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Tag: Bitwise

  • Wall Street Is Going On-Chain, And Investors Still Don’t Get It, Says Bitwise CIO

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    Wall Street firms are launching tokenized funds, stablecoins, and on-chain products, yet Bitwise’s CIO says that investors remain stuck in outdated crypto narratives.

    Bitwise’s Chief Investment Officer Matt Hougan believes there is a fundamental disconnect between perception and reality in the crypto market. He argued that investors often misinterpret what is truly happening because behavioral biases, particularly anchoring bias, distort their view.

    Anchoring bias, the tendency to fixate on the first piece of information encountered, shapes how people evaluate opportunities. This leads them to overweight initial impressions even when new evidence emerges. Hougan stated that this factor played a key role in his own entry into crypto in 2018.

    Tokenization Is Exploding

    In his latest memo, Hougan stressed that Wall Street is moving on-chain and pointed to several concrete developments. Paul Atkins launched “Project Crypto,” a commission-wide initiative aimed at modernizing securities regulation so that US markets can operate on-chain. Larry Fink said the industry is entering the early stages of tokenizing all assets. BlackRock followed that view by launching its $2 billion BUIDL tokenized Treasury fund on Uniswap. Apollo tokenized its $700 billion Diversified Credit Fund across six blockchains and announced plans to acquire a stake in Morpho.

    Additionally, major banks, such as JPMorgan, Bank of America, Citigroup, and Wells Fargo, are discussing a joint stablecoin. JPMorgan has already launched a deposit token on Base. Fidelity is hiring a DeFi vaults manager.

    Despite these initiatives, the Bitwise exec said that traditional investors fail to register these changes. Even crypto investors themselves, he added, exhibit fatigue from repeated claims of institutional adoption. Data, however, tells a different story.

    Where Does the Value Go?

    Tokenized real-world assets have grown sharply from 2020 to 2025. Hougan warned that while the opportunity is clear, the exact path to capture it is uncertain. Questions remain about whether value from tokenization will accrue to public Layer 1 networks like Ethereum and Solana, to quasi-private blockchains such as Canton Network and Tempo, to DeFi tokens, or to companies building in the ecosystem, including incumbents like BlackRock and JPMorgan, versus crypto-native firms.

    “The biggest alpha opportunities come when the consensus narrative is stale and reality has moved on, but investors are still anchored on the old story. That’s exactly where we are with crypto today. “

    Meanwhile, crypto analytics platform Presto Research expects tokenization to be a central driver of crypto’s next institutional phase. In its 2026 outlook, the firm projected that the combined value of tokenized real-world assets and stablecoins will approach $490 billion by the end of 2026.

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    The report also observed that growth will be fueled by demand for tokenized US Treasury bills and credit instruments.

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    Chayanika Deka

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  • Political Prediction Market ETFs Gain Momentum With Two New Filings

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    Posted on: February 17, 2026, 08:42h. 

    Last updated on: February 18, 2026, 05:50h.

    • Bitwise, GraniteShares throw hats into prediction markets ETF ring
    • Funds appear similar to previously pitched products
    • SEC hasn’t approved these ETFs

    The prediction markets industry is fiercely competitive and the same is true of the race to launch exchange funds (ETFs) tied to political event contracts.

    American Gaming Association prediction markets
    A photograph shows a computer displaying Kalshi odds for the outcome of the 2024 US presidential election on Oct. 13, 2024. Two more ETF issuers filed plans for political prediction market funds. (Image: Getty)

    Just days after Roundhill Investments filed plans with the Securities and Exchange Commission (SEC) for ETFs that would hold event contracts based on the 2026 midterm and 2028 presidential elections, rivals Bitwise Investments and GraniteShares followed suit with filings for competing products.

    Under the PredictionShares brand, Bitwise filed for ETFs based on either potential outcome of the 2028 presidential election — Democrat or Republican — as well as four funds based on which party will control the two houses of Congress following the November midterms. The filing for the PredictionShares presidential derivatives ETFs implies the funds won’t be rolled forward after the 2028 election.

    Following the conclusion of the 2028 Presidential Election and the settlement of the Democratic President Contracts pursuant to their terms, the Fund will liquidate its positions, settle any outstanding liabilities and will distribute all remaining assets to holders of Fund Shares,” according to the regulatory document. “To the extent that a member of the Democratic Party is not the winner of the 2028 Presidential Election, the Fund will lose substantially all of its value and such distribution should be expected to be de minimis. Following this distribution, the Fund will wind up its affairs and terminate.”

