NPC Labs, a GameFi infrastructure startup founded by three former Coinbase employees, has raised $21 million to accelerate gaming development on Coinbase’s Ethereum layer 2 network Base.

The funding included $18 million from cryptocurrency-focused venture capital firm Pantera Capital. Makers Fund, Hashed, Mirana Ventures, and several other investors chipped in, too, according to a July 22 report by VentureBeat, which was reposted on X by NPC.

NPC purports to help developers take their GameFi projects to market and provides developers with more support than what they typically get when dealing with deep-pocketed publishers.

“After spending years creating a game, developers are beholden to publishers to deem their games worthy of support, marketing, and distribution,” NPC’s CEO and former Coinbase business development associate Daryl Xu said. “And when they do, developers give up 70% of the proceeds with the risk of the publisher pulling the game if it’s not generating sufficient revenue.”

Source: NPC Labs

Such a setup would return “control” back to the game developers and gamers,” Xu said.

“We want to help build fun games for the mom in Nebraska while making it dead simple for developers to benefit from being onchain.”

To achieve this, NPC will serve as a core contributor to B3, a layer 3 GameFi-focused blockchain built on top of Base, which will handle transactions, gas fees and the bridging of in-game assets.

This way, developers will be able to focus more on deploying fun gameplay, NPC noted.

Choosing Base as the infrastructure to build on top of was an easy choice for NPC, noted the firm’s chief operating officer Viktoriya Hying who, like Xu, previously worked at Coinbase.

NPC’s other founder, Sean Geng, also worked at Coinbase as an engineering manager.

Related: Web3 gaming needs to shift from play-to-earn to ‘play-and-earn’ — Bitget

While Base was a latecomer to the Ethereum layer-2 space, Hying noted that it is well-positioned to link wallets to Coinbase’s 100 million user base.

“We want to make it safe and simple, with everything that comes with crypto that is a little intimidating for the retail user,” Hying said. “We want to eliminate what makes it hard to have an easy and fun experience.”

B3 also supports Ethereum and other Ethereum Virtual Machine-compatible blockchains.

Magazine: Web3 gaming won’t exist in 5 years, $656K for best crypto game pitch: Web3 Gamer

Crypto scammers are up to no good again, and their latest weapon appears to be malicious links to a webpage that looks and feels almost exactly like the video conferencing platform Zoom, which prompts users to install malware when clicked.

On July 22, non-fungible token collector and cybersecurity engineer “NFT_Dreww” alerted X users to a new “extremely sophisticated” crypto scam involving fake links for Zoom.

Malicious Zoom link. Source: NFT_Dreww

Drew said the scammers have already stolen $300,000 worth of crypto from the method.

How the scam works

Like many social engineering scams, Drew explained that scammers typically target non-fungible token (NFT holders or crypto whales, asking if they would be interested in licensing their intellectual property, inviting them to Twitter Spaces, or asking them to join a team for a new project.

The scammers will insist on using Zoom and hurry the target to join a meeting in progress using a hard-to-notice malicious link.

Comparing the malicious domain with the genuine one. Source: NFT_Dreww

“It's extremely easy to fall for this... I doubt 80% of people verify each character in a link that's sent, especially a Zoom link.”

Once the link is clicked, the user will be met with a “stuck” page showing an infinite loading screen. The page will then prompt the user to download and install ZoomInstallerFull.exe, which is actually malware.

Screenshot of malware being installed. Source: any.run

Once installed, the page will redirect back to the official Zoom platform, making the user believe it worked, but by then, the malware has already infiltrated the target computer and stolen the data and loot, explained Drew.

According to technologist “Cipher0091,” whom Drew also credits for his X thread, when the malware is first executed, it adds itself to the Windows Defender exclusion list to prevent antivirus systems from blocking it.

“Then it begins executing and extracting all your information while the software is distracting you with the “spinning loading page” and going through the process of accepting T&Cs, etc,” explained Drew.

He added that the scammers will keep changing domain names to prevent them from being flagged, and this was their fifth domain so far for this scam.

Related: Coinbase-posing scammers steal $1.7M from a user amid a string of attacks

Social engineering crypto scams are not new, but they do keep evolving. Several crypto community members have reported receiving malicious emails this week from scammers impersonating other crypto influencers and executives.

The email contains a malicious attachment that will likely install crypto-stealing malware if executed.

Related: Lazarus Group laundered over $200M in hacked crypto since 2020

The price of Ether will likely be “sensitive” to spot Ether ETF inflows in the coming days, as investors will remember lackluster demand for ETH futures products late last year, says crypto analytics firm Kaiko.

“The launch of the futures-based ETH ETFs in the US late last year was met with underwhelming demand, all eyes are on the spot ETFs’ launch with high hopes on quick asset accumulation,” said Kaiko’s head of indices Will Cai in a July 22 market report.

“Although a full demand picture may not emerge for several months, ETH price could be sensitive to inflow numbers of the first days.”

Several spot Ether (ETH) ETFs received their final approval on July 22 and are now set to go live trading on July 23.

Cai said one of the most obvious impacts of price is expected to come from “potential” outflows from Grayscale’s Ethereum Trust (ETHE).

ETHE discount to NAV has tightened ahead of the launch of the spot ETH ETFs. Source: Kaiko

Much like Grayscale Bitcoin Trust (GBTC) was for Bitcoin, ETHE is a fund that offers institutional investors exposure to ETH. However, it enforces a six-month lock-up period on its shares.

The conversion of ETHE into a spot ETF will allow traders to buy and sell more easily, meaning that many investors who purchased ETHE shares will likely look to cash out following its switch to a spot product on July 23.

“ETHE’s discount to net asset value closed over the past few weeks, after widening between February and May as hopes of approval waned,” added Cai, noting:

“The narrowing discount suggests traders bought ETHE below par and will redeem these shares at NAV price on conversion to realize profits.”

Some expect ETH ETFs to underwhelm

While spot Bitcoin ETFs were a major catalyst for the digital asset in the months following their launch, there’s less confidence that Ether ETFs will be as popular.

Crypto market maker Wintermute wrote in a July 21 research report that it expects Ethereum ETFs to generate between $3.2 billion and $4 billion of inflows in their first year of trading.

Related: Fee war breaks out among spot Ether ETF issuers ahead of listings

“Our view is the ETFs will likely see lower-than-anticipated demand, closer to $3.2 to $4 billion," wrote Wintermute.

