May 21, 2024

🥛 ETH ETFs just lit up the market! 🚀

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GM. This is Milk Road, serving up your daily crypto fix, one crypto ETF at a time.

Here’s what’s new today:

  • Largest ETH daily candle in history 🚀

  • Chart of the day: Weekly fund flows report 📊

  • PRO “Where are we in the cycle?” indicators 🤔 

  • Yuga Labs faces backlash on new CryptoPunks 🍪 

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LARGEST ETH DAILY CANDLE IN HISTORY 🚀

Yesterday, Ethereum surged from $3,047 to $3,694, skyrocketing 21% in just one day, the largest daily candle in history for ETH.

What caused this sudden shift in sentiment? Nope, it wasn’t the tech improving by 20% — it was the U.S. Regulators.

Yesterday, the SEC requested Ethereum ETF applicants to update a key document, known as Form 19b-4, for listing and trading spot Ether ETFs.

Regulators pushing to update these filings on an accelerated basis hints at possible approvals as soon as Wednesday of this week (tomorrow).

This just made the outlook for a spot Ether ETF get a lot brighter, with Bloomberg analysts James Seyffart and Eric Balchunas upping their SEC approval odds from 25% to 75%.

Across the crypto and TradFi community it had become consensus that these ETFs wouldn’t be approved until at least the end of this year.

Obviously, many were underallocated to $ETH and after the news broke, Ethereum essentially added Solana’s entire market cap in just one day.

Prediction markets clearly show how sentiment did a 180 regarding the spot ETH ETF approval—gotta love crypto!

Next, the SEC must approve both the 19b-4s (exchange rule changes) and the S-1s (registration statements) for ETFs to launch.

An Ether ETF paves the way for many other crypto ETFs and legitimization across the entire space.

BTC was big news, no doubt, but most of the crypto ecosystem is built on smart contract platforms like Ethereum, not Bitcoin.

The impacts of this approval will go far beyond just the ability to trade an Ether ETF in the USA.

This approval, along with the FDIC chair stepping down (Martin Gruenberg was instrumental in facilitating Operation Chokepoint 2.0 targeting the digital asset industry) and the SAB 121 vote being overturned on Friday, signals a major political shift, marking the failure of anti-crypto stances and prompting allocators to seek exposure beyond just Bitcoin.

🥛 Milk Road Take: If (when) the Ether ETF gets approved then $ETH could explode to new highs, just like Bitcoin did.

We covered the supply crunch that ETFs created for Bitcoin, considering it was the first ever asset to be wrapped in an ETF (in the USA) that humans don’t have the ability to increase the supply of.

Well, Ethereum takes this to another level, here’s the Milk Man’s math:

  • Ether ETF approval = a significant increase in transactions on the Ethereum blockchain

  • Increased transactions = more $ETH being burned

  • More $ETH being burned = a lower supply of $ETH

  • Less $ETH + increased demand from the ETH ETF = a supply and demand scenario that we’re not sure this world is ready for.

Not sure what we’re talking about?

Check out this $ETH Supply Dynamics Report we wrote last month to make sure you don’t fall behind on this one 👀

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CHART OF THE DAY: WEEKLY CRYPTO FUND FLOWS 📊


This week’s ETH god candle might just rewrite the crypto narrative, but there’s more…

Because last week, digital asset investment products raked in a staggering $932M in net inflows. Talk about a bullish newsletter 🚀

Here’s everything you need to know:

  • $BTC led the way with $942M in inflows. Bitcoin inflows surged back after a weak month.

  • $ETH saw $23M in outflows. $ETH was held down last week with SEC approval looking dim, these new approval odds will change this entirely! 

  • The US dominated with $1B in inflows, with Grayscale seeing minor inflows of $18M for the first time since the January ETF launch.

  • Switzerland and Germany also saw minor inflows of $27M and $4.2M respectively, while Hong Kong and Canada saw outflows totaling $83M and $17M respectively.

  • A wide range of altcoins saw inflows, notably Solana, Chainlink, and Cardano, with $4.9M, $3.7M, and $1.9M respectively.

Looks like Bitcoin's the life of the party, while Ethereum's making a comeback from the corner. 

Don't underestimate political pressure… the Biden administration just might be trying to appear more crypto-friendly.

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PRO “WHERE ARE WE IN THE CYCLE?” INDICATORS 📊

Crypto moves in cycles, and knowing where we are in the current cycle is crucial for capturing the best opportunities.

The goal is to spot the bull market peak before the inevitable bear market hits your bags hard.

Since timing the top perfectly is almost impossible, we use various indicators to give us a better shot at taking profits before it's too late.

Here are the 5 indicators we track, with a color-coded system to show how close they are to signaling the market peak:

🟢 Plenty of room to run 🏄

🟡 Getting closer to the top signal, but haven’t yet reached the mark ⚠️

🔴 We’ve hit the market top indicator 🚨

Every Tuesday, we update these 5 indicators exclusively for PRO members.

Our advice? Don't wait for all of them to hit 🔴. It's better to take profits as they get closer to that point.

Let's dive in and see if we're anywhere near the top of this bull market. 👇

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  • Full access to the 5 bull market peak indicators above. 👆

  • Our weekly reports that help you invest successfully in crypto. 💰

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PRO REVIEW OF THE WEEK

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BITE-SIZED COOKIES FOR THE ROAD 🍪

A new report shows how Gryphon Digital Mining – a bitcoin miner with negative carbon strategy – is positioned for the crypto bull market. With a mining cost of $44,989 per Bitcoin, Gryphon boasts one of the lowest breakeven costs in the industry. *

Solana wallet, Phantom, acquires a16z-backed Bitski wallet platform. Phantom has acquired Bitski for an undisclosed sum and will integrate "embedded wallets" into Solana to simplify onboarding.

Uniswap Labs and Across Protocol Unveil ERC-7683. This would result in lower costs for fillers, a broader filler network for apps to use and lower costs passed onto users.

Yuga Labs faced backlash over its "Super Punks World" NFT collection reinterpreting CryptoPunks with themes of race and gender. In response to the outcry, Yuga scrapped plans to expand the CryptoPunks IP and will likely airdrop the NFTs randomly instead.

US shutdowns lead to global decline in Bitcoin ATMs. The global Bitcoin ATM network contracted in May as over 300 machines went offline in the US, denting crypto's brick-and-mortar footprint despite new installations elsewhere limiting the net decline to 280 ATMs.

Wanna team up with the Milk Man? We currently have 4 positions open – check ‘em out and apply here!

*This is sponsored content

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.