Grayscale ETH Spot ETF Delayed 🫤

GM. This is Degen Scoop. It’s Wednesday, here are the stories that we’ll be touching on today:

• Grayscale ETH Spot ETF Delayed 🫤

• First Major Bank Launches Stablecoin 🪙

• Bitcoin Breaks $44,000 🤑

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Grayscale ETH Spot ETF Delayed by SEC

The SEC is extending the timeline for a decision on the Grayscale Ethereum Trust's spot ETF to January 25, 2024. This delay is part of the SEC's ongoing review of proposed ETFs related to Ethereum and Bitcoin. This move was very much expected as Bitcoin spot ETFs are most likely to be approved first.

Grayscale Investments filed to convert its Grayscale Ethereum Trust to a spot ETF in October. The trust, launched in 2019, has become the largest Ethereum investment vehicle globally, with nearly $5B AUM, representing 2.5% of all ETH in circulation.

Other firms, including BlackRock, are also seeking approval for spot ether and bitcoin ETFs. While we probably don’t see spot ETH ETFs in January, it is likely that we’ll see them come to market in 2024 if Bitcoin spot ETFs are approved in January as expected.

Société Générale Becomes First Major Bank To Launch A Stablecoin

Société Générale is set to launch its stablecoin, EUR CoinVertible, on the Bitstamp cryptocurrency exchange, making it the first major bank to offer digital tokens tracking the price of hard currencies to a wide range of investors. While you may or may not use this bank, this breaks the ground and sets precedent for other banks that will eventually offer their own stable.

The stablecoin will be fully backed by euros and aims to provide an alternative to the dominance of stablecoins denominated in US dollars. Unlike stablecoins offered by some investment banks, Société Générale's EUR CoinVertible will be widely available for trading.

The bank hopes the stablecoin will be used to settle trades in digital bonds, funds, and other assets as traditional financial institutions explore digital ledgers. While most stables are denominated in US dollars, there is certainly room for growth amongst stables denominated in euros. The stablecoin has been built to align with the upcoming Mica regulation in the EU.

Bitcoin Shorts Continue To Get Liquidated, Price Passes $44,000

Bitcoin's surge beyond $44,000 has led to the liquidation of numerous shorts which only has served to catapult the price even higher. The digital asset's breakthrough above $42,000 on Monday marked its highest level in over a year. The majority of retail isn’t even here yet, which makes us question how crazy the bull market will be.

BTCM Chief Economist Youwei Yang sees $45,000 as a crucial resistance level and warns of a potential short squeeze risk if it surpasses this threshold. The current high amount of leveraged positions raises the likelihood of increased market volatility. If you’re positioned right, you’ll be rewarded.

Coinglass data confirms a significant number of liquidated leveraged positions in the past 24 hours. Bitfinex analysts note large short liquidations at $41,950 and $42,200, anticipating a "bullish catapult" if Bitcoin surpasses these levels due to forced liquidations. As of Tuesday, Bitcoin was trading at $44,090, up 5.3%.

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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.