Vol.3 Cwallet Crypto Weekly Recap | Major Milestones and Market Shifts in the Crypto World
Welcome to this week’s Cwallet Weekly Rollup, where we provide you with the latest updates and significant events shaping the cryptocurrency landscape. This week has been eventful, with substantial developments from prominent financial institutions and notable trends in the blockchain sector. From Morgan Stanley’s move to recommend Bitcoin ETFs to their clients to Bitcoin’s network difficulty reaching a new all-time high and positive inflows into Ethereum ETFs despite substantial outflows from Grayscale’s Ethereum Trust, the crypto market continues to evolve rapidly. Stay tuned as we dive into the key highlights and trends of the week.
Morgan Stanley to Embrace Bitcoin ETFs: Report
According to CNBC, Morgan Stanley’s network of 15,000 financial advisers will soon be able to recommend spot Bitcoin ETFs to their clients. On August 7, advisers can guide clients in purchasing BlackRock’s iShares Bitcoin Trust (IBIT) shares and Fidelity’s Wise Origin Bitcoin Fund (FBTC). Analysts view this as a significant milestone for Bitcoin, considering Morgan Stanley manages approximately $3.75 trillion in client assets. While US spot Bitcoin ETFs have experienced considerable success since their launch in January, most of the inflows have originated from crypto-native retail investors and hedge funds. Morgan Stanley’s clients represent a diverse investor base beyond Bitcoin’s typical audience. Roxanna Islam, head of sector and industry research at VettaFi, mentioned that BlackRock’s and Fidelity’s spot Bitcoin ETFs have attracted interest from independent financial advisers.
Bitcoin Network Difficulty Breaks 3-Month Downtrend to Mark New ATH.
From May 9 to July 30, Bitcoin’s network difficulty significantly decreased for nearly three months, reducing the computational power needed to confirm Bitcoin transactions on the blockchain. However, on July 31, the network difficulty surged and reached a new all-time high of 90.66 trillion on August 1. This 14% increase is expected to negatively affect miners’ earnings shortly. Amid rising financial pressure, Bitcoin mining firms are holding onto their BTC rewards in hopes of selling them at a higher profit shortly.
Ethereum ETF Flows Flip Positive Despite Total ETHE Outflows Topping $2B
Net inflows into US spot Ether exchange-traded funds have returned positive despite total outflows from Grayscale’s Ethereum Trust exceeding $2 billion. On August 1, the eight recently approved spot ETFs reported a net inflow of $28.5 million, led by a $91.4 million inflow into BlackRock’s iShares Ethereum Trust (ETHA), according to FarSide Investors data. Meanwhile, Grayscale’s Ethereum Trust experienced outflows of $78 million on the same day, bringing its cumulative outflows to over $2 billion since it converted to a spot fund. Unlike the other eight spot ETH ETFs, launched as new funds on July 23, ETHE was a trust that provided institutional investors with exposure to ETH and was converted to a spot ETF on the same date. Before its conversion, ETHE held $9 billion in Ether. The current outflow figure indicates that 22% of the initial fund has been sold. Several analysts predict that the slowing outflows from Grayscale’s fund could signal a turning point for Ether’s price.
Technical analysis outlook for this week
Technically, BTC has fallen below the primary support levels of 64,000 and 55,540. If it rebounds above 55,540, it may pull back to the resistance level of 60,270. If it fails to rebound, there is still room for further decline.
