| Your Weekly Update On All Things Crypto |
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| With Kryptoin, the SEC is Now Reviewing Three Bitcoin ETF Applications Bitcoin is Helping Us Transition to Clean Energy Faster Injective Protocol Raises $10M From Mark Cuban, Pantera, BlockTower & More Bitcoin Finally Feeling Gravity - May Test BMS Band Altcoin Dominance Faces Final Resistance Before ATH Picks of the Week: AGI & ETH |
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| SEC Now Reviewing Three Bitcoin ETF Applications |
The United States Securities and Exchange Commission (SEC) now has three Bitcoin ETF applications under review. Last week it got started with its review of the recently filed Kyptoin Bitcoin ETF. Kryptoin applied for approval of their Bitcoin EFT in 2019 but was denied. SEC started reviewing its filing for the second time after Kryptoin filed with the Cboe BZX exchange.
In another similar development, the New York Stock Exchange filed a 194-B form on behalf of the Valkyrie Digital Assets investment firm for its Bitcoin ETF. Once the exchange accepts the filing, it will kick off a review period of 45 days, during which the SEC will either approve or disapprove the application. It may also end up asking for an extension of the review period.
With Kryptoin up for review, the SEC now has three active Bitcoin ETF applications to review. The other two are VanEck and WisdomTree. Even if the SEC seeks an extension of the review period, it has got a maximum of 240 days to either approve or deny each of these applications. Bitcoin ETFs in North America.
The launch of Bitcoin ETFs has gained much traction, especially in North America, after Canada launched the first-ever Bitcoin ETF in February 2021. The Purpose Bitcoin ETF became the first exchange-traded fund to allow institutional and traditional finance investors access to the world’s largest cryptocurrency. The United States does not have any Bitcoin ETF so far. If one or multiple of these filings manage to get approval, it will expose the asset class to an entirely new category of institutional investors (pension funds and endowments).
Many industry experts believe that the introduction of a Bitcoin ETF in the US is now only a matter of time. Two factors drive their conviction.
Explosive Growth - Bitcoin has been experiencing the fastest growth of any asset, ever, however, that growth has been kicked into high gear this year. Having crossed the $1 trillion dollar threshold as an asset class, it has become a viable store of value in the portfolio of any treasury manager. Changing of the Guard - The new SEC chair Gary Gensler has taught crypto and blockchain courses at MIT. Although we are still unsure how Gensler will rule on the matter, it is a great reassurance that the person in charge is fully competent and up to speed on cryptocurrency. the SEC’s attitude towards Bitcoins and the exchange trading of similar digital assets.
Many assume if one ETF is approved, all active applications would be approved in order to remove any suspicion of favoritism or anticompetitive behavior. Regardless of who's ETF gets approved, and when, we do know one thing for certain. The launch of Bitcoin ETFs in the United States will serve as a great catalyst to once again ignite this Bitcoin supercycle. |
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| Bitcoin is Helping Us Transition to Clean Energy Faster |
Last week was Earth Day, so many in the crypto community took this opportunity to address common misconceptions surrounding the "long-FUDed" Bitcoin energy debate. Bitcoin Haters will say that if it scales as a monetary network, it will use more energy than exists on the earth... However, most arguments against Bitcoin in this subject are simply misinformed or willfully ignorant. It seems that the energy conversation is the easiest talking point for detractors to draw at, however many of the facts are commonly misconstrued.
Square’s White Paper Thought leaders in the Bitcoin community revisited these somewhat hackneyed arguments when, on 21st April, Jack Dorsey retweeted one of Square's crypto white papers, saying that “Bitcoin incentivizes renewable energy.” The paper that Dorsey tweeted argued in favor of Bitcoin as key to an abundant and clean energy future. It drew attention towards the opportunity Bitcoin mining presents to accelerate the global energy transition to renewables by serving as a complementary technology for clean energy production and storage.
It suggested that Bitcoin miners as a flexible load option could potentially help solve much of the intermittency and congestion problems that remain a deployment bottleneck for Solar and Wind energy sources. The paper marked Bitcoin miners as unique energy buyers who offer highly flexible and easily interruptible load while providing payout in a globally liquid cryptocurrency. Moreover, they are completely location agnostic and require only an internet connection. By deploying more renewable energy sources, such as solar and wind, these generation technologies like Bitcoin mining will fall even further down their respective cost curves. It will very likely bring them closer to zero marginal cost energy production.
How fast the Bitcoin network becomes a unique energy buyer enabling the society to deploy substantially more solar and wind generation capacity - that we will have to see. But it will definitely facilitate the transition to a cleaner and more resilient electricity grid, where energy asset owners of today can become the essential bitcoin miners of the future. So next time someone cites Bitcoin's energy consumption as a negative, remember it is Bitcoin that is forging the way towards a more sustainable energy future. |
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| Injective Protocol Raises $10M From Mark Cuban, Pantera, BlockTower & More |
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Injunctive Protocol, a decentralized derivatives exchange, announced the completion of a $10M "party" funding round last week in the form of a private placement token sale at a $1 billion+ future valuation. Several well known venture capital firms, including Pantera Capital, BlockTower, Hashed Ventures, CMS Holdings and QCP Capital, participated in addition to billionaire entrepreneur Mark Cuban.
