Cryptocurrency daily summary:
Spot Ethereum ETF is officially approved by the U.S. Securities and Exchange Commission, affecting Bitcoin's "mild decline"
Plume Network Completes $10 Million Funding
Let’s first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on March 6, Grayscale Bitcoin Spot ETF (GBTC) continued to outflow $13.7 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) inflowed $19.1 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) inflowed $2 million.
Spot Ethereum ETF officially approved by the U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) has approved the launch of a spot Ethereum exchange-traded fund (ETF) in the United States.
On May 23, the SEC approved 19b-4 filings filed by VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, approving rule changes that would allow spot Ethereum ETFs to be listed and traded on their respective exchanges. The SEC’s landmark decision came despite speculation that the securities regulator had been investigating whether to label Ethereum a security.
The SEC’s approval comes just one day after members of the U.S. House of Representatives voted in favor of legislation that many believe will provide more regulatory clarity to the cryptocurrency industry. The 21st Century Financial Innovation and Technology Act would clarify the responsibilities of the SEC and the Commodity Futures Trading Commission, but still needs to be passed by the Senate and signed into law.
Several Bitcoin miners and Bitcoin-related stocks fell along with the broader market on Thursday as progress continued toward approval of a spot Ethereum ETF. Shares of Hut 8 led the decline, falling 10%, while peers such as Riot Platforms and Marathon Digital fell about 7.6% and 5.5%, respectively. MicroStrategy, which many view as a proxy for Bitcoin price due to its large BTC supply, fell 6.2%.
Several spot bitcoin ETFs fell 3% to 4%; however, analyst Mark Palmer said the sell-offs were likely short-lived.
The analyst from Benchmark Equity Research sees today’s price action as a modest pullback, “but we continue to believe favorable supply and demand dynamics will support higher prices in the coming months.” “Approval of a spot Ethereum ETF is consistent with a more aggressive regulatory narrative for cryptocurrencies by the U.S. government than has been the case in the past.”
Plume Network raises $10 million in seed funding
Plume Network, a modular layer 2 network focused on bringing real-world assets (RWAs) on-chain, has raised $10 million in a seed round led by Haun Ventures.
Plume is a modular, Ethereum Virtual Machine (EVM) compatible Layer 2 network focused on RWA. Plume claims: "To date, there is no permissionless blockchain equipped with a full-stack RWA infrastructure that can be deployed in compliance with any asset class." It adds that its platform will allow users to do RWA-related things, such as earning yield, borrowing, trading, and speculating with leverage.
Plume, which is currently in private testnet, says more than 80 RWA and DeFi projects have been built on its network, spanning collectibles, alternative assets, synthetics, luxury goods, real estate, borrow/lending protocols, and perpetual decentralized exchanges.
Plume has been running a private testnet for the past few months and is currently transitioning to the next phase. Yin said its open incentivized testnet will be launched in the coming weeks, with the mainnet to follow later this year.
Market analysis:
ETH spot ETF passes key documents, the alt season may be coming
Market trend:
1. BTC and ETH:
- Yesterday evening, BTC fell below the critical support level of $66,500, showing short-term weakness in the market.
-ETH once pinpointed $3,600 and then rebounded to $3,900, showing higher volatility. The increase in ETH volatility is likely due to the market sentiment fluctuations caused by the news that the SEC announced the approval of key documents for the ETH spot ETF.
2. BTC dominance rate declines:
-BTC dominance fell 2%, which means that funds are flowing into other crypto assets, especially the altcoin market. This usually indicates that altcoins have the potential to outperform BTC in the short term.
Macroeconomic factors:
1. US stock market correction:
-The pullback in U.S. stocks may have a chain reaction on the crypto market, and investors need to pay attention to the trends in traditional financial markets.
2. PMI data and expectations of interest rate cuts:
-PMI data rose to a two-year high, indicating some recovery in economic activity. The first rate cut is expected to be postponed to December, which may affect investors' risk appetite.
Market hot spots:
1. ETH spot ETF:
- The SEC announced the approval of key documents for an ETH spot ETF, but official approval will still take months. Nonetheless, the news has significantly boosted interest and volatility in ETH. As the ETF advances, market demand for ETH is likely to increase further, and investors should pay close attention to related developments.
