Ether ETFs Struggle to Gain Traction in First Week

Plus, Blackbird Labs raised $24M led by a16z

Oct 6, 2023 The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here.  Happy Friday! Here's what you need to know today in crypto: Ether futures ETFs saw muted volumes in the first week of trading, with some analysts attributing macroeconomic conditions as the reason. Blackbird Labs raised $24 million in a series A led by a16z.  Sam Bankman-Fried committed financial crimes, co-founder Gary Wang said after taking the stand late Thursday.   Latest Prices CoinDesk Market Index (CMI) 1,128 −2.7 ▼ 0.2% Bitcoin (BTC) $27,721 −30.3 ▼ 0.1% Ethereum (ETH) $1,634 −4.2 ▼ 0.3% S&P 500 4,258.19 −5.6 ▼ 0.1% Gold $1,835 +18.6 ▲ 1.0% Nikkei 225 $1,835 +18.6 ▲ 1.0% BTC/ETH prices per CoinDesk Indices, as of 7 a.m. ET (11 a.m. UTC) CoinDesk Market Index (CMI): 1,128  −0.2%  Bitcoin (BTC): $27,721  −0.1%  Ether (ETC): $1,634  −0.3%  S&P 500: 4,258.19  −0.1%  Gold: $1,835  +1.0%

Nikkei 225: $1,835  +1.0% 

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Ether (ETH) and bitcoin (BTC) were buoyed to one-month highs last week as six ether futures ETFs went live in the U.S. on Monday, with traders expecting high demand for the products. However, their performance was pretty muted. Less than $2 million were traded across the various ETFs on Monday, with poor volumes throughout the week prompting analysts to write down their bullish outlook and pivot to bitcoin investments instead. The ether futures ETFs had 0.2% of trading volume compared to BTC Futures day 1 of trading. Some analysts pointed to a lack of institutional demand for ether and others said it's due to the macroeconomic environment. "Interest rates are at 5.5%, if you list any kind of ETF in this environment you are going to see low volumes," said Sui Chung, CEO of CF Benchmarks, in an interview with CoinDesk. "It's the same with equities ETF volumes this week," added Chung. "There might be more interest in ether futures ETFs as the macroeconomic situation changes but right now investors are too busy putting money into bank accounts."

(Maxim Hopman UnSplash)

Blackbird Labs, an app and loyalty program that's attempting to connect restaurants and their customers via its crypto-powered app, announced on Wednesday it had raised a $24 million Series A led by the venture capital firm Andreessen Horowitz (a16z). Through Blackbird, which is built on Coinbase's Layer-2 Base blockchain, customers tap their phone on a near field communication (NFC) reader (the devices which allow smartphones to connect to payment readers) and create a non-fungible token (NFT) membership. The NFT is then minted when users "tap in" to the restaurant. FTX's Sam Bankman-Fried committed financial crimes, co-founder Gary Wang said after taking the stand late Thursday. Wang, the fourth witness called by the U.S. Department of Justice in Bankman-Fried's trial, said he committed wire fraud, securities fraud and commodities fraud alongside Bankman-Fried and Caroline Ellison, who ran Bankman-Fried's Alameda Research hedge fund, and former FTX executive Nishad Singh. (Wang, Ellison and Singh all pleaded guilty to charges shortly after Bankman-Fried was arrested.) "We gave special privileges to Alameda Research to allow it to withdraw unlimited funds from FTX and lied about it," Wang said.

Market Insight: Nexo to Phase Out Cashback for UK Crypto platform Nexo plans to phase out some of the products that it offers to U.K. clients in response to new rules in the country, a company spokesperson told CoinDesk on Friday. From Oct. 8, the firm will initiate the phase-out of cashback payouts for Nexo Exchange and Nexo Card transactions, as well as referral and affiliate programs. Nexo is putting these measures in place to comply with the U.K. Financial Conduct Authority's incoming promotions rules for crypto which require firms to be registered to approve their own ads as well as make changes to their systems - like giving first time buyers at least 24 hours to re-confirm if they want to receive invitations to invest. Read the full story by Camomile Shumba

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Hear from Key Lawmakers and Regulators at State of Crypto: Policy and Regulation Several lawmakers and regulators shaping the future of digital assets policy have committed to joining CoinDesk's inaugural State of Crypto: Policy and Regulation, a one-day boutique event uniting key policymakers, regulators and government officials with legal, policy and compliance executives representing the largest and most influential TradFi and DeFi leaders in asset management and financial services. The gathering provides an unprecedented opportunity to evaluate, dissect and ultimately shape crypto regulatory frameworks that support a vibrant, secure and healthy future for the digital economy.  Are you a GC, CCO, CLO, COO or head of policy or government affairs evaluating or actively investing in digital assets? Join State of Crypto to help drive crypto policy forward collaboratively. Save 10% with code FM10. Learn more and register.

Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

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