided to lift its ban on crypto discussions. These were still limited to only Bitcoin, Ethereum, and DOGE.

However, the group decides to reinstate their ban in less than a day due to an article published by Bloomberg, as announced on their subreddit. With the title “WallStreetBets Bows to Crypto”, the article and moderator’s decision caused discomfort in that community.

As a sort of “revenge pump”, WallStreetBets might have caused DOGE’s rally. As evidence, Demiros pointed at the cryptocurrency’s traded volume. At its peaked DOGE, daily trading volume stood at $70.772.770.653, as shown by CoinGecko, with a $48B market cap.

In comparison, State Street Global Advisors’ SPY ETF, one of the “most widely held and traded”, registered around $25B in this metric during the April 17th session, according to Demiros. Also pointing at Dogecoin’s repository in GitHub, with many contributions over the past year, CoinShares CSO said:

the people have spoken, and the people want DOGE. The power of memes is moving markets. You absolutely love to see it. It’s gonna break people’s brains, and we’re just getting started. To all the @TikTokInvestors who are now $DOGE millionaires, cheers.

Coinbase Effect and Bitcoin’s price

After a bullish momentum leading up to Coinbase’s debut on the stock market, Bitcoin’s price seems to be trending downwards. At the time of writing, BTC is trading at $60,174 with 1.9% losses in the 24-hour chart and 3.6% over the past week.

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BTC with moderate losses in the 24-hour chart. Source: BTCUSD Tradingview

During this period, many investors were positive Coinbase’s direct offering was going to support a pump across the crypto market. The opposite happened. As Demiros stated, this is due to the high level of leveraged positions in the derivatives market.

When Bitcoin was unable to pump due to Coinbase debut, leverage traders “dip” and closed their positions. Demiros said the following on this crypto market dynamic:

One – bitcoin markets are very much driven by derivatives. funding rates, implied vol, and open interest are important to monitor. spot follows futures -> tail wags dog. Two – there isn’t enough leverage, and cost of capital limits capacity!

Data from Glassnode still points to a bullish outlook for BTC. The metric Realized Cap HOLD Waves indicates the first peak in the number of short-term holders moved to the market by retail mania.

In previous bull runs, there have been at least 3 peaks for the same metric. This could indicate that the rally is still early and BTC’s price could rise a lot more if it follows a previous pattern, as shown below.

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Ethereum ETF Approved While ETH Gives Bullish Signals

The Ontario Securities Commission (OSC) from Canada has approved four Ethereum Exchange Traded Funds (ETFs) to be launched on April 20, 2021. The financial products were petition by CI Global Asset Management, Galaxy Digital, Purpose Investments, and Evolve ETFs.

Three months ago, Canada became the first country in North America to approve a Bitcoin ETF. At that moment, Purpose Investments received a “massive” advantage when it could launch its Bitcoin ETF a day before the competition, as stated by Bloomberg Intelligence ETF expert James Seyffart.

Now, the regulator seeks to create a “fairer” competition. The ETFs management fees will also be highly competitive with CI Galaxy offering 0.40%, Purpose 1%, Evolve 0.75%. Seyffart added:

That said the mgmt fees aren’t the expense ratio, so we won’t know the “Total” costs of each for some time.

CI Global Asset Management has called its ETF the “world’s first” based on Ethereum with the “world’s lowest management fee”. The product is aims for investors to benefit from Ethereum’s price appreciation and the growth of its ecosystem. Steve Kurz, Partner and Head of Asset Management at Galaxy Digital said:

We are thrilled to continue building our advisory relationship with CI. The CI Galaxy Ethereum ETF gives investors a simplified path to benefit from the explosion of decentralized applications being built on Ethereum.

At the start of April, Canada Bitcoin ETF’s have a record inflow streak, as stated by Senior ETF Analyst for Bloomberg Intelligence Eric Balchunas. The financial product affected the performance of others in the U.S., like Grayscale Bitcoin Trust (GBTC).

The GBTC traded with a negative premium during March. Its investors called for actions and some proposed to modified GBTC’s traded mechanism. The Grayscale Ethereum Trust could suffer the same fate and attract the attention of institutional investors in the U.S. looking to gain exposure to the cryptocurrency.

Thus, the Securities and Exchange (SEC) Commission faces new pressure. In the meantime, 9 Bitcoin ETF petitions pile up with the U.S. regulator. Their approval seems, for some experts, imminent and could follow Canadian regulator steps, to allow their launch at the same time.

Ethereum (ETH) on a bullish trajectory

ETH is trading at $2,364 with 2.8% losses in the past day. In the weekly and monthly chart, ETH has 14.3% and 29.3% profits respectively.

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ETH with small losses in the daily chart. Source: ETHUSD Tradingview

The price action for ETH seems to be cooling down during the weekend after it broke several ATH in previous days. ETH fundamentals remain strong with an increase of supply accumulation, as indicated by Lewis Harland from Decentral Park Capital.

Ethereum investor Qiao Wang said the following on this indicator: “one of the most bullish, fundamentally sound onchain indicators for $ETH”.

