The world of money is changing and as always, Crypto is leading this change. This week, there’s an ETF that has been approved which will let you invest in both Bitcoin and Ethereum at the same time. But in the meantime, you might be wondering why Bitcoin prices took a tumble recently… Well, we’ve got the answers. Lets dive in!
A New Kind of Crypto ETF
The SEC quietly approved the first-ever ETFs that hold BOTH Bitcoin and Ethereum. But what does it really mean for everyday investors?
The first spot exchange-traded funds combining Bitcoin and Ethereum have been approved by the SEC. Hybrid crypto ETFs, as they are called, will help users to invest in both BTC and ETH by holding a single simplified asset. This will improve the mainstream adoption of crypto.
Two major players, Hashdex and Franklin Templeton,are already offering these new “hybrid” ETFs‚—Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF respectively.
Both of these funds hold Bitcoin and Ethereum in the ratio of their market capitalization. They will be available for trading in the US Market from January 2025.
It remains to be seen how these new ETFs will perform in the market. However we believe that ETFs will be leading the mass adoption of Crypto. Meanwhile, here’s what you need to know about Crypto ETFs
Penguins Airdrop on Solana
- Following its Tuesday launch, the Pudgy Penguins ecosystem token on Solana, PENGU, quickly climbed to 76th place in the top 100 cryptocurrencies by market valuation.
The coin began trading at $0.068 and dropped almost 51% on its first day to trade at $0.0335, with a market valuation of approximately $1.7 billion.
An airdrop of PENGU tokens to millions of NFT holders and traders could increase interest in and involvement in the ecosystem.
With a trading volume of almost $1.75 billion today, PENGU is one of the most traded tokens among the top 100 cryptocurrencies, according to CoinGecko.
Sonic Boom: Fantom Rebrands to Sonic Labs
A major technological achievement for Fantom is the Sonic mainnet, which supports EVM and can process up to 10,000 transactions per second (TPS).
Sonic offers fast transaction finality and integrates with popular wallets like Metamask to enhance accessibility and user experience.
By switching to Sonic, holders of Fantom’s native token, FTM, can acquire S tokens, which form the basis of the new ecosystem.
A $260 million S token airdrop, which represents 6% of the total supply, benefits both active and passive users and promotes further involvement.
Because to the excitement surrounding Sonic, the FTM token surged to its highest price since 2022, indicating great market enthusiasm for this strategy pivot. Fantom’s market value also surpassed $4 billion as a result of this.
The Fed Effect: Here’s why the Bitcoin prices dropped last week
The cryptocurrency market plummeted, with Ethereum (ETH) falling 7.3% to $3,579 and Bitcoin (BTC) falling 4.3% to $99,700. The total value of the cryptocurrency market dropped 5.6% to $3.64 trillion. On the last day, more than 266,000 traders were liquidated, resulting in $791.36 million in losses overall. Binance had the most significant single liquidation order, worth $7.1 million in ETHUSDT. The Federal Reserve cut its benchmark interest rate to 4.25%–4.5%, the lowest since February 2023, by 0.25 percentage points. However, investor optimism was tempered when the Fed indicated it would cut rates less frequently in 2025.
What's Next?
For cryptocurrency, this week has been difficult. However, it’s crucial to consider the wider picture—Bitcoin has gained almost 120% this year and crossed the $100,000 milestone.
Nevertheless, when investors adjust their portfolios or liquidate their holdings for year-end expenses and tax considerations, the holiday season frequently witnesses a sell-off in financial markets, including cryptocurrency.
In general, Bitcoin and Ethereum do well in the first quarter of the year. Since Ethereum frequently acts as a signal for the larger market, it has the ability to spark a larger altcoin surge. With such solid foundations and historical trends in place, the crypto industry is poised for an exciting start to the new year.
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