Welcome back to Datawallet Daily! We're here, as usual, to highlight the pivotal developments that have influenced the cryptocurrency market over the past day.
Ethereum Price Hits $2,100 on BlackRock ETF Announcement
In a landmark move, BlackRock has lodged a Nasdaq filing to establish an Ethereum-based ETF, propelling Ethereum's price to a daily high of around $2,100. This initiative marks a significant expansion of BlackRock's cryptocurrency portfolio, further cementing its role as a pioneering force in integrating digital assets within traditional investment frameworks.
The filing revealed that BlackRock's ETF division, iShares, is orchestrating the Ethereum ETF, with the heavyweight asset manager seeking to attract a broader demographic to the burgeoning crypto market. This follows BlackRock CEO Larry Fink's vocal endorsement of crypto, which represents a notable shift from his earlier skepticism and aligns with the company's earlier attempts to list a Bitcoin ETF.
With regulatory green lights still pending, BlackRock's forward-looking filing anticipates SEC concerns, advocating for a robust market-surveillance partnership with Coinbase to safeguard against fraud. This strategic push by BlackRock could herald a new chapter for Ethereum and pave the way for an influx of institutional investment into the crypto space.
At the time of writing, there is no confirmation or news on whether this ETF will support protocol staking yields for Ethereum.
Bitcoin Soars Past $36K, While “ETFs Not Yet Priced In”
Bitcoin’s price also soared past $36,000, driven by a “short squeeze” resulting from the liquidation of $62 million worth of short positions, predominantly affecting Asian-based exchanges.
The surge coincides with reports that the SEC is considering the conversion of Grayscale’s Bitcoin Trust into a spot ETF, a move that could significantly ease the entry for crypto investors. Echoing this bullish outlook, Bloomberg Intelligence analysts estimate a 90% chance of a U.S. spot Bitcoin and Ether ETF launching in January, stoking further optimism in the market.
Despite the impressive rise in Bitcoin’s price, some experts believe the impact of the ETF is not yet priced in. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, suggests that the potential spot ETF launch is not reflected in current Bitcoin prices. He points out that the primary buyers, particularly advisors, don’t expect the ETF’s approval until 2025 or later and are likely unaware of its possible launch in the coming months.
Hougan said, “If the people who are going to buy this ETF don’t think it's going to be approved in the next two months, then I don’t see how it’s priced in.”
Near Foundation and Polygon Labs Partner on ZK Solution
Polygon Labs and Near are joining forces to create “zkWASM,” a cutting-edge zero-knowledge prover for WASM blockchains, slated for release next year. This collaboration is poised to bridge WASM networks, which power blockchains like Near and Polkadot, with the Polygon ecosystem.
The anticipated inclusion of zkWASM in Polygon’s developer toolkit will facilitate the building of networks that effortlessly merge with the Ethereum mainnet, fostering greater liquidity and enhanced scalability. The partnership is specifically designed to refine the validation process, which is expected to boost both the efficiency and the decentralization of the Near network.
Arbitrum vote split on $2M Research proposal
Arbitrum is considering a plan to shell out $2 million for a research coalition, but it is getting mixed reactions. The initiative aims to refine the decision-making process within its DAO. But some in the community are raising eyebrows about the price tag and whether it might give a few too much power. The current vote is pretty split, signaling how tough it can be to match expert advice with the wide-open style of DAOs.
If approved, Blockworks, along with Gauntlet and Trail of Bits, would undertake the research responsibilities. Yet, the big question remains: will this move keep things fair or create a new inner circle?
Other breaking news
- Illuvium game set for mainstream via Epic Games Store debut
- Toncoin price hits 11-month peak post-Telegram “Giveaways”
- Yuga Labs attributes ApeFest eye pain to UV-A lights
- ZachXBT reports possible hack with $2M crypto missing from CoinSpot
Wrapping up today's Datawallet Daily, the crypto landscape buzzes with BlackRock's Ethereum ETF filing sending ETH soaring, while Bitcoin breaks the $36K barrier amid more ongoing ETF speculation. Meanwhile, collaborations for blockchain efficiency gain traction, and the community deliberates on the prudence of a costly research proposal within Arbitrum's DAO. Stay tuned for the evolving interplay of innovation and investment in the crypto domain.