    It’s possible Bitwise will later alter the structure of the PredictionShares ETFs, assuming they’re approved, to efficiently transition to the next election cycles as Roundhill indicated it would do in its filing with the SEC. The commission hasn’t approved any of the political prediction market ETFs.

    Examining the GraniteShares Filing

    GraniteShares also has its eyes on election-based yes/no event contracts, which are likely to experience surges in volumes as this year’s primary and general election seasons evolve.

    That asset manager wants to bring Democrat and Republican presidential and congressional election ETFs to market. Its filing with the SEC indicates that if its ETFs are approved, they won’t terminate after Election Days 2026 and 2028. Rather, the 2026 House and Senate funds will be reconfigured for the 2028 elections and the presidential ETFs will be altered to hold derivatives based on the 2032 election.

    Regardless of issuer, all of the proposed political prediction markets ETFs tap into the zero sum nature of politics. Translation: The ETFs tied to the losing party will basically be worthless after Election Day. As just one example…

    “The GraniteShares Democratic Senate ETF’s investment objective is to provide capital appreciation to investors in the event that the Democratic Party has won control of the U.S. Senate following the conclusion of the U.S. Senate Elections taking place on November 3, 2026,” according to that issuer’s filing. “IN THE EVENT THAT THE DEMOCRATIC PARTY HAS NOT WON CONTROL OF THE U.S. SENATE FOLLOWING THE ELECTIONS TAKING PLACE ON NOVEMBER 3, 2026, the Fund will lose substantially all of its value.”

    No Indications About Contract Sources

    As was the case with the Roundhill filing, neither Bitwise nor GraniteShares provided clues as to which exchanges they’ll work with to source political event contracts, though the issuers noted they’ll work with Designated Contract Markets (DCMs).

    Kalshi and Polymarket are the dominant prediction market operators, but by way of owning ForecastEx, Interactive Brokers (NASDAQ: IBKR) is a major player in the political derivatives niche.

    If the ETFs are approved, it’s possible issuers will partner with multiple yes/no exchanges. More details are likely to emerge as the regulatory process moves forward.

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    Todd Shriber

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  • Bitwise Files for 11 Altcoin ETFs Targeting AAVE, UNI, SUI, More

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    Bitwise’s filings span DeFi, layer-1s, privacy coins, and AI-linked tokens, signaling a broad bet on altcoin demand.

    Asset manager Bitwise has submitted filings for 11 new single-asset cryptocurrency exchange-traded funds (ETFs) to the U.S. Securities and Exchange Commission (SEC).

    This batch targets major altcoins, including Aave (AAVE), Uniswap (UNI), and Sui (SUI), signaling a direct challenge to current regulatory boundaries that have largely confined ETF approvals to Bitcoin, Ethereum, and, more recently, Solana and XRP.

    Bitwise Pushes Deeper Into Altcoin ETFs

    According to the filings, the proposed products will sit under the Bitwise Funds Trust and trade on NYSE Arca if approved. The lineup includes strategy ETFs focused on AAVE, UNI, Zcash (ZEC), Near (NEAR), SUI, Tron (TRX), Starknet (STRK), Ethena (ENA), Bittensor (TAO), Hyperliquid (HYPE), and the Canton Network’s CC token.

    The prospectus outlined a consistent structure across the funds. Each ETF plans to hold up to 60% of its assets directly in the underlying token, while at least 40% would come from exchange-traded products, futures, or swaps that track the same asset. In some cases, exposure may be managed through offshore subsidiaries, a structure already familiar in commodity and crypto-linked funds.

    ETF analyst Eric Balchunas reacted to the filings, writing on X that “money (and ETF filings) never sleeps,” a nod to the pace at which issuers are racing to secure first-mover advantage in altcoin products. Industry accounts such as ETF Hearsay also flagged March 16, 2026, as the tentative effective date, though fees and tickers remain undecided.

    The breadth of the filings stands out because while earlier cycles focused almost entirely on Bitcoin and later Ethereum, Bitwise is now targeting decentralized finance, layer-1 networks, privacy coins, and even AI-linked crypto through TAO, reflecting shifting investor interest.

    A Crowded and Competitive Landscape

    Bitwise has made its move at a time when crypto ETFs outside Bitcoin are already showing mixed but telling results. For example, spot Solana ETFs, which launched in October, had attracted more than $750 million in net inflows halfway through December, according to recent CoinShares data.