Meanwhile, the firm predicts that Bitcoin ETFs will generate roughly $32 billion in assets before the end of this year. This puts Wintermute’s estimates of total first-year inflows into the ETH ETF at around 10 to 12% of Bitcoin ETF flows.

From this, the market-making firm expects the price of ETH to rise no more than 24% by the end of the year.

Meanwhile, boutique crypto asset firm ASXN provided a more bullish outlook in a July 22 post to X, predicting an average monthly inflow of between $800 million and $1.2 billion into ETH ETFs.

Estimates for ETH ETF inflows compared to BTC ETFs. Source: ASXN

ASXN added that it expects the price impact of ETHE outflows to be less dramatic than the market fears due to a tightening and dynamic discount premium to net asset value (NAV) and the launch of Grayscale’s mini ETH ETF, which they predict will subdue outflow pressure.

“We are open to an upside surprise given the unique dynamics of ETHE trading at par prior to the launch and the introduction of the mini trust,” wrote AXN.

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Bitcoin miner HIVE Digital Technologies has revealed plans to build a 100-megawatt mining site in Paraguay — its first site in the country — expected to more than double its mining hashrate.

The expansion announcement came after HIVE executives toured the country and met with Paraguay President Santiago Peña and senior cabinet ministers, and saw “huge potential for growth,” according to a July 22 statement.

HIVE estimates its hashrate would increase from 5.6 exahashes per second to 12.1 EH/s after the site is completed.

Energy would be sourced from Paraguay’s Itaipu hydroelectric dam, which has become a popular site for Bitcoin miners as it supplies all of Paraguay’s local electricity needs and leaves a large amount of excess electricity for miners to tap into.

Source: HIVE Digital Technologies

However, the announcement comes just three days after Paraguay’s state-run electricity grid operator — Administración Nacional de Electricidad (ANDE) — said it would increase electricity costs for legal cryptocurrency miners.

The price increase is likely to take effect on Aug. 1, but cryptocurrency miners in the region are trying to change their minds, claiming that Paraguay’s economy could see losses of up to $1.5 billion.

HIVE estimates its 100-megawatt facility would generate over $100 million for ANDE over the next three years.

The Bitcoin miner will also aim to hire employees locally, it said.

“We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region.”

Meanwhile, HIVE also announced it acquired another 500 Bitmain S21 Pro Antminers, which should be shipped this month.

Paraguay will be the fourth country HIVE runs mining operations in after Canada, Iceland and Sweden.

Related: Bitcoin miner TeraWulf is open to merger but not for ‘empire building’

HIVE currently holds 2,521 Bitcoin, worth over $170 million at current prices.

The company’s share price (HIVE) increased 8.4% on the Nasdaq to $4.50 on July 22, Google Finance data shows.

The clean energy-focused miner is now up 2.5% in 2024 after falling over 48% to start the first five months of 2024.

HIVE’s change in share price since Jan. 1, 2024. Source: Google Finance

Magazine: ‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters

BlackRock’s spot Bitcoin exchange-traded fund (ETF) has notched its biggest day of inflows in over four months, with over $523 million entering the fund on Monday.

The iShares Bitcoin Trust (IBIT) scooped up 7,759 Bitcoin (BTC) on July 22 — worth just over $523 million at current prices — according to Hey Apollo data cited by its co-founder in a July 23 post to X.

Source: Julian Fahrer

The July 22 addition brings the total sum of inflows into BlackRock’s fund to 333,000 BTC which equates to $22 billion at current prices.

It marks the seventh-largest day on record for inflows into IBIT in US dolla

IBIT witnessed its largest single day of inflows on March 18, when $849 million worth of BTC was added to the fund.

The second-largest day on record occurred on March 5, when the fund saw $788 million in inflows, per FarSide investor data.

Related: Gary Gensler will likely resign in 2025 after Biden exit — 10x Research

The massive day for BlackRock’s fund came on the same day that a roster of spot Ether (ETH) ETFs was approved for trading in the US.

Industry analysts expect spot Ether ETFs to generate 10% to 20% of the flows that spot Bitcoin ETFs have been generating following their launch in January.

Meanwhile, several analysts who spoke to Cointelegraph on July 21 are bullish on Bitcoin in the short to mid-term, citing Biden’s last-minute dropout from the presidential race and Trump’s heightened odds of an election victory as strong upside catalysts for the price of Bitcoin.

10x Research founder Markus Thielen speculated there was a solid chance Republican nominee Donald Trump could make a surprise announcement that he would make Bitcoin a strategic reserve asset at the upcoming Bitcoin 2024 conference in Nashville on July 25.

Thielen said this could trigger a “parabolic” move for the price of Bitcoin in the coming weeks.

Bryan Courchesne, the founder of crypto asset management firm DAIM echoed this prediction on July 22, saying there was a good possibility of Trump enshrining BTC as a strategic reserve asset at the conference.

Magazine: Crypto exposes sudden rift among Democrats months ahead of election

According to The Wall Street Journal, a Microsoft spokesperson blamed the recent Crowdstrike failure on a 2009 regulatory deal between Microsoft and the European Union.

The spokesperson claimed Microsoft agreed to give external security developers the same level of access to interact with the software as Microsoft, paving the way for critical bugs.

Patrick Wardle, the CEO of DoubleYou, explained that monolithic ecosystems like Apple’s MacOS are more resistant to such critical errors because of their walled-off architecture. In 2020, Apple revoked similar security clearances for its operating system, insulating it from third-party security failures and coding conflicts.

The 2009 Microsoft policy gives extensive access to third-party security firms. Source:  Dr. Dennis-Kenji Kipker

The failure that brought the world to its knees

Between July 18 and July 19, the world was hit by what has been called “the largest information technology outage in history." The IT blackout affected roughly 8.5 million Windows systems worldwide, halting operations at financial institutions, airports, emergency services, and media broadcasting networks.

At the center of the crash was an upgrade bug related to third-party security firm CrowdStrike. In an update, CrowdStrike CEO George Kurtz stressed that the downtime was not due to a hack or malicious exploit and directed users to interact with official Crowdtrike support channels and update their affected software through the security firm’s portal. The CEO also reassured the public that the issue had been identified and fixed.

Related: Crypto firms’ vulnerability to CrowdStrike blackout: Analyst insights

Decentralized blockchain architecture solves this

In the wake of the critical systems failure, the crypto community took to social media to highlight how distributed computing systems immunize against security vulnerabilities inherent in centralized systems.

