Daily News | Bitcoin ETFs and NFT Frenzy Dominate as Investors Gain Confidence in US Economic Data

2023-06-28, 01:07

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## Crypto Daily Digest: Fidelity Filing, Leveraged ETFs, NFT Success, and App Store Controversy

Fidelity Investments, a major asset management company, is reportedly gearing up to file for a spot <a href="/fr/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> exchange-traded fund (ETF). This news caused a momentary surge in the price of Bitcoin, with a price increase from $30,260 to $31,000. However, the gains were short-lived as the cryptocurrency quickly retraced to $30,500. Fidelity had previously attempted to launch a spot Bitcoin ETF in 2021, but the application was rejected by the U.S. Securities and Exchange Commission (SEC) in 2022.

The potential filing by Fidelity comes on the heels of BlackRock's iShares unit submitting an application for its own spot Bitcoin ETF, generating further interest in the cryptocurrency market. The approval of a spot Bitcoin ETF could have a significant impact on the market, potentially boosting Bitcoin's adoption and providing additional avenues for investors to access the digital asset.

In other cryptocurrency news, the Volatility Shares 2x Bitcoin Strategy exchange-traded fund (BITX) has recently commenced trading in the United States. BITX is the first leveraged crypto ETF in the country, and it has witnessed approximately $4.2 million in trading volume since its launch. Within the first 15 minutes of trading, about $500,000 worth of shares were traded. The current share price of BITX is approximately $15.48, reflecting a 2% increase since the start of the trading session.

The launch of BITX is significant as it marks the entry of leveraged cryptocurrency ETFs into the U.S. market. While futures-based ETF products already exist, the SEC has been more cautious about approving spot ETFs. The launch of ProShares' BITO, the first ETF backed by Bitcoin futures, in 2021 garnered substantial trading volume and assets.

In the realm of non-fungible tokens (NFTs), Azuki, a prominent NFT brand, has made <a href="/fr/price/waves-waves" target="_blank" class="blog_inner_link">Waves</a> with the release of its latest expansion called "Azuki Elementals." This collection, featuring 20,000 NFTs based on the elements of earth, fire, lightning, and water, created a frenzy in the market, generating $38 million in just 15 minutes. Some of the NFTs were airdropped to holders, while the remaining ones were made available for purchase. The high demand led to the collection selling out rapidly, eliminating the need for a public sale.

However, the launch of Azuki Elementals was not without its challenges. Many buyers expressed frustration due to technical issues and the short minting window, making it difficult for some to acquire the NFTs. Azuki has acknowledged the issues and admitted underestimating the time needed for the presale.

Turning to the fallout from a failed crypto hedge fund, liquidators of Three Arrows Capital are seeking to recover $1.3 billion from the fund's co-founders, Su Zhu and Kyle Davies. The liquidators allege that Zhu and Davies caused the hedge fund to take on significant leverage, resulting in losses on investments such as Luna tokens. They contend that the firm was already insolvent, prompting legal action in a British Virgin Islands court to recover these losses for the fund's creditors.

Lastly, former Twitter CEO Jack Dorsey, who now leads the Bitcoin-focused financial services firm Block, has publicly questioned Apple CEO Tim Cook about the lack of Bitcoin support on Apple Pay. This came after Apple threatened to remove the Bitcoin-friendly social media app Damus from the App Store for violating in-app purchase guidelines. Dorsey's inquiry raises concerns about Apple's power over consumer applications and highlights the desire for a censorship-resistant financial system. Incorporating Bitcoin into Apple Pay could potentially drive significant cryptocurrency adoption.

## Bitcoin (BTC) $30,538 (-0.51%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1687914313Untitled0628 1.png)

![](https://gimg2.gateimg.com/image/article/1687914394Untitled0628 2.png)

**Overview:**

- ***Closest daily support zone: 30025 - 29475***
- ***Closest daily resistance zone: 30690 - 31015***
- ***Key Level: 28420 (Weekly High Between Dec. 21-28, 2020)***

<br> **Daily Resistance zones**

1. 30690 - 31015
2. 31530 - 32255
3. 33100 - 33600

<br> **Daily Support zones**

1. 30025 - 29475
2. 29095 - 28420
3. 27970 - 27265

## Macro: Investors Find Confidence in Strong US Economic Data; Tech Megacaps Lead Stock Surge

Asian equity futures climbed following a strong rally on Wall Street driven by robust US consumer confidence and home sales. The rebound was led by tech megacaps, with the Nasdaq 100 and S&P 500 recovering after a brief downturn. Notably, Tesla, Snowflake, and Meta Platforms recorded gains, although Alphabet underperformed due to concerns about its pace in artificial intelligence.

The positive shift in consumer confidence, indicating a more optimistic outlook for higher stock prices, suggests potential resilience in the market. Despite speculation about the Federal Reserve's tight policy, the strong economic data signals a diminished risk of a recession this year. However, rising Treasury yields have fueled expectations of a resumption in interest rate hikes by the Fed.

In postmarket trading, US tech stocks experienced a retreat after a Wall Street Journal report suggested possible restrictions on the export of artificial intelligence chips to China.

Investors in Asia are closely watching Chinese industrial profit figures and Australian inflation data, which could influence central banks' decision-making on interest rates and stimulus measures. The offshore yuan and Australian dollar remained steady in early Asian trading, while the yen strengthened against the dollar.

Later today, market focus will turn to a panel discussion featuring the heads of the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England, taking place in Portugal. This discussion is anticipated to provide insights into the central banks' outlook and policy decisions.

In the corporate sphere, American Equity Investment Life Holding received a significant bid from Brookfield, Carnival Corp. received increased targets from analysts, and Delta Air Lines raised its earnings expectations. Conversely, Walgreens Boots Alliance cut its profit forecast, and Lordstown Motors filed for bankruptcy.

Oil prices edged higher, while gold remained relatively stable. Overall, the Asian stock market's positive performance reflects the impact of strong US economic indicators, but concerns about potential Fed tightening and restrictions on AI chip exports continue to linger in investors' minds.

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