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    Analysts noted that investors appear willing to hold these products through volatile price swings, suggesting longer-term positioning rather than short-term trading.

    Meanwhile, Ripple-linked ETFs have gone even further. As CryptoPotato previously reported, U.S.-listed XRP ETFs have recorded more than $1 billion in cumulative inflows without a single day of net withdrawals, outperforming Bitcoin, Ethereum, and Solana funds during the same period.

    For now, the filings signal growing confidence from asset managers that investor demand extends well beyond the largest cryptocurrencies and that the ETF market may soon reflect that shift, pending the SEC’s response.

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    Wayne Jones

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  • Bitwise’s Matt Hougan Reveals Why Most Crypto Treasury Firms Should Actually Trade at a Discount

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    Bitwise’s Matt Hougan believes that larger DATs gain major advantages in debt markets, lending capacity, derivatives access, and M&A opportunities.

    Bitwise Chief Investment Officer Matt Hougan outlined a valuation framework for digital asset treasury companies (DATs) and said that analysis of the sector often misunderstands how these firms should be priced relative to the assets they hold.

    In a series of posts, Hougan said the core question for valuing any DAT is to consider what the company would be worth if it had a fixed lifespan.

    Illiquidity, Expenses, and Risk

    He explained that a Bitcoin-focused DAT announcing a same-day shutdown and distribution of its holdings would trade exactly at the value of its bitcoin, or an mNAV of 1.0, while extending the liquidation timeline to one year introduces conditions that can push valuations above or below the underlying asset value.

    Hougan said three main factors justify a discount to mNAV: illiquidity, expenses, and risk. Illiquidity reflects the lower price investors would pay today for Bitcoin they would receive in a year, and Hougan suggests that the discount could be 5-10%. Expenses directly reduce investor value, and a DAT holding $100 worth of BTC per share but paying executives $10 per share per year would warrant a corresponding 10% discount. Risk, defined as the possibility of operational errors or other failures, must also be factored into pricing.

    On the other side, the Bitwise exec said DATs may trade at a premium only if they are increasing their crypto-per-share, and noted that in the US, this is the sole reason for such a premium. He identified four strategies DATs use to accomplish this: issuing USD-denominated debt to buy crypto, lending out crypto to earn interest, using derivatives such as writing call options to generate additional income, and acquiring crypto at a discount.

    Discounted acquisitions can occur through purchasing locked assets from foundations seeking liquidity, acquiring another DAT trading below its asset value, repurchasing its own discounted shares, or buying a cash-flow-generating business and allocating the proceeds to crypto.

    “High Hurdle”

    Hougan added that discount factors tend to be certain while premium-enabling factors tend to be uncertain. This ends up creating what he described as a high hurdle for most DATs. As a result, he said most companies will trade at a discount, with only a limited number of strong performers trading at a premium. Using the example of a Bitcoin DAT scheduled to liquidate in 12 months, he said fair value can be estimated by calculating expenses, adding a risk discount, and offsetting these with expectations for increases in bitcoin-per-share.

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    Although DATs do not have fixed lifespans in practice, the exec said this extends rather than changes the model, because expenses and risks compound over time, while companies that can grow crypto-per-share consistently may become highly valuable.

    He also said larger DATs have structural advantages, including easier access to debt markets, larger pools of crypto for lending, deeper options markets, and broader opportunities for mergers, acquisitions, or other discounted deals. While DATs have largely moved in tandem over the past six months, Hougan expects greater divergence ahead, with a small number of firms executing well enough to trade at a premium and many others trading at a discount.

    Meanwhile, DAT companies have invested at least $42.7 billion into crypto acquisitions in 2025, according to CoinGecko’s recent report. It was found that $22.6 billion was deployed in the third quarter alone, which makes it the strongest quarter on record for accumulation. Altcoin-focused DAT companies accounted for $10.8 billion, or 47.8%, of Q3 spending, but Bitcoin-focused firms continued to dominate overall activity.

    Since the start of 2025, Bitcoin DAT companies have purchased more than $30 billion in BTC, which represented 70.3% of total acquisitions. Ethereum counterparts followed with $7.9 billion in purchases, most of it in August, while SOL, BNB, WLFI, and other assets made up 11.2% of annual spending.

