Ether surpasses US$ 3,000 driven by expectations of ETFs in the US
For the first time in nearly two years, Ether (COIN:ETHUSD)
exceeded US$ 3,000 on Tuesday, driven by the possibility of
approval of Ether ETFs in the United States by May. Reaching a peak
of US$ 3,003.40, the second-largest cryptocurrency by market value
then retreated, settling at US$ 2,930.01, marking a 0.48% decline
in 24 hours. The anticipation for an Ether ETF follows the success
of Bitcoin ETFs. Despite high expectations, analysts and regulators
remain cautious about the rapid approval of these ETFs.
Expectation for Bitcoin ETF expansion in the coming months
A spokesperson for Galaxy Digital Holdings (TSX:GLXY) predicts
increasing adoption of Bitcoin ETFs soon, as reported by FOX
Business. Steve Kurz, from Galaxy Asset Management, expressed
surprise if within a year major financial institutions do not
engage with these ETFs, anticipating institutional FOMO (Fear Of
Missing Out). Eleanor Terrett of FOX Business pointed out that many
financial advisors are interested but are awaiting approval from
their firms after risk assessments. Galaxy, with its Invesco Galaxy
Bitcoin ETF (AMEX:BTCO), participated in a highly attended panel on
the topic at the ETF Exchange Conference in Miami, highlighting the
growing interest in the sector.
Bitwise Bitcoin ETF adopted by $30 billion advisor network
The Bitwise Bitcoin ETF Trust (AMEX:BITB) has been officially
approved for inclusion in a prestigious network of registered
investment advisors (RIAs) with assets under management of $30
billion. Announced by Bitwise CEO Hunter Horsley via X (formerly
Twitter), this approval allows network advisors to allocate between
1% to 5% of funds into BITB. While the name of the RIA has not been
disclosed, the acceptance of BITB marks a significant advancement
for the ETF, which quickly surpassed the billion-dollar mark in
assets. This move underscores the growing integration of Bitcoin
into the institutional financial sector, with RIAs managing around
$115 trillion in assets globally.
BlackRock boosts Bitcoin ETF marketing with new announcement
Despite Bitcoin spot ETFs surpassing $5 billion in investments,
the sector is still emerging. BlackRock (NYSE:BLK), which recently
obtained SEC approval for its iShares Bitcoin Trust (NASDAQ:IBIT),
has launched an innovative advertising campaign. The ad, described
as “simple, modern, and effective” by Bloomberg’s senior ETF
analyst Eric Balchunas, targets not only a specific group of
investors but also resonates strongly with financial advisors.
Promising simplicity and equating its BTC ETFs to traditional
products, BlackRock aims to inform investors about this new asset
class, consolidating its leadership in the market.
Challenges and opportunities in the Bitcoin market amidst leveraged
positions
Investor HODL15Capital highlighted on X a short-selling trend in
Bitcoin (COIN:BTCUSD), with potential liquidations of up to $1
billion if prices reach $52,400 to $53,000. With Bitcoin
stabilizing around $51,270, Coinglass’s liquidation heatmap for the
BTC/USDT pair on Binance shows high leverage above this level.
Recently, the move beyond $50,000 resulted in notable liquidations,
highlighting the vulnerability of leveraged short positions.
However, another perspective highlights that the extremely low
trading volume indicates that the $52,800 resistance is short-term
and likely to be surpassed soon. This low selling volume may be
interpreted only as a temporary pullback, not as an indication of a
more significant trend reversal. “The extremely low trading volume
on negative BTC days (like yesterday and Saturday) indicates that
the $52,800 resistance is short-term and should be broken soon. The
low selling volume indicates just a pullback, not a stronger
reversal,” commented Fernando Pereira, analyst at Bitget.
Starknet launches historic token airdrop
Starknet, an Ethereum rollup, initiated the largest token
distribution of the year, delivering 728 million STRK to
approximately 1.3 million addresses. The pre-launch token was
initially priced at $1.80 on Aevo and reached $5 on Kucoin before
stabilizing at $3.50. With a total of 10 billion STRK, the
theoretical market value reaches $35 billion, while the current
market value is $2.32 billion. Starknet, which utilizes
zero-knowledge proof technology to optimize transactions on
Ethereum, allocates over half of the token supply to the Starknet
Foundation and the rest to contributors, employees, and partners,
with unlocking over 31 months.
Binance concludes leveraged token offerings
Binance will cease trading and subscription of its leveraged
tokens, including Bitcoin, Ethereum, and BNB variants, by February
28. Affected assets, such as BTCUP and BTCDOWN, will be removed,
with redemption available until April 3. These products offer
leveraged exposure without strategy adjustments but with risks. The
withdrawal follows Binance’s focus on optimizing customer value and
competitiveness as the platform recovers its market share after
regulatory challenges.
