3 possible scenarios for Bitcoin ETFs in 2024.

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Three possible scenarios for Bitcoin ETFs in 2024. 

• Solana's monthly NFT sales volume tops Ethereum's for the first time.

• Huobi Korea shuts down the platform. 

• South Korea proposes a ban on credit card payments for cryptocurrencies.

•  Bitcoin leveraged ETF 

Global Biscuits

Three possible scenarios for Bitcoin ETFs in 2024.
The potential approval of a Bitcoin ETF in the U.S. could lead to several scenarios:

Denial of Approval: While unlikely, the SEC could still technically deny approval. However, experts suggest that given the extensive reviews of S-1 filings, this scenario is improbable. If it happens, the market might react negatively, as evidenced by recent bearish predictions affecting Bitcoin prices.

Multiple ETF Launches: If the SEC approves multiple ETF applications, funds may be dispersed among various issuers. Grayscale, if approved simultaneously, could attract significant attention, especially if its popular Bitcoin Trust (GBTC) transitions into an ETF. The dynamics of where trading volume concentrates would depend on factors like Grayscale's inclusion in the initial launch.

Quiet Initial Performance: There's a possibility that the launch of a Bitcoin ETF may not lead to an immediate influx of capital. The market has already experienced a surge in prices since the ETF hype started in the previous year, potentially resulting in gains already being priced in. Initial flows may be muted, but capital could flow into approved ETFs throughout 2024.

In summary, the approval of a Bitcoin ETF is anticipated to have a significant impact on the market, but the specifics will depend on factors such as the number of approved ETFs, Grayscale's involvement, and investor reactions.

Solana's monthly NFT sales volume tops Ethereum's for the first time.
In December 2023, Solana's NFT sales volume surpassed that of Ethereum for the first time, marking a significant milestone for the Solana blockchain, according to data from CryptoSlam. Here are some key details from the report:

1. Monthly Sales Volume: Solana's NFT sales reached approximately $366.5 million, while Ethereum's sales totaled $353.2 million, according to CryptoSlam. These figures represent the first time Solana has outperformed Ethereum in monthly NFT sales volume.

2. Unique Buyers and Sellers: Solana experienced about double the number of unique buyers and sellers compared to Ethereum in December. The data showed around 218,000 sellers and 279,000 buyers on Solana, compared to about 114,000 sellers and over 143,000 buyers on Ethereum.

3. Total NFT Transactions: Solana recorded nearly 6.6 million NFT transactions, while Ethereum had 698,000 transactions. The surge in transactions on Solana suggests a higher level of user activity and engagement.

4. Price Performance: Solana's native cryptocurrency, SOL, witnessed a significant price surge, rising over 71% in the past month and more than quadrupling in the last three months. Ethereum's price, in contrast, increased by 9% in the last 30 days and around 44% in the past three months.

5. Top Solana NFT Projects: Notable Solana NFT projects contributing to the platform's success include Tensorians and Mad Lads, with $28 million and $24.5 million in trades, respectively.

6. Average NFT Sale Price: While Solana's NFT sales volume spiked in December, the average NFT sale price on Solana fell from about $74 in November to under $56 in December.

7. Bitcoin Ordinals: CryptoSlam reported that Bitcoin Ordinals, a protocol enabling NFT-like media on the Bitcoin blockchain, generated more trading volume than Ethereum and Solana combined in December, with $881.2 million in trades.

It's essential to note that the NFT market is dynamic, and various factors, including blockchain performance, project popularity, and market trends, contribute to the success of platforms like Solana in the NFT space.

Tastes of the regions

Huobi Korea shuts down the platform.
Huobi Korea, the South Korean exchange that initially started as the Korean arm of global exchange HTX, is set to close its services on January 29. The company cited a challenging "business environment" as the reason for the closure. Users will be able to withdraw funds from the exchange even after the shutdown. Established in 2017, Huobi Korea cut ties with HTX (formerly known as Huobi Global) in January 2023. The shutdown follows the closure announcements of other smaller South Korean exchanges, including Cashierest and Coinbit, in November. The top five exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, account for over 99% of the total crypto trade volume in the country, according to the Financial Services Commission (FSC).

South Korea proposes a ban on credit card payments for cryptocurrencies.
South Korea's Financial Services Commission (FSC) is proposing changes to the country's credit finance laws to prohibit citizens from purchasing cryptocurrency with credit cards. The FSC cited concerns about illegal outflows, money laundering risks, and the encouragement of speculative activities related to citizens using credit cards for cryptocurrency transactions on overseas exchanges. Under current laws, local cryptocurrency exchanges only allow transactions between virtual assets through verified deposit and withdrawal accounts, but these rules do not apply to foreign crypto exchanges. The proposal is open for public input until February 13, and the FSC aims to implement it in the first half of 2024.

Dictionomics:     Bitcoin leveraged ETF 

This is an ETF that uses financial derivatives and debt to amplify the returns of bitcoin, meaning that it can generate higher profits or losses than a regular ETF. Bitcoin leveraged ETFs can offer a way to magnify exposure to bitcoin movements or to speculate on short-term price swings, but they also have higher fees and risks than regular ETFs, and they may deviate significantly from the expected return of bitcoin due to compounding effects or volatility decay.

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