Fidelity Joins ETH ETF Race 🏁

GM. This is Degen Scoop. It’s Monday, let’s cover what happened over the weekend:

• Fidelity Joins ETH ETF Race 🏁

• Bitcoin and Ethereum, Record Low Liquidity 🌊

• Bitcoin OI Breaks Record on Deribit 🪫

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Fidelity Submits Application For Ethereum Spot ETF

Fidelity, one of the largest asset management firms int he world, submitted an application for a spot Ethereum ETF over the weekend. This follows their earlier filing for a spot Bitcoin ETF as well as BlackRock who filed for an Ethereum ETF just days ago.

The filing emphasizes the importance of approving a Spot ETH ETF to protect U.S. investors in the crypto asset space, addressing the growing demand for alternative exposure to crypto assets. If you’re even somewhat familiar with crypto in the United States, you’ve heard of Coinbase. But getting access to crypto exposure in your retirment account? Now that’s a game changer.

With all the largest asset managers filing their applications, it seems all but certain that we see both a Bitcoin and Ethereum spot ETF by the end of next year. We’ll have an answer in regards to the Bitcoin spot ETFs in ~50 days from today and whether this cycle starts with a bang.

Bitcoin and Ethereum At Record Low Levels of Token Movement

Recent data reveals that both Bitcoin and Ethereum are experiencing record-low percentages of tokens moving in the past year. It’s one thing to cheer on our favorites coins on Twitter, but liquidity of the two largest tokens by market cap are at record low levels of liquidity suggesting the potential of a supply crunch.

Only 30.12% of Bitcoin's supply has changed hands in the last year, compared to its peak of over 59% between March 2017 and 2018. Ethereum has similarly hit a record low, with only 39.15% of its supply changing hands in the past year, down from its peak of over 86% between July 2016 and 2017.

This trend indicates record-low percentages of tokens inactive for three and five years, although overall network transactions remain near their peak. To bring it back to the big picture: assume the ETFs get approved and ETFs start gobbling up the BTC and ETH supply without much liquidity? Price goes up, fast.

Deribit Sees Bitcoin Options Open Interest Break Previous Record From October 2021

The anticipation of regulatory approval for the first US spot Bitcoin ETFs has brought significant attention to the crypto market from parties that would be otherwise uninterested. There is one way outside of price that you can deduce this: open interest from options.

Deribit, the largest crypto options exchange, reported a record notional value of Bitcoin options open interest, reaching ~$14.9B, surpassing the previous peak in October 2021. Take that in for a moment, we’re at the beginning of the next bull and we’ve already conquered an OI record at the peak of the last bull? Insane.

Perpetual futures, a popular Bitcoin derivative, showed a positive funding rate, indicating optimism among traders. The Bitcoin futures curve on CME Group has shifted upward, with the CME's open interest surpassing that of Binance, suggesting increased institutional participation. Bullish options bets on Bitcoin indicate positive sentiment and bullishness amongst investors.

The BIGGEST NFT Sales Over the Weekend:

Notable Threads You Might Have Missed:

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.