Parsec Weekly #53
Bitcoin spot ETF Approval, $6m WIF fat finger, Coinbase prime grail sweeper and the MAYC lending crisis
Bitcoin spot ETF Approval
-Charles (prev screen name: chulie)
After what seems like a very long time coming, on Wednesday evening the SEC approved a raft of BTC spot ETFs (11 in total):
The spot ETFs started trading yesterday with $1.2b in volume in the first 30 minutes of trading and $4.6b by the end of the day although it must be noted that much of the volume was sell side volume exiting Grayscale’s GBTC:
For many this is real vindication as it represents a significant stamp of approval from US regulators and Large Financial Institutions while for others it comes as a relief that ETF speculation can come to an end and the market can move on to looking at other sectors and narratives (I fall in both camps!).
Something interesting to note is that the fake ETF approval announcement from (the hacked) SEC Twitter account on Tuesday actually marked the near term bottom in ETHBTC. In a very similar fashion to how the Cointelegraph intern tweet forced the market to show its hand re BTC spot ETF positioning, the reaction of the ETHBTC cross (fake news or not) was indicative of how the market would actually react to the approval ahead of time. Lo and behold, the ETHBTC cross has continued to outperform through the official announcement and even during the first spot ETF trading day. With EIP4844 expectations being pulled forward, the Eigenlayer restaking narrative starting to gain steam and speculation surrounding an ETH spot ETF beginning to brew, it could be time for ETH + ETH beta to shine...
Onchain happenings
-kezfourtwez
Good morning pre-ETF crypto enjoyers, what a momentous day yesterday was. 15 years to the day after a group of cypherpunks created a fair and global payments system, the largest economy in the world approved a BTC ETF for trading that broke all day one ETF volume records.
I was going to write about the recent success of ordinals but decided to wait a week as we will likely have some parsec charts to go along with it soon!
So instead I’m just going to give a quick market update to do with some onchain tomfoolery happening recently.
$WIF has played an undeniable role in the shitcoin landscape since it’s launch back in mid November. It achieved main character status as we saw little knitted hats plastered on everything and all over twitter, reaching an all time high just shy of $350m in market cap.
The wider Solana shitcoin scene saw a few weeks of madness off the back of $WIF’s success and in my opinion partly due to the (even lower than ETH) liquidity standards for new deployments - It was not uncommon to see coins with a $1m market cap and $50k in liquidity.
Things cooled off onchain as attention shifted more and more back to the main event the closer we got to the ETF deadline. $WIF consolidated and experienced the necessary capitulation candles and resulting -80% drawdown. Until yesterday when a whale that had been DCA’ing $10k clips managed to fat finger a $6m market buy into a $2m liquidity pool, pushing price up 25x in one candle and creating a very large (fill the) wick.
The funniest part about this whole story is that ReDAO had sent this whale the SNS “♻️redao♻️.sol” (unsure if it was before or quickly after the buy) and claimed responsibility. This stunt resulted in a very successful guerilla marketing strategy and netted them 2k new followers and a whole lot of attention.
Read the full story here.
Institutional grade jpegger
In other news punk6529 was right, in a post ETF world the institutions ARE coming for your jpegs.
A wallet originally funded by Coinbase Prime (a branch of the baldman’s company aimed at facilitating institutional grade crypto transactions and custody at scale) has funded themselves with $3.5m and used 884e to sweep 18 chromie squiggles and 13 punks - this comes after originally dipping their toes in and buying one of each eight days earlier.
MAYC lending crisis
Mutant apes in particular but also the wider Yuga ecosystem is facing a lending crisis and subsequently, mass liquidations. Prolific Blend lending group CBB0FE have withdrawn from all lending activities in the Yuga ecosystem. They previously accounted for a large chunk of total lending activity in the Yuga eco.
There are currently 267 underwater mutant loans at current floor price and in the last 48h there has already been 180 liquidations on Blend, resulting in the largest 48h of liquidations since the inception of Blend.
As always we appreciate your readership, if you enjoyed this article please leave a like and share it around. Have a good weekend and we’ll see you next week!
Hi
Wow good news