Daily News | Spot Ethereum ETF Finally Approved; Ondo's USDY Will be Launched in Cosmos Ecosystem; HK Will Launch Asia's First Reverse Bitcoin ETFs

Crypto Daily Digest: The spot Ethereum ETF received final approval and is about to begin trading; Ondo's USDY is launched in the Cosmos ecosystem; Hong Kong will launch Asia's first reverse Bitcoin ETFs

First, let's examine the trading activity of Bitcoin ETFs. According to Farside Investor data, on July 22, the Fidelity Bitcoin Spot ETF (FBTC) received $23.7 million in inflows, the BlackRock Bitcoin Spot ETF (IBIT) received $523.3 million in inflows, and the VanEck Bitcoin Spot ETF (HODL) received $38.4 million in outflows.

The spot Ethereum ETF received final approval and is about to begin trading

After weeks of modifying registration statements, spot Ethereum ETFs of multiple exchange traded funds have been approved and will begin trading on Tuesday.

The US Securities and Exchange Commission (SEC) approved registration applications for 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy on Monday afternoon. The registration forms for the Grayscale Ethereum Trust and Ethereum Mini Trust were also approved on the same day.

The spot Bitcoin ETF was approved earlier this year and generated billions of dollars in returns. Eric Balchunas, a senior ETF analyst at Bloomberg, believes that the demand for Ethereum ETFs may be lower than that for Bitcoin ETFs, which will receive 10% to 15% of Bitcoin product assets, or a value of $5 billion to $8 billion, which is also very objective.

Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity, stated that the company's spot Ethereum ETF will provide investors with "thoughtful index and product design supported by dedicated operational and trading teams" for safer access to Ethereum. She added, 'This reflects Fidelity's long history and commitment to meeting customers' constantly changing needs.”

After the approval of the spot Bitcoin ETF, the exchange began considering trading options for these products, but has not yet received regulatory approval. Because the SEC questioned the staking service of ETH and stipulated that Ethereum ETFs do not include staking. However, analysts believe that in the future, companies may incorporate staking into their ETF products.

Ondo's USDY is natively launched in the Cosmos ecosystem

Ondo team launched Ondo US dollar yield (USDY) on Cosmos. USDY is a tokenized note, a stablecoin product guaranteed by short-term US treasury bonds and current deposits of US banks, which is the first original US dollar stablecoin in the Cosmos ecosystem. This move introduces USDY into over 90 application specific Cosmos blockchains.

USDY allows global (non US) individual and institutional investors to receive returns, with a total value of over $300 million currently locked in on multiple blockchains. USDY will be specially adopted on Injective. Helix, a derivative exchange based on Injective, will launch USDY as collateral for spot assets and perpetual markets. This will allow users to earn profits through USDY while trading on the chain for the first time. In addition, another protocol on Injective, Hydro, will incorporate USDY into its structured assets, allowing users to earn on chain profits. According to CoinGecko's data, the market value of USDY exceeds $222 million.

Noble is a specially built blockchain known as the native asset issuance network for Circle's USDC stablecoin in the Cosmos ecosystem. Since its first launch in September 2023, the native issuance of USDC on Noble has exceeded $243 million.

Although USDY is launched through the Noble blockchain, several other Cosmos chains and DeFi projects will also utilize USDY, including Injective, Osmosis, Kujira, and Pyth.

Hong Kong will launch Asia's first reverse Bitcoin ETFs

On July 23, Hong Kong will launch Asia's first Bitcoin futures reverse product - CSOP Bitcoin Futures Daily (-1x) Reverse Product.

One of China's largest asset management companies, CSOP Asset Management Limited, launched a new exchange traded fund (ETF). Prior to this, the CSOP Bitcoin Futures ETF was successfully launched in December 2022, continuing the company's expansion in the Asia Pacific region. The new Bitcoin ETF aims to provide investors with a way to profit from the decline in Bitcoin prices.

The CSOP Bitcoin Futures Daily (-1x) Reverse Product aims to provide investment results closely corresponding to the daily reverse performance of the S&P Bitcoin Futures Index. This reverse product achieves this goal through a futures based replication strategy, directly investing in spot month Chicago Mercantile Exchange Bitcoin futures.

According to Southern Dongying on July 22nd, the product will be listed on the Hong Kong Stock Exchange (HKEX) at a price of approximately HKD 7.8 per unit. This also reflects the complexity of global crypto financial products.

Market Trends: ETH ETF officially approved, Meme sector still performs well

BTC: BTC prices are consolidating horizontally at high levels, and spot ETFs continue to experience net inflows, but the magnitude of inflows is relatively small. As BTC prices rise, market enthusiasm for funds weakened.

ETH: ETH showed relatively strong performance, with strong upward momentum in price. This morning, the ETH ETF was officially approved and will start trading tomorrow, further boosting market sentiment.