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    Chayanika Deka

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  • XRP ETF Debut Battle: How Bitwise’s Launch Day Matched Up Against Canary’s XRPC

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    The ETF still ranked as the year’s third-largest debut despite a sharp market sell-off.

    The Bitwise XRP ETF (XRP) began trading on the New York Stock Exchange yesterday, marking the second U.S. fund to offer direct 100% exposure to the Ripple-linked asset.

    Despite a sharp downturn across the wider crypto market, the new fund saw approximately $26 million in trading volume on its first day.

    A Strong Debut Amid Market Turmoil

    This debut follows the record-setting launch of the Canary XRP ETF (XRPC) just a week prior, which saw nearly $60 million in first-day volume. Bitwise’s entry was closely monitored, with Bloomberg reporting it neared $22 million in volume just a few hours into the session.

    By the closing bell, the final tally reached $25.9 million, translating to over 1.1 million shares traded. Social media commentator Chad Steingraber, who posted real-time updates on the day of the launch, noted the fund’s volume passed the $23 million mark with ninety minutes left to trade. This performance makes it the third biggest ETF debut of the year, after Canary’s XRP offering and Bitwise’s Solana ETF.

    However, it came against a difficult backdrop for digital assets. On the same day, Bitcoin fell to a seven-month low near $88,000, dragging major altcoins like Ethereum and XRP down with it.

    The Ripple token’s price tested the critical $2.00 support level, a key zone that analysts like CasiTrades have identified as potentially marking the bottom of its current correction. It has since given in, and the asset now trades well below it.

    Market Impact and Future Outlook

    The immediate success of two XRP-focused ETFs has sparked discussion about their long-term effect on the token’s supply. In a series of posts on X, Steingraber projected that if the current adoption rate continues, ETF issuers could collectively acquire millions of XRP tokens daily.

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    He suggested that with just two funds, daily acquisitions could already be around 6 million XRP, potentially growing significantly as more products enter the market.

    This institutional demand could create a new dynamic for the underlying asset, which has one of the most dedicated retail communities in crypto, often referred to as the “XRP Army.”

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    Wayne Jones

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  • Bitwise CIO Calls Solana An ‘Explosive’ Two-Way Bet: Here’s Why

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    Bitwise Chief Investment Officer Matt Hougan is now applying his long-standing Bitcoin framework to Solana — and he’s calling the setup “explosive.”

    In an October 29 memo, Hougan says the best trades in crypto are the ones where you get “two ways to win” with one position. For Bitcoin, he defines those two bets as: “1) The global ‘store of value’ market will grow. 2) Bitcoin will take an increasing share of that market.” He says only one of those outcomes has to be true for Bitcoin to work.

    Hougan sizes that “store of value” market at roughly $27.5 trillion today, including about $25 trillion in gold and $2.5 trillion in Bitcoin. He argues investors focus too much on Bitcoin replacing gold and not enough on the overall market itself expanding.

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    He notes that this market has already grown by roughly 10x in the last 20 years, from under $3 trillion in 2005 to $27.5 trillion today. In his view, if that repeats, Bitcoin can 10x without needing to fully displace gold. If, on top of that, Bitcoin also closes the gap with gold and ends up with half of the total store-of-value market, “every bitcoin would be worth $6.5 million.” He adds, “I’m not saying that will happen,” but he uses the math to show how powerful the dual-bet structure can be.

    Solana’s Dual Growth Could Mirror Bitcoin

    Hougan now argues Solana fits the same model. “When I invest in Solana, I am also making two bets at once,” he writes. Those two bets are: “1) The stablecoin and tokenization infrastructure market will grow. 2) Solana will win an increasing share of that market.”

    He defines that market as the set of blockchains that power stablecoin payments and asset tokenization today. He names Ethereum as “the market leader,” and lists Tron, Solana, and Binance Smart Chain as major challengers in stablecoins. Together, he says, those networks represent $768 billion in market value. Solana’s share of that is $107 billion, or roughly 14%.

    For Hougan, that is the opening. He says he has “a lot of confidence that the stablecoin and tokenization infrastructure market will grow,” and argues most people “significantly underestimate how much these technologies will remake markets.”

    His long-run claim is blunt: “Over time, I suspect nearly all payments will be in stablecoins and nearly all assets will be tokenized.” If that plays out, “the blockchains that facilitate this growth will be extremely valuable.” He calls it “easy to imagine this market growing by 10x or more.”

