ETH Relative Strength Continues, US-Regulated Margined Crypto Trading Coming to Cboe
Market Update
- The crypto market is currently consolidating, following last week's rally buoyed by positive developments like BlackRock's application for a spot ETH ETF. Bitcoin is hovering around $36.8k, while Ethereum aims to break above the $2100 mark. Amidst this sideways price action in the majors, select altcoins such as TIA, Celestia's data availability layer token, and FIL, Filecoin's native token, continue to exhibit strength. The potential SEC approval of 19b-4 applications for BTC spot ETFs, as discussed in last week's strategy note, could bring an additional wave of liquidity this week. Notably, the GBTC discount to NAV has fallen to 10%, the lowest since mid-2021, while the ETHE discount has narrowed to 14% from over 30% in late September, the latter influenced by BlackRock's application on Thursday. An eventful week is expected with major macro data releases on the horizon: CPI data tomorrow, PPI and retail sales on Wednesday, and building permits on Friday. In anticipation of these releases, there's a downward trend in rates and the dollar, a rally in gold, and a slight pullback in major equity indices, indicating the market might be preparing for cooler inflation and economic data than widely anticipated.
- A significant milestone was reached this morning as Cboe Digital received approval to launch margin futures trading for Bitcoin and Ethereum starting in January. This positions it as the first U.S.-regulated crypto-native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform. Aimed at improving market liquidity and providing increased hedging opportunities, the initiative plans to extend its offerings to include physically delivered products, pending regulatory approval. Supported by leading crypto trading firms such as B2C2, Cumberland, Jump Trading, and more, this launch signifies a pivotal step in the maturation of the crypto asset class and in broadening institutional engagement.
- Once again, digital asset investment products saw a week of substantial inflows, totaling $293 million and pushing the seven-week run beyond the $1 billion mark, with year-to-date inflows now standing at $1.14 billion, the third highest on record. This surge, coupled with recent price action, has raised total ETP assets under management to $44.3 billion. According to CoinShares, Bitcoin ETPs represented 19.5% of all Bitcoin trading volumes, indicating greater investor engagement via traditional brokerages. Bitcoin products attracted $240 million in inflows, while Ethereum products experienced their largest inflows since August 2022 at $49 million, suggesting a significant shift in market sentiment. Additionally, Solana and blockchain equity ETFs also recorded notable inflows, underscoring the widening breadth of the market that we discussed last week.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Ethereum has begun to play "catch-up" to Bitcoin's recent strength, and its market capitalization "dominance" chart shows Monday morning gains of nearly 3% following last week's brief test of trendline resistance. Given the bullish breakout in ETH back on 10/30 with its gains above $1866, it's likely that prices extend up to $2400 in the short run. However, it's the possible breakout in ETH's dominance chart which would be quite interesting, as ETH has steadily outperformed BTC since a spot ETF proposal was announced last week. Overall, gains back over last week's highs would allow for an above-average period of relative strength for ETH and it's expected that some mean reversion could be in order following its underperformance since June.
Daily Important Metrics
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All metrics as of November 13, 2023 11:24 AM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $719B | $36,809 | ↓ -0.84% | ↑ 122% | |
 ETH | $252B | $2,099 | ↑ 2.45% | ↑ 75% | ↓ -47% |
 SOL | $23B | $54.65 | ↓ -2.46% | ↑ 452% | ↑ 330% |
 ADA | $13B | $0.3677 | ↓ -3.24% | ↑ 49% | ↓ -73% |
 DOGE | $11B | $0.0763 | ↓ -2.10% | ↑ 8.81% | ↓ -113% |
 MATIC | $8.5B | $0.9197 | ↑ 4.65% | ↑ 21% | ↓ -102% |
 LINK | $8.4B | $15.11 | ↓ -6.88% | ↑ 172% | ↑ 50% |
 DOT | $7.1B | $5.52 | ↓ -3.13% | ↑ 27% | ↓ -95% |
 NEAR | $1.7B | $1.72 | ↑ 1.31% | ↑ 35% | ↓ -87% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -12% | $29.30 | ↓ -2.23% | ↑ 253% | ↑ 131% |
| BITW | ↓ -32% | $21.11 | ↑ 2.32% | ↑ 293% | ↑ 171% |
| ETHE | ↓ -20% | $17.36 | ↑ 0.84% | ↑ 265% | ↑ 143% |
| BTCC | ↑ 0.43% | $6.71 | ↓ -1.76% | ↑ 121% | ↓ -0.74% |
News
QUICK BITS
CoinDesk Bitcoin Researcher Behind 'BitVM' Ignites Fresh Buzz With New Paper on File Hosting The proposal by Robin Linus, a core contributor to Bitcoin-based zero-knowledge proofs developer ZeroSync, sets out how an open market for content hosting could... |
The Block Ondo unveils bridge to move treasuries-backed USDY stablecoin across chains The Ondo bridge has been designed to support the issuance of native tokens, including USDY, on networks that Axelar supports. |
MARKET DATA
CoinDesk Crypto Fund Inflows of $293M Bring Yearly Total Above $1B: CoinShares Ethereum related products witnessed the largest amount of inflows since August 2022. |
CRYPTO INFRASTRUCTURE
Coin Telegraph CBOE to launch BTC, ETH margin futures trading in January with 11 firms supporting The new trading capability comes simultaneously with a surge in interest in crypto financial products in the United St... |
REGULATION
CoinDesk IRS 'Raided' by Crypto Investors as Industry Puts Up Fight Against U.S. Tax Proposal The U.S. Internal Revenue Service (IRS) is gathering the final words now from a crypto sector that is arguing the agency's proposal for a digital-assets taxatio... |
FUNDRAISING AND M&A
CoinDesk Crypto News Site The Block Bought by Foresight Ventures in $70M Deal Singaporean venture capital firm Foresight Ventures bought a majority stake in The Block, with the crypto media outlet being valued at $70 million. |
HIRING
The Block Former Polygon Labs president Ryan Wyatt joins Optimism as Chief Growth Officer Wyatt will work with developers to grow the Optimism ecosystem and lead business development, marketing and partnerships strategies. |
WEB 3.0
The Block Aave Companies launches decentralized social graph Lens V2 on Polygon Web3 software technology firm Aave Companies launched Lens protocol V2 on Polygon during the Devconnect event in Istanbul. |
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