Jameson Lopp, co-founder of Bitcoin wallet service Casa, used the high-profile outage to illustrate why Bitcoin's core software does not auto-update, explaining that “Auto-updates introduce systemic risk.”

Senator Cynthia Lummis, a longtime advocate of decentralized technologies, echoed comments made by blockchain software developers. The GOP lawmaker cited Bitcoin's resiliency during the critical software meltdown as evidence of superior architecture, compared to current centralized systems featuring single points of failure and other performance bottlenecks.

Magazine: NFT Creator, The Sarah Show: Analog childhood meets dizzying digital future.

Two individuals indicted for their involvement in the Forcount cryptocurrency Ponzi scheme have pleaded guilty to charges in a New York courtroom.

In a July 22 hearing at the United States District Court for the Southern District of New York, Antonia Perez Hernandez and Nestor Nunez pleaded guilty to conspiracy to commit wire fraud related to the Forcount scheme. Hernandez, Nunez and others allegedly pilfered $8.4 million from mostly Spanish-speaking investors between 2017 and 2021 by promoting crypto trading and mining on Forcount, promising significant returns.

Of the five defendants in the case charged in 2022, Juan Tacuri has also pleaded guilty. He was one of the promoters who traveled across the US to host presentations in which he convinced investors to sign up for Forcount. As part of a deal with prosecutors announced in June, he agreed to forfeit roughly $4 million and properties purchased with victims’ funds.

Sentencing soon

Judge Analisa Torres is expected to sentence Tacuri on Sept. 24. At the time of publication, no sentencing hearing appeared on the docket for Nunez or Hernandez. The remaining defendants, Francisley Da Silva and Ramon Perez, did not seem to have entered a guilty plea at the time of publication and were awaiting trial.

Related: Hamster Kombat users targeted by phishing attacks and fake airdrops

The Forcount guilty plea was the latest movement in a series of criminal cases brought by US authorities against individuals involved with crypto firms. Former FTX CEO Sam Bankman-Fried is serving 25 years in prison after a 2023 conviction for fraud associated with the misuse of customer funds at the crypto exchange. Former Binance CEO Changpeng Zhao will likely be in prison until October following a guilty plea and four-month sentence for violating US money laundering laws.

Magazine: Meet the hackers who can help get your crypto life savings back

Spot Ether (ETH) exchange-traded funds have been given the final approval to begin trading in the United States tomorrow, July 23.

On July 22, the United States Securities and Exchange Commission approved the final S-1 registration statements necessary for their launch on their respective stock exchanges, including the Nasdaq, New York Stock Exchange and Chicago Board Options Exchange.

The successful spot Ether ETF issuers include BlackRock, Fidelity, Grayscale, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy.

It comes two monthsafter the SEC greenlit their 19b-4 applications on May 23 — approving a rule change allowing spot Ether ETFs to be listed and traded on their respective exchanges.

The BlackRock-issued iShares Ethereum Trust will be listed on the Nasdaq, while the Grayscale Ethereum Trust will be listed on the NYSE. 

All spot Ether ETFs except the Grayscale Ethereum Trust will offer a base fee between 0.15-0.25%.

However, Fidelity, 21Shares, Bitwise, Franklin and VanEck will waive fees for their spot Ether ETFs until a set time period ceases or their products reach a certain amount in net assets.

The Grayscale Ethereum Mini Trust will also waive fees for the first six months or until it reaches $2 billion in net assets, whichever comes first.

Biden’s withdrawal, Ether ETFs could boost crypto

The spot Ether ETFs were approved in the same week that US President Joe Biden withdrew from the 2024 election.

Related: Ethereum will outperform Bitcoin after ETF launch — K33 Research

Biden’s decision to drop out from the r was described as a “win for crypto assets” by eToro market analyst Josh Gilbert in a recent note to Cointelegraph.

“The longer that we see Trump staying ahead in the election odds, the more crypto assets will price in his victory.”

Industry analysts expect the spot Ether ETFs to muster somewhere between 10-20% of the flows that spot Bitcoin ETFs have seen since those products launched six months ago.

Industry analysts are split on how Ether’s price in the coming months following launch.

Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame

Bitcoin (BTC) price dropped to an intra-day low at $66,569 on July 22, less than 24 hours before the much-awaited launch of spot Ethereum ETFs in the United States.

The bullish momentum that propelled BTC above $68,000 falls under question as traders struggle to secure a few daily closes above $68,000.

Apart from the impact of US President Joe Biden’s withdrawal from the November presidential race on Bitcoin’s price, the pioneer cryptocurrency is facing yet another issue: a strengthening US dollar.

Let’s take a closer look at the factors impacting Bitcoin price today.

The US dollar starts to recover

The US dollar Index (DXY), a metric tracking the greenback’s performance against top world currencies, has risen 0.7% from its July 17 low of 103.18 to its current value of 103.85 ahead of the Personal Consumption Expenditures (PCE) Index from the United States.

The PCE print, known as the Federal Reserve’s “preferred” inflation measure, is due July 26, a day after second-quarter gross domestic product and rolling unemployment figures. This could potentially provide tailwinds to the DXY and heighten volatility for Bitcoin and other cryptocurrencies at the end of the week.

DXY 1-day chart. Source: TradingView

From a technical perspective, the US dollar Index looks on track to rise by more than 1.8% to complete a classic V-shaped recovery pattern toward 2024 highs above 106.

Bitcoin bulls book profits amid political uncertainty

Biden’s withdrawal and endorsement of Vice President Kamala Harris for the presidency introduced some volatility to markets.

While the Republican presidential candidate, Donald Trump, has incorporated a pro-Bitcoin stance into his election platform, Harris’s stance on cryptocurrencies remains unclear.

Market intelligence firm sentiment noted that the market appears to react with an “immediate small panic drop in crypto prices” to news of Joe Biden’s stepping aside, as it did with the news of the Trump assassination.

“Though wildly different circumstances, the news of the Trump attempted assassination from 2 weeks ago caused a similar price pattern. Throughout the closing hours of Sunday, prices quickly bounced after an initial drop and are now quite volatile to start the week.”

Source: Santiment

According to 10x Research founder Markus Thielen, Bitcoin’s downturn today could suggest that traders are booking profits ahead of Trump’s speech at the Bitcoin Conference on Saturday, July 27.

“Taking profit, or even shorting Bitcoin ahead of Trump’s Nashville speech, could turn out to be an expensive exercise,” wrote Thielen in his newsletter on July 22.

