VanEck CEO Forecasts Rejection of Spot Ethereum ETF, Despite Early Filing

Audy Castañeda
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VanEck CEO Forecasts Rejection of Spot Ethereum ETF, Despite Early Filing

VanEck CEO predicts rejection of Ethereum spot ETFs by the SEC in May, despite being one of the first to apply. The SEC’s guideline to postpone decisions on Ethereum spot ETF applications suggests reluctance. Regardless of the outcome, asset management firms remain committed to pursuing spot Ethereum ETFs.

The fate of spot Ethereum (ETH) exchange-traded funds (ETFs) hangs in the balance as the U.S. Securities and Exchange Commission (SEC) approaches its decision deadline in May. The main voices in the sector anticipate the rejection of these investment products.

Jan van Eck, CEO of asset management firm VanEck, recently expressed skepticism regarding the likelihood of the SEC approving spot Ethereum ETFs.

The VanEck spot bitcoin ETF – which trades under the ticker HODL – is the fifth largest of the 10 recently launched funds (excluding Grayscale). It has received $461.7 million since its launch in mid-January, according to data from Farside Investors.

Commenting on the success of bitcoin ETFs, van Eck described bitcoin as a “maturing asset,” adding that there are still many investors who have not been exposed to this asset.

VanEck Expects Ethereum Spot ETF Rejection, Despite Requesting It First

During an interview with CNBC at Paris Blockchain Week in France, Jan van Eck revealed that they were the first to apply for Ethereum in the United States, along with Cathy Wood, CEO of Ark Invest. He also mentioned that both will likely be rejected in May:

“The way the legal process plays out is that regulators will give you feedback on your application, and that happened for weeks and weeks before Bitcoin ETFs – and right now, the pegs are falling when it comes to Ethereum.”

Van Eck is not the only pessimist. Industry analysts such as Bloomberg Intelligence’s James Seyffart and Eric Balchunas echo this sentiment. Balchunas himself reduced his chances of approval from 70% to just 35%.

Balchunas lowered his formal odds of approval of an Ether ETF for May from 70% to 35%. The analyst reiterated his stance on the pending approvals and echoed Van Eck’s views in a post on X on April 9. The analyst lowered his approval odds to 35% in March.

“As we’ve said, we need the SEC to comment on the filings (the “critical feedback” you mention) and that still isn’t happening; even in person they don’t offer anything. Silence is violence.”

James Seyffart, offered a similar opinion: he said “no comments/interactions is a bad sign.”

“There’s no reason the SEC did absolutely nothing for months when we knew this was coming,” he added.

JPMorgan, however, offers a glimmer of hope. Nikolaos Panigirtzoglou, Managing Director of JPMorgan, suggested that a delay beyond May could lead the SEC into a legal skirmish. This would be reminiscent of previous confrontations with Grayscale. Panigirtzoglou says the SEC may not emerge victorious if litigation occurs.

Ethereum Spot ETFs Continue to Generate Debate

The SEC’s stance on Ethereum remains the subject of debate. BlackRock CEO Larry Fink believes the SEC could give the green light to an Ethereum ETF even though it considers the security of ETH, unlike Bitcoin.

Amid these opinions, Matt Hougan, chief investment officer at Bitwise, notes that the SEC is dragging its feet on approving Ethereum spot ETFs. This tactic was on display when the SEC deferred its decision on BlackRock’s iShares Ethereum Trust in January 2024, followed by postponements for Hashdex and ARK 21Shares in March.

The SEC consistently cites the need for “sufficient time” to review these proposals in its postponement notices. Hence this repetitive pattern suggests a reluctance to approve them.

Despite the uncertainty, asset managers remain determined. Sector heavyweights like BlackRock, Fidelity, VanEck, ARK 21Shares, Hashdex, Grayscale, and Franklin Templeton continue to pursue Ethereum spot ETFs.

By Audy Castaneda

Tron Founder Justin Sun Raises Mind-Blowing Question About AI

Leonardo Perez
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Tron Founder Justin Sun Raises Mind-Blowing Question About AI

Sun’s question comes in the wake of rapid technological advances in artificial intelligence technology.

