OVERVIEW

Rumor: SEC Might O.K. ETH ETFs 🤯 

It’s Pizza Week for Bitcoin! On May 22nd, we’ll celebrate the 14th anniversary of 10,000 BTC used to pay for a pizza. And the day after that, we might see an ETH ETF approval?! 🟢

It was green all over the place today after Bloomberg’s ETF and crypto bigwigs expressed their view that the SEC will approve the spot ETH ETF on Wednesday — something we’ll touch on down below.

In today’s Litepaper, we’re looking at on-chain data for Bitcoin and why upside momentum might be coming soon, Grayscales’ CEO shakeup, the surge in Web3 gaming, and why traders are eyeing Coinbase again. 📰

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
Ethereum ETF’s A Go?!

It was a ‘normal’ Monday for crypto. Until around 3:20 to 3:30 pm EST, when the market went haywire:

So WTF caused this jump? This:

When two of Bloomberg’s ETF and crypto experts chime in saying there’s a 75% chance the SEC will approve Ethereum ETFs this week, you can bet your ass some pump will be happening.

It’s still a rumor, but that’s not stopping the Stocktwits community from pushing sentiment into “extremely bullish” territory as prices soared to their highest level since early April. 👀 

ON-CHAIN ANALYTICS
Small Dumps Are Good 👍️ 

Over the weekend, on-chain analytics firm Santiment dropped a chart showing wallets containing less than 0.1 $BTC have weak ass hands and have been selling. 182,200 hodler dumped their Bitcoin last week. 💹 

However, according to Santiment, small wallets dumping is a bullish sign.

But let’s take a little closer look at what’s happening.

MVRV Ratio: The Crypto Crystal Ball

For those who prefer to trade with a bit of insight, Santiment’s MVRV (Market Value to Realized Value) ratio is your friend. A negative MVRV, like the -9.71 we had on May 1, means Bitcoin was undervalued. In other words, a bargain. Fast forward to today, and an MVRV of 7.74 suggests we’re in overvalued territory. The market sentiment has clearly shifted from doom and gloom to cautious optimism.

A Peek at the Past

Remember the ATH in March? The MVRV ratio hit a peak of 21.37 on March 4, right before Bitcoin soared to its all-time high near $74k on March 13. Our current MVRV of 7.74 is a far cry from that, indicating we’re not quite at the panic button stage yet.

What’s Next for Bitcoin?

With the MVRV ratio sitting at 7.74, Bitcoin might still have some gas left in the tank. Historically, Bitcoin tends to keep climbing until the MVRV ratio hits much higher levels, like the 21.37 in March. So, don’t be surprised if the price continues to rise before any major pullback.

That said, don’t get too comfortable. An elevated MVRV ratio means the risk of a correction is creeping up. Investors should keep an eye on these signals and be ready for some potential market turbulence. 📊

NEWS
So Long Sonnenshein, Hi Mintzberg 👋 

Grayscale’s CEO Michael Sonnenshein is heading out to greener pastures. Maybe. 🟩 

• SEC Tango - Grayscale’s continuous attempts to convert $GBTC into a Bitcoin ETF faced repeated rejections by the SEC. Sonnenshein's optimistic timelines for approval did not align with the regulatory body’s stance, leading to significant investor disappointment and confusion.

• High Fees, Low Returns - Grayscale’s annual management fee for GBTC is around 2%, which is quite high compared to traditional ETFs. Despite this, GBTC’s performance lagged behind Bitcoin itself, frustrating investors who felt they weren’t getting their money’s worth.

• Liquidity Issues - GBTC often traded at a substantial discount to its net asset value (NAV), sometimes exceeding 20%.

• Public Relations Missteps - In 2021, Sonnenshein announced with great fanfare that Grayscale would convert its trust into an ETF, despite no clear indication from the SEC.

• Lack of Innovation - While other firms explored DeFi and emerging crypto assets, Grayscale remained heavily focused on Bitcoin and Ethereum.

Peter Mintzberg is set to become the new CEO of Grayscale Investments, replacing Michael Sonnenshein. Mintzberg previously served as Goldman Sachs' global head of strategy for asset and wealth management.

