The world of money is changing and as always, Crypto is leading this change. This week, there’s an ETF that has been approved which will let you invest in both Bitcoin and Ethereum at the same time. But in the meantime, you might be wondering why Bitcoin prices took a tumble recently… Well, we’ve got the answers. Lets dive in!
A New Kind of Crypto ETF
The SEC quietly approved the first-ever ETFs that hold BOTH Bitcoin and Ethereum. But what does it really mean for everyday investors?
The first spot exchange-traded funds combining Bitcoin and Ethereum have been approved by the SEC. Hybrid crypto ETFs, as they are called, will help users to invest in both BTC and ETH by holding a single simplified asset. This will improve the mainstream adoption of crypto.
Two major players, Hashdex and Franklin Templeton,are already offering these new “hybrid” ETFs‚—Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF respectively.
Both of these funds hold Bitcoin and Ethereum in the ratio of their market capitalization. They will be available for trading in the US Market from January 2025.
It remains to be seen how these new ETFs will perform in the market. However we believe that ETFs will be leading the mass adoption of Crypto. Meanwhile, here’s what you need to know about Crypto ETFs
#2 Penguins Airdrop on Solana
- The Pudgy Penguins ecosystem token on Solana, PENGU, launched on Tuesday and swiftly rose to 76th place in the top 100 cryptocurrencies by market capitalization.
- With a market valuation of around $1.7 billion, the token started at $0.068 but fell about 51% on its first day to trade at $0.0335.
- The ecosystem may attract more attention and participation by offering PENGU tokens to millions of NFT holders and traders through an airdrop.
- According to CoinGecko, PENGU’s trading volume today was around $1.75 billion, ranking among the most traded tokens among the top 100 cryptocurrencies.
Want to learn more about NFTs? Here’s how you can get started.
#3 Sonic Boom: Fantom Rebrands to Sonic Labs
- The Sonic mainnet, which offers EVM compatibility and the capacity to handle up to 10,000 transactions per second (TPS), is a significant technological advancement for Fantom.
- Sonic improves accessibility and user experience by integrating with well-known wallets like Metamask and offering quick transaction finality.
- Holders of Fantom’s native token, FTM, can obtain S tokens, the foundation of the new ecosystem, by migrating to Sonic.
- Active and passive users gain from a $260 million S token airdrop, which accounts for 6% of the entire supply and encourages additional participation.
- The FTM token’s surge to its highest price since 2022 demonstrated strong market enthusiasm for this strategic shift due to anticipation surrounding Sonic, which also caused Fantom’s market capitalization to surpass $4 billion.
#4 The Fed Effect: Here’s why the Bitcoin prices dropped last week
- The cryptocurrency market plummeted, with Ethereum (ETH) falling 7.3% to $3,579 and Bitcoin (BTC) falling 4.3% to $99,700. The total value of the cryptocurrency market dropped 5.6% to $3.64 trillion.
- On the last day, more than 266,000 traders were liquidated, resulting in $791.36 million in losses overall. Binance had the most significant single liquidation order, worth $7.1 million in ETHUSDT.
- The Federal Reserve cut its benchmark interest rate to 4.25%–4.5%, the lowest since February 2023, by 0.25 percentage points. However, investor optimism was tempered when the Fed indicated it would cut rates less frequently in 2025.
What’s Next?
It’s been a tough week for crypto. But its important to look at the bigger picture—Bitcoin’s crossed the $100k mark and gained around 120% this year.
That said, the holiday season often sees a sell-off in financial markets, including crypto, as investors rebalance their portfolios or sell their holdings for year-end expenses and tax considerations.
Looking ahead, the first quarter of the year is usually good for Bitcoin and Ethereum. Ethereum, in particular, has the potential to ignite a broader altcoin rally, often serving as a signal for the broader market. With such strong fundamentals and historical patterns at play, the stage is set for an exciting start to the new year in crypto.