Justin Sun highlighted that AI’s ability to murder a billion people would make it a ruler.

In a recent post on social media platform X, Tron founder Justin Sun asked an intriguing question about when Artificial Intelligence (AI) would kill the person number eight billionth.

Justin Sun Raises Concerns About AI and Robotics Integrations

Justin Sun began by indicating that he recently tested the second version of Xiaomi’s CyberDog robot. According to him, the CyberDog has a high level of strength that can cause a certain level of fear in people who are not its owner.

Notably, CyberDog is Xiaomi’s first attempt at creating a quadruped robotic animal for the open source community and developers around the world. CyberDog’s brain is powered by NVIDIA’s Jetson Xavier NX platform, an artificial intelligence supercomputer for embedded and edge systems.

While CyberDog2 is less scary than the original, with a head that resembles a real dog’s head and pointed ears, Sun said the new robot has led him to reflect on the potential risks that AI poses to humans. Justin Sun noted that the first human death caused by AI would make global headlines.

However, he believes that many people might think that this is an inevitable accident caused by technological advances. He visualized scenarios such as gaps in ethical frameworks such as the three Laws of Robotics, or even legally authorized actions by police or robotic armies.

The Tron founder went on to state that the first death caused by AI would occur in a second, adding that at that point humans would have less time to react. Following this pattern, Sun claims that t

he eight billionth AI death could occur as soon as three months after the first possible murder case. Justin Sun highlighted the following:

“Yet merely possessing high intelligence and formidable military strength is not enough. This is only about killing one person. Killing one person makes you a murderer, but killing a billion makes you a ruler.”

Convergence of AI, Robotics and Blockchain

Going further, Sun noted that Blockchain will act as the third ace in the hole needed to transform a person’s skills into organizational skills. According to him, Blockchain is more of a machine currency than a human currency. To explain this point of view, Sun pointed out that machines can use blockchain to steal humans, hire humans, rent machines, build a large number of machines to meet their goals, and even mobilize resources to control vital resources such as computing power, which then can be converted into cryptocurrency for payment.

Concluding the discussion, Sun highlighted that the convergence of blockchain, robotics and AI would unleash the ultimate potential of artificial intelligence. For Sun, if AI finally reaches this point, the super alignment and the limitations of the Three Laws of Robotics on robots will be extremely weak.

When that power is unleashed, Sun believes the first human reaction may be to launch an arms race with the blockchain rather than stopping the growth of robots. Finally, Sun stated that the launch time of this technical power is approaching faster than before. “The technologies of AI, robotics and blockchain technologies have all reached the ‘iPhone moment,'” he said.

By Leonardo Perez

Giant Chinese Funds Call for Bitcoin Spot ETF in Hong Kong

Audy Castañeda
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Giant Chinese Funds Call for Bitcoin Spot ETF in Hong Kong

Two major Chinese investment funds are filing for spot Bitcoin ETFs in Hong Kong. This development comes as interest in US spot Bitcoin ETFs appears to be waning. Hong Kong’s ties to China raise questions about long-term regulatory sustainability.

Two of China’s investment giants, Harvest Fund and China Southern Fund, are seeking spot Bitcoin exchange-traded funds (ETFs) in Hong Kong.

This move coincides with declining investor interest in US spot Bitcoin ETFs, as evidenced by slowing weekly inflows.

Industry experts anticipate that cryptocurrency-focused ETFs will receive approval by the second quarter of 2024. Southern Fund has the distinction of introducing Asia’s first bitcoin futures-based ETF, dubbed “Southern Dongying Bitcoin Futures ETF.”

A source close to Harvest Fund’s strategic initiatives shared with a local journalist, “We are also organizing the Bitcoin business, and we are also launching related products in the Hong Kong market through the platform of the Hong Kong subsidiary, but They are not futures ETFs.”

Chinese Giants Set Their Sights on Hong Kong Bitcoin Spot ETFs

Securities Time reported that the Hong Kong subsidiaries of both Harvest Fund and China Southern Fund are actively participating in the Bitcoin ETF application process. Additionally, they participate in the implementation process.

