Ethereum’s highly anticipated spot ETF started trading last night. Contrary to what many expected, the market didn’t go wild. As QCP Capital pointed out, the launch didn’t bring the fireworks some were hoping for.

On the first day, net inflows for ETH were around $107 million. In comparison, Bitcoin saw $655 million, mainly because of a $484 million outflow from ETHE.

Market reaction

ETH volatility also took a hit across the term structures. Interestingly, the premium on Ethereum compared to Bitcoin vols reversed. Now, Bitcoin’s 1-week and 2-week options are trading 1-3 points higher than Ethereum’s. 

Despite this lukewarm start, QCP maintains a bullish outlook for Ethereum. They point to Bitcoin’s past performance after its ETF launch as a precedent.

Bitcoin reached an all-time high two months after its ETF launch, and they think Ethereum could have the similar pattern.

With volatility still at decent levels, QCP believes implementing an Accumulator strategy could be a smart move to take advantage of the slow upward trend. 

The strategy involves buying ETH spot at a 10.1% discount every week, as long as the spot price stays below $3,900.

What the indicators are saying

At press time, Ethereum is trading around $3,329, down 1.42% from its previous level. This drop has pushed the price close to key support levels, especially around $3,300.

The chart shows that Ethereum is trading below its key moving averages. The 50-day moving average stands at $3,466, and the 200-day moving average is at $3,454. 

Being below these averages hints at a bearish short-term trend, even though the long-term sentiment remains bullish.

The Bollinger Bands are showing increased volatility. The upper band is at $3,502.57, and the lower band is at $3,356.13. Ethereum’s price is currently testing the lower Bollinger Band, so it is oversold.

The On-Balance Volume is sitting at 797.158K, showing a significant decline in buying volume. This means selling pressure is currently outweighing buying interest. This pattern is typical in a consolidation.

The MACD, though, is still heavily in bearish territory. The MACD line is at -10.62, and the signal line is at -15.32, with the histogram showing a value of -25.94.

All in all, the market seems to be in a wait-and-see mode. The initial reaction to the ETF launch was muted, and many are now watching for any signs of a change in momentum.

United Arab Emirates, Dubai, July 3rd, 2024, Chainwire

In a significant move in the global tokenized real world asset sector, MANTRA, the Institutional-grade Layer 1 blockchain for tokenized RWAs, and MAG, a leading real estate developer in the UAE, announced a major partnership today which will see the tokenization of half a billion US dollars’ worth of MAG’s real estate portfolio.

With MAG’s total real estate portfolio valued at over US$5bn, the collaboration with MANTRA aims to revolutionize real estate investment through the application of blockchain technology. Starting with Keturah Reserve, a luxury residential development in Meydan, Dubai which offers transformational living through the design of space, the partnership will introduce a real estate financing vault on MANTRA’s purpose-built compliance-ready Layer 1 blockchain. This initial vault product provides investors with an attractive yield derived from an alternate asset class and is backed by the security of blockchain technology.

Structured in multiple tranches, the aggregate transaction value of projects to be tokenized will be US$500 million, firmly positioning MANTRA and MAG as industry leaders in the tokenized real estate market in the Middle East.

Investors in the vault will earn yield in stablecoins and $OM tokens, drawing an approximate expected return of 8% APY from stablecoins, a yield that will be further augmented with $OM tokens.

The initial vault will also be over-collateralized by a US$75 million mega mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development which is part of the Keturah Resort, and will be backstopped by MAG’s corporate credit, ensuring robust investor protection while pioneering innovation in real estate investment through tokenization.

John Patrick Mullin, CEO and Founder of MANTRA, stated, "Partnering with MAG represents a major milestone in our mission to bridge blockchain with tangible assets, with a special focus on the Middle East. This venture will set new standards in real estate tokenization, offering global investors access to premium real estate assets in the UAE."

Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, commented, "Working with MANTRA allows us to leverage cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings. This strategic collaboration is pivotal and forward-facing as we continue to innovate and lead in luxury real estate development."

About MAG Global

MAG is a leading global property developer based in the UAE, renowned for its innovative and luxury real estate projects. It is one of the largest names in the region's real estate industry that focuses on developing and delivering exceptional projects created with the aim of enhancing lifestyles and providing long-term benefits to both investors and customers.

For further information on MAG, please contact: Khaled Abu Hishme - Group Account Director: khaled@cbpr.me

About MANTRA

MANTRA is an Institutional-grade Layer 1 Blockchain for RWAs bringing World Finance Onchain. As a permissionless chain capable of adherence and enforcement of real world regulatory requirements, MANTRA empowers developers and institutions to seamlessly participate in the evolving RWA tokenization space by offering advanced tech modules, compliance mechanisms, and cross-chain interoperability.

MANTRA - From Institutions to Individuals: Bringing Finance Onchain.

Disclaimer. This is a paid press release.