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Grayscale Shifts $1 Billion in Ethereum to Coinbase Ahead of US ETF Trading Debut

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Crypto asset manager Grayscale has transferred a hefty sum of Ethereum to Coinbase Prime as exchange-traded funds (ETFs) associated with the asset gear up for a trading debut in the U.S. this week.

Grayscale’s transaction of $1.01 billion to Coinbase Prime on Wednesday prompted market participants to suggest Grayscale might be preparing for a sell-off to reinvest in another crypto, such as Solana.

Jon Campagna, managing partner at crypto hedge fund Nexyst Digital and formerly associated with Coinfund and Blackrock, dismissed these claims in a Tuesday post on X, saying Grayscale is unlikely to reallocate its Ethereum holdings.

It comes as Grayscale tipped 10% of its Grayscale Ethereum Trust (ETHE) holdings into its separate Ethereum ETF (ETH) on July 18, Campagna explained.

The new fund is expected to become active on Wednesday, with ETHE holders receiving their proportional ETF positions.

To facilitate the move, the asset manager transferred $1 billion, or 10% of their $10 billion AUM in ETHE, to Coinbase Prime, as announced a week earlier by Grayscale, Campagna wrote.

“What will be interesting is to see the outflows from ETHE as they refuse to lower their … fee,” Campagna said. “My guess is those outflows get recycled into inflows into the lower-cost ETFs, like Grayscale’s own 15 basis point fee ETH ticker. Brilliant move by them as they quasi-guarantee more assets stay in-house this way.”

“Grayscale is not lowering at all,” Eric Balchunas, an ETF analyst at Bloomberg, wrote in a post to X on July 18. “This means they are ten times higher than competition.” Grayscale is expected to maintain a 2.5% fee on ETHE.

While algorithmic trading firm Wintermute has indicated that the demand for Ethereum ETFs might be lower than expected, analysts remain optimistic about their debut on Wednesday.

Matt Hougan, chief investment officer at Bitwise Asset Management, has said Ethereum could reach as high as $5,000, Decrypt previously reported.

Ethereum has already begun to move higher, surpassing $3,500 on July 17 after a significant drop earlier in the month.

Grayscale is among several major investment firms, including BlackRock, Fidelity, and Franklin Templeton, preparing to launch Ether ETFs.

Demand for the funds is projected to be between $3.2 billion and $4 billion.

Edited by Sebastian Sinclair

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Top cryptocurrencies to watch this week

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The global crypto market cap ended last week with a 7% drop, losing $160 billion as it closed at $2.15 trillion.

While Bitcoin (BTC) influenced the broader market, several altcoins charted their own paths, benefiting from unique developments within their ecosystems.

Here are some of these cryptocurrencies to keep an eye on this week, following their diverse price movements last week:

HMSTR collapses 18% 

Hamster Kombat (HMSTR) saw a bearish week, dropping 18% to $0.004714. Its worst day came on Oct. 1 when it fell 13.94% amid a broader market decline on the back of geopolitical tensions.

HMSTR, SUI, FTT: Top cryptocurrencies to watch this week - 1
HMSTR 4H chart – Oct. 6 | Source: crypto.news

Last week’s bearishness built on a downtrend HMSTR has faced since its airdrop on Sept. 26. However, the four-hour chart shows some signs of recovery, with the RSI sloping upward, now at 42.82.

For the DMI, the +DI is steady at 17.46, signaling slight buyer momentum. However, the -DI at 23.07 slopes downward, indicating weakening selling pressure. The ADX is at 22.68 and trending downward, as the current trend loses strength.

These figures suggest a possible recovery if buying momentum continues, with bulls possibly targeting $0.0051. However, the downtrend may persist if buyers do not pick up pace this week.

SUI demonstrates resilience 

Sui (SUI) showed resilience despite broader market volatility, dropping only 0.3%. On Oct. 1, amid market turmoil, SUI dipped just 0.97%.

However, it saw a sharper 10.38% decline on Oct. 3, its largest intraday crash in three months.

HMSTR, SUI, FTT: Top cryptocurrencies to watch this week - 2
SUI 1D chart – Oct. 6 | Source: crypto.news

SUI appears to be forming a bull pennant following its uptrend in September. Currently, the Bollinger Bands indicate the upper band at $1.97, which acts as resistance, and the 20-day MA at $1.62 provides immediate support. 

With SUI trading below the upper band, the price could stabilize above the $1.62 support.

Investors should monitor for a bounce between $1.62 and $1.97, with a breakout above the resistance likely signaling bullish momentum for the week.

FTT bucks the trend

FTX Token (FTT) defied market trends last week, gaining 22% while most assets declined.

On Oct. 1, FTT rose by 13.89%, followed by a 21.53% surge on Oct. 4 and another 9.86% the next day. 

HMSTR, SUI, FTT: Top cryptocurrencies to watch this week - 3
FTT 1D chart – Oct. 6 | Source: crypto.news

Amid this uptrend, the Williams Percent Range stands at -32.59, signaling that FTT is near overbought territory but still has room for further gains. 

As it witnesses a 9% retracement this new week, bulls need to defend the Pivot support at $2.01 to prevent a slip into bearish territories. Below this, the next support rests at $1.33, marking lows last seen in two weeks.

Should FTT recover from the latest correction, market participants should watch for a break above the resistance level at $2.68, which continues the bullish momentum.



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Whales didn’t sell Bitcoin at $62k, on-chain data shows

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Bitcoin faces yet another correction after surpassing the $62,000 mark on Oct. 2. However, data shows that whales haven’t taken part in the latest selloff.

Bitcoin (BTC) consolidated around the $60,000 zone between Oct. 1 and 4 as the geopolitical tension between Iran and Israel heated up.

Right after the U.S. jobs report, the flagship cryptocurrency reached a local high of $62,370 on Oct. 5 as the broader crypto market witnessed bullish momentum.

Whales didn’t sell Bitcoin at $62k, on-chain data shows - 1
BTC price – Oct. 6 | Source: crypto.news

Bitcoin declined by 0.2% in the past 24 hours and is trading at $61,950 at the time of writing. Its daily trading volume plunged by 53% and is currently hovering at $12.2 billion.

According to data provided by IntoTheBlock, large Bitcoin holders recorded a net inflow of 205 BTC on Oct. 5 as the outflows remained neutral. The on-chain indicator shows that whales didn’t sell Bitcoin as its price surpassed the $62,000 mark.

Whales didn’t sell Bitcoin at $62k, on-chain data shows - 2
BTC whale net flows – Oct. 6 | Source: IntoTheBlock

Meanwhile, Bitcoin’s whale transaction volume decreased by 48% on Oct. 5 — falling from $48 billion to $25 billion worth of BTC. Lower trading and transaction volumes usually hint at price consolidations and lower volatility.

Data from ITB shows that Bitcoin registered a net outflow of $153 million from centralized exchanges over the past week. Increased exchange outflows suggest accumulation as the bullish expectations for October rise.

It’s important to note that macroeconomic events and geopolitical tension can suddenly change the direction of financial markets, including crypto.



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artificial intelligence

AI Tokens Lead Crypto Rebound Amid Strong U.S. Economy

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Bitcoin may have bottomed at $60,000 earlier this week, and the Fed easing into a strong economy points to more upside, Will Clement said.



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