Daily News | Grayscale Applied to Convert Its Ethereum Trust Fund Into a Spot ETF; Bitcoin Wallets Holding 100,000-10,000 Coins Have Accumulated a Total Of $ 1.17 Billion Since September 1

2023-10-03, 06:08

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##Crypto Daily Express：Grayscale Applied to Convert Its Ethereum Trust Fund Into a Spot ETF; Bitcoin Wallets Holding 100,000-10,000 Coins Have Accumulated a Total Of $ 1.17 Billion Since September 1; The U.S. 30-Year Treasury Bond Yield Has Risen to 4.815%
Grayscale Investments has filed a 19b-4 application, requesting to convert its $5 billion <a href="/fr/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Private Trust, ETHE, into an ETF.

According to CoinShares, digital asset investment saw net inflows of $21.2 million last week, after a six-week period of outflows. <a href="/fr/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> investment products saw a net inflow of $20.4 million this week, Ethereum investment products saw a net outflow of $1.5 million, investment products shorting Bitcoin saw a net outflow of $1.5 million, and <a href="/fr/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> investment products saw a net inflow of $5.1 million.
 
The U.S. 30-year treasury yield rose to 4.815%, making a record high since 2010.
 
According to data from The Block, CEX trading volume has plummeted to $311.92 billion in September, a record low level since November 2020.
 
The third quarter of 2023 reported the “most severe financial losses” in the crypto sector of the year, witnessing one incident after another that cost crypto users nearly $700 million, according to a quarterly report from blockchain security firm CertiK. Specifically, CertiK pointed out in the report that there were a total of 184 security incidents that occurred in July, August, and September 2023, resulting in crypto asset losses of over $699 million, exceeding the $320 million in the first quarter and $313 million in the second quarter.
 
Days ago, the International Financial Planning Standards Board (FPSB) organized financial planners (CFPCM) from 13 countries to attend a survey of crypto assets (Crypto Assets). They analyzed the current supervision environment of crypto and proposed on direction of crypto regulation in the future.  Specifically, they suggested lawmakers give priority to the regulation of the following targets when designing the supervision framework:  1. Classify crypto products as simple products and complex products, 2. Crypto-asset marketing and sales, 3. Social media influencers (such as KOL) or financial industry influencers (Fin-fluencers).

Santiment’s data shows that Bitcoin wallets holding 100,000-10,000 coins have accumulated a total of $1.17 billion since September 1.
 
Solana TVL has grown to $339 million, a record high level since the beginning of the year, according to DefiLlama data. SOL is currently traded at $24.1, seeing an up of 11% within 24 hours.

Today, the Bitcoin secure sharing protocol, Babylon, demonstrated the minimum viable product (MVP) of its Bitcoin staking protocol at Cosmoverse in Istanbul, Turkey. The aim of the product is to leverage idle Bitcoin to enhance security for proof-of-stake chains. According to data from Glassnode, more than 66% of Bitcoin circulation (approximately $329 billion) lies idle. Earlier this year, the Babylon team released the Bitcoin timestamping protocol, which can be used by proof-of-stake (PoS) networks to enhance remote security.
 
##Macro: The U.S. 30-Year Treasury Bond Yield Rose to 4.815%; Fed May Further Hike Interests by End of the Year
A series of hawkish speeches delivered by the Federal Reserve officials in the early hours of Tuesday put a chilling effect on the crypto market.
 
In a speech,  Powell, the Federal Reserve’s Chairman, mentioned that it has been the Fed's consistent goal to keep a strong labor market and to maintain price stability is a necessary step to achieve this goal. In the later stage of the economic expansion, the low-income groups will see the most obvious increase in their personal income.

At Monday's bank meeting,  Fed Governor Bowman mentioned in a speech that he will continue to approve Fed’s interest hike if inflation cannot be brought down to 2% in time.

Another hawk,  Mester from the Fed, clearly affirmed the possibility of the Fed’s interest hike.   He recognized the role played by the interest rate policy in controlling inflation, yet admitted the policy still failed to bring the inflation to a satisfactory level. This situation will provide grounds for the Fed to further hike the interest rate this year.

Although there is a divergence of opinions among Fed officials on whether to lift the interest rate hike one more time this year, it is a consensus among them that a high-interest rate will stay for a period of time until the attaining of the 2% inflation target.
 
Due to the widespread pessimism in the market, the U.S. dollar index (DXY) rose to 106.50 after a sideways movement. In today’s market (October 3), the latest U.S. dollar index rose to 107.09. Meanwhile, the U.S. 30-year treasury yield ascended to 4.815%, the highest level since 2010.

The overall picture of the crypto market was discouraging as well. For example, Bitcoin fell rapidly after rising to a maximum of $28,580 yesterday and is now close to the starting point of yesterday's rise.
 
To combat inflation, the Fed has lifted interest rates 11 times since March 2022, raising the interest rate from a level that is nearing zero to 5.25%-5.5%. The  ISM manufacturing industry has shown an unexpected PMI recently, which will give another reason for the Fed to continue to keep up the interest rate. Although the Fed's high interest rate policy exhibits decreased edge effect on the crypto market, we will keep watching the development of the U.S. economy and researching the impact of interest rate policy on the global economy and crypto market in order to better adapt to the changes.

<div class="blog-details-info">
<div>Author:**Peter L.**, Gate.io Researcher
<div>Translator: Sally 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.
</div>

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