NYSE Arca Files for Grayscale Ethereum Trust Conversion, Coinbase Obtains Singapore MPI License
Market Update
- Crypto markets rose over the weekend, with BTC (+0.33%) trading above $28k and ETH (-1.89%) surpassing $1,700, triggering over $92 million in short liquidations over the last 24 hours. After rallying amid Ether ETFs being greenlighted, ETHBTC (-2.73%) is retracing some of its gains as investors may be positioning for Bitcoin ETF news as the next crypto-specific catalyst. Equity markets are mixed, with the SPY declining 0.35% while the QQQ is up 0.41%. The DXY and U.S. Treasury yields continue to climb higher, with investor attention shifting to various employment data releases set for this week. September job openings will be released tomorrow, ADP Employment on Wednesday, and non-farm payrolls on Friday. Worse-than-expected data could cause a retreat in rates and the dollar, potentially providing fuel for risk assets to rally.
- Grayscale Investments has announced that NYSE Arca has filed form 19b-4 with the SEC to convert the Grayscale Ethereum Trust (ETHE 6.41% ) to a spot Ether ETF. Grayscale’s Ethereum Trust is the largest Ether investment product in the world, with over $5 billion in assets under management. The first futures-based Ether ETFs began trading today, so the filing comes in hopes that the SEC is softening its stance on crypto spot ETFs. It is important to note that the same tactic was used in October 2021, when NYSE Arca applied for the conversion of Grayscale’s Bitcoin Trust (GBTC 2.72% ) to a spot ETF but was ultimately denied. A lot has changed since 2021, and the chances of approval are likely much higher than before. ETHE 6.41% is up 1.18% in today’s trading, while its discount to NAV has closed to approximately 28%.
- Coinbase has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore. An MPI license removes transaction volume thresholds on multiple payment services, allowing Coinbase to expand its offerings in the region. Singapore is growing into a global digital asset hub, with over 700 Web3 companies, causing Coinbase to identify Singapore as a priority market, citing the country’s approach to regulation syncing well with its global mission and objectives. Coinbase has been developing products specifically for the Singapore region, such as PayNow, FAST bank transfers, and integrating SingPass, Singapore’s trusted digital identity, into Coinbase’s onboarding process. Acquiring an MPI license is the latest move in Coinbase’s efforts to expand internationally. In the last year, they have obtained virtual asset service provider (VASP) licenses in Spain, Italy, Ireland, and the Netherlands.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Following a very strong period of outperformance last week, Ethereum has begun to back off in Monday's trading following seven straight days of gains. Resistance successfully held ETH advance right at a 38.2% Fibonacci retracement area of the prior April -August 2023 decline which also was very close to a 50% retracement of the recent pullback since July. Pullbacks initially should face support near $1670, but under this level would allow for a steeper correction back down to $1600. When ETH manages to get back above $1756, this should provide some energy for further gains up to $1900 which is thought to represent the next big area of resistance to Ethereum's rise. Over $1900 is necessary to make the case for a lengthier advance, and this might materialize at some point in October/November which allows for more meaningful follow-through up to $2100.
Daily Important Metrics
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All metrics as of October 2, 2023 12:29 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $547B | $28,064 | ↑ 3.42% | ↑ 69% | |
 ETH | $203B | $1,690 | ↑ 0.41% | ↑ 41% | ↓ -28% |
 SOL | $10.0B | $24.13 | ↑ 5.44% | ↑ 144% | ↑ 74% |
 ADA | $9.3B | $0.2649 | ↑ 1.91% | ↑ 7.31% | ↓ -62% |
 DOGE | $8.9B | $0.0627 | ↑ 0.39% | ↓ -11% | ↓ -80% |
 MATIC | $5.2B | $0.5559 | ↓ -0.18% | ↓ -27% | ↓ -96% |
 DOT | $5.1B | $4.18 | ↓ -0.21% | ↓ -3.86% | ↓ -73% |
 LINK | $4.3B | $7.72 | ↓ -3.53% | ↑ 39% | ↓ -30% |
 NEAR | $1.1B | $1.13 | ↓ -1.23% | ↓ -11% | ↓ -81% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -21% | $19.60 | ↑ 2.14% | ↑ 136% | ↑ 67% |
| BITW | ↓ -47% | $12.20 | ↑ 2.33% | ↑ 127% | ↑ 58% |
| ETHE | ↓ -28% | $11.19 | ↑ 1.18% | ↑ 135% | ↑ 66% |
| BTCC | ↑ 0.13% | $5.13 | ↑ 4.06% | ↑ 69% | ↓ -0.10% |
News
QUICK BITS
Bitcoinist Brazil Rolls Out National Digital ID Powered By Blockchain Brazil is at the forefront of a new era in digital identity verification, leveraging blockchain technology to revolutionize their identification systems. This s... |
The Block UBS taps Ethereum to pilot tokenized money market fund UBS Asset Management has launched its first 'live pilot' of a tokenized money market fund on the Ethereum blockchain. |
CoinDesk Grayscale Moves to Convert Its Ethereum Trust to a Spot ETH ETF Its the largest ether trust in the world with $5B in AUM. |
MARKET DATA
Coin Telegraph Friend.tech revenue surges over 10,000 ETH, TVL tops 30,000 ETH The decentralized social media platform has continued to thrive since it launched in the second week of August and has... |
The Block Axie Infinity, Optimism and Aptos among over $200 million in October token unlocks Axie Infinity, Optimism and Aptos are set for the most substantial token unlocks this month, releasing more than a combined $130 million. |
REGULATION
The Block Coinbase granted full license in Singapore Coinbase, the crypto exchange operator, was granted a key license in Singapore. |
Coin Telegraph IMF working paper proposes country-level assessment matrix for crypto risks The matrix aims to identify potential risks associated with the crypto space and policy responses for regulators. ... |
The Block GSR secures in-principle approval for Singapore payment institution license GSR has secured in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution license. |
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