BlackRock and Fidelity are making waves in the crypto world by purchasing over $500 million worth of Ethereum (ETH) through their ETFs within just two days. Tracked by Arkham Intelligence, the transactions were primarily executed via Coinbase Prime.
Key Numbers:
- BlackRock’s iShares Ethereum Trust (ETHA): Pulled in $2.93 billion.
- Fidelity’s Ethereum Fund (FETH): Recorded $1.35 billion.
- Sunday Trading Volumes: ETHA reached $372.4 million, while FETH hit $103.7 million.
These massive purchases highlight Wall Street’s growing interest in Ethereum as a top-tier investment asset.
SEC’s Big Move: A Bitcoin and Ethereum Combo ETF
The SEC’s latest move could redefine how crypto is traded. NYSE Arca and Bitwise have proposed an ETF that combines both Bitcoin (BTC) and Ethereum (ETH) into a single package. The regulatory body is now seeking feedback from the industry.
Why It Matters:
- Market Competition: Companies like Grayscale, Hashdex, and Franklin Templeton are racing to launch similar crypto index funds.
- Policy Shift: As Trump prepares to take office in January 2025, he promises to make the U.S. the “world’s crypto capital.”
- Leadership Change: Gary Gensler, known for enforcing over 100 actions against crypto firms, will step down, potentially easing regulatory pressures.
Katalin Tischhauser from Sygnum Crypto Bank notes that crypto index ETFs are a natural progression, much like S&P 500 ETFs.
Bitcoin Yield Strategies: The Next Big Thing
Bitcoin is no longer just a store of value; it’s becoming an income-generating asset. CoinShares predicts a surge in Bitcoin yield strategies by 2025 as companies explore ways to maximize returns on their crypto holdings.
Notable Example:
- MicroStrategy’s BTC Yield Metric: Achieved a 26.4% return from January to November 2024, setting a benchmark for corporate crypto strategies.