BTC ETF Inflows Surge, ETH ETF Volumes Impress
Crypto Market Update
Despite being the launch day for ETH ETFs, crypto broadly moved lower in the early morning hours today, possibly due to movement out of the Mt. Gox trustee wallets. Mt. Gox sent approximately $130 million in BTC to Bitstamp, leaving about 90k BTC remaining in the trustee wallets. This move lower was likely also influenced by a rise in the DXY. Currently, BTC is trading around $66.5k, ETH is just below the $3500 level, and SOL has slipped back to around $175. Although ETHBTC rallied premarket, it now sits just 2% higher on the day. Many investors are likely waiting to see the pace and severity of ETHE outflows before increasing allocations. On the Bitcoin side, BTC ETFs experienced a massive day of inflows yesterday, totaling over $500 million, the highest since June 4th. In traditional markets, major equity indices are slightly higher today, with financials showing relative outperformance. Small caps are also continuing their strong performance, outpacing large caps so far today. The major focus for markets this week will likely be on GDP data on Thursday and Core PCE on Friday, as well as key earnings reports from #GOOGL, TSLA, and V, among others.
ETH ETFs Go Live, Volumes Impress
Nine ETFs holding ETH began trading on U.S. exchanges today, including products from BlackRock, Fidelity, Grayscale, VanEck, Bitwise, 21Shares, Franklin Templeton, and Invesco. The launch, two months after the SEC approved the 19b-4 rule change application, marks another significant milestone for crypto. The muted price reaction to the ETH ETFs likely stems from expectations around ETHE outflows, a lesson learned from the launch of the BTC ETFs. We believe there is good reason to think that ETHE outflows will slow faster than GBTC, which would be a bullish surprise for many. While volumes differ significantly from flows, they are the best proxy we have until final inflow numbers are posted after close. They are quite impressive thus far today, with total volumes surpassing $400 million before 12 PM ET.
Crypto Looks to Punch Above Its Weight This Election Cycle
Pro-crypto group Fairshake has emerged as the largest super PAC of this election cycle, raising nearly $203 million. In June alone, it raised over $25 million, with significant contributions from crypto firms like Coinbase, a16z crypto, and Ripple. Fairshake has made more than $83 million in disbursements and holds almost $120 million in cash on hand. The super PAC supports pro-crypto political candidates and regulatory efforts for clearer crypto regulatory frameworks in the U.S., with substantial donations also coming from Gemini co-founders Cameron and Tyler Winklevoss.
Technical Strategy
Following Avalanche’s recent breakout of the recent downtrend from Spring highs, prices look to have found initial resistance near $33, a level that marks Ichimoku resistance and serves as an initial area where AVAX might stall out. Following its second day of consolidation from this level, the price is approaching attractive levels for buying dips on this minor pullback. The area at $29.85 is attractive as support, followed by $28.30, which both mark areas of importance on this minor weakness. Overall, given the success in achieving a large breakout of this multi-month downtrend, there are legitimate reasons to respect the stabilization in AVAX and trust that a larger rally might be forthcoming. Movement back over $33 into August should lead this up to $43.50, then $48.65.
Daily Important Metrics
All metrics as of 2024-07-23 12:00:28 All Funding rates are in bps Crypto Prices
All prices as of 2024-07-23 16:00:22 Exchange Traded Products (ETPs)
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