Harvest Fund, in particular, has filed a proposal for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Moreover, China Asset Management’s Hong Kong division has partnered with a Hong Kong-based Bitcoin ETF custodian.

Industry analysts predict that these applications could gain approval as early as the second quarter of 2024. With $230 billion and $280 billion in assets under management, respectively, Harvest Fund and China Southern Fund would significantly raise participation in investment products related to Bitcoin.

The timing aligns with a CoinShares report that notes “signs of moderating enthusiasm for ETFs.” Last week, the inflow of digital asset investment products, including US-approved spot Bitcoin ETFs, amounted to just $646 million, a figure that reflects a decrease from $862 million two weeks earlier.

Despite this short-term decline, inflow figures for digital asset investment products so far this year show growth. Two weeks ago, total inflows reached $13.14 billion; last week, this figure increased to $13.81 billion.

Giant Chinese Funds Could Be a Bullish Sign for Bitcoin

Spot Bitcoin ETF filings in Hong Kong by reputable Chinese funds could be a bullish sign. Hong Kong’s determination to establish itself as a crypto hub, in addition to its unique relationship with China, hints at a possible softening of China’s overall crypto stance.

This could have far-reaching positive implications for crypto markets. Additionally, key industry figures have praised Hong Kong’s regulatory clarity. However, Hong Kong’s autonomy under the “One Country, Two Systems” agreement with China will expire in 2047.

The above raises questions about the long-term sustainability of Hong Kong’s favorable regulatory environment. Bobby Lee, founder and CEO of Ballet, expressed this concern during an August 2023 interview with a media outlet.

Lee questioned the pace of integration between Hong Kong and China over the next 23 years. This, highlighting the eventual unification of currencies and systems and, potentially, supervision under a single framework. Lee stated the following:

“The question is: what would happen in the next five years [in Hong Kong]? The next 10 years? The next 20 years? Or even the next 24 years? Would it change? I think [Hong Kong’s regulatory environment] would change.”

By Audy Castaneda

Crypto Prophet Jeremy DaVinci Predicts Bitcoin Rise Heading to $130,000

Leonardo Perez
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Crypto Prophet Jeremy DaVinci Predicts Bitcoin Rise Heading to $130,000

DaVinci, known for his early adoption of Bitcoin and his emotional support of the cryptocurrency, has positioned himself as a leading figure within the crypto space.

Amid the recent market pullback, notable cryptocurrency enthusiast and YouTuber Jeremy DaVinci has sparked optimism in the Bitcoin community.

DaVinci’s analysis revolves around a technical indicator, Bollinger Bands, which suggests a possible rebound in Bitcoin’s price trajectory.

Where is Bitcoin Headed?

According to DaVinci, Bitcoin has closed above the upper Bollinger Bands indicator for two consecutive months, a pattern that has historically preceded major price increases. From past events, DaVinci hints at the possibility of Bitcoin price doubling within three months of this setup.

With his latest forecast, DaVinci projects that the price of Bitcoin will potentially exceed $130,000 in the next three months. This bullish prediction aligns with similar sentiments echoed by other market experts, further supporting optimism among Bitcoin investors.

On April 9, DaVinci posted the following on X:

“Things are looking very interesting now. Bitcoin just closed two months above the upper Bollinger Band! Historical data shows that whenever this happens, Bitcoin’s price has doubled within three months.”

Bitcoin Offers More Upside Potential

Bitcoin, despite hitting a series of all-time highs over the past month, is said to have even more upside potential even after corrections.

Although Bitcoin price predictions are not linear, it is emphasized that bullish projections can be supported through market triggers. In particular, it is suggested that factors such as the Bitcoin spot ETF market and the upcoming Bitcoin halving event could support the rise in Bitcoin price.

Macroeconomic Factors That Will Drive the Rise of Bitcoin

Adding to the bullish Bitcoin sentiment, prominent investor Dan Tapiero has expressed his bullish outlook for the leading cryptocurrency. Tapiero, known for his investment expertise and founding roles at Gold Bullion International and 10T Holdings, highlighted an important macroeconomic factor driving Bitcoin’s potential rise.