Thielen further noted that Bitcoin is fighting stiff resistance from the 2021 all-time high of $69,000 and that BTC could “rise parabolically” once the price produces a decisive close above that level.

Bitcoin price chart. Source: 10x Research

Related: BTC price 8% off all-time high — 5 things to know in Bitcoin this week

Bitcoin long liquidations ramp up

A sharp movement in the Bitcoin futures market appears to have caused BTC’s price decline over the last 12 hours. The timing of the long liquidations coincided with the sharp drop in the price of the pioneer cryptocurrency.

Data from Coinglass shows that more than $7.16 million in BTC long positions have been liquidated over the last 12 hours. The total liquidations across the crypto market amounted to $41 million, with $23.3 million being long liquidations in the same period.

Crypto liquidations. Source: Coinglass

Typically, long liquidations occur when the price of the asset being traded suddenly drops. This is because traders who were bullish on the asset and had opened long positions face losses since the market has moved against them.

According to data from blockchain data provider CryptoQuant, the number of Bitcoin transferred to exchanges spiked on July 22.

BTC transferred to exchanges. Source: CryptoQuant

Increased exchange inflows for a particular asset suggest increased selling pressure in the market.

With an increasing number of BTC sent to known exchange wallets, investors seem to be taking profits at current prices, explaining the current volatility in Bitcoin price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin’s recent price surge may be less about speculation over the United States elections and more about market expectations of a weakening US dollar.

According to a July 22 analysis by crypto custodian Copper, the probability of former US President Donald Trump winning a second term in the November elections has led to a rally in prices. However, the movement could be tied to “market expectations that the US dollar will lose ground against other currencies, as it has historically under a Republican White House.”

Bitcoin (BTC) price has rallied more than 6% in the past seven days, jumping from roughly $63,500 on July 15 to around $68,000 at the time of writing.

The report notes that Bitcoin’s market behavior often mirrors that of other major fiat currencies, which rally when the US dollar Index (DXY) declines. This trend was noticeable in 2017 and 2021 when BTC reached all-time highs as the dollar weakened.

The US dollar has decreased by 10% on average during periods when a Republican president has been in office since 1969 — indicating a weaker US dollar relative to other major currencies. On the other hand, the dollar has increased by 8% on average during periods when a Democratic president has been in office since 1969.

DXY Index change under administrations. Source: Copper

“Bitcoin’s dynamics are more complex with a tendency to move in the opposite direction of the US dollar’s strength or weakness. Additionally, any administration which delivers growth would likely see investors returning to more volatile asset classes,” noted Copper’s head of Research, Fadi Aboualfa.

According to Copper’s analysis, it’s not the absolute strength of the DXY that matters, but rather market expectations about its future performance:

“Should markets continue to anticipate a Republican win this year, there might be an assumption of potential for the US dollar to weaken, especially considering it is currently trading at its highest level since 2002.”

DXY Performance

Between 2013 and 2016, during President Barack Obama’s Democratic administration, the DXY rose by 25%. This increase can be attributed to several factors, including the economic recovery following the 2008 financial crisis, overall improved economic conditions in the US compared to other major economies, and growing expectations that the Federal Reserve would eventually begin hiking interest rates. 

In contrast, between 2017 and 2020, under the Republican administration of Donald Trump, the DXY declined by 7%. This period saw significant tax cuts, which initially boosted economic growth but also led to concerns about rising fiscal deficits. Trade tensions and tariffs imposed on other countries have also contributed to a more volatile dollar.

Since 2021, under the Biden administration, the DXY has increased by 14%, according to Copper’s analysis. A combination of factors such as higher inflation expectations, the Federal Reserve’s actions to combat inflation by raising interest rates, and global uncertainties have contributed to the rise of the greenback over the past few years.

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Cory Klippsten, the CEO of financial services firm Swan Bitcoin, announced the company would be scrapping its plans for an initial public offering “in the near future” following a shutdown of its mining operations.

In a July 22 X post, Klippsten announced a staff reduction and said the firm was “unlikely to continue with [its] Managed Mining business in the near term.” The CEO said that, without revenue from the mining arm, the company expected to halt its plans for an IPO.

“Swan is pulling back from our accelerated spending plan for our core financial services business,” said Klippsten. “Unfortunately, this includes staff cuts across many functions.”

Source: Cory Klippsten

In January, Swan Bitcoin announced it had launched a mining venture in 2023 and was working to become a publicly traded company in the US within 12 months. The firm said at the time that it had reported $125 million in revenue since 2023 and doubled the number of its staff.

Related: Bitcoin mining revenue hits post-halving yearly low

Klippsten’s announcement came roughly three months after the Bitcoin (BTC) halving cut the mining rewards from 6.25 to 3.125 BTC per block. The event has caused earnings from major mining companies to drop, including Bitfarms — the Canadian firm being targeted by Riot Platforms for a hostile takeover.

Other mining firms have fared better in 2024. German BTC mining firm Northern Data reportedly plans to seek an IPO in the US starting in the first half of 2025. Genesis Digital Assets is also reportedly considering a public offering in the near future.

Magazine: Could a financial crisis end crypto’s bull run?

Asset manager Bryan Courchesne recently appeared on CNBC to discuss Bitcoin's potential to become a strategic reserve asset of the United States government under a future Trump administration.

According to the asset manager, adopting Bitcoin (BTC) as a reserve asset would be difficult but not impossible. Courchesne pointed to the Department of Justice's vast holdings of 200,000 BTC, making the US government the largest holder of Bitcoin behind its pseudonymous creator, Satoshi Nakamoto.

Courchesne explained that the Department of Justice could simply transfer the Bitcoin to the United States Department of the Treasury, Paving the way for the Treasury to begin accumulating and holding the scarce asset long-term.

Bitcoin's potential to become a global reserve asset

Speculation that Bitcoin may become a global reserve asset or a strategic US Treasury asset surged following former President Trump's support for the digital asset industry amid mounting worldwide debt and monetary inflation.

Trump’s pick of JD Vance, a 39-year-old Bitcoin holder, as his running mate also fueled speculation that a future Trump administration could mean a new era for crypto, in which Bitcoin becomes fully integrated into the current financial system.

Related: German MP urges government to stop ‘hasty’ Bitcoin sell-off

Mark Cuban has also imagined a scenario in which widespread inflation and geopolitical instability drive the global population to Bitcoin as a haven to protect their life savings and purchasing power, elevating Bitcoin to the status of a global reserve currency organically. Data from high-inflationary countries like Argentina, Venezuela, and Turkey indicates this is already happening, as populations shift to cryptocurrencies as a hedge against inflation.

