Crypto News: ETH-Futures ETFs Disappoint on the Eve of the SBF Trial

Key Insights:

• ETH-Futures ETFs saw subdued inflows, failing to spark an ETH price break out.
• Crypto market cap dropped by $22.79B, a sign of the impact of the lukewarm ETF reception.
• Grayscale remains steadfast, filing for the conversion of its Ethereum Trust into an ETH-spot ETF.

ETH-Futures ETF Launches Report Lackluster Inflows

On Monday, the heavily anticipated launch of ETH-Futures ETFs failed to inspire a second session of gains.

Bloomberg ETF analyst Eric Balchunas had this to say about the ETH-futures ETF launches,

“Unprecedented day today with multiple ETFs all launching at the same time. No clear winner has emerged, all of them were pretty average, lower than I would have predicted, but it is a long run, and remember, these hold futures (ETF investors much prefer physical to derivatives).”

On Monday, VanEck, ProShares, and Bitwise launched ETH-futures and ETH + BTC-futures ETFs. Valkyrie may add ETH futures to the Bitcoin Strategy ETF (BTF) this week, with Kelly and VolShares launching ETH-futures ETFs this week.

The lackluster start to the US ETH-Futures ETF market likely contributed to the broad-based crypto reversal. The total crypto market cap slid by $22.79 billion (-2.09%) to $1,066 billion.

Coinbase (COIN) Wins Singapore Payment License

On Monday, Coinbase (COIN) announced gaining a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).

Coinbase had this to say about the Singapore market,

“From our initial involvement in the Lion City, we’ve identified Singapore as a vital market for Coinbase. The nation’s progressive economic strategies and approach to regulation sync well with our global mission and objectives.”

Coinbase’s stock price rose by 0.31% on Monday, ending at $75.31.

Grayscale Files a Request to Convert Grayscale Ethereum Trust to an ETF

On Monday, Grayscale continued to pursue its commitment to convert its crypto investment product suite to ETFs.

Grayscale announced NYSE Arca filed a request with the SEC to convert Grayscale Ethereum Trust (ETHE) to an ETH-spot ETF. Grayscale Ethereum Trust launched in 2019 and has assets under management of $4.99 billion.

In late August, Grayscale won its appeal against an SEC decision to decline the request to convert Grayscale Bitcoin Trust (GBTC) into a BTC-spot ETF.

Sam Bankman-Fried Trial Begins Tomorrow

The heavily anticipated Sam Bankman-Fried (SBF) trial commences tomorrow. Prosecutors project a six week trial.

Former friends and colleagues will testify against SBF. Caroline Ellison, the former CEO of Alameda Research, may draw the biggest crowd. Prosecutors believe Ellison got a behind-the-scenes view of FTX and had a personal relationship with SBF.

Caroline Ellison signed a plea deal with the US Department of Justice in December 2022.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, sending bullish price signals. Significantly, the 50-day EMA converged on the 200-day EMA, signaling a possible bullish cross.

A bullish cross of the 50-day EMA through the 200-day EMA would support another BTC break above the $28,187 resistance level to retarget $28,500.

However, a decline below $27,500 would bring the 200-day and 50-day EMAs into play.

BTC movement will likely hinge on BTC-spot ETF-related news. Updates from the ongoing SEC cases against Ripple and Coinbase (COIN) will influence investor sentiment.

The 14-Daily RSI reading of 58.79 suggests a BTC break above the $28,187 resistance level before entering overbought territory.

Ethereum Analysis

ETH sat below the 50-day and 200-day EMAs, sending bearish price signals.

An ETH break above the 50-day EMA would give the bulls a run at the 200-day EMA and $1,746 resistance level.

However, failure to break above the 50-day EMA would leave the $1,626 support level in play. A break below the $1,626 support level would give the bears a look at sub-$1,600.

ETH futures and spot ETF-related news would influence price sentiment.

The 14-Daily RSI reading of 53.54 supports an ETH break above the 50-day EMA and a return to $1,700 before entering overbought territory.