According to Tapiero, the correlation observed in the market points to concerns about “monetary devaluation” fueled by a substantial increase in the Treasury bond market over the last five years. Tapiero’s bullish stance focuses on Bitcoin’s unique scarcity as a digital asset, emphasizing its potential to outperform traditional assets like gold.

On April 7, Tapiero posted the following on X:

“Most remarkable macro correlation break I’ve seen in some time. Suggests extreme concern about monetary debasement driven by 60% Treasury mkt increase past 5yrs. Theme not yet widely subscribed. Bullish GOLD and more so when rates drop. Vaults Bitcoin to 200k+”

While acknowledging the favorable prospects for gold in such a scenario, Tapiero remains particularly optimistic about the future trajectory of Bitcoin’s price. His forecast hints at the possibility of Bitcoin surpassing the $200,000 mark, offering investors the opportunity to make substantial profits on digital gold.

The asset has shown resilience amid these speculations and predictions about the possible BTC price rally in the coming months. While Bitcoin has plunged almost 5% in the last 24 hours, it has traded above $69,000 more recently.

Hayes Shares His Vision on Bitcoin Halving

In other news, a few days ago a prediction about Bitcoin came from Arthur Hayes, who mentioned that there could be a pullback in the price of BTC before and after the Bitcoin halving. Hayes emphasized that the halving of Bitcoin, the flagship of cryptocurrencies, would bring significant increases in the medium term.

Experts are attempting to predict which direction Bitcoin will move within the rapidly changing economic landscape, while investors continue to assess market opportunities during this period.

By Leonardo Perez

Understanding Layer 2: Scalability Solutions for Ethereum

Audy Castañeda
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Understanding Layer 2: Scalability Solutions for Ethereum

Second layer solutions are becoming increasingly important within blockchains, especially among the oldest ones. These new layers make a difference in cardinal aspects such as improving scalability for Ethereum.

Layer2 solution projects are additional networks that sit on top of the main network or layer 1. Therefore, the first step to understanding this issue is to differentiate between the first and second layers. Although it may seem like a riddle language, it is actually a simple topic, as long as we do not get into the technical framework.

Bitcoin is a first layer, but its transaction capacity per second is very low. This creates slowness and bottlenecks when sending funds. To solve that problem, developers created the Lightning Network (LN), a second layer that supports more than 50 thousand transactions per second.

The original Bitcoin network is designed in such a way that it cannot be modified or updated. Meanwhile, second-layer solutions that correct malfunctions not foreseen by Satoshi Nakamoto are accepted through consensus. Thus, without modifying the network, the LN solution is on it for those who wish to use it during times of high network traffic.

The Never-Ending Issue of Ethereum Scalability

The scalability problem is an ordeal not only for Bitcoin, but also for Ethereum. Therefore, second layers become a blessing to improve scaling and its most problematic derivative, high commissions.

However, the second layers are not only intended to improve scalability. There are other issues that point to some solutions, such as security. Likewise, there are second layers that turn simple blockchains into true decentralized finance ecosystems.

Regarding the latter case, the most popular initiative is Shiba Inu’s Shibarium. This second layer, which launched in late 2023, enables the creation of Shiba smart contracts. In that sense, project developers can create their decentralized finance applications, games, and trading platforms on Shibarium.

In any case, the scalability of Ethereum was what made the so-called second layers of blockchain urgent and popular. Without exaggeration, it can be said that without these solutions, Ethereum’s chances of future success would be blurry.

The waiting time period between processing a block of transactions would be too long in a crowded environment.

Origin of the First Layers Problem

The big issue with older blockchains is improving scalability. The concept of layer 1 was born retroactively to differentiate it from the new second layer solutions. Either way, the blockchain experienced the same fate of all existing technologies, capacity.

As time progresses, technologies become incapable of fulfilling their tasks in the face of growing innovation in demand. For example, in the computer world, a 120 gigabyte hard drive was the norm back in 2004. The same can be said for the 15 gigabytes of storage on a mobile phone a decade ago.