Source: Mark Cuban

However, Ari Paul, founder of BlockTower Capital, disagrees. Paul believes that the odds are 10:1 against Bitcoin becoming a strategic reserve asset of the United States in the next four years. The entrepreneur explained that the US Strategic Reserve, a collection of assets held for use in case of national emergencies, may not be officially established even if a future president announces that the US would not sell its Bitcoin holdings.

Magazine: Crypto Wendy on trashing the SEC, sexism, and how underdogs can win: Hall of Flame

Bitcoin (BTC) price rose to its highest level in 40 days on July 22, reaching a $68,518 intraday peak. The 19.4% gains in 10 days were fueled by investors becoming more confident in the United States Federal Reserve cutting interest rates in 2024, the end of Bitcoin selling from the German government, and a more constructive regulatory view, especially in the US.

The bullish momentum led the Bitcoin futures premium, the primary gauge of professional traders’ sentiment, to its highest level in five weeks. Traders now question whether the scenario favors a rally to $72,000 despite the uncertainty from US presidential elections and global socio-political turmoil.

President Biden’s election decision has limited impact on Bitcoin price

President Biden’s choice to dropout of the reelection bid on July 21 increased the likelihood of former President Donald Trump for and his crypto-friendly Vice President pick JD Vance winning the upcoming election. Vance, had previously disclosed holdings of up to $250,000 in Bitcoin and voted in favor of a joint resolution to overturn a regulation that aimed to classify crypto holdings as a liability on banks’ balance sheets.

Regardless of how crypto friendly a potential Trump cabinet could be in 2025, investors are also aware of the independence of the US Federal Reserve (Fed) and the US Securities and Exchange Commission (SEC). Fed Chair Jerome Powell's second term is set to end in May 2026, while Gary Gensler, the current Chair of the SEC, has a five-year mandate set to end in April 2026.

While investors are confident that the Fed will keep interest rates unchanged at 5.25% on July 31, there has been a considerable shift in year-end expectations. According to the CME FedWatch tool, which uses US Treasury yields pricing models, the market presently estimates 47% odds of two interest rate cuts by the Dec. 18 meeting, up from 20.5% one month prior.

China, the world’s second-largest economy, also faces uncertainties as investors were disappointed with the regime's lack of short-term economic stimulus announcements, as reported by Bloomberg. The People’s Bank of China cut the seven-day reverse repo rate for the first time in twelve months on July 22, to 1.7% from 1.8%. Reportedly, Morgan Stanley economists deemed the move “reactive” and a “risk” to their growth estimates for the region.

Bitcoin derivatives suggest $72,000 is possible

To understand how these circumstances affected Bitcoin investors’ risk appetite, one should analyze the BTC monthly futures contract premium. The price on these derivatives tends to differ significantly from regular spot Bitcoin exchanges, unlike perpetual futures (inverse swaps). Typically, a 5% to 10% premium is expected to compensate for the longer settlement period.

Bitcoin 2-month futures annualized premium. Source: Laevitas.ch

The Bitcoin futures premium rose to 13% on July 22, marking the highest level in five weeks. Although it is below the 16% level from June 7, the current premium indicates a cautiously optimistic sentiment. This is crucial to avoid cascading liquidations if unexpected negative price swings occur.

To determine if this sentiment is present solely in the futures markets, one should analyze the Bitcoin options' 25% delta skew, which measures the relative demand for call (buy) and put (sell) options. A negative skew indicates higher demand for call options, and neutral markets typically hold a -7% to +7% delta skew, indicating balanced pricing between the two instruments.

Bitcoin 2-month options 25% delta skew. Source: Laevitas.ch

Bitcoin’s 25% delta skew metric has remained stable near -9% since July 19, suggesting traders are slightly optimistic about short-term price movements. The last time Bitcoin options showed similar signs of confidence was on May 20, but this was short-lived as the $71,500 resistance proved difficult to overcome.

The latest data points to a healthy Bitcoin bull market aiming for a retest of the $72,000 level. Demand is driven by a mix of factors, including geopolitical uncertainty, confidence in less restrictive central banking economic policies, and a more constructive view of crypto regulation after the SEC dropped major cases and investigations.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ripple, the blockchain-based digital payments network, has donated $1 million to a candidate in the Massachusetts Republican Party senate primary.

The firm contributed the funds to John Deaton, a lawyer and crypto advocate known for his active role in the crypto community.

Deaton has been a vocal critic of the United States Securities and Exchange Commission (SEC) and its approach to cryptocurrency regulation.

Deaton’s campaign has gained widespread attention, focusing on blockchain technology and digital assets — topics increasingly entering the political domain.

Elon Musk says X and SpaceX headquarters will move to Texas

On July 16, Elon Musk announced that SpaceX and social media platform X would relocate their headquarters to Texas.

The move comes in response to Governor Gavin Newsom’s contribution to Bill AB1955, which Musk criticized for “attacking both families and companies.”

As a vocal supporter of crypto in the past, Musk stated that SpaceX would leave Hawthorne, California, and set down new roots in “Starbase, Texas.”

As one of the strictest financial regulatory climates in the US, Musk also explained that the move is attributable to California’s hostile regulatory environment.

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EU Stripe clients now have crypto purchasing power: Report

The financial service provider Stripe is now enabling clients in the European Union to purchase cryptocurrencies using credit or debit cards through its new crypto integration.

On July 16, a report from the Irish Independent stated that customers in the EU will now be able to purchase Bitcoin (BTC), Ether (ETH) and other cryptocurrencies using Stripe.

Through a Stripe “widget,” online vendors can now facilitate crypto purchases for their customers secured by Know Your Customer regulatory compliance.

John Egan, the head of crypto at Stripe, explained that the expansion will allow merchants to reach “a more global audience” with in-built fraud prevention and identity verification precautions.

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Arkham transfers $487 million ARKMs to Coinbase Prime for tax compliance

Arkham Intelligence, a blockchain analytics platform, has moved $487.24 million in its native token ARKM from its vesting contract to Coinbase Prime custody for tax compliance.

According to data from its platform, $185.28 million of these tokens were owned by Miguel Morel, the CEO of Arkham Intelligence.

On July 17, the firm communicated the need for the move to ensure it stayed regulatorily compliant and followed proper tax payment procedures from July 18 onward.

