Daily Market Update: January 12, 2024

January 12, 2024

BTC is currently trading around $45,400 and ETH around $2,700. Notable gainers in the last 24 hours are SUI, ENS, and BLUR. The global crypto market cap is ~$1.85T, down 2.0% over the last day. DeFi Total Value Locked is ~$58b and BTC dominance is around 52%.

The crypto market is down overall, but the Ethereum ecosystem rotation trade continued its move higher as several L2s and projects like ENS topped today’s gainers. Bitcoin is a standout laggard (-6.2%) following the launch of eleven spot Bitcoin ETFs yesterday. Day 1 trading featured unprecedented launch volume that exceeded $4.5b, but markets are still waiting to determine how much of this was new inflows versus a rotation out of GBTC. This is in spite of several brokerages that have yet to support trading of these products, as well as others like Vanguard, which doesn’t intend to support trading of these products in the future either, likely due to their philosophical investing views. Many have already vowed to relocate their assets in response to Vanguard’s announcement, so time will tell if it holds firm on its anti-crypto positioning.

Notable news includes: Franklin Templeton escalated the Bitcoin ETF fee war, becoming the new low cost provider after reducing their fees down to 0.19%; Grayscale applied for a Bitcoin covered call ETF that would sell options on its own spot Bitcoin ETF (GBTC); CoinShares exercised its option to acquire Valkyrie Funds as a result of the ETF approval; Coinbase, MicroStrategy, and other Bitcoin mining stocks suffered a sharp decline as spot ETFs began trading; some Ethereum developers pushed back on Vitalik’s proposed gas limit increase citing state bloat concerns; Near Foundation laid off ~40% of its staff; StarkWare CEO Uri Kolodny stepped down citing health reasons; Ethereum L2 Manta Pacific breached $850m in TVL; and, Elizabeth Warren was community noted on Twitter after stating “the SEC is wrong on the law.”

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Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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