OVERVIEW

ETH ETF Trading Begins Tomorrow 🐕️ 

The word of the day is: choppy. The price action is choppy. It’s a combination of events that impact the two biggest cryptos out there: Bitcoin and Ethereum. 😲 

In today’s Litepaper, we’re looking at what ETH ETFs start trading tomorrow.

Also on deck: the test BTC transactions sent to Bitstamp via Mt. Gox and a look at the MVRV ratios of Polygon, Uniswap, Dogecoin, and XRP. 📰

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

NEWS
Cboe Listing Five Spot Ether ETFs Tomorrow (July 23) 🤯

Cboe ($CBOE) released a listing of five $ETH exchange-traded funds (ETFs) to begin trading on July 23. These ETFs include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Franklin Ethereum ETF, Invesco Galaxy Ethereum ETF, and VanEck Ethereum ETF. 😱 

The SEC has already approved rule changes for these spot ether ETFs, but asset managers need their S-1 registrations finalized by July 16. Bitwise’s CIO, Matt Hougan, believes these ETFs could rake in about $15 billion in net flows within their first 18 months.

Cboe has also filed applications to list spot Solana ($SOL) ETFs, with the SEC’s decision expected by March 2025. 📆 

Why You Should Care 🫂 

Besides the insane importance of another crypto ETF and how bullish this event is, there are some major causes of concern. ETH could face the same selling pressure experienced by $BTC when the first spot Bitcoin ETFs were approved earlier this year.

While analysts don’t anticipate the same kind of selling pressure from the five ETFs above, there is a very real fear that when Grayscale’s $ETHE converts into an ETF, similar to even greater selling pressure may occur. ETHE contains roughly $10 billion and coupled with the crazy fee, the selling pressure could be huge. ⏬ 

ON-CHAIN ANALYSIS
Mt. Gox to Repay Creditors Through Bitstamp 📤️

Mt. Gox is gearing up to repay creditors through Bitstamp, executing test transactions to the exchange’s cold wallets. Over $9.4 billion in $BTC is owed to approximately 127,000 creditors who have been waiting for over a decade. 😮 

On-chain analytics firm Arkham Intelligence flagged the first test transactions today.

Concerns are rising about potential sell pressure from these repayments, with some analysts predicting a massive Bitcoin sell-off. However, a Reddit poll suggests that only 20% of creditors plan to sell immediately, with 56% intending to hold their Bitcoin. 🤔 

Despite fears of a sell-off, whales continue to accumulate Bitcoin. Bitcoin ETFs continue to buy the dips and now hold over 1 million Bitcoin - with no signs of a slowdown ahead.

Why You Should Care 🫂 

The news that Mt. Gox’s Bitcoin stash will be returned to its creditors has been one of the constant dark clouds over the crypto space. As the reality of the return gets closer and closer, news like this can give people the jitters and force them out of the market. 📉

ON-CHAIN ANALYSIS
Closest Thing To A Cheat Code Out There 🤣 

The MVRV ratio, developed by Santiment, compares a cryptocurrency's market cap to its realized cap. It helps determine whether an asset is overvalued or undervalued. ⚖️ 

Essentially, it's a tool to gauge market sentiment and spot potential price extremes. Like the COT report for commodities and futures markets, the MVRV ratio is one of the closest things to a cheat code you’ll find.

High 30-Day MVRVs

Cryptos with a high MVRV ratio, in conjunction with other technical resistance or overbought conditions, are highly likely to face near-term selling pressure. 📉 

XRP

Dogecoin

Low 30-Day MVRVs

Cryptos with a low MVRV ratio, in conjunction with other technical support or oversold conditions, are highly likely to face near-term buying pressure. 📈 

Polygon

Uniswap

NEWS
Crypto News In Three Sentences 📰

💥 Polymarket Trading Explodes Amid 2024 Election Chaos 

Polymarket saw bets on the U.S. presidential election surge past $300 million after Joe Biden declined to run for a second term. The decision spurred unprecedented trading volumes and active accounts on the platform. With over $500 million already pooled in political contracts, Polymarket might hit $1 billion by election day. CoinDesk has more.

💎 FTX Claims Broker Embezzles Millions for Luxury Lifestyle 

Thomas Braziel, an FTX claims broker, was ordered to repay $1.9 million after embezzling funds to invest in crypto and buy luxury items. Braziel misused the assets from a bankrupt firm’s receivership fund to maintain an extravagant lifestyle. The court ruling follows his largely conceded embezzlement investigation which began in 2022. From Protos.

📉 Worldcoin’s WLD Token Faces Dilution Risk 

Worldcoin's $WLD token, developed by ChatGPT-maker OpenAI, is at risk of dilution due to its low circulating supply. Data suggests future token unlocks could devalue WLD unless overall demand increases. Currently, WLD's market cap risks substantial losses for holders if more tokens enter circulation without matching demand. More at CoinEdition.

🚀 Trump Coins Surge as Biden Exits 2024 Race 

Trump-themed meme coins surged after President Joe Biden announced he won't seek re-election. Super Trump ($STRUMP) and Pepe Trump saw significant gains, while Kamala Horris spiked 48% following Biden's endorsement of Kamala Harris as the Democratic nominee. Biden parody coin BODEN plummeted 58% in response. Full story from CryptoNews.

📈 Helium’s HNT Token Soars with Subscriber Milestone 

Helium Mobile surpassed 100,000 subscribers, driving a 48% surge in its $HNT token over seven days. This growth positions HNT as one of the week's top-performing digital assets, outpacing Bitcoin and Ethereum. Helium's decentralized network rewards hotspot owners, contributing to its rapid user adoption and market performance. CoinSpeaker has more.

🔒 WazirX Hackers Transfer $57 Million to New Wallets 

Hackers behind the $230 million WazirX heist moved another $57 million to new wallets, according to PeckShield. WazirX paused trading to conduct a forensic audit and is offering up to $10,000 for actionable intelligence on the stolen funds. The exchange is struggling to maintain liquidity and has launched a $23 million bounty program for recovery. From CoinGabbar.

🪙 Gensler Predicted to Resign as SEC Chair Post-Biden 

10x Research predicts SEC Chair Gary Gensler will resign in early 2025 following President Biden’s decision not to seek re-election. A Trump presidency, bolstered by VP pick J.D. Vance’s criticism of Gensler, could accelerate his departure. More at coinpaper.

Links That Don’t Suck 🔗

🤖 Elon Musk says Tesla to use humanoid robots Next Year

📧 TON Foundation partners with Mocaverse from Animoca

🪙 Cardano (ADA) hits 94 million transactions in epic milestone

🪨 Could BlackRock’s Larry Fink be Trump’s next Treasury Secretary?

🕹️ Bethesda Game Studios workers form 'wall-to-wall union' at Microsoft

💱 Taking profits on Bitcoin ahead of Trump conference appearance could be 'Expensive Exercise'

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