Synopsis
- BlackRock to make changes in ETF filing
- Decoding the Solana fever
- El Salvador greenlights World’s first Bitcoin Bond
- Biggest winner and loser of the week
Key Observations
Analysis
SEC calls for changes in BlackRock’s ETF filing
Investment management giant BlackRock filed an amended S-1 with the Securities and Exchange Commission today for its proposed spot Bitcoin exchange-traded fund.
ETFs can keep their share prices in sync with the underlying asset (BTC) by creating or redeeming shares in-kind, exchanging Bitcoin for ETF shares, or with cash by buying or selling Bitcoin on the open market.
The updated filing shows BlackRock giving in to the SEC’s demands to exclude in-kind creations and redemptions for its Bitcoin ETF. Earlier this month, the SEC advised companies seeking to launch Bitcoin ETFs to switch to cash creations rather than allowing in-kind creations. Valkyrie, Invesco, and Galaxy Digital are some firms with pending Bitcoin ETF applications who switched to detailing cash creations in updated SEC filings last week.
Is the Solana hype-train well and truly back?
Solana(SOL) was one of the coveted projects that saw a parabolic run in the last Bull Run, with many calling for it to flip Ethereum.
The FTX crash saw Solana dip hard from the highs of 2021 to multi-month lows.
Here’s why Solana’s search volume has gone up 250% in the last 60 days
i) Solana has launched a phone called the Saga phone for a modest $600. These phones are a reseller’s dream, with units listed on eBay for over $3000. It turns out that each Solana Saga phone owner is entitled to a whopping 30 million BONKs, turning the device into an unexpected windfall. At BONK’s all-time high, this translated to a cool $1,000 victory for the lucky phone owners.
ii) Solana managed to flip ETH in terms of DEX volume after doing over $1.5B in 24hrs. According to DefiLlama, Ethereum could only manage $1.1B in the same window. This likely contributed to the 54% surge in the weekly price of SOL.
iii) Circle includes Solana blockchain to increase the efficiency of the EURC stablecoin. Circle visions a future with users willing to safely secure savings without depending on traditional banking infrastructure.
World’s first Bitcoin Bonds to launch in El Salvador
El Salvador has witnessed the inception of the world’s first Bitcoin bonds after receiving regulatory approval for an early 2024 issuance. The bonds are set to be offered on Bitfinex Securities, a regulated division of crypto exchange Bitfinex.
“The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD),” El Salvador’s National Bitcoin Office posted from its X handle.
Figure 3: El Salvador to take reigns with Bitcoin Bonds
After the initial plans to launch by March 2022, it had to be shelved many times. However, the digital assets bill was finally introduced in the Legislative Assembly at the end of November 2022.
Top gainer of the week: Internet Computer Protocol (ICP) up by 79.19% ⬆️
Opinions:
Fundamental Analysis: ICP was one of the most talked about crypto projects during the last bull run. Its community had immense faith in its potential, and things seem to have come full circle.ICP endured the harsh crypto winter and has since then displayed remarkable legs to crawl back to the top 20 ranked cryptocurrencies in terms of market cap. The recent partnerships and integrations have resulted in a 170% yearly return, with nearly half of it stemming from last week.
Technical Analysis: ICP has reclaimed May 2022 levels. It is expected to break out from the resistance at 10.54 and continue its trajectory. However, if current levels fail to hold, we could anticipate ICP testing support at 9.72. The RSI levels indicate that ICP is sitting in the overbought region, denoting an impending price correction.
Oscillator indicators: 2 bearish, 8 neutral, 1 bullish
Moving average indicators: 1 bearish, 1 neutral, 13 bullish
Biggest loser of the week: MultiversX (EGLD) down by 10.41% ⬇️
Opinions:
Technical analysis: EGLD is likely to display a downward trend, with the support level of 57.9 showing signs of promise. If those levels fail to hold, we could see EGLD retracing to 52.37 levels. The RSI levels hint at a possible correction because of the proximity to the overbought region.
Oscillator indicators: 2 bearish, 9 neutral, 0 bullish
Moving Average indicators: 2 bearish, 1 neutral, 12 bullish
Conclusion
The cryptocurrency market was marked with important events. The markets recovered, with Bitcoin retracing to $44k after it stumbled to $41k. Solana’s new initiatives and El Salvador’s Bitcoin Bonds round up the highlights of the week. There is a bullish sentiment as Bitcoin is expected to continue its trajectory after its recent correction.