The token transfer to the exchange means that the ARKM will no longer be visible on the blockchain and also marks the beginning of a linear unlocking cycle for the team, investors, and advisers.

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ETHTrustFund (ETF), a Base network protocol that advertised itself as similar to Olympus or Wonderland, transferred $2 million from its treasury to Tornado Cash and Railgun mixer apps on July 20 and deleted all of its websites and social media accounts. This caused security experts to conclude that the project was a “rug pull” or exit scam. 

The incident was first reported by crypto investor and X user Octoshi on July 21. According to Octoshi, the project’s treasury had been sent to a new address the previous day.

Source: Octoshi

On July 22, blockchain security platform PeckShield shared the report. According to the blockchain security firm, ETHTrustFund developers transferred the funds to mixer apps Tornado Cash and Railgun in an apparent attempt to launder them.

According to an archived version of the ETHTrustFund developer documents, the project was conceived as a decentralized autonomous organization (DAO) with rebasing features, similar to Olympus, Wonderland or other similar projects. The fund issued blockchain-based bonds and sold them to investors in exchange for cryptocurrency. It also “rebased” or issued new ETF tokens to users who staked their tokens in the fund’s smart contracts.

Related: Court-appointed insolvency firm takes over HectorDAO after $2.7M hack

In addition, ETHTrustFund featured a new twist on the classic rebaseDAO idea: instead of constantly rebasing to produce more tokens, the fund would purportedly slow its inflation after a period of time and begin to “debase” or destroy its own ETF tokens, pushing up the remaining tokens’ prices over time. Meanwhile, all of the assets invested into the fund would be used to generate yield for tokenholders.

However, the debasing period appears to have never been reached. According to Octoshi, ETHTrustFund lead developer Peng stopped responding to Telegram messages in April before finally rugging the project on July 20.

Rug pulls continue to be a frequent source of losses to crypto investors. In June, the Gemholic protocol was accused of conducting a $3.5 million exit scam after it allegedly promised refunds to investors before transferring the funds to its own team instead. In March, investors lost $1.4 million when admin accounts associated with the Ordiz bridge deleted their socials and transferred all remaining funds to new accounts, leaving users unable to withdraw from the bridge.

Magazine: Decade after Ethereum ICO: Blockchain forensics end double-spending debate

An unfortunate memecoin trader has lost nearly $8 million worth of digital assets by trading the President Joe Biden-linked Jeo Boden (BODEN) token, while other traders are expecting a potential memecoin season.

Memecoin trader loses nearly $8M on Boden trade

A memecoin trader logged a nearly $8 million loss after selling his Jupiter (JUP) tokens to buy the top of the Boden memecoin.

The unknown memecoin whale’s investment is down nearly 99%, according to popular crypto trader Toby, who wrote in a July 21 X post:

“This trader TWAP'd out of $8m worth of $JUP for $BODEN at the pico top of Boden. He then sold $12.5k worth (0.5% of total) but bag held the rest to now, where he is down near to 98%.”

Boden whale, trades, Source: Toby

Following multiple trades, the whale’s initial $8 million BODEN investment is now worth around $85,000.

Looking at the whale’s holdings, 81% of the wallet "D4PDe" holds Boden tokens, while the remaining 14% is Circle’s USD Coin (USDC), and 3.7% Solana (SOL) tokens.

Wallet ‘D4PDe. Source: CoinStats

At the peak of its valuation, the wallet was worth over $10.8 million at the end of April, which fell to the current $219,000 mark, according to CoinStats data.

Biden-related memecoins tanked over 60% since Biden officially dropped out from the 2024 presidential elections.

BODEN/USD, 7-day chart. Source: CoinMarketCap

Related: Can ETH price crack $3.5K? Ethereum ETF debut will precede new highs, analysts say

Memecoin season could be around the corner

While Biden-related tokens sharply declined, other memecoins are soaring to new all-time highs, prompting trader expectations of an altcoin season — during which many cryptocurrencies will likely see new all-time highs.

For instance, the Ethereum-based meme token Mogcoin (MOG) reached a new all-time high on July 22, reaching an over $820 million market capitalization, according to GeckoTerminal data.

MOG/WETH, 1-day. Source: GeckoTerminal

The MEW token is up over 39% in the past 24 hours, trading at $0.008126, as of 2:16 p.m. in UTC.

MEW/USD, 7-day chart. Source: CoinMarketCap

The wider memecoin sector could be on track to witness the next phase of the bull cycle, according to popular memecoin trader Zack Ventura.

The trader wrote in a July 22 X post:

“This index is the top memecoins against Bitcoin, tracing back from December 2023. Next leg up memecoin season is loading.”

Memecoin Index/BTC, all-time chart. Source: Zack Ventura

Related: Ether’s ‘most obvious bullish setup’ is set for H2 2024, says former Wall Street trader

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Though United States Vice President Kamala Harris has yet to officially win the Democratic nomination for president in 2024, many experts suggest she has an excellent chance to be the party’s candidate, facing off against Republican Donald Trump in November.

At the time of publication, it was unclear whether the Democratic National Convention (DNC) would hold an open primary — allowing any candidate to potentially win the delegates for the top of the ticket — or conduct a “virtual roll call” to decide on a nominee before a critical state deadline. The DNC is scheduled to begin on Aug. 19 in Chicago. However, Ohio’s election laws require parties to certify their presidential tickets by Aug. 7, suggesting that Democrats may take steps to ensure Harris is nominated outside of an open convention.

With the endorsement of US President Joe Biden, Senator Elizabeth Warren, Representative Nancy Pelosi, and many Democratic leaders, Harris may become the party’s candidate in 2024. Until the nomination is official, certain Democrats have a chance of being at the top of the ticket or potentially vice presidential candidates under Harris.

Pete Buttigieg

The Secretary of Transportation under President Biden, Pete Buttigieg has had little involvement with financial policy since 2021 or made public statements on crypto while the mayor of South Bend, Indiana. During his 2020 presidential campaign, Buttigieg said Bitcoin (BTC) should be “treated as a commodity,” suggesting that the US Securities and Exchange Commission (SEC) did not have the authority to bring enforcement actions involving the cryptocurrency.

Josh Shapiro

Pennsylvania Governor Josh Shapiro is another potential presidential or vice presidential candidate on the Democratic ticket with some crypto policy experience. In February 2019, the Pennsylvania Department of Banking and Securities explicitly stated that “virtual currency, including Bitcoin,” did not qualify as money under the state’s money transmission laws. With Shapiro as governor, the department included crypto in this definition.