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    The second part, in his view, is Solana’s ability to capture more of that expansion. He calls Solana “fast” and “user-friendly,” backed by a community with a “ship-fast attitude.” He also notes that Solana is still “playing catch-up” in winning institutional mandates, but says that is starting to change. As an example, he cites Western Union’s announced stablecoin effort this week, and points out that Western Union chose Solana as the underlying blockchain.

    Hougan’s argument is that if the overall market for stablecoin settlement and tokenized assets 10xes, and Solana grows its share of that market from 14%, the result is not linear — it compounds. “If I’m right,” he writes, “the combination of a growing market and a growing share of that market will be explosive for Solana. Just as with bitcoin.”

    He closes with a note on positioning. Crypto, he says, rewards humility because “even the most seasoned experts don’t know exactly how things will play out.” But he says you can still tilt odds in your favor by owning assets that embed two high-conviction bets at once. In his view, Bitcoin already fits that profile. Solana now does too.

    At press time, SOL traded at $186.

    SOL holds above the 50-week EMA, 1-week chart | Source: SOLUSDT on TradingView.com

    Featured image created with DALL.E, chart from TradingView.com

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    Jake Simmons

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  • XRP Price At $1,000, Solana To $1,000, And Cardano At $100? Bull Run Predictions Catch Attention

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    Crypto analyst Remi has made his bull run predictions for coins like XRP, Solana, and Cardano. Despite the price targets being ambitious, the analyst described them as “semi-conservative,” suggesting the coins could rally much higher. 

    XRP And Solana To $1,000, And Cardano To $100

    In an X post, Remi predicted that XRP and Solana will rally above $1,000 while Cardano will reach $100. He stated that these price targets are based on information, research, and historical performance. The analyst also made predictions for HBAR, XLM, ONDO, LINK, XDC, and QNT, all of which he expects to record astronomical gains. 

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    Interestingly, the analyst stated that these were semi-conservative targets for XRP, Solana, and Cardano and that he personally thinks they could rally higher. He added that these targets might not even come close to his expectations and that they are simply based on utility and a super cycle without any black swan events. 

    Remi also advised investors not to make the same mistake he made during his first bull run by leaving profits on the table in hopes that coins like XRP, Solana, and Cardano will go higher. He told them not to be greedy and take profits at different intervals. The analyst added that they should not wait for the high numbers because they might not happen for various reasons. 

    Furthermore, the crypto analyst advised investors on custody, urging them to secure their XRP, Solana, and Cardano in a cold wallet. He explained that crypto exchanges are “in it to win it” and are not here for the customers. Meanwhile, the analyst didn’t mention what utility could spark these runs for these coins. 

    However, it is worth noting that XRP, Solana, and Cardano are all set to have their spot ETFs, although it remains to be seen how high these coins could reach on the back of these institutional inflows. 

    Why the Price Targets Are Not “Crazy”

    Remi admitted that the price targets for XRP, Solana, and Cardano may seem crazy, but assured that they are not. He explained that the market cycle is now 5 years instead of 4, indicating that “huge numbers are coming.” He noted that these big numbers will coincide with the voting season. 

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    This is why he thinks there will be a super cycle that runs into the fourth quarter of next year. He told XRP, Solana, and Cardano holders to be mindful of the winter Olympics next year, in February, warning that any major attack during the event would disrupt the cycle. As such, he remarked that it may be wise to take a little profit early on before the event. Notably, experts like Bitwise CIO Matt Hougan have also stated that the four-year cycle is likely over, predicting that the bull run could extend.

    XRP trading at $2.4 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from Peakpx, chart from Tradingview.com

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    Scott Matherson

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  • 5 New Bitwise Crypto ETPs Now Listed on Swiss Stock Exchange

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    Operational for 8 years and offering a diverse range of financial instruments to investors, Bitwise is expanding its offerings by listing several new products on a prominent stock exchange in Switzerland.

    The products will offer exposure to some of the leading crypto assets, along with an index fund that tracks top performers.

    More Development

    The asset manager with a portfolio of over 30 crypto investment products, announced yesterday that it will be broadening its European market reach by listing five crypto exchange-traded products (ETPs) on the SIX Swiss Stock Exchange.

    This inclusion will allow investors to diversify their trading strategies by tapping into staking and index ETPs. Bitwise’s assortment of financial instruments will merge with traditional portfolios, granting exposure to the cryptocurrency asset class.

    Last month, the company reached the milestone of $15 billion in assets across its suite of financial products, an impressive jump of 200% in less than a year, compared to October 2024 levels as reported.

