Crypto Market Update

The crypto market rallied this morning alongside falling rates and a weak DXY. Quarterly GDP growth aligned with market expectations at 1.4%, and durable goods orders slightly exceeded expectations. The most important piece of macro data this week will be Core PCE, due tomorrow. Among the majors, SOL outperformed, rallying to $148 on the news of VanEck filing an ETF application. Meanwhile, ETH is trading around $3,450, and BTC is attempting to break through $62,000. Major outperformers in the top 100 include Core Strategy constituent MKR, Solana DEX aggregator JUP, and KAS, which likely benefited from the announcement that Marathon Digital has started to mine the PoW chain. Major equity indices are broadly higher, with IWM notably outperforming on the day.

VanEck Files for Spot Solana ETF

VanEck filed for a spot Solana ETF this morning, causing Solana’s price to surge by 7% shortly after the announcement, rising from $139 to about $148. VanEck’s Head of Digital Asset Research, Matthew Sigel, explained that SOL, like BTC and ETH, functions as a digital commodity used for transaction fees and computational services on its blockchain. The SEC previously approved VanEck’s spot ETH ETF and spot BTC ETF, but they still await full regulatory approval. We doubt the imminent approval of VanEck’s Solana ETF under the current administration due to concerns over market surveillance, manipulation, and the SEC’s stance that Solana is a security. This is likely a bet on a regime change in November. Regardless, it will likely push the conversation around CME futures listing forward.

CLSK Acquires GRDI

CleanSpark (CLSK 3.07% ) has acquired Bitcoin mining firm GRIID Infrastructure (GRDI) for $155 million, purchasing all of its outstanding stock. This acquisition, which includes an exclusive hosting agreement for 20 MW of production power, aims to boost CleanSpark’s operational power to 100 MW by the end of the year and 400 MW by 2026. As part of the deal, GRDI stockholders will receive CleanSpark common stock, and CleanSpark will assume GRDI’s debt and obligations, including providing a $5 million working capital loan and a $50.9 million bridge loan. If we do not see a significant BTC price rally soon, further consolidation in the mining space is possible, with some below-scale or overleveraged miners being acquired by larger ones.

Technical Strategy

Solana’s gains on the heels of a possible ETF launch in a new Administration have resulted in sharp 8% gains today, which is encouraging following the recent pullback down to test support near May lows. While more is needed technically to expect a low might be in place, Thursday’s SOL lift should help prices show a bigger bounce up to $156 which is the first area of possible short-term resistance. Above $156 allows for a rally to $177, which marks the peak of the ongoing three-month triangle pattern since mid-March. Bottom line, the near-term trend remains bearish over the last month as part of a three-month neutral range-bound pattern. However, surpassing $156 could provide the first signs of optimism toward a potential retest of the highs of its three-month range. Overall, more needs to be accomplished before expecting a larger rally, but Thursday’s move is a welcome reversal following recent weakness.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.26T $-1.7B (-0.08%) BTC Dominance 53.26 % (-0.30%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$113B (-0.04%) In Exchanges +$19B (0.24%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$2.3M (0.24%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +0.6597 (0.5818) Binance +0.9703 (-0.0287) Bitfinex -0.0162 (0.0000) Bitmex +1.0000 (0.0892) ByBit -0.0677 (0.7962) Deribit +0.0343 (0.0226) Huobi +1.0911 (1.0911) Kraken +1.3650 (1.3591) Mean +0.6597 (0.5818) OKex +1.4806 (1.8056) Sentiment BMI : 22 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $61,280 (-0.11%) Spot Basis +$198 (0.32%) Volume 422,966 (-32.98%) Open Interest 289,949 (-1.39%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 19,165 (-22.64%) Open Interest 285,927 (2.00%) Vol. Put/Call Ratio 0.6884 (38.26%) OOI Put/Call Ratio 0.4678 (-0.54%) All metrics as of 2024-06-27 12:00:20 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.21T $61,563 0.24% 45.76% ETH $414B $3,449 2.62% 51.56% 3.98% SOL $68B $148 7.95% 45.12% -0.45% DOGE $894,825 $0.0009 23.60% -98.99% -99.31% All prices as of 2024-06-27 11:55:36 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -32.38% $35 3.32% 48.24% 1.70% ETHE -0.25% $32 1.54% 66.17% 14.00% News Quick Bits The Block Wallets allegedly linked to US government move 3,940 bitcoins to Coinbase Wallets thought to be associated with the U.S. government have moved a sizable portion of bitcoin worth over $241 million to Coinbase. The Block State Street and Galaxy Digital team up to launch active crypto ETF The two companies’ new fund aims to provide exposure to various types of companies involved with crypto and blockchain. The Block JPMorgan says Mt. Gox creditors likely to sell part of bitcoin receivables next month Mt. Gox creditors are expected to sell part of their bitcoin receivables next month, potentially pressuring crypto markets, according to JPMorgan analysts. Market Data The Block US spot bitcoin ETFs report $21.5 million in net inflows, extending positive streak The largest net inflows of the day were seen from Fidelity’s FBTC, worth $19 million, followed by Grayscale GBTC's $4 million net inflows. The Block Bitcoin options implied volatility rises sharply on short-dated puts as traders prepare for potential downside swings: analysts The implied volatility of short-dated bitcoin options indicates traders are bracing for near-term price volatility, analysts say. Dose of DeFI CoinDesk Decentralized Exchange Bluefin to Roll Out Token After Securing $17M in Total Funding The exchange says it has already more than $25 billion in trading volume since inception, with more than $1 million in revenue. The Block Solana-based DEX Zeta Markets debuts native token ZEX, starts airdrop distribution Solana-based DEX Zeta Markets has launched its native token and opened airdrop claims comprising 100 million ZEX. Crypto Infrastructure The Block Bitcoin Virtual Machine team rolls out ZK rollups service to scale Bitcoin “The blockchains on Bitcoin powered by BVM will be the first-ever examples of Bitcoin ZK-rollups on mainnet, which is a massive tech breakthrough,” developer @bird2836 said. Regulation The Block Coinbase sues SEC, FDIC over FOIA requests, says federal regulators trying to cut out crypto Coinbase filed lawsuits against the SEC and FDIC for not complying with FOIA, and has asked a court to force those agencies to comply.