Crypto Scoop: Ethereum Spot ETFs Launch Amid Ethereum's 10th Anniversary Celebration

This week, the crypto space is buzzing with exciting milestones, initiatives and price gains. In this edition of the Crypto Scoop, we review the following: 

• Price moves of top cryptocurrencies
• Ethereum spot ETF launch
• Ethereum’s 10th anniversary
• Global crypto initiatives and regulation and more.

Price Moves and Predictions of Top Cryptocurrencies

This week, we witnessed a significant surge in the crypto market, with Bitcoin (BTC) soaring to $67,900 and Ethereum (ETH) trading at $3,500. Amidst this bullish trend, Bitcoin whales have embarked on an unprecedented buying spree, accumulating a staggering $23 billion worth of BTC in July alone. Onchain analytics platform CryptoQuant highlighted this massive accumulation, noting that 358,000 BTC had moved to permanent holder addresses over the past month.

Meanwhile, investment manager VanEck released a report on July 24 forecasting a dramatic future for Bitcoin. The report envisions Bitcoin reaching a market capitalisation of $61 trillion by 2050, translating to approximately $2.9 million per coin. This projection is based on the assumption that Bitcoin could settle 10% of global international trade and 5% of domestic trade, with central banks holding 2.5% of their assets in BTC. VanEck also highlighted the importance of Bitcoin layer 2 (L2) solutions, which could collectively be worth around $7.6 trillion, addressing Bitcoin’s scalability issues and paving the way for broader adoption.

In a notable technological advancement, BitcoinOS (BOS), a Bitcoin rollups protocol, successfully verified the first zero-knowledge (ZK) proof on the blockchain’s mainnet on July 24. This breakthrough is set to enhance the functionality and scalability of the Bitcoin network without altering its base layer. Edan Yago, co-founder of BOS, remarked that this development signifies a new era for Bitcoin, positioning it as digital gold and an operating system capable of supporting a wide array of decentralised applications. This milestone suggests that Bitcoin could now rival other layer-1 projects like Ethereum and Solana in the competitive landscape of blockchain technology.

Ethereum Spot ETF Goes Live!

The United States Securities and Exchange Commission (SEC) granted final approval for spot Ethereum ETFs, marking a significant milestone in the financial markets. Following the SEC's confirmation on July 22, trading commenced on July 23 at 9:30 AM Eastern Time. Grayscale, a prominent digital asset manager, confirmed that its two spot Ether ETFs began trading on the NYSE Arca, marking what it described as a "milestone" for investors and the ETF market. 

On the first day of trading, Ethereum ETFs experienced an impressive start, amassing a trading volume of $361 million within the first 90 minutes. Despite this robust activity, the price of Ethereum (ETH) slipped below $3,500, dropping by approximately $100 shortly after the ETFs went live. This volatility, however, did not deter significant accumulation by large holders, who collectively amassed 112,900 ETH worth nearly $390 million on the same day, demonstrating strong confidence in Ethereum's long-term potential.

However, on the second day of trading, spot Ethereum ETFs recorded net outflows of $113.3 million, primarily driven by significant outflows from Grayscale’s recently converted Ethereum Trust. Despite this, seven of the eight newly launched ETFs continue to record inflows from institutional investors. 

Ethereum Celebrates A Decade Since Its Initial Coin Offering 

Since its initial coin offering (ICO) on July 22, 2014, Ethereum has grown from pioneering into the second-largest cryptocurrency by market capitalisation, playing a pivotal role in the Web3 ecosystem. The journey began in 2014 with Ethereum's ICO, and since then, ETH has shifted to a Proof-of-Stake (PoS) consensus mechanism, significantly enhancing the network's efficiency and sustainability.

Co-founders Joe Lubin and Vitalik Buterin have guided Ethereum through continuous upgrades and implementing Layer 2 scaling solutions. Ethereum's development over the years has ensured it remains competitive despite the rise of numerous alternatives. In 2024, Ethereum and its major Layer 2 blockchains experienced a 127% surge in the average number of daily active addresses. This growth, highlighted in a Q3 report by Coinbase Institutional and Glassnode, reflects Ethereum's expanding user base and integral role in the broader blockchain industry.

From its early days of ICO to becoming a cornerstone of decentralised applications and finance, Ethereum's 10-year journey exemplifies the transformative power of blockchain technology.

Recent Developments in Global Cryptocurrency Regulation and Adoption

In a significant development for cryptocurrency enthusiasts, a new investment fund now offers a unique pathway to European Union citizenship through Portugal’s golden visa program. Alessandro Palombo, co-founder and CEO of Unbound Fund, announced that their fund allows Bitcoin holders to gain Portuguese citizenship by indirectly investing over $500,000 in Bitcoin. Palombo claims this is the first fund eligible for the Portuguese golden visa program that provides exposure to BTC.

Simultaneously, financial technology company Stripe has expanded its crypto services into the European market, enabling consumers to purchase cryptocurrencies such as Bitcoin, Ether, and Solana using credit or debit cards. This integration allows online vendors in the EU to add a widget on their sites so users can buy these digital assets seamlessly. The move by Stripe, founded by Irish brothers Patrick and John Collison, aims to simplify the use of digital currencies for everyday transactions. Notably, this also means that African customers can now use their Yellow Card accounts to buy digital assets in their local currency and subsequently use those cryptocurrencies to make purchases on EU websites via Stripe.