    Switzerland is a valuable market for Bitwise, as the landlocked country has been an early adopter of digital assets. It saw the first-ever crypto ETF launch in 2018, Bitcoin custody services in 2021, and also a BTC embassy in partnership with El Salvador in 2022.

    “The five flagship products we have listed in Switzerland will broaden options for investors looking to benefit from the full potential of crypto markets.

    Europe is rapidly opening up for digital assets, and Switzerland is a leading and crucial market at the heart of the continent.

    I’m extremely pleased that we’re developing our product suite on the widely respected SIX exchange, with new options such as staking and index products.”- Ronald Richter, Regional Director of European Investment Strategy.

    The Listings

    The instruments that are listed include a Bitcoin ETP (BTC1), Solana, and Ethereum Staking (ET32, BSOL), and a physical XRP product (GXRP). Additionally, the MSCI Global Digital Assets Select 20 (DA20) will track the index fund under the same name, representing the performance of the top 20 investable cryptocurrencies.

    Investors will be able to gain exposure to the underlying assets of the products without having a crypto wallet. Each of them is fully backed by reserves held in cold wallets and will be redeemable through a physical mechanism (via a trustee), similar to precious metal exchange-traded commodities (ETCs).

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    Dimitar Popov

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  • Bitwise Heralds Coinbase (COIN) As ‘Next Amazon’: Price Targets

    Bitwise Heralds Coinbase (COIN) As ‘Next Amazon’: Price Targets

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    In a recently published report by Bitwise, the leading crypto index fund manager, a striking comparison has been drawn between Coinbase and Amazon, highlighting a significant yet under-reported aspect of Coinbase’s business — the Base Layer 2 network. Titled “It’s All About That Base (and Other Thoughts on Coinbase),” the report authored by Matt Hougan and Juan Leon delves deep into the financial and strategic shifts underpinning Coinbase’s latest successes and potential future.

    Amazon Of Crypto? Bitwise Projects Stellar Future For Coinbase

    Coinbase’s latest financial results have been a revelation, demonstrating robust growth and operational efficiency. The company reported $1.6 billion in net revenue, marking a 116% increase year-over-year, significantly surpassing Wall Street’s expectation of $1.36 billion.

    Profits were equally impressive, reaching $1.2 billion with total cash reserves swelling to $7.1 billion. Each of Coinbase’s business lines showed notable growth: consumer trading revenue rose by 93%, institutional trading by 105%, stablecoin revenue by 15%, blockchain rewards by 59%, and custodial services by 64%.

    Despite these strong numbers, the stock has trended downwards, suggesting that the market may not fully appreciate the depth of the company’s strengths. However, Bitwise highlights a less conspicuous but potentially transformative element of Coinbase’s portfolio: the Base Layer 2 network.

    Launched in August atop Ethereum, Base aims to enhance the blockchain’s throughput while lowering costs. It operates similarly to a bar tab, aggregating transactions and settling them in batches, thereby reducing transaction costs to under $0.01 and speeding up processing times to less than one second.

    The adoption rate of Base has been staggering. The network saw a 74% increase in transactions quarter-over-quarter in the first quarter, with a 40% increase in April alone compared to the entire first quarter. The exponential growth in the number of developers using Base, which increased eightfold, underscores the network’s rising significance and the broader industry’s interest.

    From a financial perspective, Base has been lucrative for Coinbase. In the first quarter alone, the network generated $27.4 million in transaction fees, of which Coinbase retained $15.5 million. This high-margin revenue stream continued into April, adding another $11 million to Coinbase’s profits. Given these trends, Bitwise predicts that Base could soon be contributing $10 million to $20 million in monthly profits to Coinbase.

    The analogy with Amazon is rooted in the transformation potential of Base. Just as Amazon evolved from a simple online bookstore into a retail giant and later a dominant force in cloud computing through Amazon Web Services (AWS), Coinbase could similarly evolve from a crypto brokerage to a fundamental infrastructure provider for the crypto industry.

    This shift could redefine Coinbase’s role and impact within the market, positioning it as a central infrastructure entity in the crypto ecosystem, akin to how AWS underpins much of today’s web services.

    The report concludes by reflecting on the significance of Base for Coinbase’s strategic direction. “[T]he early returns on Base suggest that Coinbase could end up becoming something even greater: a core infrastructure provider to the crypto ecosystem. And that would be a very big deal indeed.”