JB Pritzker

JB Pritzker, who has served as the Illinois Governor since 2019, is also one of the names being considered for the Democratic ticket. In August 2021, Pritzker spoke at crypto trading platform CoinFlip’s offices for the announcement of the company’s new headquarters. The governor said at the time that “the future of cryptocurrency is in Illinois” and encouraged industry leaders to flock to the state.

Gov. Pritzker speaking in August 2021 to announce new CoinFlip headquarters in Illinois. Source: Facebook

Gavin Newsom

In 2022, California Governor Gavin Newsom signed an executive order to harmonize regulatory frameworks for blockchain between the US government and California — one of the first actions of its kind. In October 2023, he also approved a bill — the Digital Financial Assets Law — requiring additional regulations on crypto firms operating in the state. The legislation is set to be enforced beginning in July 2025.

Buttigieg, Pritzker, Shapiro, and Newsom have all endorsed Harris as president. Other potential running mates include Michigan Governor Gretchen Whitmer, who has largely been as silent on crypto as Vice President Harris.

Related: What we know about Kamala Harris’ views on crypto

None of the potential vice president candidates have a rating on Coinbase’s Stand With Crypto initiative, a website that lists what politicians have said and voted regarding digital assets. Vice President Harris’ rating at the time of publication was “pending.”

Trump’s running mate, whom he announced in a social media post amid the Republican National Convention on July 15, is JD Vance. The Ohio senator reported holding up to $250,000 worth of Bitcoin in 2022 and voted in favor of a joint resolution to overturn an SEC rule on banks reporting crypto as a liability on their balance sheets.

Vance’s addition to the Republican ticket followed Trump’s campaign announcing that it would accept crypto donations and enact policies to favor BTC miners if he were reelected in 2024. However, the vice presidential pick previously said Trump was “unfit” to be president, referred to him as “America’s Hitler,” and said that anyone who voted for him was an “idiot.”

Magazine: Crypto voters are already disrupting the 2024 election — and it’s set to continue

The S&P 500 Index (SPX) plunged about 2% last week, but the weakness in the equity markets could not dampen the enthusiasm of the cryptocurrency traders. Bitcoin (BTC) made a strong comeback, rising roughly 12% for the week.

According to CoinShares da, digital asset investment products witnessed strong inflows of $1.35 billion last week, taking the total inflows in the past three weeks to $3.2 billion. Bitcoin’s strength also resulted in outflows of $1.9 million from short-Bitcoin exchange-traded products.

Daily cryptocurrency market performance. Source: Coin360

Even after the recent rally, Bitcoin remains stuck inside a sideways price action. As the price nears the resistance, the bears are likely to pose a strong challenge. However, analysts are optimistic about Bitcoin hitting a new all-time high.

Could Bitcoin rise to $70,000, or will traders pull the price back below $65,000? Let’s analyze the charts to find out.

S&P 500 Index price analysis

The S&P 500 Index is correcting in an uptrend, suggesting that the short-term traders are booking profits after a strong rally.

SPX daily chart. Source: TradingView

The index plunged below the 20-day simple moving average (5,504) on July 19, but the bears could not continue the downward move. Buyers are trying to push the price back above the 20-day SMA on July 22 but may find it difficult to do so.

If the index closes below the 20-day SMA, the next stop is likely to be the 50-day SMA (5,416). Contrarily, a rise back above the 20-day SMA will signal that the recent breakdown may have been a bull trap. The index may then again climb toward 5,670.

US dollar Index price analysis

The US dollar index (DXY) has been falling inside a descending channel pattern for several days, indicating a negative sentiment.

DXY daily chart. Source: TradingView

The price bounced off the channel’s support line on July 18, signaling that the bulls are aggressively defending the level. If the price rises above 104.50, the index could reach the 20-day SMA (104.95), which is likely to act as a solid resistance. If the price turns down from the 20-day SMA, it will increase the possibility of a break below the channel. If that happens, the index could decline to 102.50.

Instead, if buyers propel the price above the moving averages, it will suggest that the index may continue to oscillate inside the channel for a while. A break and close above the channel could start a rally to 108.

Bitcoin price analysis

Bitcoin bounced off the $66,000 level on July 21, but the recovery faltered near $68,500 on July 22, indicating that bears are selling on rallies.

BTC/USDT daily chart. Source: TradingView

If the $66,000 level breaks down, the BTC/USDT pair could drop to the 50-day SMA ($63,799) support. A solid bounce off the 50-day SMA will indicate that the sentiment has turned positive and traders are buying on dips. The bulls will then make one more attempt to kick the price to the stiff overhead resistance zone between $72,000 and $73,777.

Contrary to this assumption, if the price dives below the 50-day SMA, it will signal that the bears are in the driver’s seat. The pair could then drop to the 20-day SMA ($61,126).

Ether price analysis

Ether (ETH) rose above the 50-day SMA ($3,425) on July 19, but the momentum did not pick up. This suggests a lack of demand at higher levels.

ETH/USDT daily chart. Source: TradingView

The bears are trying to pull the price back below the 50-day SMA. If they do that, the possibility of a drop to the 20-day SMA ($3,246) increases. This is an important level for the bulls to defend because if it breaks, the ETH/USDT pair may slide to $3,000.

If bulls want to prevent the fall, they will have to defend the moving averages and drive the price above $3,600. The pair could then attempt a rally to the $4,000 to $4,094 resistance zone.

BNB price analysis

BNB (BNB) has been trading inside the large range between $495 and $635 for several days, indicating buying on dips and selling on rallies.

BNB/USDT daily chart. Source: TradingView

The bulls pushed the price above the 50-day SMA ($586) on July 19 but are finding it difficult to extend the rally to $635. Sellers will again try to pull the price below the 50-day SMA. If they do that, the BNB/USDT pair may tumble to the 20-day SMA.

The critical resistance to watch out for in the near term is $635. If bulls overcome this barrier, it will signal that the uptrend is resuming. The pair may then attempt a rally to $722, where the bears may mount a strong defense.

Solana price analysis

Solana (SOL) broke above the downtrend line on July 20, opening the doors for a possible rally to $210.

SOL/USDT daily chart. Source: TradingView

However, the bears are unlikely to give up easily. They will try to stall the rally near $189 and pull the price toward the downtrend line. If the price rebounds off the downtrend line, it will signal that the bulls have flipped the line into support. That will increase the likelihood of a rally to $210.

