Crypto Biz: Wall Street Embraces Altseason, Ether ETFs Lead the Way

This week’s Crypto Biz highlights significant developments in the cryptocurrency world, from Wall Street’s growing interest in altcoins to major political influences on Meta's stablecoin project and BitGo's expansion plans in India. With Ether ETFs leading the charge, altseason appears to have fully arrived.

Wall Street Embraces Ether ETFs

Ether (ETH) has surpassed Bitcoin (BTC) in exchange-traded fund (ETF) inflows, marking a key milestone for the cryptocurrency. According to CoinShares, net inflows into ETH funds reached a record $634 million during the last week of November, contributing to a total of $2.2 billion in inflows for 2024. This surge reflects growing investor confidence in Ether, driven in part by optimism over improved regulatory conditions in the United States.

The increasing popularity of Ether ETFs comes amid speculation that the U.S. Securities and Exchange Commission (SEC) could soon approve staking yields for Ether. Bernstein Research analysts suggest that under a potential crypto-friendly "Trump 2.0" administration, Ethereum staking yields could gain approval, adding further appeal to ETH funds. Currently, staking ETH offers annualized returns of around 3.1%, with ETH trading near $4,000, up 63% year-to-date.

Meta's Stablecoin Project Killed by Politics

In a revealing statement on November 30, David Marcus, the former head of Meta’s Diem project, explained that the social media giant’s blockchain-based stablecoin initiative was effectively "killed" due to political pressure from U.S. regulators. Despite clearing various regulatory hurdles, Diem faced opposition from high-ranking officials, including Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell, who deemed the project politically risky. Under pressure from the Fed, major financial institutions withdrew their support, leading Meta to sell the Diem project’s intellectual property to Silvergate Capital in 2022.

BitGo Targets Indian Market

BitGo, a leading provider of digital asset custody solutions, is in talks with India’s Financial Intelligence Unit (FIU) to enter the country’s rapidly growing cryptocurrency market. India, which ranks first in crypto adoption according to Chainalysis, has become an increasingly important focus for global crypto firms. Despite a recent ban on offshore crypto exchanges, India's crypto market revenue is expected to reach $6.6 billion in 2024, presenting a significant opportunity for companies like BitGo to tap into the market's potential.

Memecoins Gain Momentum as Exchanges List New Tokens

Crypto exchanges are ramping up efforts to cater to the growing demand for memecoins, with Binance.US and Coinbase leading the charge. On December 4, Binance.US announced the listing of the memecoin PEPE, which had a market capitalization of nearly $9 billion at the time. The token’s popularity among traders is fueling its rise, with Binance.US following up on its November listing of Bonk (BONK). Coinbase is also expanding its memecoin offerings, listing tokens such as Moodeng (MOODENG), Mog (MOG), and Dogwifhat (WIF) in recent weeks.

Grayscale Files for Spot Solana ETF

In another major development, Grayscale Investments filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Solana ETF. This move would convert Grayscale's existing Solana Trust into a spot ETF, similar to the company’s successful conversions of its Bitcoin and Ether trusts into ETFs. If approved, the Grayscale Solana ETF (GSOL) would trade on the New York Stock Exchange. Grayscale’s filing joins those of other firms, including 21Shares, Canary Capital, VanEck, and Bitwise, all vying for approval to launch spot Solana ETFs. Franklin Templeton is also reportedly considering a similar move.

Conclusion

From record-breaking inflows into Ether ETFs to BitGo’s ambitions in India, this week’s Crypto Biz highlights the accelerating momentum in the cryptocurrency market. With institutions and governments shaping the industry’s future, the next few months are set to be pivotal for the digital asset space. As Wall Street continues to embrace altcoins and global expansion continues, the crypto landscape is evolving rapidly, with new opportunities emerging for investors and companies alike.