    COIN Price Analysis

    Analyzing the technical landscape, the price of Coinbase (COIN) currently faces a pivotal moment. After dropping to $211.20 (as of press time), down 11.4% from a weekly high of $235.79, the stock is testing significant resistance and support levels that could dictate its short-term trajectory.

    The Fibonacci retracement tool, applied from a low of $31.62 to a high of $429.52, identifies critical price points. Presently, COIN is contending with the $230.57 level (0.5 Fibonacci level), which acts as the primary resistance. The 20-week Exponential Moving Average (EMA) provides crucial support at $199.35, with the stock recently bouncing off this level.

    The Relative Strength Index (RSI) stands at 56.10, suggesting a balanced dynamic between buying and selling pressures, with a slight tilt towards buying. The recent price behavior, characterized by a candlestick with a small body and longer wicks, reflects the ongoing uncertainty and cautious sentiment among traders.

    COIN price, 1-week chart | Source: COIN on TradingView.com

    Featured image from Nasdaq, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Jake Simmons

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  • Bitwise CIO: U.S. stablecoin bill may trump Bitcoin ETF impact

    Bitwise CIO: U.S. stablecoin bill may trump Bitcoin ETF impact

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    Bitwise CIO Matt Hougan said that the U.S. adopting comprehensive stablecoin legislature could signal the long-awaited “mainstreaming of crypto.” 

    In a note addressed to clients, Hougan theorized that stablecoin regulations may have an even bigger impact than the largely successful spot Bitcoin (BTC) ETFs. 

    “The launch of bitcoin ETFs in the U.S. epitomizes this transition, but it’s not the only road marker. Others include BlackRock launching a tokenized Treasury fund on the Ethereum blockchain, Europe passing comprehensive crypto legislation, Ray Dalio calling on investors to own “non-debt money” like bitcoin, and more.”

    Matt Hougan, Bitwise CIO

    Stars align for stablecoins in the U.S. 

    Hougan pointed to several indicators that suggest the U.S. Congress is closer to unveiling a framework for overseeing fiat-pegged cryptocurrencies. 

    The Lummis-Gillibrand Payment Stablecoin Act was recently introduced in the Senate, gathering support from lawmakers from various points on the political spectrum. However, some within the crypto industry remain skeptical about the bill’s effect on free speech due to its ban on algorithmic stablecoins. 

    Last week, Maxine Waters, the Ranking Democrat on the House Financial Services Committee, disclosed a deal with Committee Chairman Patrick McHenry regarding stablecoin rules.

    Waters told Bloomberg that several members of the Committee were informed and leaning toward the policy, including Senate Majority Leader Chuck Schumer and Senate Banking Chairman Sherrod Brown, who notoriously holds anti-crypto sentiment. 

    Federal Reserve Governor Chris Waller, Federal Research Chair Jerome Powell, and U.S. Treasury Secretary Janet Yellen have publicly expressed support for stablecoins, a sign that Washington’s approach to this particular crypto sector may have flipped. 

    Bipartisan interest spurred by three catalysts 

    According to the Bitwise CIO, three primary reasons exist for the narrative shift. First, U.S. dollar-pegged coins could solidify global USD dominance by allowing more investors access to the popular greenback currency. 

    Also, passing legislation would bootstrap more demand for U.S. Treasuries. Stablecoin issuers already rank 16 among the largest independent Treasuries holders worldwide. 

    Inclusion in the traditional financial system would allow existing players like banks to contest Tether’s dominance. The USDT provider has 125 employees but earned $6.2 billion in profits last year, compared to Goldman Sachs’s $8.5 billion profits achieved with over 45,000 staffers. Per crypto.news, researchers from the S&P agree with this sentiment.

    “This would be the first piece of comprehensive crypto legislation ever passed by Congress. It would allow big banks like JPMorgan Chase to enter the space, moving them from foes to friends of certain aspects of the crypto/DeFi ecosystem. And millions of people and corporations would be introduced to the speed, low costs, and ease of use that crypto wallets, stablecoins, and blockchain-based payment rails offer.”

    Matt Hougan, Bitwise CIO

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    Naga Avan-Nomayo

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  • Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund

    Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund

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    The competition among the Spot Bitcoin ETF issuers is heating up as the period for potential approval of these funds draws nearer. Asset manager Bitwise is the issuer currently making waves as it could potentially outrank the world’s largest asset manager, BlackRock, in terms of seed funds for their respective ETFs. 

