Wall Street appears to have embraced the altseason, with Ether (ETH) surpassing Bitcoin (BTC) in exchange-traded funds inflows during the final week of November.
According to CoinShares, net inflows for ETH funds reached $634 million over that week, setting a new record of $2.2 billion in 2024 as investors diversify portfolios in anticipation of improved regulatory conditions in the United States.
Markets are likely watching the prospects of additional revenue coming from ETH funds. Analysts from Bernstein Research anticipate that Ether ETFs may soon feature staking yields. “We believe, under a new Trump 2.0 crypto-friendly [Securities and Exchange Commission], ETH staking yield will likely be approved,” Bernstein said on Dec. 2.
According to StakingRewards.com, annualized returns on ETH stakes are roughly 3.1%. At the time of this writing, ETH trades near $4,000, posting a return of 63% year-to-date.
This week’s Crypto Biz also features the political moves behind Meta’s stablecoin sunset, BitGo’s plans for India, Grayscale’s filing for a Solana ETF and another memecoin listed on US exchanges.
Death of Meta’s stablecoin project was ‘100% a political kill’ — Ex-Diem boss
Meta’s blockchain project, Diem, was halted due to intense political pressure from US regulators, the project’s former head, David Marcus, revealed on Nov. 30. Despite clearing various regulatory hurdles, Treasury Secretary Janet Yellen influenced Federal Reserve Chair Jerome Powell to oppose the project, deeming it politically risky. According to Marcus, the move led financial institutions to withdraw their support under pressure from the Fed. Meta eventually sold Diem’s intellectual property assets in 2022 to Silvergate Capital, which later went bankrupt.
Source: David Marcus
BitGo in talks to launch services in India
BitGo is in discussions with India’s crypto watchdog to enter its multibillion-dollar local market. The company has been holding “active conversations” with India’s Financial Intelligence Unit (FIU), BitGo chief operating officer Chen Fang told Cointelegraph during the India Blockchain Week. The country ranked at the top of Chainalysis’ crypto adoption index in 2024 despite a recent ban on offshore crypto exchanges. Data from Statista foresees India’s crypto market revenue to reach $6.6 billion in 2024.
Binance.US lists PEPE as crypto exchanges vie for memecoin market
Crypto exchanges, including Binance.US and Coinbase, are ramping up memecoin listings after United States President-elect Donald Trump’s Nov. 5 election win. Binance.US announced on Dec. 4 the listing of the memecoin Pepe (PEPE), citing the token’s popularity among traders. As of Dec. 4, PEPE traded at a total market capitalization of nearly $9 billion, according to CoinGecko. The exchange also listed the popular dog-themed token Bonk (BONK) in November. Coinbase is also advancing its memecoin offerings. It listed Moodeng (MOODENG), Mog (MOG), and Dogwifhat (WIF) over the past few weeks.
Grayscale files with SEC for spot Solana ETF
Grayscale Investments filed with the US Securities and Exchange Commission to launch a spot Solana exchange-traded fund (ETF). The ETF would be a conversion of its existing Grayscale Solana Trust into a spot ETF, just as it converted its spot Bitcoin and ETH trusts into ETFs. If approved, the Grayscale Solana Trust, under the ticker GSOL, would trade on the New York Stock Exchange, according to a 19b-4 filing with the SEC on Dec. 3. Grayscale joins ETF issuing rivals 21Shares, Canary Capital, VanEck and Bitwise in vying for SEC approval of a spot SOL ETF. Franklin Templeton is also considering one.
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