Daily News | Strong US Stocks but Low Crypto Market; Grayscale's Mini Spot Bitcoin ETFs Start Trading; A16z Led Investment in Daylight, Raising $9 Million in Round A Funding

2024-08-01, 04:34

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## Crypto Daily Digest: Grayscale's Mini Spot Bitcoin ETFs start trading; A16z Crypto led investment in Daylight, raising $9 million in round A funding; Nansen CEO's Memecoin Increases 70 Times
First, let's examine the trading activity of <a href="/price/<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">bitcoin</a>-btc" target="_blank" class="blog_inner_<a href="/price/link-ln" target="_blank" class="blog_inner_link">link</a>">Bitcoin</a> and <a href="/price/<a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">ethereum</a>-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETFs. According to Farside Investor data, on July 31, the Fidelity Bitcoin Spot ETF (FBTC) had a outflow of $31.6 million, the Bitwise Bitcoin Spot ETF (BITB) had a outflow of $2.5 million, and the ARK 21Shares Bitcoin Spot ETF (ARKB) had a outflow of $4.6 million.

Bitwise Ethereum Spot ETF (ETHW) had an inflow of $4.7 million; Fidelity Ethereum Spot ETF (FETH) had an inflow of $18.8 million; Grayscale Ethereum spot ETF (ETHE) had a outflow of $133.3 million.

**Grayscale's mini spot Bitcoin ETFs start trading**

Grayscale's mini spot Bitcoin ETFs start trading with the "BTC" code, which is a derivative product of Grayscale's original spot Bitcoin ETF GBTC. Its management fee is 0.15%, the lowest among all similar products. Last week, the US Securities and Exchange Commission (SEC) approved the fund's 19b-4 form, and shortly after the S-1 registration took effect, the ETF began to go online.

Grayscale research director Zach Pandl told The Block, "I believe the demand for low-cost Bitcoin investments will attract a large number of investors. Therefore, we will focus on the performance of the first few trading days." As the fund contributed 10% of its managed Bitcoin to BTC, the mini trust shares will be distributed to existing GBTC shareholders.

Grayscale's spot Ethereum ETF ETHE has previously been approved for a similar mini spin off. Both mini versions of spot ETF products are traded on the New York Stock Exchange Arca. Pandl also pointed out that the current macroeconomic trends, Donald Trump's policy platform, and the potential weakness of the US dollar mean that "the timing of this product's release is very good".

**A16z Crypto led DePIN project Daylight $9 million Round A funding round**

Daylight is a decentralized physical infrastructure network (DePIN) project focused on energy distribution, raising $9 million in round A funding led by A16z Crypto. Other investors include Framework Ventures, Lattice Fund, and others. Jason Badeaux, co-founder and CEO of Daylight, stated that the startup started its financing process in April and completed it within 10 days.

This round A financing brings Daylight's total funding to $13 million, after the company had previously raised $4 million in seed funding in the summer of 2022. Daylight was founded in 2022 by Badeaux, Udit Patel, and Evan Caron, all of whom have backgrounds in the energy industry.

Daylight is building a decentralized protocol that allows users to connect their energy devices (such as thermostats, batteries, electric vehicles, and solar inverters) to its applications and receive rewards. Users can also join the Daylight market to access energy upgrades for their homes or buildings, such as solar panels, electric vehicle chargers, heat pumps, and water heaters. Daylight stated that the market is currently active in New York, New Jersey, and Pennsylvania, and will soon support Texas and California.

Badeaux pointed out that Daylight offers rewards in the form of points, which can be redeemed within the application. When asked if these points would be converted into Daylight's own token in the future, he declined to comment.

The business model of Daylight is to sell energy data and energy capacity to end customers within and outside the energy industry. A16z partners Guy Wuollet and Ali Yahya wrote in a blog post: "Energy is a tightly regulated monopoly industry in the United States, and we believe it's time to break this monopoly. Daylight is building a decentralized protocol that allows developers to program the energy grid through distributed energy resources.”

**The market value of meme coin launched by Nansen CEO reached $6 million **

Alex Svanevik, CEO of on-chain analytics platform Nansen, has launched a new meme coin based on <a href="/price/<a href="/price/solana-sol" target="_blank" class="blog_inner_link">solana</a>-sol" target="_blank" class="blog_inner_link">Solana</a> called IQ. According to the crypto data platform DEXScreener, IQ's market value increased to $5 million within one day of its launch. As of 15:22 UTC on July 31, the price of this token is $0.0061 and 0.00003370 SOL, which has increased by 7000% in the past 24 hours.

Imitation refers to investors quickly purchasing cryptocurrencies or other digital assets without conducting proper research. Svanevik has hired MakeNowMeme to publish memecoin, a platform that allows users to post new memecoin through a post on X, requiring users to post tweets with specific formatted text.

Similar to the Memecoin platform Pump.fun, when enough users purchase new MakeNowMeme tokens, their liquidity will be released to the decentralized exchange Raydium before being burned.

## Market Trends: Powell's dovish remarks suggest that the crypto market is going against the US stock market
BTC: The price of Bitcoin has fallen below $64,500. Federal Reserve Chairman Powell's dovish remarks hinted at a possible interest rate cut in September, which has had a significant impact on the <a href="/price" target="_blank" class="blog_inner_link"><a href="/price" target="_blank" class="blog_inner_link">crypto market</a></a>. Unlike the US stock market, the crypto market reacted more negatively to this news, with the overall market falling.