    Bitwise’s Bitcoin ETF Could See $200 Million Seed Fund

    Bitwise’s latest amendment to its S-1 filing with the Securities and Exchange Commission (SEC) shows that the asset manager has gotten interest from an investor to have its ETF seeded with $200 million upon launch. Bloomberg analyst Eric Balchunas highlighted its significance as he stated that it “blows away” BlackRock’s initial seed fund of $10 million. 

    The analyst noted that Bitwise actually seeding its ETF with such an amount could be a “huge help” in the early days of the race. It is believed that the SEC is likely to approve the pending ETF applications simultaneously. As such, Bitwise being able to create $200 million of shares could give the asset manager an advantage in terms of meeting demands by clients. 

    Bitwise had previously shown its intention to lead the way from the get-go following the release of its Bitcoin ETF commercial. This move could help the asset manager gain much interest in its Bitcoin ETF even before launch. That way, the public sees it as the first choice upon launching.

    Notably, Bitwise didn’t mention who the authorized participant (AP) for its ETF would be. The AP would act as the middleman between the ETF investor and issuer, as they are responsible for creating and redeeming the ETF shares. While Bitwise failed to name its AP, other issuers like BlackRock however included it in their latest S-1 filing with the SEC. 

    BTC price above $42,000 once again | Source: BTCUSD On Tradingview.com

    BTC ETF Issuers Show Their Hands In Latest Wave Of Filings

    Spot Bitcoin ETF issuers made some notable inclusions in their latest and final amendment to their S-1 filings. These inclusions also give an idea of what strategy these issuers may be looking to adopt in order to lure investors to their funds. In Fidelity’s case, the asset manager will be looking to entice investors with its relatively low fees.

    Balchunas noted that Fidelity’s ‘sponsor fee’ of 0.39% happens to be the lowest so far among other issuers that have made theirs known. Interestingly, Invesco is adopting a more enticing strategy as they revealed in their latest amendment that they will be waiving fees for the first six months and the first $5 billion in assets. 

    The Bloomberg analyst mentioned that the fee war is going to continue being a thing in the Spot Bitcoin ETF terrain as issuers will be looking to outdo themselves. 

    Featured image from Crypto Briefing, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Bitwise forecasts Bitcoin at $80,000 in 2024

    Bitwise forecasts Bitcoin at $80,000 in 2024

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    Per Bitwise Asset Management, 2024 predictions include Bitcoin reaching unprecedented heights with a new all-time high.

    The Dec. 13 post on X suggests that the spot Bitcoin ETF is anticipated to be the most successful ETF launch ever, launching the cryptocurrency to potentially $80,000. Coinbase is projected to experience a remarkable doubling of its revenue.

    Bitcoin’s new peak?

    Ryan Rasmussen, a senior crypto research analyst at Bitwise Asset Management, shares in the first of 10 predictions that Bitcoin would reach a new all-time high. The ascent is attributed to two key factors: the imminent introduction of a spot Bitcoin ETF in early 2024 and the scheduled halving of new Bitcoin supply by the end of April.

    The second forecast focuses on the approval and subsequent success of spot Bitcoin ETFs, which are projected to collectively achieve the title of the most triumphant ETF launch in history. Over the next five years, these ETFs are estimated to secure 1% of the $7.2 trillion U.S. ETF market, amounting to $72 billion in assets under management.

    Another Bitwise prediction suggests that Coinbase’s revenue will increase twofold, exceeding Wall Street projections by a minimum of 10 times. The basis for this expectation lies in historical trends where Coinbase experiences heightened trading volumes during bullish market phases. 

    The thread follows up with the prediction that more financial transactions will be settled using stablecoins than Visa. Stablecoins, considered one of crypto’s “killer apps,” have burgeoned from virtually zero to a $137 billion market over the past four years. The forecast for 2024 anticipates continued substantial growth in the utilization of stablecoins, surpassing traditional payment methods such as Visa.

    Entering a crypto spring

    These predictions align closely with an earlier interview from Bitwise’s Chief Investment Officer, Matt Hougan, on Dec. 6, in which he anticipates short-term volatility following this year’s significant surge, a forecast that aligns with the outlook for new all-time highs for Bitcoin within the next 6-12 months.

    Additionally, the CIO declares the conclusion of the crypto bear market, often referred to as crypto winter, and the transition to what he defines as a crypto spring.


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    Sarah Jansen

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