The cryptocurrency world is in a constant state of flux, with new developments and trends emerging regularly. This week has been no exception, with significant news impacting Bitcoin (BTC), Ethereum (ETH), and the broader market.
In this article, we’ll delve into the top stories that have shaped the cryptocurrency landscape over the past week. We’ll explore the potential impact of Ethereum ETFs, the remarkable recovery of lost Bitcoin, the resurgence of memecoins, BlackRock’s dominance in the Bitcoin ETF market, and Bernstein’s bullish projections for the future of cryptocurrency ETFs.
JPMorgan: Ethereum (ETH) ETFs to See Much Lower Demand Than Bitcoin (BTC) ETFs
Demand for spot ethereum (ETH) exchange-traded funds (ETFs) will be much lower than that for their bitcoin (BTC) equivalents for several reasons, JPMorgan said in a research report Thursday.
JPMorgan said it expects spot ETH ETFs to attract up to $3 billion in net inflows during the rest of this year. If staking is allowed, the figure could rise to $6 billion, it said.
“Bitcoin had the first-mover advantage, potentially saturating the overall demand for crypto assets in response to spot ETF approvals,” wrote analysts led by Nikolaos Panigirtzoglou.
Ether ETFs are on the verge of being available in the US after the Securities and Exchange Commission (SEC) approved key regulatory filings from applicants last week.
They are not yet authorized to trade because the regulator also needs to approve their S-1 filings before that can happen. BTC ETFs began trading in January.
The bitcoin halving in April was an additional catalyst for demand for spot bitcoin ETFs, the report said, noting that there is no similar boost for ether on the horizon.
The lack of staking for approved spot ethereum ETFs also makes these products less attractive compared to other platforms that offer staking yields, the bank said.
ETH, as an application token, “differs from bitcoin in its value proposition for investors, as bitcoin has a broader appeal as it competes with gold in portfolio allocations,” the authors wrote.
$3 Million in Bitcoin Lost 11 Years Ago Recovered
In 2022, Michael, a European cryptocurrency user, contacted Joe Grand, a famous hardware hacker, with a desperate request. Michael had lost access to a digital wallet containing approximately 43.6 BTC, worth $3 million today. After multiple failed attempts by other specialists, Grand and his colleague Bruno managed to solve the mystery. This is the story of how they did it.
The Initial Problem
Michael stored his bitcoin in a wallet protected by a password generated with RoboForm and stored in an encrypted file with TrueCrypt. However, the file became corrupted and Michael lost access to his 20-character password.
Initially, Grand refused to help Michael, as recovering a software password was not his specialty. Despite this, two years later, he decided to take on the challenge with the help of Bruno, an expert in digital wallets.
The Technique
Investigating RoboForm
Grand and Bruno began investigating the version of RoboForm that Michael had used in 2013. They discovered that RoboForm’s pseudo-random number generator, in that version, was not as random as it should have been. It was based on the date and time of the user’s computer to generate passwords.
With this information, they could calculate any password generated at a specific time, as long as they knew the approximate date and time, and the parameters used to generate the password, such as length and character types.
Defining the Parameters
Michael knew that the first time he moved bitcoin to his wallet was on April 14, 2013, but he did not remember if he had created the password on that day. Grand and Bruno began generating possible passwords from March 1 to April 20, 2013, using parameters similar to those that Michael remembered.
The Solution
After several failed attempts, Grand and Bruno extended the date range until June 1, 2013. They were still unsuccessful until they adjusted the parameters by removing special characters. Finally, they managed to generate the correct password, which had been created on May 15, 2013 at 4:10:40 PM GMT.
Michael was able to access his bitcoin wallet and recover his fortune. Grand and Bruno deducted a percentage of the bitcoins as payment for their work, allowing Michael to sell some when the price rose to $62,000 per coin.
Implications of the Discovery
Grand and Bruno’s discovery of the vulnerability in RoboForm is significant. RoboForm fixed this issue in 2015, but it does not appear that they have notified users of the need to update their passwords. This leaves many users at risk if they are still using passwords generated before that date.
Password Security
Grand suggests that users review and update any passwords generated with old versions of RoboForm. The flaw in the pseudo-random number generator makes these passwords vulnerable to being guessed if hackers know the time and generation parameters.
Michael’s story highlights the importance of security in password management and the potential consequences of relying on flawed tools. Luck and perseverance played a crucial role in recovering his bitcoin. Always make sure you have a secure and up-to-date method for managing your passwords and critical data, because losing 3
Bitcoin (BTC) and Ethereum (ETH) Dip as Shiba Inu (SHIB) and Other Memecoins Surge
Bitcoin (BTC) and ethereum (ETH) prices fell slightly over the past 24 hours as the crypto markets remained mostly quiet after last week’s rally.
With major tokens like Solana’s SOL, XRP, and BNB Chain’s BNB showing little change, the memecoin sector saw the biggest gains for traders among categories tracked by CoinGecko, including shiba inu (SHIB) which climbed as much as 12%.
A rise in dogecoin (DOGE) and SHIB began during the European afternoon on Tuesday when video game retailer GameStop (GME) shares jumped 19% in pre-market trading, a signal that has historically led to gains in meme tokens.
