The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto: |
- VanEck’s bitcoin ETF trading volume surged over 2,000% on Tuesday.
- Galaxy Digital stock was initiated with a buy rating and a $17 price target by Canaccord Genuity.
- Crypto super PAC Fairshake has raised almost $5 million from the Winklevoss twins.
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CoinDesk 20 Index: 1,906 −3.6%
Bitcoin (BTC): $50,840 −2.9%
Ether (ETC): $2,891 −1.5%
S&P 500: 4,975.51 −0.6%
Gold: $2,039 +0.6%
Nikkei 225: $2,039 +0.6% |
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Trading volumes of VanEck’s HODL, one of the 10 spot bitcoin (BTC) exchange-traded funds (ETFs) in the U.S., surged over 2,200% on Tuesday in a move driven by individual traders. More than $400 million of HODL changed hands on Tuesday, compared with its daily average of $17 million. The figures came a day ahead of VanEck's planned fee cut to 0.20% from 0.25%. HODL’s volumes were the third-largest after Grayscale’s GBTC and BlockRock’s IBIT, the usual leaders. The ETF held nearly $200 million worth of bitcoin as of Feb. 20, data shows. |
Billionaire Mike Novogratz's Galaxy Digital (GLXY) has new coverage at Canaccord Genuity, which initiated the stock with a buy rating and a C$17 ($12.6) price target. Galaxy “represents one of the most diversified ways to play digital assets," wrote analyst Joseph Vafi, whose price target suggests 30% upside from the current C$13. Galaxy's institutional trading business is a "share gainer,” said Vafi, citing the upcoming launch of its crypto prime brokerage platform, Galaxy One. Combine that with the price gains surrounding the spot ETFs and the upcoming halving and trading should do well, according to Vafi. Fairshake, a super political action committee (PAC) backing crypto-friendly candidates, has now received funding of a total of $4.9 million from billionaire twins Cameron and Tyler Winklevoss, Bloomberg reported, citing the latest federal filings. The twins, who are co-founders of crypto exchange Gemini and heavyweight bitcoin (BTC) investors, were initial investors in Fairshake, revealed in the first announcement on Dec. 18, 2023. They join a list of high-profile crypto investors backing the super PAC, including Andreessen Horowitz (a16z) and ARK Invest as well as crypto companies such as Circle, Ripple, Coinbase (COIN) and others. |
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Market Insight: MATIC Has Fallen Out of Favor With Crypto Investors |
The native token of the Polygon ecosystem, (MATIC), a market darling during the 2021 bull run, has fallen out of favor with crypto traders. The cryptocurrency has declined over 32% in 12 months, significantly underperforming rival layer-2 coins like IMX, OP and SKL, which have risen 216%, 46% and 50%, respectively, according to CoinDesk Indices . Arbitrum’s ARB, which has existed for less than a year, has seen more significant gains than MATIC in six months. The lack of investor interest in the token likely stems from a couple of concerns, including the way Polygon zkEVM ensures the validity of transactions, which puts it at a disadvantage to Optimism and Arbitrum when it comes to benefiting from Ethereum’s impending Dencun upgrade, according to Katie Talati, director of research at digital-asset management firm Arca. |
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- The chart shows the average trade size in the bitcoin market in U.S. dollar terms since February 2023.
- The average trade size has consistently topped the $1,000 mark since the start of this month, indicating increased institutional participation.
- Source: Kaiko
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Disclaimer : The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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