🎉 The ETH ETFs are here!
PLUS: AI tokens are cheap
Welcome to another free edition of Altcoin Investing Picks.
I hope you enjoyed our last issue ”7 DeFi plays you need to know”
In today's newsletter:
🎉 The ETH ETFs are here!
🚀 Opportunity: AI Tokens
📈 Alpha Signal: Stablecoin Market Cap
🎉 The ETH ETFs are Here!
The five Ethereum ETFs are confirmed to start trading today:
Why does this matter?
ETFs are great for crypto, especially for ETH prices. If the ETFs see a significant inflow, then this could be a major catalyst for the market.
Compared to BTC ETF, an increase in ETH prices could also have more ripple effects because much of on-chain activity is backed by $ETH.
$ETH prices rise → on-chain metrics improve → TVL of dApps will increase → borrowers will be able to borrow more against their $ETH
These improvements will likely impact market fundamentals that can in turn pump prices, creating a flywheel as we’ve seen with Bitcoin:
Using the Bitcoin ETPs as a proxy, Galaxy estimated potential demand for similar Ethereum products:
🚀 Opportunity: AI Tokens
Last week, Grayscale announced a new crypto AI fund, indicating institutional interest in the AI Crypto narrative.
Here are some tokens in their fund:
Near ($NEAR)
Filecoin ($FIL)
Render ($RNDR)
Livepeer ($LPT)
Bittensor ($TAO)
AI was by far the most popular crypto narrative in 2023, accounting for 11.3% of crypto narratives’ interest.
However, it hasn’t been performing particularly strongly in the last 3 months compared to other narratives:
If you are more of a mean reversion trader, you might want to have a closer look at this narrative.
→ Check out our Degen Portfolio to get exposure to this (and other) hot narratives.
📈 Alpha Signal: Stablecoin Market Cap
Stablecoins are tokenized versions of cash, bridging traditional (fiat) money and blockchain-based markets and providing market participants with liquidity for trading and lending. They thus serve a key role in digital asset markets, making the growing market cap an important milestone for the broader crypto industry.
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Cheers