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Canada Approves Three Ethereum ETFs, Ether Funds Set to Launch on TSX Next Week

Canada Approves Three Ethereum ETFs, Ether Funds Set to Launch on TSX Next Week

Canada has been approving crypto exchange-traded funds (ETF) more quickly than the United States and after three successful bitcoin ETFs, the country has approved three ethereum-based ETFs. The three ether ETFs in Canada will debut on Toronto’s stock exchange (TSX) on April 20, 2021.

Three Ethereum ETFs Set to Launch in Canada Next Week

Back in February, News reported on the launch of the first North American bitcoin exchange-traded fund. A few days later, the fund called the “Purpose Bitcoin ETF” captured massive volume with $165 million traded at the time. The three new ether-based ETFs will be provided by CI Global Asset Management, Purpose Investments, and Evolve ETFs. All three will appear on Toronto’s stock exchange (TSX) this Tuesday.

Both Purpose and Evolve already sponsor crypto ETFs, and CI Global Asset Management aims to join the fray. CI Global is working with Bitcoin bull and billionaire investor Mike Novogratz’s Galaxy Digital. Novogratz’s organization has also applied for a bitcoin exchange-traded fund that aims to be listed in the U.S. with regulatory approval.

The senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, tweeted about the three approvals on Friday.

“Canada is approving three Ethereum ETFs to launch on Tuesday,” Balchunas wrote. “Seems more fair than giving Purpose a crucial head start again. The SEC should/prob will do the same here,” he added.

Canada’s Crypto ETF Approvals Continues to Outshine the US

Ethereum has been doing very well on spot markets, and has been trading for over $2,400 per unit this weekend. The digital asset touched an all-time high on April 16, 2021, reaching $2,533 per ETH. Ethereum is up a whopping 1,317.64% during the last 12 months and up 13.3% this week. Evolve’s prospectus shows that the ETF will trade under the ticker “ETHR”. The ETF will leverage the CF Benchmarks Ether-Dollar Reference Rate (ETHUSD_RR).

The Purpose ether ETF will have exposure to physically settled ether with three unique units ETHH, ETHH.B, and ETHH.U. The Purpose-based ETHH units will leverage CAD and ETHH.U will utilize USD. The CI Global Asset Management and Galaxy Digital-backed ETF will use both USD and CAD units as well on TSX.

With three bitcoin ETFs approved in Canada and three ethereum-based ETFs approved as well, the country’s regulators seem to be optimistic about these investment vehicles. Unlike the U.S. Securities and Exchange Commission (SEC), which has yet to approve an American ETF, but has eight applications on its desk.

What do you think about the three ethereum ETFs approved to be listed on TSX next week? Let us know what you think about this subject in the comments section below.

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Blockcap Mined $33M in BTC in First Quarter, Q1 Bitcoin Revenue Outshines US Competitors

Blockcap Mined $33M in BTC in First Quarter, Q1 Bitcoin Revenue Outshines US Competitors

The Texas-based Blockcap Incorporated revealed the blockchain and mining firm has mined approximately 544 bitcoins during the first quarter of 2021. Blockcap says the $33 million worth of bitcoin stems from the firm’s fleet of 12,176 mining rigs.

Blockcap Rakes in 544 Bitcoins

During the last three months, bitcoin (BTC) markets have seen phenomenal gains and alongside the price rises bitcoin miners are pulling in profits. This week the Austin-based firm Blockcap revealed its Q1 earnings in terms of bitcoin (BTC) revenue. The company has acquired $33 million or 544 bitcoins during the first quarter. News recently reported on Blockcap moving its headquarters to Austin.

At the time, former governor of Texas, Rick Perry welcomed Blockcap for bringing tech innovation to Texas. The company acquired the 544 bitcoins this year by leveraging 12,176 mining rigs and Blockcap hopes to deploy more machines. Blockcap says by next year it hopes to get 43,000 bitcoin mining rigs fully deployed. Since the company started last year, it has mined a total of 1,600 BTC or $98 million using today’s exchange rates.

“Blockcap has an aggressive growth strategy that is designed to create more jobs in the blockchain industry not just in the United States but also in our home state of Texas and our hometown of Austin,” Darin Feinstein Blockcap’s founder said. “We’re proud to be competing in this industry with a number of other high-quality firms, and we believe there is ample room for all of us to expand together and in turn provide broader, sustained economic growth at the local, state, and national levels.”

Committed to Making the US a Bitcoin-Mining Hub and Outperforming American-based Competitors

Feinstein explained that the firm is committed to making the U.S. a “blockchain and bitcoin-mining technology” hub. The Blockcap founder also claims it outperformed “several major North American-based companies” mining bitcoins.

“This includes Riot Blockchain, a publicly-traded company that mined 491 Bitcoin during the first quarter of the year, as well as 165 bitcoin mined in Q3 of last year by Hive Blockchain,” Feinstein detailed.

The Blockcap founder further noted that blockchain technology and cryptocurrency solutions not only create employment opportunities in the U.S. but this tech also helps the unbanked across every border.

“Currently there are roughly 60 million Americans who don’t have access to bank accounts and roughly 1.7 billion people globally who are also unbanked,” Feinstein remarked. “And we at Blockap strongly believe that the blockchain industry as a whole will provide these unbanked people with the critical technology necessary for accessing the financial system.”

What do you think about Blockcap’s first-quarter bitcoin revenue? Let us know what you think about this subject in the comments section below.