“Popular memes are circulating mainly due to Asian traders re-entering the market; the majority tend to see their prices increase more significantly during Asian trading hours, during the middle of the night, US time,” said Rennick Palley, founding partner of the crypto fund Stratos, in an emailed statement.
“This is a follow-through effect to the excitement around the ETH ETF and the US regulatory shift to become more crypto-friendly,” added Palley.
As previously reported, meme tokens like PEPE and MOG have skyrocketed up to 100% last week as a beta play on the Ethereum ecosystem.
This is attributed to the US listing approvals for a spot ETH ETF.
Meanwhile, bitcoin remains in a bearish trading range despite recent volatility, according to FxPro’s senior market analyst, Alex Kuptsikevich.
“A clear breakout and daily close above $70,000 will break this bearish pattern. Until then, the classic development is a pullback to the lower range of around $68,000,” he said.
BlackRock’s $20 Billion ETF Is Now the World’s Largest Bitcoin (BTC) Fund
BlackRock Inc.’s iShares Bitcoin (BTC) Trust has become the world’s largest fund for BTC, accumulating nearly $20 billion in total assets since it began trading in the US at the beginning of the year.
The exchange-traded fund held $19.68 billion of the token as of Tuesday, dethroning the $19.65 billion Grayscale Bitcoin Trust, according to data compiled by Bloomberg.
The third largest is Fidelity Investments’ $11.1 billion offering.
BlackRock and Fidelity Bitcoin ETFs were among the nine that debuted on January 11, the same day that the over-a-decade-old Grayscale vehicle converted into an ETF.
The launches marked a milestone for cryptocurrencies, made BTC more accessible to investors, and fueled a rally of the token to a record high of $73,798 in March.
The iShares Bitcoin Trust has attracted the most inflows since its launch, $16.5 billion, while investors have withdrawn $17.7 billion from the Grayscale fund during the same period.
The latter’s higher fees and arbitrageur exits have been cited as possible drivers of the outflows.
“IBIT’s success underscores investor preference for accessing Bitcoin through the convenience of the ETF vehicle in an institutional-grade product,” a BlackRock spokesperson said in a statement.
“We remain focused on investor education and providing access to Bitcoin with convenience and transparency.”
The firm intends to launch a clone of its main fund, according to a March regulatory filing, and the fees are expected to be lower, a person familiar with the matter said at the time.
The Securities and Exchange Commission (SEC) reluctantly gave the green light to the first US spot bitcoin ETFs in January, following a judicial reversal in 2023 in a case filed by Grayscale.
The company created Grayscale Bitcoin Trust in 2013 and became known as the largest vehicle of its kind.
But the closed-end product’s shares sometimes trade at substantial premiums or discounts to its net asset value, which led Grayscale to push for a conversion to an ETF to ensure trading at par.
SEC Pivot
Last week, the SEC surprisingly pivoted towards allowing ETFs for ethereum (ETH), a token that ranks second to Bitcoin in market value.
The agency led by Gary Gensler is skeptical of the crypto industry in general after a series of scandals.
The bitcoin ETF group, with assets of $58.5 billion to date, has been hailed as one of the most successful new ETF categories.
But critics argue that volatile digital assets are not suitable for widespread adoption, even within ETFs.
Some nations, like Singapore and China, limit or prohibit investor access. In the US, a Vanguard Group spokesperson said in January that the company has no plans to offer any cryptocurrency-related products.
BlackRock and Vanguard are the world’s two largest asset managers.
Bitcoin has quadrupled since the beginning of last year, aided by the ETFs, in a powerful recovery from a deep bear market in 2022. The token fell less than 1% to $67,757 at 7:39 am on Wednesday in New York.
Bernstein Expects Bitcoin (BTC) and Ethereum (ETH) ETF Markets to Grow to $450 Billion
Exchange-traded funds (ETFs) for bitcoin (BTC) and ethereum (ETH) are expected to grow to reach a $450 billion market, according to our cryptocurrency price forecasts, said broker Bernstein in a research report on Tuesday.
“This would mean inflows exceeding $100 billion over the next 18 to 24 months in crypto ETFs,” wrote analysts Gautam Chhugani and Mahika Sapra.
The broker predicts a bitcoin cycle peak of $150,000 in 2025 and has a year-end target of $90,000.
ETH gained around 26% last week after the US Securities and Exchange Commission (SEC) approved 19b-4 filings from eight spot ETH ETF issuers.
Once the S1 filings are approved, ethereum ETF trading will be activated on exchanges.
Now that ETH has been classified as a commodity and not a security, the “biggest controversy” surrounding the cryptocurrency has been resolved, according to the report.
Bernstein points out that ether is the first proof-of-stake approved as a spot ETF and its approval “paves the way for a blockchain asset to evolve from a token sale.”
“This has positive implications for other blockchain tokens, as they can follow the same precedent, and solana (SOL) could benefit,” the report adds.
Conclusion
This week has been a pivotal one for the cryptocurrency market, with major developments impacting Bitcoin, Ethereum, and other digital assets. The approval of Ethereum ETFs, the recovered lost Bitcoin, and the surging memecoin market highlight the dynamic nature of the crypto landscape. Stay informed as the market continues to evolve!
WARNING: This is an informational article. Geek Metaverse is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that cryptoasset investments are not regulated in some countries.
They may not be appropriate for retail investors, as the full amount invested could be lost. Check your country’s laws before investing.
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