Forbes establishes innovative presence in The Sandbox metaverse
Forbes celebrated its entry into The Sandbox metaverse
(COIN:SANDUSD), inaugurating a space dedicated to the Web3
community. This new digital territory not only reflects Forbes’
commitment to innovation but also serves as a vibrant meeting point
for idea exchange and networking. With a design that includes a
pool, a bar, and a gallery for the 2024 Under 30 laureates, Forbes
aims to stimulate interaction and engagement. Taha Ahmed, from
Forbes, highlighted this initiative as a milestone in technological
exploration, promising a gamified and interactive content-rich
experience for visitors. “By establishing a permanent presence in
this digital world, we are opening new pathways for our community
to connect, learn, and grow together in ways that were previously
unimaginable,” said Ahmed.
Mastercard and Swoo Pay drive crypto payments for emerging markets
Mastercard (NYSE:MA) is collaborating with Swoo Pay, an app
focused on payments in developing regions, aiming to introduce
cryptocurrency loyalty rewards. This initiative seeks to cover gaps
left by other players like Google (NASDAQ:GOOGL) in international
payments. The partnership will focus on markets not served by
Google Pay, such as Africa and Southeast Asia, and will extend to
Huawei smartphone users, who face Google service restrictions. The
goal is to offer Swoo tokens as rewards, which can be exchanged for
cryptocurrencies like Bitcoin (COIN:BTCUSD). The initiative, which
has already had a successful pilot, aims to make crypto payments
more accessible and encourage everyday transactions among
users.
MetaMask enhances security with automatic alerts
The MetaMask wallet app now provides automatic security alerts,
courtesy of Blockaid, for its extension and mobile app users across
various networks. Launched after a beta period, this feature aims
to notify wallet holders about suspicious transactions. Initially
available on Ethereum (COIN:ETHUSD), these alerts now cover
networks such as Polygon (COIN:MATICUSD), Arbitrum (COIN:ARBUSD),
Optimism (COIN:OPUSD), Avalanche (COIN:AVAXUSD), and BNB Chain
(COIN:BNBUSD). This functionality is expected to prevent
significant asset thefts in 2024. Dan Finlay, co-founder of
MetaMask, emphasized this update as essential to keeping the
platform secure for all users. “This is a crucial step in
ensuring that MetaMask remains at the forefront of secure,
self-custodial encrypted wallets for both new and experienced
users,” said Finlay.
CME to introduce euro-denominated micro Bitcoin and Ether futures
The Chicago Mercantile Exchange (NASDAQ:CME) announced it will
launch euro-denominated micro Bitcoin and Ether futures on March
18, subject to regulatory approval. This new offering expands CME’s
range of cryptocurrency derivative products, following previous
releases of micro Bitcoin and Ether futures in dollars. The new
futures contracts will be one-tenth the size of the original
assets, aiming to offer a more accessible investment option in
cryptocurrencies. Giovanni Vicioso, Head of Cryptocurrency Products
at CME Group, highlighted the growing demand for risk management
instruments in Bitcoin and Ether, especially in regions outside the
US.
Hong Kong establishes guidelines for digital asset custody
The central bank of Hong Kong has released guidelines for banks
wishing to offer crypto asset custody services, aiming to reaffirm
its position as a cryptocurrency financial center. The new rules,
detailed in an 11-page document, require a detailed risk
assessment, effective risk management policies, and strong
management involvement. In response to recent sector failures, HKMA
insists on asset segregation, prevention of misuse of client
assets, and rigorous security measures, including cold storage and
protection of private keys.
Investor accuses Swiss fund Tyr Capital of ignoring FTX risks
Swiss hedge fund Tyr Capital faces negligence allegations from
an investor after failing to heed advance warnings about the
imminent risk of FTX’s bankruptcy, according to the Financial
Times. Allegedly, the fund disregarded concerns raised by TGT, an
investor, about its exposure to FTX, attempting to withdraw funds
only after the exchange declared bankruptcy in November 2022. TGT,
seeking to regain control over its assets, including a $22 million
claim against FTX, warned Tyr between November 7 and 10, before the
collapse. Swiss authorities are investigating Tyr, having conducted
searches in August and seized documents.
UK accelerates regulation of cryptocurrencies and stablecoins
The UK is mobilizing to implement new rules on cryptocurrencies
and stablecoins within six months, stated Bim Afolami, Economic
Secretary to the Treasury, at a Coinbase (NASDAQ:COIN) event. The
government aims to expedite this process ahead of the general
elections scheduled for January 2025. The recent proposals aim to
bring the sector under financial supervision, leading some crypto
companies to pause operations in the country due to regulatory
requirements.
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