Markets

The UK could become the largest cryptocurrency ETN market in Europe

Published

8 months ago

10 June, 2024

The UK could become the largest cryptocurrency ETN market in Europe

According to Alex Pollak, head of issuer 21Shares in the UK and Israel, the UK could become the largest exchange-traded note market in Europe within three years, provided the regulator allows retail investors to purchase the products.

The London Stock Exchange launched a crypto market ETN on 28 May 2024, following regulatory approval from the Financial Conduct Authority. However, the FCA has only allowed professional investors to access this new market, banning retail investors.

Tom Stenhouse, LSE

Tom Stenhouse, head of equity trading product at the London Stock Exchange, said in an email to Markets Media that the new marketplace for crypto ETNs will allow access for professional investors in a transparent and highly regulated environment.

“From launch, we will list products from three issuers: 21 Shares, Invesco and WisdomTree,” Stenhouse added. “We look forward to welcoming additional issuers and investors to the market and expanding the range of products available as institutional demand for digital assets increases.”

Alexis Marinof, head of Europe at WisdomTree, said in a statement that the FCA approval could lead to greater institutional adoption of cryptocurrencies. Marinof said: “Many professional investors have been unable to gain exposure to Bitcoin and other cryptocurrencies due to regulatory limitations and uncertainty: we would expect FCA approval of the prospectus for our crypto ETPs to remove such barriers to ‘entrance.”

Pollak told Markets Media that crypto ETN listings mark progress for the UK and that the seal of approval from the FCA and LSE makes a difference for some investors.

“In the UK the dial will not move properly until the retail ban is lifted,” Pollak added. “I think the UK will become the largest cryptocurrency ETP market in Europe in the next three years if the retail ban is lifted.”

Ophelia Snyder, 21Shares

Pollak said the founders of 21Shares – CEO Hany Rashwan and President Ophelia Snyder – have focused on the UK as a strategic market from day one due to its innovation, active crypto community, size of the asset management and its position as a global player in the financial markets.

Snyder said in a statement: “The UK is one of the deepest and most liquid capital markets in the world. As institutional interest in cryptocurrencies grows, it is only natural that the London Stock Exchange hosts responsible and appropriately structured funds that offer access to these markets.”

Differentiator

21Shares celebrated its fifth anniversary in November 2023 and has listed more than 40 crypto ETNs in Europe. The issuer cross-listed in London four products already listed in Europe: a bitcoin ETN and an ether staking ETN with US dollar and euro exposures. The issuer had to submit a base prospectus to the FCA and then go through a listing application process with the LSE, as it was a new issuer to the stock exchange.

Alex Pollak, 21Shares

Pollak said this experience and track record is a differentiator for 21Shares.

“We had a crypto winter that gave us the opportunity to stress test our products,” he added. “Investors were able to trade seamlessly and our products weathered the cryptocurrency winter very successfully.”

He further said that this long experience is important to the capital markets team at 21Shares, as it helps ensure that crypto products are traded correctly.

“We have the same relationships with market makers who already trade our European products,” Pollak added. “We have the tightest spreads for crypto products listed on the LSE.”

Source: 21Shares

Furthermore, Pollak argued that 21Shares has an advantage as a crypto-native company. 21Shares has between $7 billion and $8 billion in assets under management, and Pollak said 99% of its business is in the cryptocurrency space. He added that another differentiator is the education provided by the companies, as the founders were passionate about ensuring they brought content and education to the market, as well as products.

“We typically target traditional investors who are looking to allocate some capital into cryptocurrencies,” he said. “The company has a great internal research team that can discuss cryptocurrencies and make them appealing and easily understandable to a mainstream audience.”

Expect 21Shares to list more crypto products in London. For example, the issuer has a product that combines gold and bitcoin, as well as basket and coin products.

“I think this is just the beginning of our journey in the UK,” Pollak added.

US cryptocurrency spot ETFs

21Shares was among the group of 11 issuers that launched a spot bitcoin ETF in the United States in January this year, following approval from the Securities and Exchange Commission.

4 spot bitcoin ETFs are in the top 50 of *all* ETF inflows this year, with 2 in the top 5…

#2 – iShares Bitcoin ETF

#5 – Fidelity Wise Origin Bitcoin ETF

#36 – ARK 21Shares Bitcoin ETF

#48 – Bitwise Bitcoin ETF

There are over 3,500 ETFs, so that puts them in the top 1.5% of all ETFs in terms of inflows.

— Nate Geraci (@NateGeraci) June 10, 2024

ETC Group, the European issuer, said in a June 10 report that global Bitcoin ETPs saw net inflows of $2.2 billion last week, of which $1.8 billion related to Bitcoin spot ETFs alone. US Bitcoins. The report states: “US bitcoin spot ETFs have seen 20 consecutive trading days of positive net inflows so far.”

In a research report, 21Shares said May was an exciting month for cryptocurrencies, with institutional interest in bitcoin growing and inflows increasing after a quiet April.

📣 The 21Shares monthly summary for May is out! From escalating cryptocurrency regulations to the presidential debate to the SEC’s approval of Ethereum Spot ETFs, it’s been a groundbreaking month. Dive into our detailed analysis on our website. Stay informed👇!https://t.co/klmKich7Ol pic.twitter.com/LqK4MHhSDk

— 21Condivisioni (@21Condivisioni) June 6, 2024

“At the end of the first quarter, 937 professional investors owned $11 billion in US bitcoin spot ETFs, approximately 20% of total ETF assets,” 21Shares added. “In contrast, gold ETFs had just 95 professional investors in the first quarter following launch, representing less than 10% of the reach of bitcoin ETFs.”

21Shares went on to say that the most significant achievement of May was the SEC’s approval of the 19b-4 filings of Ethereum spot ETFs on May 23, which marked a “crucial milestone” for the securities industry. cryptocurrencies. However, the products are not marketable until the regulator approves the S1 documentation, which could take weeks or months.

“However, this moment signals a growing acceptance of Ethereum within regulated investment frameworks, potentially opening the market to significant flows from registered investment advisors and the local ETF market, with the latter valued at 8 trillion dollars,” the report states. “The approval of Ethereum represents a significant step forward, highlighting the value of its on-chain ecosystem of decentralized applications.”

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Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

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Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

6 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

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Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

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Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
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