Contrarily, if the price turns down and breaks below the downtrend line, it will suggest that the bears are making a comeback. The SOL/USDT pair could then plummet to the moving averages.

XRP price analysis

The bears pulled XRP (XRP) below the breakout level of $0.57, but they could not sustain the lower levels. This suggests aggressive buying on dips.

XRP/USDT daily chart. Source: TradingView

The bulls will try to push the price above $0.64, setting the stage for a move to $0.67 and later $0.74. Sellers are expected to defend the $0.74 level with all their might. If the XRP/USDT pair turns down from $0.74, it will signal that the range-bound action may continue for a few more days.

The $0.57 to $0.54 zone is expected to act as a strong support on declines. A break below the zone will tilt the advantage in favor of the bears.

Related: Why is Solana (SOL) price up today?

Toncoin price analysis

Toncoin (TON) has turned down from the moving averages, indicating that the bears are defending the level.

TON/USDT daily chart. Source: TradingView

The 20-day SMA ($7.29) has started to turn down, and the RSI is just below the midpoint, indicating a slight advantage to the bears. The TON/USDT pair could slide to the solid support at $6.77. This level is expected to attract strong buying by the bulls, which could keep the pair inside the $6.77 to $7.72 range for a while.

A break and close below $6.77 will complete a double-top pattern, starting a downtrend. On the other hand, a rise above $7.72 could challenge the stiff overhead resistance of $8.29.

Dogecoin price analysis

Dogecoin (DOGE) turned up from the 20-day SMA ($0.12) on July 19 and broke above the 50-day SMA ($0.13) on July 20.

DOGE/USDT daily chart. Source: TradingView

The 20-day SMA has started to turn up, and the RSI is near the overbought zone, indicating that bulls have the edge. The DOGE/USDT pair could attempt a rally to the overhead resistance at $0.18.

On the downside, the 50-day SMA and then the 20-day SMA are likely to act as strong support. If the price rebounds off the moving averages, it will improve the prospects of the resumption of the relief rally.

Cardano price analysis

Cardano (ADA) has been trading above the moving averages, but the bulls are struggling to push the price above $0.46. This suggests a lack of demand at higher levels.

ADA/USDT daily chart. Source: TradingView

The ADA/USDT pair could remain stuck between the moving averages and $0.46 for some time. If the range resolves to the upside, it will signal the start of an up move toward $0.52, where the bears may mount a strong defense.

Alternatively, if the price continues lower and plummets below the moving averages, it will signal that the bears remain active at higher levels. The pair may then slump to the strong support at $0.35.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The Digital Chamber penned an open letter to Vice President Kamala Harris on July 22 advocating for a more crypto-friendly stance and industry engagement from the potential Democrat nominee, should she secure the party’s 2024 presidential nomination.

The Digital Chamber’s letter outlined three actionable points for a potential Harris campaign, including support for digital assets in the Democrat Party’s platform, a Vice Presidential candidate “sophisticated” in digital asset policy, and lines of communication between the presumptive candidate’s campaign and industry leaders.

Source: The Digital Chamber

The 2024 election shakeup

After weeks of speculation, a letter was posted to Joe Biden’s X social media account on July 21, announcing that the incumbent was dropping out of the 2024 presidential race. This development was hotly contested in predictive markets.

Following the announcement, crypto markets briefly dipped due to the uncertainty created by the election shakeup, though markets rallied later that day, with Bitcoin (BTC) reaching a price of around $68,000.

Related: What we know about Kamala Harris’ views on crypto

Biden reportedly endorsed Harris as the Democratic Party’s nominee, sparking widespread speculation about the 2024 Democratic ticket. Although the vice president has not yet secured the nomination, the current narrative and endorsements from senior-ranking Democrats seem to suggest Harris will be the frontrunner in 2024.

Will Kamala Harris continue the Biden administration's anti-crypto stance?

It is no secret that the Biden administration has been hostile toward crypto and blockchain technology. Gary Gensler’s tenure at the Securities and Exchange Commission was characterized by a bevy of lawsuits and enforcement actions against the blockchain industry.

At this time, the vice president’s views on digital assets are unknown, leaving the industry uncertain about the prospects of a Kamala Harris presidency.

On one hand, a tight election contest may drive Harris to deviate from the current party line to secure the crypto vote. However, past performance may be an indicator of future policy stances. Harris would be inheriting Biden’s donors, political campaign, and the current administrative bureaucracy, leaving little in the way of new input into a potential Harris presidency

Magazine: Ethereum is ‘woefully undervalued’ but growing more powerful: DeFi Dad, Hall of Flame

The NYSE Arca has confirmed its approval to list and trade spot Ethereum exchange-traded funds (ETFs) from asset managers Grayscale and Bitwise.

According to documents filed with the United States Securities and Exchange Commission (SEC) on July 22, the exchange has certified “its approval for listing and registration of the common units” of Grayscale Ethereum Trust and Bitwise Ethereum ETF.

The funds are still pending the security regulator’s authorization to debut, and analysts anticipate a launch date of July 23.

“We expect them to begin trading tomorrow. That means we should see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone “effective,”” said Bloomberg ETF analyst James Seyffart on X.

On July 19, the Chicago Board Options Exchange confirmed the launch of five funds for trading: 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. These funds also wait for “regulatory effectiveness” from regulators.

Related: Ethereum ETFs are coming — Here’s what you need to know

The SEC must approve the funds’ initial securities registration S-1 forms, the final step before trading. On May 23, the agency approved the issuers’ 19-b form proposing rule changes.

To buy Ether (ETH) ETFs, retail users can use a brokerage listing the funds, such as Robinhood or Fidelity. This process is similar to purchasing and trading other ETFs and stocks. Management fees for the vast majority of Ether ETFs will range from 0.15% to 0.25%.

Source: James Seyffart

The ETFs are expected to open the door to other altcoins ETFs, including Solana’s native token, SOL. “Keep in mind after launch there are flows and then add’l ETH products I’m sure, then Solana, and then.. it’s probably never going to end. The dam has broken,” said Bloomberg ETF analyst Eric Balchunas.

Institutional demand for ETH could lead to a supply shortage. A recent report from Kaiko highlighted that Ether’s 1% market depth is low, indicating reduced liquidity. This could result in increased price volatility and drive ETH’s price higher amid rising demand. The cryptocurrency is trading at $3,457 at the time of writing, down 1.4% over the past 24 hours.

Magazine: Ethereum restaking: Blockchain innovation or dangerous house of cards?