Synopsis
- London Stock Exchange to accept Bitcoin and Ethereum ETNs
- Bitcoin transaction volume skyrockets as the halving approaches
- Coinbase Calls for SEC to Initiate Rulemaking on Digital Assets
- Biggest gainer and loser of the week
Key Observations
Analysis
London Stock Exchange to accept Bitcoin and Ethereum ETNs
The London Stock Exchange (LSE) will soon accept applications for Bitcoin and Ether exchange-traded notes (ETNs), starting in the second quarter of 2024. These ETNs must adhere to specific rules, including physical backing by the cryptocurrencies and secure storage, as outlined in their Crypto ETN Admission Factsheet. Details on when applications will be accepted are yet to be disclosed.
Crypto ETNs, seen as an alternative to traditional exchange-traded funds (ETFs), will target professional investors, following guidelines for secure storage and compliance with Anti-Money Laundering laws. The UK’s Financial Conduct Authority (FCA) supports this initiative but advises that these high-risk products are unsuitable for retail investors, emphasizing the importance of investor protection and regulatory adherence.
Bitcoin transaction volume skyrockets as the halving approaches
Bitcoin (BTC) broke above its former all-time high price this past week, breaching $72K before mildly retreating. The run-up in price has led transaction volume to skyrocket on the network, and miners are cashing in on the increased activity.
According to data from The Block, the seven-day moving average of transaction volume on the Bitcoin network has reached its highest level since September 2022, 18 months ago. That increased volume has led to a corresponding increase in Bitcoin miner revenue, as the seven-day moving average of miner revenue, currently $65.4 million, is just shy of its all-time high of $67.2 million reached in May 2021
Coinbase calls for SEC to initiate rulemaking on digital assets
Coinbase Inc. has criticized the U.S. Securities and Exchange Commission (SEC) for not following the law after the SEC rejected Coinbase’s request for clear crypto regulations. Coinbase argues that the SEC’s refusal to create new rules for crypto assets, choosing instead to regulate through enforcement actions, is arbitrary and unfair. The company believes that the SEC’s lack of clear guidelines and reasons for its decisions demands a public explanation, pushing for the court to compel the SEC to explain its stance or start rulemaking for crypto.
The legal battle between Coinbase and the SEC highlights the ongoing confusion over how crypto exchanges and assets should be regulated under U.S. securities law. Despite facing enforcement actions, Coinbase is challenging the SEC’s approach, which has so far led to mixed outcomes in court cases involving crypto matters. Coinbase’s lawsuit aims not only to question the SEC’s recent actions but also to influence how the broader crypto industry might be regulated in the future, underlining the industry’s need for clearer rules and the SEC’s mixed track record in crypto-related legal challenges.
Biggest gainer of the week: Floki Inu (FLOKI) up by 94.47% 🔼️
Technical Analysis: Floki Inu is currently trading at $0.0002706, boasting a market cap of $2.58 billion and a circulating supply of 9.55 trillion tokens. Over the last 24 hours, its price has dipped by -3.56%, though it’s seen a remarkable surge of +93.93% throughout the week.
Examining the daily time frame reveals Floki Inu is presently undergoing profit booking. Following a climb to $0.00030714, there was a swift rejection, bringing it down to $0.00025637. Despite this, buying activity remains relatively robust, suggesting the meme fever hasn’t fizzled out entirely.
With the RSI above 75, Floki remains firmly in overbought territory. The $0.00030714 mark serves as a significant resistance level, and a breakthrough could pave the way for further upward movement, potentially targeting subsequent key levels.
Biggest loser of the week: SHIBA INU (SHIB) down by 13.37% ⬇️
Technical Analysis: Shiba Inu is currently priced at $0.00003266, boasting a market cap of $19.28 billion and circulating supply of 589.29 trillion tokens. Over the last 24 hours, its value has dipped by -4.34%, and throughout the week, it’s down by -13.37%.
Reviewing the past week, SHIB experienced a breakout to $0.00004541, swiftly followed by a rejection. The RSI is now edging below 70 levels, indicating a shift away from overbought conditions. Presently, SHIB is in a consolidation phase, forming a triangle pattern with lower highs and higher lows. There’s anticipation of an imminent breakout within the current price range, provided the meme frenzy persists. As a prominent meme coin on the Ethereum chain, particularly post the recent Denton upgrade, a positive trend is foreseeable for Shiba Inu.
Conclusion
In conclusion, meme coins like Shiba Inu and Floki Inu are characterized by their volatility and speculative nature. While they attract attention and excitement from investors, they also pose significant risks due to their unpredictable price movements. Traders should exercise caution and closely monitor market trends and indicators when considering investment in meme coins.