Nowadays, at least on PCs, reference is made to terabytes. It’s hard to imagine life with a 1GB USB removable hard drive. That same reality happened with the blockchain. In the beginning, 2,000 transactions in an individual Bitcoin block were more than enough.

As for Ethereum, having better scalability than Bitcoin, no one imagined that in a few years’ adoption would collapse the network. However, this has already happened.

During traffic spikes, transactions get stuck in eternal queues, forcing merchants to pay higher fees to complete shipments.

Looking to the future, it can be said that the expansion and massification of Web3 will probably make the second layers obsolete. Consequently, 100,000 transactions per second would not be enough.

By Audy Castaneda

Whale Accumulates 1,308 BTC Worth $90 Million in a Month

Leonardo Perez
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Whale Accumulates 1,308 BTC Worth $90 Million in a Month

Lookonchain described through the X platform a case of a large whale that accumulated 1,308 BTC worth almost $90 million since March 6. The significant investment move suggests confidence in Bitcoin’s long-term potential and sends a bullish signal to other investors. According to the latest data, Bitcoin price is around $70,000, showing resistance after losing its price range in early April.

Bitcoin, the leading cryptocurrency, has seen a price surge. Larger investors continue to accumulate significant amounts of this digital asset.

This trend indicates a certain optimism in the market, which is why doubts arise about what the price of the flagship cryptocurrency will be in the coming months of this year.

A Huge Amount of BTC in This Whale’s Account

Since the beginning of the year, real accumulation of Bitcoin by investors can be seen. The increased activity of Bitcoin wallet addresses holding large amounts of the cryptocurrency, called “whales,” plays an important role in shaping market dynamics due to the significant amounts of Bitcoin at their disposal.

Lookonchain analysts recently described, via X, an interesting case of a large whale that accumulated 1,308 BTC worth almost $90 million since March 6. The significant investment move suggests confidence in Bitcoin’s long-term potential and sends a bullish signal to other investors.

It is evident that some enthusiasts do not lose faith in the future of BTC and invest large amounts of money in it. A deeper analysis of the whale’s transaction history reveals interesting patterns.

Major purchases, including a $7.85 million transaction on April 7, indicate a strategic approach to accumulating Bitcoin during price declines. This strategy follows the concept of dollar-cost averaging, where investors buy assets at intervals to offset the impact of volatility.

The highest purchase was just over 123 BTC, made on April 3rd. Its value exceeds USD 8 million. The second largest is the most recent, made this Sunday, April 7, and was 113.7 BTC, which translates into more than $7.8 million.

BTC Price Analysis

According to the latest data, the price of Bitcoin is around $70,000. Therefore, it is showing resilience after losing its price range in early April. Key resistance and support levels currently sit at $71,500 and $68,500 respectively, shaping the current trading range.

From a technical perspective, Bitcoin is showing a short-term bullish trend and the Relative Strength Index (RSI) suggests a continuation of the positive trend. The bullish sentiment is further supported by a potential price target of $71,500 in the near term. Further price movements will depend on market dynamics.

Risk of Investing in Bitcoin

Despite the uncertainty, several optimistic signs point to positive investor sentiment. Market cycle analysis potentially indicates an aggressive bullish cycle.

At the same time, on-chain data suggests the possibility of a brief squeeze above $72,000 due to a large number of leveraged liquidations in this zone, which Bitcoin whales may conduct to increase profits in a possible wave that breaks the resistance.

Looking ahead, the next Bitcoin halving scheduled for April 20 could draw investors’ attention to favorable economic fundamentals. However, Bitcoin’s future price action remains uncertain, highlighting the importance of careful analysis and risk assessment for investors.

The recent accumulation of Bitcoin by whales indicates confidence in the cryptocurrency’s future prospects. Even though positive and bullish signals dominate the market, investors should remain vigilant.

The high market volatility witnessed almost every month shows that even the most experienced investors can “sink” their funds.

By Leonardo Perez

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