He will officially begin his role on August 15. 🌐

WEB3
Web3 Gaming Surge 🎮️ 

The Web3 gaming world is throwing some wild punches lately, from manga-themed digital collectibles to an NFL-inspired frenzy, and it's all about hooking you with that blockchain flair. 🕹️ 

Draftables Tackles the Digital Gridiron

Draftables just blitzed through its NFT sale, offloading its Founder Pass series in less than ten minutes. Early birds grabbing these passes get more than just a sneak peek at the upcoming game—they're in for tournament entries and exclusive digital swag. Slated for full launch later this year, Draftables is shaping up to be the fantasy league dream for blockchain buffs.

So, whether you're here to collect, invest, or play, the latest from the Web3 gaming scene is proving there’s plenty of game left to change. Watch this space—it’s only getting started. 🏈 

FAIRY TAIL Goes Digital with Animoca Brands Japan

Animoca is dialing up the nostalgia by dropping "FAIRY TAIL" collectibles into the digital realm via the Quidd NFT marketplace. Fans of Natsu, Lucy, and the gang can snag these digital cards in various pack options, starting at the price of a coffee—$1.49. You can tell I don’t drink coffee from Starsucks.

Mark your calendars: the digital hunt begins May 24 at 17:00 PM EST. Dive into Quidd, load up your wallet, and maybe grab a piece of manga history. 🧚 

Magic Square Lights the Fuse for Web3 Startups

Magic Square isn't playing games—they're fueling them. With a hefty $200K in $STMX tokens up for grabs, this platform backed by the big guns at Crypto.com and Binance Labs is all about catapulting Web3 startups into the stratosphere.

They're rolling out the red carpet with staking options and pre-launch hype campaigns, kicking things off with Storm Trade. Think DeFi meets social, on steroids. ⛈️ 

STOCKTWITS “CHART ART”
Coinbase Cruises Higher As Crypto Cracks Resistance ₿

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NEWS
Crypto News In Three Sentences 📰

🔧 Developers Bet on Programmability for Bitcoin’s Next Rally

Developers think adding programmability to $BTC could kick off the next big rally. Unlike $ETH, Bitcoin’s blockchain is pretty basic, but projects like Bitcoin Ordinals and BRC-20 tokens have spiced things up. If they pull it off, Bitcoin’s DeFi scene might finally give Ethereum a run for its money. From CryptoNews.

⚡ Venezuela Pulls Plug on Crypto Mining

Venezuela just banned crypto mining to stop their power grid from imploding, cutting off Bitcoin farms left and right. With constant blackouts and an overloaded grid, mining was the last straw for the government. Governor Rafael Lacava spearheaded the crackdown, seizing over 11,000 ASICs and shuttering numerous mining ops. More at DailyCoin.

⏳ SEC Faces Deadline on Ethereum ETFs

The SEC’s facing a deadline on Ethereum ETFs, which could shake up the crypto market. If approved, we might see Ethereum hit the mainstream big time, but if they stall or reject, it’ll just highlight the SEC’s endless crypto hate. All eyes are on whether they’ll finally give ETH the green light or keep it in regulatory limbo. CoinEdition has more.

📈 XRP Ledger Doubles Transactions Amid SEC Battle

$XRP Ledger’s transactions skyrocketed 108% in Q1 2024, even as Ripple battles the SEC in court. The XRPL is linking up with platforms like Axelar, broadening its reach to over 55 blockchains. Ripple’s pushing to cut the SEC’s ridiculous $2 billion fine down to something reasonable as their legal saga drags on. Full story at Forkast.

💰 Genesis to Return $3B in Bankruptcy Plan

Genesis is set to return $3 billion in cash and crypto to creditors, covering 77% of customer claims. Bankruptcy claims that started at 35% value now trade between 97-110%, a massive turnaround. Sorry, Digital Currency Group—you’re not getting a dime from this payout. From CoinDesk.

🐋 Cardano Whale Activity Surges 10x

Cardano’s having a whale of a time, with big investors boosting their ADA holdings by 11%. ADA’s price is hovering around $0.48, with strong signs of a rally despite a drop in daily transactions. Optimism is high; some are betting ADA might hit $1 soon. More at CryptoNet.

Links That Don’t Suck 🔗

😆 The memecoin casino, how crypto went dumb

🐋 Crypto whales bet big on Mollars, Toncoin, and Cardano

🦑 Kraken says no plans to delist Tether’s USDT stablecoin in Europe

🫥 This headline is stupid: Can artificial intelligence make the PC cool again?

🐳 Valve's next game rumored to be a 6v6 hero shooter called Deadlock

🤦 706 people named Kyle got together in Texas. It wasn’t enough for a world record

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