ETH: Compared to Bitcoin, Ethereum performs relatively well. The outflow of Grayscale ETHE (Ethereum Trust Fund) has significantly decreased compared to previous trading days, indicating that investors' confidence in Ethereum has been restored, although overall market sentiment remains sluggish.

Altcoin: The Altcoin market does not have a sustained hot spot, and most Altcoins still maintain a general downward trend. The lack of new market drivers and hot topics has led to a relatively weak performance of Altcoins.
### Data Indicators
AHR999 Index: Today's index is 0.83, indicating a significant decline in the index. The decline in this index indicates that the current market price is suitable for long-term investors to buy and hold, especially those who believe in the long-term potential of the crypto market.

Fear Greed Index: The current Fear & Greed Index is 52, indicating a significant drop in market sentiment. Although the index is at a neutral level, market sentiment is clearly biased towards caution, and investors are adopting a wait-and-see attitude towards the market outlook.
### Macro News
Monetary policy: The Federal Reserve keeps interest rates unchanged, and Powell said a September rate cut "may be under consideration". According to data from CME's "Federal Reserve Watch", the probability of the Federal Reserve cutting interest rates in September is 100%. This macroeconomic news has had a positive impact on the US stock market, but the response of the crypto market is the opposite, indicating a market logic difference between the two.
### Market Hotspots:
POW sector: The price of Kaspa (KAS) has exceeded $0.2, setting a new historical high. Kaspa is a blockchain network that uses Proof of Work (POW) mechanism. After Ethereum completed its POS (Proof of Stake) transformation, a large amount of computing power switched to Kaspa, driving its price up. At present, the circulating market value of KAS is close to $5 billion, indicating the market's sustained interest and confidence in the POW mechanism.

Meme sector: Trump concept tokens FIGHT and FEARNOT have both experienced oversold rebounds. FIGHT has fallen more than 90% from its high point, while FEARNOT has rebounded nearly 40% from its low point. Despite the rebound, it is almost unsustainable until Trump has a clearer news focus. Investors should be cautious about these high-risk, high volatility tokens.
### Conclusion
The current market environment is complex and volatile, and the Federal Reserve's policy direction and macroeconomic data have had a significant impact on the crypto market. Bitcoin and Altcoins have shown weak performance, while Ethereum has performed relatively well. Kaspa in the POW sector has performed outstandingly due to the transfer of computing power, but the Trump concept token in the Meme sector is still in a high-risk state. Long term investors can consider investing at the current price level, but they need to pay attention to market sentiment and macroeconomic changes.

Long term investors: The current AHR999 index and fear and greed index indicate a sluggish market sentiment, making it suitable for long-term investors to buy on dips.

Short term traders: Be alert to fluctuations in market sentiment, especially high-risk tokens in the Meme sector, and avoid high-risk operations without clear news hotspots.

Focus on macroeconomics: The policy direction of the Federal Reserve will continue to affect the market, and it is necessary to closely monitor relevant news and adjust investment strategies in a timely manner.

Through the above analysis, we hope to provide valuable market insights for investors and help them make wiser investment decisions in complex market environments.

## Macro: Rising chip stocks and signals of Fed interest rate cuts drive stock market gains
On July 31, both the S&P 500 index and Nasdaq index recorded their largest daily percentage gains since February 22nd, while the Dow Jones index also rose. The main reason is the strengthening of chip stocks and the decision of the Federal Reserve to keep interest rates unchanged, while implying that if inflation slows down, policy may be relaxed in September.

Among the 11 sectors of the S&P 500 index, 7 sectors rose, with the technology and non essential consumer goods sectors showing the most impressive performance. Relatively speaking, the performance of the healthcare, real estate, and essential consumer goods sectors is relatively weak.

In July, the S&P 500 index rose 1.1%, the Dow Jones index rose 4.4%, and the Nasdaq index fell 0.8%.

On August 1, Asian stock markets rose on Thursday following the strong recovery of global technology stocks, mainly driven by Meta and Nvidia, while expectations of the United States relaxing policies also boosted global bond and commodity markets. The Federal Reserve kept interest rates unchanged overnight, but opened the door for a rate cut in September. Traders are also betting that the Bank of England may cut interest rates later in the day, with a probability of 60%.

The MSCI Asia Pacific's most widely used stock index rose 0.7%, while the Taiwan stock market rose 1.7%. Due to the strengthening of the yen casting a shadow over the prospects of exporters, the Nikkei index in Japan fell by 3%. Meanwhile, China's manufacturing industry unexpectedly contracted in July, which was unfavorable for growth momentum, and the renminbi fell by 0.3%.

The Japanese yen continued its strong upward trend, rising 1.8% overnight and then rising another 0.8%, reaching a four and a half month high of 148.82. The Bank of Japan announced its second interest rate hike in 17 years on Wednesday and hinted at further tightening of monetary policy. The MSCI Asia Pacific's most widely used stock index rose 0.7%, while the Taiwan stock market rose 1.7%.

The significant depreciation of the US dollar against the Japanese yen has dragged down its overall value against a range of currencies. On Thursday, the US dollar index fell 0.2% against major currencies to 103.87, and fell 0.4% overnight.

The commodity market continued to rise overnight due to the killing of Iran's Hamas leader, exacerbating the threat of conflict in the Middle East. Brent crude oil futures rose 0.7% to $81.44 per barrel, while US West Texas Intermediate crude oil futures rose 0.9% to $78.61 per barrel.

Gold prices rose 0.4% to $2,456.59 per ounce.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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