Altcoins: Most Altcoins have experienced price declines, and the market lacks new hotspots. Except for Meme coins, other sectors have shown lackluster performance.

Data Indicators

AHR999 Index: Today's AHR999 Index is at 0.93, and the market crossed the bottom zone, but it is still suitable for regular investment.

Fear Greed Index: The current Fear Greed Index is at 71, and the market sentiment has been in a greedy state for two consecutive days, with optimistic investor sentiment.

Macroeconomics

US stock performance: The three major US stock indices collectively closed higher, rebounding from oversold. Leading companies in the AI field, NVIDIA and Tesla, have both surged, driving the overall rise of the technology sector. Musk heavily promoted xAI on Twitter, further arousing market attention to the AI field.

Market Hotspots:

The Trump political concept token and cat-themed Meme coins in the Meme sector performed well with good gains: DMAGA, DELON: After Musk replaced his Twitter avatar with Laser Eye, related concept tokens such as DMAGA and DELON surged. According to community feedback, the issuance addresses of these tokens are suspected to have been prepared by a mouse warehouse.

MEW and MANEKI: Cat themed Meme coins have performed outstandingly, with MEW breaking through a historical high and experiencing a short-term decline, while MANEKI, which represents the image of a money-seeking cat, rose nearly 50% within the day.

Ton Ecosystem: Pixelverse: The official Twitter account of the popular game Pixelverse on the Ton chain has been banned, leading to a significant drop of over 60% in PIXFI within the day.

Dogs: The official Twitter account has also been banned. This brought uncertainty to the airdrop of Ton's popular ecosystem projects, and the market may no longer pay.

To Sum Up

The current market sentiment is optimistic, but caution should be exercised against the possibility of a pullback risk caused by high-level sideways trading. The approval of ETH ETF is an important positive news that will further boost market sentiment in the short term. However, the Altcoin sector has shown weak performance, and Meme coin remains the best performing token sector in this round of market.

Macro: Investors return to large cap stocks, Wall Street closes higher; Chip stocks rebound, Asian stock markets end continuous decline trend

On Monday, July 22, investors flocked back to large growth stocks, driving the three major benchmark indexes on Wall Street to close higher. The S&P 500 Index and Nasdaq Composite Index have significantly rebounded from their previous sluggish performance. The Dow Jones Industrial Average also successfully returned to the positive zone, ending its two consecutive trading days of decline since hitting a historic closing high last Wednesday.

The specific index performance is as follows: the Dow Jones Industrial Average rose 0.32%, the S&P rose 1.08%, and the Nasdaq rose 1.58%.

The rebound of large cap stocks is the main driving force behind this market rebound. The stock prices of giant companies such as Alphabet, Meta Platforms, and Tesla all rose by 2.2% to 5.1%.

The political situation still impacts the market, and Biden's exit may prompt investors to liquidate their positions as they bet that Republican Trump's victory will increase fiscal and inflationary pressures in the United States. Meanwhile, some analysts believe that if there is a split in the next government, the market may benefit from it.

On July 23, Asian stock markets rebounded from a one month low on Tuesday, and Taiwan's stock market ended its five-day downward trend. The recovery of the Wall Street stock market led semiconductor stocks to rise. The Shanghai and Shenzhen 300 Index rose 0.55%, while the Nikkei Index in Japan rose 1.6% due to the stabilization of chip stocks.

The benchmark TWII index in Taiwan rose about 1.7% in early trading, with chip manufacturer TSMC rising 2%. Previously, due to the ambiguous attitude of US presidential candidate Donald Trump towards protecting Taiwan and its chip industry during an interview, TSMC's market value evaporated by about $100 billion last week.

South Korean chip manufacturer Samsung also rebounded as traders focus on strong demand and ignore political risks.

In terms of the currency market, the market expects the United States to cut interest rates twice in the second half of this year, which begun to put pressure on the US dollar. Despite the uncertainty of the US presidential election preventing a significant decline in the US dollar, the euro/dollar exchange rate remained stable at 1.089 on Tuesday, while the yen/dollar exchange rate rose slightly to 156.8. The Australian dollar fell to a three week low against the US dollar, and the New Zealand dollar fell to a nearly three-month low of $0.5966 against the US dollar, but analysts expect the Australian and New Zealand dollars to rebound soon.

Regarding the commodity market, China unexpectedly cut interest rates on Monday, coupled with lower than expected economic growth data last week, which raised concerns about the economic outlook. Dalian iron ore futures prices fell to their lowest point since April, and Shanghai copper prices also fell accordingly.

Brent crude oil futures hit a one month low overnight, with the latest price at $82.59 per barrel.

As the US dollar strengthens and traders wait for more US economic data and comments from Federal Reserve officials this week, gold prices fell to their lowest point in over a week on Monday. Spot gold fell 0.2% to $2394.18 per ounce. The settlement price of US gold futures fell 0.1% to $2,394.70 per ounce.