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💡Experts Tip Spot Bitcoin ETF Approvals Will Happen Next Week
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Popular finance analysts say the SEC will approve the first spot Bitcoin ETFs next week, citing fresh meetings between the regulator and leading U.S. exchanges that will list the funds' shares. Despite the analysis, the implied odds for the ETFs' approval on prediction markets are pulling back.
In other news, inscriptions activity on EVM chains is drying up, and the crypto community is blaming yesterday's flash crash on excessive leverage in the digital asset markets.
✍️ In today’s newsletter:
- Analysts say spot Bitcoin ETF approval is imminent
- Inscriptions lose momentum on EVM chains
- Crypto flash crash blamed on leverage flush
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📈 Markets in last 24 hrs:
| Ticker | Value | 24h |
|---|---|---|
| BTC | $44,995 | ↗ 1.87% |
| ETH | $2,361 | ↗ 0.46% |
| S&P 500 | $4,705 | ↙ -0.8% |
| GOLD | $2,034 | ↙ -1.46% |
| Arch WEB3 | 1.24pts | ↙ -6.97% |
| ↳ FINANCE | 1.18pts | ↙ -6.99% |
| ↳ INFRA | 1.37pts | ↙ -6.38% |
| ↳ CONSUMER | 1.40pts | ↙ -8.28% |
Learn more about Arch Indices here.
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Bitcoin
Analysts Say Spot Bitcoin ETF Approvals Still Likely For Next Week
TLDR Popular finance analysts are reiterating predictions that the SEC will approve the first spot Bitcoin ETFs next. The researchers cite fresh meetings between the regulator and leading U.S. exchanges that plan on listing the ETFs' shares.
SO WHAT Unlike existing futures ETFs, spot Bitcoin ETFs would directly invest in and hold BTC for investors, increasing the scarcity of BTC's supply. Coupled with the looming Bitcoin halving event, onlookers predict the approval of a spot Bitcoin ETF could kick start a new bull cycle for digital assets.
READ MORE: Analysts Say Spot Bitcoin ETF Approvals Still Likely For Next Week
DeFi
Inscriptions Activity Dries Up On EVM Chains
TLDR Activity surrounding inscription protocols on EVM-compatible networks is drying up following an initial surge in late November through December. The volume of inscriptions transactions on ZkSync Era, Arbitrum, and Polygon plummeted over the past fortnight.
SO WHAT The proliferation of inscriptions across EVM chains served as a major stress-test for many networks just a few weeks ago, with on-chain activity rising to unprecedented highs on Arbitrum, ZkSync Era, and Mantle. However, the moment in the sun for inscriptions appears to have passed, with their lack of DeFi composability and reliance on off-chain indexing posing barriers to sustained growth and adoption.
READ MORE: Inscriptions Activity Dries Up On EVM Chains
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Markets
Is Matrixport To Blame For The Violent Crypto Flash Crash?
TLDR Analysts are weighing in on what triggered the violent flash crash that wiped $100B from the combined crypto market cap on Jan. 3. While some onlookers blamed the retracement on a Matrixport report claiming the SEC will reject all pending spot Bitcoin ETF applications, many researchers say excessive leverage in the digital asset markets led to the crash.
SO WHAT BTC funding rates indicated extremely high levels of leverage in the markets before the crash, with traders paying the equivalent of 66% annualized to open long positions. With funding rate largely reset, Bitcoin bulls believe the markets could reach new local highs should the SEC approve a spot Bitcoin ETF for the first time.
READ MORE: Is Matrixport To Blame For The Violent Crypto Flash Crash?
Op-Ed
Linea's Journey Towards Progressive Decentralization: The Key to Minimizing Trust with Zero-Knowledge Technology
TLDR Declan Fox, the senior product manager for Linea at Consensys, delivers a call to action for rollup providers to outline plans for progressive decentralization and trust minimization. Fox also argues that zero-knowledge solutions are best poised to facilitate decentralized security.
SO WHAT Competition to scale Ethereum is heating up, with a new generation of zero-knowledge rollups seeking to dethrone the incumbent optimistic rollups in Arbitrum and Optimism.
🔎 OUR REPORTERS ARE WATCHING
🌍 ELSEWHERE
- Tuttle Capital proposes 6 ETFs that ‘magnify’ spot Bitcoin ETF performance (Cointelegraph)
- Visa unveils web3 loyalty platform allowing brands to create custom branded crypto wallets (CryptoSlate)
- Huobi Korea Announces Termination Of Virtual Asset Exchange Services (CoinGape)
