Daily News | BTC Experienced a Pullback, Altcoins Generally Declined; Grayscale Withdrew Ethereum Futures ETF Application; Solana DePIN Project Acquired PlanetWatch Network

2024-05-08, 04:12

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## Crypto Daily Digest: Grayscale withdrew the Ethereum Futures ETF application; Solana DePIN project acquired PlanetWatch network
Firstly, let's take a look at the trading activities of <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on May 7th, Grayscale Bitcoin spot ETFs (GBTC) continued to experience outflows of $2860 in funds; Meanwhile, the Fidelity Bitcoin spot ETF (FBTC) inflow was $4.1 million, and the ARK 21 Shares Bitcoin spot ETF (ARKB) inflow was $2.8 million.

Grayscale's spot Bitcoin ETF ended 78 consecutive days of fund outflows with consecutive net inflows in the previous two days, and today's fund outflows have ended this situation. Bloomberg ETF analysts believe that "this could be a short-term tactical trading or some kind of paired trading."

According to a filing with the U.S. Securities and Exchange Commission, the futures trust ETF submitted by Arca, Inc. on the New York Stock Exchange in September last year was withdrawn on May 3. It is currently unclear why the proposal was withdrawn. Arca, the New York Stock Exchange, declined to comment. Grayscale did not immediately respond to the request for comment.

The SEC had previously postponed considering Grayscale's <a href="/id/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> futures ETF, the most recent of which was in March. However, the SEC had previously approved a batch of Ethereum futures ETFs in October 2023, including ProShares, VanEck, and Bitwise.

In the past few weeks, the US Securities and Exchange Commission has postponed its decision on the Ethereum ETF spot, including one from Grayscale. In the past few months, the <a href="/id/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> of the US Securities and Exchange Commission approving such products has weakened. Bloomberg ETF analyst Eric Balchunas has lowered his estimate of the likelihood of Ethereum ETF spot approval by the end of May from around 70% to 25%.

The decentralized physical infrastructure network, ambient, focuses on collecting environmental data and has raised $2 million in seed round financing. Luca Franchi, co-founder and CEO of ambient, stated that financing activities began in February and ended in April.

Ambient was founded in January this year and subsequently acquired PlanetWatch Network in March. Franchi pointed out that the project is based on DePIN, focusing on air quality monitoring, and has decided to migrate to the <a href="/id/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> blockchain.

PlanetWatch network currently has token PLANETS on the <a href="/id/price/algorand-algo" target="_blank" class="blog_inner_link">Algorand</a> blockchain, but Ambient plans to launch its new token on Solana.

Franchi said, "The current network is supported by PANETS tokens. In the coming weeks, we will release a roadmap to launch new tokens on Solana, as well as migration incentives and platform maintenance, to drive Ambient's ambition."

LayerZero - an interoperability protocol designed to allow developers to build cross-chain applications with modular security parameters. LayerZero Labs is the core contributor to this protocol.

LayerZero Labs completed its initial snapshot of potential airdrops on May 1. However, co-founder Bryan Pellegrino confirmed on May 6 that employees of LayerZero Labs will not be eligible for the upcoming airdrop and will be strictly prohibited from receiving tokens for the project.

Avail, the <a href="/id/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> modular blockchain project, posted on the X platform stating that it has initiated the second phase of Unification Drop Claim, which will continue from today until 16:00 UTC on May 12. To reward the Avail community, the second stage will introduce rewards for multiple groups, including providing rewards for more Clash of Nodes participants and rewards for Polygon PoS Liquid Stake protocol users.

## Market Trends: BTC experienced a pullback, Altcoins generally declined
The crypto market performed poorly today, with BTC falling below $63,000. ETH also fell, breaking below the $3,000 mark, while other Altcoins generally fell. In terms of macroeconomics, the US stock market has been volatile, and the hawkish remarks of Federal Reserve officials have further put pressure on the market, leading to a decline in the crypto market.
### Market Hotspots:
The price fluctuation of Ern: After announcing the launch of an artificial intelligence-based Layer2 solution, the price of Ern tokens surged by over 30%, but the increase subsequently declined. This technological upgrade has significantly stimulated market interest and investment in Ern. Another Optimism-based Layer2 protocol, MODE, experienced a sharp drop in price after its launch on the trading platform. This may be due to the excessive number of Layer2 solutions in the current market, which has led to investor attention and fund diversification.

Significant increase in TRB: As a strong currency, TRB (Tellor) rose tenfold at the end of 2023, demonstrating extremely strong market manipulation characteristics. Today, TRB surged by 20%, indicating its activity during market volatility.

Development dynamics of Solana ecosystem: Sanctum, the second phase launch project of Solana's top DEX Jupiter, is about to issue tokens. Sanctum is a liquidity staking platform that announced a snapshot on May 10th, and users who deposit SOL will receive airdrop points. This dynamic has added more participation and activities to the Solana ecosystem.

Multiple factors, including macroeconomic uncertainty and the policy expectations of the Federal Reserve, influence the current crypto market. Investors should remain cautious during this period, especially for currencies that rely on strong market manipulation and high volatility. Investors should fully manage risks, allocate their investment portfolios reasonably, and closely monitor market trends and relevant news to make wise investment decisions.

## Macro: The US market continues to rise, while the Asian market remains calm and cautious
On May 7th, the US market continued its upward trend, with the S&P 500 closing higher for the fourth consecutive trading day, marking its best winning streak since March. The Dow Jones index is currently in its longest upward trend since December 2023, rising for the fifth consecutive trading day.

Specifically, the Dow Jones index rose 0.08%, the Standard&Poor's index rose 0.13%, and the Nasdaq index fell slightly by 0.1%. Among major companies, stocks representing technology stocks such as META, ALPAHBET, and APPLE have all risen.

The release of nonfarm employment data and better-than-expected profit reports on Friday will help alleviate investor expectations - concerns about sticky inflation and a strong economy. The strong economy has also kept interest rates high.

Overall, the information from the Federal Reserve and policymakers in recent weeks is consistent, indicating that interest rate cuts will come. Still, the central bank will remain cautious when implementing them. Investors are preparing to pay attention to the Producer Price Index (PPI) and Consumer Price Index on May 14, as well as the Consumer Price Index (CPI) expected to be released around May 15.

On May 8, the Asian market remained relatively calm at the week's midpoint. The Hong Kong stock market fell on Tuesday, while Asian and emerging market stock indices remained unchanged.

The MSCI Asia Pacific Stock Index fell 0.19%, blue chip stocks in mainland China fell, and the Hong Kong Hang Seng Index rose 0.52%. The Nikkei Index in Japan dropped by approximately 1% due to traders taking profits after increasing 1.6% in the previous trading day. The index, mainly composed of technology stocks, also succumbed to the pressure of selling off US chip stocks on Tuesday.

In terms of currency, despite the low yield of US treasury bond bonds, the US dollar is still strong because the market evaluates the signals of US policymakers and the economic data of the interest rate trend of the Federal Reserve. Despite the Japanese authorities claiming monetary intervention to support the yen, the yen remains disadvantaged.

Regarding commodities, Brent crude oil futures fell 32 cents, or 0.38%, to $82.84 per barrel. West Texas Intermediate crude oil futures in the United States fell 28 cents, or 0.36%, to $78.10 per barrel.

Gold prices fell 0.16% to around $2,310 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.
</div>

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