2. Performance of ETH assets:
-$ENS 、$ETHFI 、$MANTA , ETC and other ETH-related assets have soared, showing the market's confidence in the ETH ecosystem.
-ETHFI announced the launch of a re-collateralized credit card business, which may further increase its market value and user base.
3. Meme concept:
- Meme concept coins such as PEOPLE, PEPE, and MANEKI continue to surge. PEPE has set new all-time highs for many consecutive days, and its current market value ranking has entered the top 20 in the entire market.
-MANEKI The amplitude exceeded 30% yesterday. The project announced that UFC bantamweight No. 1 player Merab Dvalishvili has become the spokesperson of the project, which has significantly increased the project’s exposure and market attention.
4. RWA Section:
-ONDO, TOKEN, TRU and other RWA (Real-World Assets) sectors have surged, showing the market's interest in this emerging sector.
-The RWA sector may represent a further integration of the crypto market with the traditional financial market, and investors can pay attention to potential opportunities in this area.
Track analysis:
1. Focus on ETH and its ecosystem in the short term:
-Due to the impact of ETF news, ETH and its related assets may perform better.
2. Pay attention to Meme concept coins:
-Although Meme concept coins are highly volatile, their high exposure and market popularity may bring short-term investment opportunities.
3. Pay close attention to macroeconomic data:
-Changes in PMI data and interest rate cut expectations can have a significant impact on market sentiment, and investors should remain vigilant.
4. Potential of RWA sector:
-This sector may have great growth potential, especially in the context of the integration of traditional financial markets and crypto markets.
In general, the market is currently in a phase of high volatility, and investors need to operate with caution and pay attention to market hotspots and macroeconomic changes.
Macro: Global stocks fall as economic data is strong but inflation concerns weigh on share prices
On May 23, Reuters reported that although Nvidia's strong revenue forecast sent its shares soaring, U.S. stocks closed lower on Thursday as economic data showed inflation remained a concern and could delay the Federal Reserve's interest rate cut.
Nvidia's stock price rose against the trend, predicting quarterly revenue to be higher than expected and announcing a stock split, causing its stock price to rise 9.32% in early trading, closing above $1,000 for the first time and also helping the Nasdaq and S&P 500 indexes to set intraday highs.
But in terms of specific indices, the Dow Jones fell 1.53%, the S&P fell 0.74%, and the Nasdaq fell 0.39%. Although Nvidia's gains pushed the S&P 500 Technology Index up 0.56%, becoming the only sector to rise, chip stocks fell overall, and the Philadelphia Semiconductor Index fell slightly by 0.02%.
U.S. data on Thursday showed a drop in initial claims for jobless benefits, while a flash S&P Global PMI survey showed business activity expanded faster in May than economists had forecast.
Strong economic data and hawkish minutes from the Fed's last meeting earlier this week led traders to reduce bets on rate cuts this year, with markets pricing in just 35 basis points of cuts from the Fed in 2024, compared with expectations of 150 basis points at the start of the year.
Asian stocks fell on Friday and the dollar rose as strong U.S. economic data strengthened the prospect of higher interest rates and the Federal Reserve may be in no rush to cut them, keeping investors away from risky assets.
MSCI's index of Asia-Pacific shares fell 0.5% and was on track to end the week down 1%, snapping a four-week winning streak. Chinese stocks were largely flat in early trade, with blue chips down 0.05%. Hong Kong's Hang Seng fell 0.33%. Japan's Nikkei dropped 1.45%.
The dollar index rose nearly to 105.06 this week, on track for its biggest weekly gain since mid-April. The dollar's gains continued to weigh on the yen. The yen last traded at 157.03 per dollar, not far off a more than three-week low of 157.19 hit on Thursday.
Japan's core inflation slowed for a second straight month in April as food inflation eased, government data showed on Friday, but remained firmly within the central bank's 2% target.
In commodities, oil prices were steady, with Brent crude futures at $81.39 a barrel, while U.S. West Texas Intermediate (WTI) futures were at $76.87 a barrel.
Gold prices rose 0.24% to $2,334.16 an ounce but were down 3.3% for the week since the end of September.
