August 3, 2023

🥛 WATCH OUT! ETFs are coming for crypto… 🚨

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GM. This is Milk Road, the crypto newsletter that makes you feel as satisfied as when you perfectly flip a pancake.

Here’s what we got for you today:

  • ETFs are coming for crypto ⏰

  • More trouble coming for Binance? 🌧️

  • Bitcoin is more stable than gold and stocks 📊

  • Amazon Prime is giving away free NFTs 🍪

Prices as of 8:30 AM ET. Click here for our Fear & Greed Index


ETFS ARE COMING FOR CRYPTO

Let’s talk about the biggest buzzword in crypto right now… ETF. 

You either:

a) Know what it is

b) Have no idea what it is (and, at this point, are too afraid to ask)

So, just so we’re all on the same page…

And there’s been big news in ETF land this week:

1/ ETH ETFs are coming

Over the last few days, six asset managers have filed applications with the SEC to launch an ETH futures-based ETF: 

  • VanEck $77.8B in assets under management (AUM)

  • ProShares $65B in AUM

  • Grayscale $50B in AUM

  • Bitwise  $1B+ in AUM

  • Roundhill $1B+ in AUM

  • Volatility Shares  manages $170M+ across four funds

Turns out Bitcoin ETFs are a lot like Vans shoes in middle school – once the cool kid starts wearing them, everyone else wants a pair.

What’s next? The deadline for the SEC to approve/deny the ETH ETF applications is set for mid-October.

2/ Chances of a Bitcoin ETF getting approved are improving

According to Bloomberg analysts, the odds of a spot Bitcoin ETF launching this year are 65% based on “recent events and new information”.

A few months ago, the odds were at 1%.

The analysts believe that pressure from BlackRock and Congress could make denying the ETFs “politically untenable” for the SEC and Gary Gensler.

Source: Twitter

A few analysts also believe it’s likely that the SEC simultaneously approves all applications at once.

(WARNING: You should trust an analyst’s forecast like the local weatherman – even when they say it’s gonna be sunny, bring an umbrella. Just in case).

So, what’s next? The SEC’s first deadline to approve one of the recent Bitcoin ETF filings is on August 13.

Til then, we wait.

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MORE TROUBLE COMING FOR BINANCE?🌧️

Binance is back on the hot seat. 

According to reports, the Department of Justice is considering dropping fraud charges on the crypto exchange.

But there’s one thing holding them back…. the DOJ thinks it could cause a bank run. (the two most feared words in crypto)

Source: Tenor

As a result, investors would get burned and lose a lot of money. Similar to what happened with FTX and other Companies-Who-Must-Not-Be-Named.

So regulators are exploring alternate ways to punish Binance, like fines and/or non-prosecution agreements.

Why this matters: Binance is the king of all crypto exchanges.

It accounted for 47.1% of all spot trading volume in July.

But lately, the Binance family has seen more drama than the Kardashian sisters and the Paul brothers – combined.

  • Binance got sued by the SEC

  • Binance lost its partnership with Paxos and the BUSD stablecoin was shut down

  • Binance (US) lost its banking partners

  • Binance (US) was served a restraining order to freeze its assets

There’s one thing we’ve learned in crypto: where there’s smoke, there’s fire. 

If the largest exchange in crypto did end up going up in flames, it’d be the biggest Black Swan event we’ve seen. 

And after the last 12-18 months of collapses, bankruptcies, and heartbreaks – the state of crypto is more fragile than a Cheeto.

BITCOIN IS MORE STABLE THAN GOLD AND STOCKS 📊

Ladies & gents, the results are in…

Bitcoin’s five-day volatility has dropped below gold, the S&P 500, and the NASDAQ 100. 

Source: K33 Research

I know what you’re thinking. Wtf is this? The Richter scale? 

But there’s one big takeaway: Bitcoin’s volatility sinking below gold and stocks has only happened a few times in recent years…

Every single time it was followed by crazy, volatile price swings. 

So buckle up, kids. This could be the calm before the storm.

BITE-SIZED COOKIES 🍪

Backers dropped the Little Legends charitable NFT project last week. Partnered with Shoes That Fit, holders benefit from unique NFTs, private events, and rewards and get to help provide sneakers to those in need.*

Amazon Prime is giving out free NFTs for a web3 game called Mojo Melee. Amazon Prime subscribers are eligible to claim a free package that includes an NFT and in-game currency for the Mojo Melee game.

Worldcoin has been temporarily suspended in Kenya. Authorities have trust issues and want to assess whether the eyeball-scanning project poses any risk to Kenyan citizens.

Google Cloud is now a validator on Celo Network. Google Cloud’s Blockchain Node Engine will help the Celo Network transition from a layer-1 blockchain to a layer-2 scaling solution.

Beeple bought a CryptoPunk for $208K#BigBallerBuy

Robinhood crypto revenue dropped 18% in Q2. On the bright side, they were profitable for the first time since becoming a public company.

*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.