SEC Chair Gary Gensler said that the commission could give final approvals on spot Ether ETFs sometime in summer 2024, while some analysts are predicting as early as July.
Asset management firm Bitwise has disclosed Pantera is interested in buying its upcoming spot Ether ETF, but it could spend more, less — or nothing at all.
Bitwise Chief Investment Officer Matt Hougan released a compelling investor memo titled “Washington Awakens: This Is What Alpha Looks Like,” predicting a monumental shift in the crypto market influenced by changing regulatory landscapes, potentially surpassing the impact of BlackRock’s foray into Bitcoin and altcoins. This Crypto Development Is Bigger Than BlackRock In his memo, Hougan […]
Regulatory uncertainty is holding back the $20 trillion dollar financial advisory industry from investing more in crypto, claims Bitwise investment head Matt Hougan.
Spot Ether ETFs might be weeks or months away from debuting on exchanges, as the ETF filers have yet to receive their S-1 SEC registration.
In a recently published report by Bitwise, the leading crypto index fund manager, a striking comparison has been drawn between Coinbase and Amazon, highlighting a significant yet under-reported aspect of Coinbase’s business — the Base Layer 2 network. Titled “It’s All About That Base (and Other Thoughts on Coinbase),” the report authored by Matt Hougan and Juan Leon delves deep into the financial and strategic shifts underpinning Coinbase’s latest successes and potential future. Amazon Of Crypto? Bitwise Projects Stellar Future For Coinbase Coinbase’s latest financial results have been a revelation, demonstrating robust growth and operational efficiency. The company reported $1.6 billion in net revenue, marking a 116% increase year-over-year, significantly surpassing Wall Street’s expectation of $1.36 billion. Profits were equally impressive, reaching $1.2 billion with total cash reserves swelling to $7.1 billion. Each of Coinbase’s business lines showed notable growth: consumer trading revenue rose by 93%, institutional trading by 105%, stablecoin revenue by 15%, blockchain rewards by 59%, and custodial services by 64%. Related Reading: Coinbase Sees Largest USDC Inflow Ever, What This Could Mean For Bitcoin Despite these strong numbers, the stock has trended downwards, suggesting that the market may not fully appreciate the depth of the company’s strengths. However, Bitwise highlights a less conspicuous but potentially transformative element of Coinbase’s portfolio: the Base Layer 2 network. Launched in August atop Ethereum, Base aims to enhance the blockchain’s throughput while lowering costs. It operates similarly to a bar tab, aggregating transactions and settling them in batches, thereby reducing transaction costs to under $0.01 and speeding up processing times to less than one second. The adoption rate of Base has been staggering. The network saw a 74% increase in transactions quarter-over-quarter in the first quarter, with a 40% increase in April alone compared to the entire first quarter. The exponential growth in the number of developers using Base, which increased eightfold, underscores the network’s rising significance and the broader industry’s interest. From a financial perspective, Base has been lucrative for Coinbase. In the first quarter alone, the network generated $27.4 million in transaction fees, of which Coinbase retained $15.5 million. This high-margin revenue stream continued into April, adding another $11 million to Coinbase’s profits. Given these trends, Bitwise predicts that Base could soon be contributing $10 million to $20 million in monthly profits to Coinbase. The analogy with Amazon is rooted in the transformation potential of Base. Just as Amazon evolved from a simple online bookstore into a retail giant and later a dominant force in cloud computing through Amazon Web Services (AWS), Coinbase could similarly evolve from a crypto brokerage to a fundamental infrastructure provider for the crypto industry. Related Reading: Bitcoin Coinbase Premium Returns To Neutral: Buying Push Already Over? This shift could redefine Coinbase’s role and impact within the market, positioning it as a central infrastructure entity in the crypto ecosystem, akin to how AWS underpins much of today’s web services. The report concludes by reflecting on the significance of Base for Coinbase’s strategic direction. “[T]he early returns on Base suggest that Coinbase could end up becoming something even greater: a core infrastructure provider to the crypto ecosystem. And that would be a very big deal indeed.” COIN Price Analysis Analyzing the technical landscape, the price of Coinbase (COIN) currently faces a pivotal moment. After dropping to $211.20 (as of press time), down 11.4% from a weekly high of $235.79, the stock is testing significant resistance and support levels that could dictate its short-term trajectory. The Fibonacci retracement tool, applied from a low of $31.62 to a high of $429.52, identifies critical price points. Presently, COIN is contending with the $230.57 level (0.5 Fibonacci level), which acts as the primary resistance. The 20-week Exponential Moving Average (EMA) provides crucial support at $199.35, with the stock recently bouncing off this level. The Relative Strength Index (RSI) stands at 56.10, suggesting a balanced dynamic between buying and selling pressures, with a slight tilt towards buying. The recent price behavior, characterized by a candlestick with a small body and longer wicks, reflects the ongoing uncertainty and cautious sentiment among traders. Featured image from Nasdaq, chart from TradingView.com
Many expect the commission to reach a final decision on spot Ether ETFs in May with approval or denial of a filing from VanEck.
Bitwise chief investment officer Matt Hougan cautions that not every token having a price surge in the cryptocurrency market “deserves to be.”
The ten spot bitcoin ETFs have arguably had one of the most successful launches in history with trading volume and inflows reaching new highs this week, but Bitwise Chief Investment Officer Matt Hougan expects even more demand is on the way.
Physically backed Bitcoin ETFs, like Bitwise Bitcoin ETF, are safer than any other ETFs due to their unique accounting system, Core Scientific founder Darin Feinstein believes.
The asset management firm pledged public transparency following the U.S. Securities and Exchange Commission approving the listing of its spot Bitcoin exchange-traded fund.
Grayscale GBTC outflows find a counterpart in net inflows to the remaining spot Bitcoin ETF funds. Here’s why it’s important.
While other spot Bitcoin ETF issuers use pop-culture references and flashy imagery, BlackRock has seemingly taken a more “adult” approach.
Franklin Templeton, the $1.5 trillion asset manager, gave its famous logo a glowing, crypto-y tweak after the SEC approved bitcoin ETFs, possibly girding for a tough battle with BlackRock and other Wall Street giants.
Reports swirled that the SEC was giving final comments to issuers and may approve multiple spot-based bitcoin ETF applications very soon.