Combining the advantages of centralized and decentralized exchanges, Injective Protocol's "goal is to enable an unparalleled decentralized trading experience, whereby retail traders globally can for the first time access limitless markets without the typical predatory fees and slow transaction times," says Eric Chen, CEO. Launched in December of last year, Injective is the first universal layer-2 DEX enabling cross chain crypto and synthetic asset trading across spot, perpetual swaps, and futures.
The protocol uses both the Ethereum and Cosmos SDK ecosystems through peg zones in order to create a fast, secure, and fully decentralized trading infrastructure that allows anyone to create and trade without the expensive gas fees. INJ is the protocols native token and supports protocol governance, fee value capture, exchange collateral, participation incentives, and PoS security.
Due to the size of the investment, Injective issued the native tokens to investors through the protocol's treasury. Injective sold the tokens with a lockup period of 1-year at a $1+ billion dollar valuation. At the time of writing, INJ is trading at ~$15 with a market-cap of $203.1M. With the proceeds, Injective looks to upgrade its trading platform and double it's current team of 22 by next year. They will also initiate an internal trading desk to help with the exchanges liquidity, hiring a head trader from Tower Research. |
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| Bitcoin Finally Feeling Gravity |
After last week's flash crash, Bitcoin followed up with another red weekly candle. This time we have officially closed below the bottom support band of the ascending megaphone channel. This means Bitcoin may finally be ready for a more sustained correction, allowing sideline institutions to finally make their allocations.
The red and green bands below the Bitcoin price represent the Bull Market Support Band indicator. It calculates the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). Usually, in Bitcoin's history, a break below this support band and a death cross of the SMA and the EMA have been a good indicator of the end of a bull market cycle. The bull market support band is currently hovering around $44K. We are about to see a death cross in the support band, but if the price is able to stabilize above this range, we can be confident that the bull market will continue.
We are firmly in the camp that the bull market is still far from over, and this pullback is just a well-needed correction after 7 months of gains without even testing the bull market support. Large institutional buyers are still waiting for their entry points and will serve to stabilize the crypto market and retain its bullish momentum. |
| Altcoin Dominance Faces Final Resistance Before ATH |
The altcoin market has been on a tear, but it now faces its largest test of the cycle. Altcoin dominance is closing its weekly candle directly on an ascending line of resistance it has not been able to break all cycle (since July of 2019 to be exact). Altcoin dominance has been steadily inclining for the past two years, but ever since crossing below this trendline nearly two years ago, it has not been able to break through. If we are able to close next week's candle above this line, it would seem likely that a macro altcoin cycle may erupt. However, if we are starkly rejected by this line of resistance, we may see a consolidation back to the lower horizontal line of support at 43%.
View the chart here. |
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| SingularityNet is the only project currently building a global decentralized AI marketplace. Their marketplace lets anyone create, share, and monetize AI services at scale. The world’s first decentralized AI network has arrived. It is run by one of the leading AI researchers in the world Ben Goertzel. The vision of this project is to create an emergent decentralized artificial general intelligence. A technology like this truly has the potential to change the world in ways we could not imagine.
The entire SingularityNet marketplace runs on the AGI token, which currently has a market cap of $325M. It is recovering nicely after a 48% retracement over the last three weeks.
View the chart here. |
| | | Etheruem is currently the second-largest cryptocurrency in the world and the protocol running the majority of the decentralized applications built today. Ethereum has been on an absolute tear against Bitcoin ever since breaking out of a wedge pattern it had been forming. On the weekly chart, Etheruem is setting higher highs and higher lows against Bitcoin since September of 2019.
Ethereum has also seen a lot of momentum with layer-2 scaling solutions and Ethereum Improvement Proposals both aimed at alleviating the stress on the Network prior to launching their Proof-of-Stake successor ETH2.0
View the chart here. |
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| Quadency Quadency is a leading digital asset trading and automation terminal. Founded in 2018 and headquartered in New York City, we are on a mission to make crypto investing approachable to everyone. They are looking for a smart contract engineer to join their team. An attractive candidate will have 1-3 years working with Solidity, deploying smart contracts, and a strong understanding of DEX's and crypto trading. |
| Smart Contract Engineer
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| DeSquare DeSquare is a global ecosystem builder of trustless technology. From conceiving a unique idea to creating a service that reshapes the world, DeSquare is dedicated to bringing out a projects' true potential. DeSquare works as a catalyst between entrepreneurs, investors and businesses to bridge the gap between the world and distributed ledger technology. As a Chief Technology Officer, the focus will be on setting the technical architecture and development road map.Responsibilities for this role involve building bridges and networking within the Blockchain community. |
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| We at CryptoWeekly are not Financial Advisors. None of the content or opinions expressed in this newsletter should be considered financial advice. We highly recommend that you do your own research before investing in any project within or outside the cryptocurrency space. |
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