The 80th Hoot

First Solana Spot ETF Filed 😳 + ETH Fees Lowest in 5 Years 🤩

Author

Matt Brimacombe
July 1st, 2024

GOOD MORNING, FRIENDS ☕️

HAPPY 4TH OF JULY WEEK 🇺🇸

LET’S TURN HOLIDAY MODE ON EARLY 😎

Scatt's Weekly Seeds:

🌱Most Profitable Crypto Sector in 2024? 📊

🌱ETH Long Term Holders Dominate 🏆

🌱First Solana Spot ETF Filed 😳

🌱ETH Fees Lowest in 5 Years 🤩

Memes of The Week

Year-to-Date Returns:

  • Dow: 3.79%

  • S&P 500: 14.48%

  • Nasdaq Comp: 18.13%

  • Bitcoin: 47.17%

  • Ethereum: 49.19%

  • Solana: 38.32%

News Breakdown:

The Latest in Crypto:

  • 7-DAY CRYPTO MARKET CAP CHANGE: $4B

  • CRYPTO INVESTMENT PRODUCT FLOW: $548M

  • MICHAEL DELL EXPRESSED INTEREST IN BITCOIN (FYI HE IS WORTH $105B)

  • STANDARD CHARTERED WILL SETUP A TRADING DESK FOR BITCOIN AND ETH

  • BTC PIONEER JULIAN ASSANGE FREE FROM PRISON

  • DISTRESSED FUNDS FACE COMPLICATIONS AFTER WINDFALL ON FTX BANKRUPTCY

  • GENSLER (HEAD OF S.E.C) PROCESS TO SPOT ETH ETF APPROVAL GOING VERY SMOOTHLY

  • ETH ETF POTENTIALLY SET TO BE APPROVED BY JULY 4TH HOLIDAY

  • BYBIT SURPASSES COINBASE TO BECOME 2ND-LARGEST CRYPTO EXCHANGE IN WORLD

  • 54% OF JAPANESE INSTITUTIONAL INVESTORS PLAN TO ALLOCATE TO CRYPTO

  • TRUMP IS EXPECTED TO SPEAK AT THE BITCOIN 2024 CONVENTION IN JULY

  • FLORIDA MAN CONVICTED FOR STEALING MILLIONS IN CRYPTO AT GUNPOINT

  • COINBASE SUED SEC AND FDIC FOR ILLEGALLY BLOCKING FOIA REQUESTS

  • MT. GOX WILL DISTRIBUTE $9B IN BTC REPAYMENTS TO CREDITORS

  • IN JUNE, US SPOT BTC ETFS MONTHLY NET INFLOW WAS +$668M (DESPITE PRICE GOING DOWN FROM $67K TO $61K)

  • COINBASE PARTNERS WITH STRIPE

This Week’s Economic Calendar:

  • Construction Spending (Monday)

  • Job Openings (Tuesday)

  • Minutes of Fed’s June Meeting (Wednesday)

  • Unemployment Report (Friday)

Most Profitable Crypto Sector in 2024? 📊

Memes strike yet again.

Meme coins were once again the most profitable crypto sector in the first 6 months of 2024…

Netting investors a whopping +1,834% in just 6 months!

That’s high… even by crypto standards.

But what’s interesting to note is how much the sector outperformed the rest of the market.

I mean, it beat the sector behind it by 8.6x (or 1,621%) 😳

ETH Long Term Holders Dominate 🏆

Because charts are just as important as the macro.

78% of ETH is owned by long term holders (ie. people who have not touched their ETH in at least 12 months).

Again, the beauty of the blockchain is that it provides us with the necessary transparency to see stuff like this.

And be assured, we are tracking this statistic closely should there be any changes.

This 78% stat paints a good picture though: real, long term investors see the true value of ETH…

Which then translates to trust in the ETH ecosystem (and the other coins built on there).

Matter of time.

VanEck, an NYC based investment firm just dropped this bombshell earlier last week.

BUT… this is just an application. We still have a LONG way to go.

To give you some context, the first Bitcoin spot ETF application was filed in 2013 - but only approved in January 2024 (10+ years later).

ETH on the other hand, had a pretty smooth ride, with a wait time of about 3 years or so before approval.

But the tricky thing with SOL is that it’s currently considered a security by the SEC (which will add 10x the red tape for a launch to take place)…

But SOL is not all that different from ETH, so if things go smoothly from here on out, my best guess is we see a SOL ETF launch in about 12-15 months.

Let’s see what happens this week with the ETH ETF approval.

ETH Fees Lowest in 5 Years 🤩

Beautiful.

The ETH blockchain is just awesome.

Activity on the chain is through the roof, but gas prices are at their lowest levels in 5 years!

It’s like trying to book a date night at the hottest restaurant in the city, but finding out they offer happy hour prices all night.

It’s unique though because the ETH ecosystem is settling more transactions than EVER before, AND is powering the most users it ever has…

So what’s the reason?

The drop in fees is driven by Ethereum’s scaling roadmap which is clearly working.

Their goal is to help facilitate the network’s growth by taking on more users, handling more transactions etc.

It is currently scaling Ethereum at a factor of over 21x (ie. it’s network capacity has increased by 21 times).

In even simpler terms: if ETH was previously a 1-lane highway, it is now a 21-lane highway.

The ultimate result is Ethereum enabling transactions at scale for less than a penny via Layer 2s, while also being a deflationary asset.

Crypto Cold Storage Options:

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy, sell or hold any assets or to make any financial decisions. Please be careful and do your own research.