Daily Market Update: May 24, 2024

May 24, 2024

BTC is currently trading around $67,800 and ETH around $3,700.  Notable gainers in the last 24 hours are ONDO, LDO, and LINK. The global crypto market cap is $2.66T, down 0.4% over the last day.  DeFi Total Value Locked is ~$105b and BTC dominance is around 54%.

In a historic move, the SEC approved pivotal 19b-4 filings for the spot Ethereum ETF applicants, putting the products squarely on the road to launch.  While the SEC must still approve S-1 registration statements in order for the products to go live, some analysts believe this could occur in two weeks, though others have suggested it will more likely take a few months.  Nevertheless, the approval marks a stunning turn of events for something that was considered a long shot just a week ago.  In addition and per legal experts, the approvals as commodity-based trust shares implies that the SEC explicitly recognizes that ETH is not a security.  And most importantly, the spot Ethereum ETFs will ease access to ETH, continue to legitimize crypto as an asset class, and is due to and accompanied by a changing stance towards crypto by the US.

Despite the monumental approval, crypto markets are flat over the last day.  While some suggest its due to the ETF approval being a “sell-the-news” event or the fact that the ETFs won’t launch soon, much is also likely due to weakness in the global equity markets, where most major global indexes were down yesterday.  One point of consternation was the Fed’s meeting minutes, where officials expressed concern around the lack of progress on inflation.  This, combined with continued strong economic data, is raising fears that Fed rate cuts may be pushed out.

Notable news includes: The US House passed a bill that would prohibit the Treasury from creating a CBDC without explicit authorization from Congress, with the bill expressing concerns that the government could use a digital dollar as a “surveillance tool”; reports suggest Congress did not send the measure overturning SAB121, the SEC’s controversial crypto custody policy, to the White House until Wednesday, pushing back the 10 day window for Biden’s promised veto to June 3; the Spot Bitcoin ETFs saw their ninth straight day of inflows; ETH’s supply has grown by 62,000 since ETH flipped inflationary on April 14; decentralized derivatives exchange Zeta Markets unveiled a Solana-based L2 app chain called ZX; and, Kabosu, the face of the iconic Doge meme, passed away.

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Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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