Ethereum volatility remains high; Wells Fargo holds Bitcoin ETF

Golden Weekly is a weekly blockchain industry summary column launched by Golden Finance, covering industry trends such as key news of the week, market and contract data, mining information, project dynamics, and technological progress. This article is a project weekly, taking you to a glance at the progress of mainstream projects and star projects this week.

Bitcoin

Lightning Labs CEO: Bitcoin-based stablecoins are coming soon

Lightning Labs CEO Elizabeth Stark said that stablecoins based on Bitcoin are coming soon. Stablecoins running on Bitcoin are approaching reality through new features built by Lightning Labs using the network Taproot upgrade implemented at the end of 2021. The Bitcoin network may be the most suitable blockchain for the use of stablecoins, especially when countries face inflation and currency depreciation. She also emphasized that the adoption of stablecoins has grown sharply during the COVID-19 pandemic, mainly in emerging markets.

Canaan launches upgraded Bitcoin mining machine A 1566

Canaan Creative launches the Avalon A15 series product A 1566, an upgraded Bitcoin mining machine that uses Canaan's most advanced technology.

Bitcoin mining company GDA will build a Bitcoin mining farm in Argentina that uses combustion gas to generate electricity

Mining and data center company Genesis Digital Assets Limited (GDA) has reached a cooperation with Argentine power company YPF Luz to use combustion gas generated by the combustion gas power station to power its Bitcoin mining farm in Argentina. The data center is located in the Bajo de Toro thermal power plant and will accommodate 1,200 Bitcoin mining machines.

Wells Fargo holds US spot Bitcoin ETF

Wells Fargo is currently storing spot Bitcoin ETFs for its customers. A new filing with the US Securities and Exchange Commission (SEC) shows that Wells Fargo holds 2,245 shares of Grayscale Bitcoin Trust (GBTC), which was recently converted into an ETF. While the shares, valued at $121,207, represent only a small portion of the bank’s roughly $2 trillion in assets under management, the development is noteworthy given the reluctance of the traditional banking industry to get involved in the digital asset industry. The U.S. House of Representatives has passed a bill that seeks to ease the threshold for banks to hold cryptocurrencies by amending the U.S. Securities and Exchange Commission (SEC) guidelines, a move that has been threatened with a veto by the Biden administration over concerns that the SEC’s ability to regulate crypto assets could be limited.

JPMorgan Holds Multiple U.S. Spot Bitcoin ETFs

U.S. financial giant JPMorgan Chase has disclosed its holdings in Grayscale, ProShares, Bitwise, BlackRock, and Fidelity’s Bitcoin spot ETF positions. According to a May 10 filing with the U.S. Securities and Exchange Commission (SEC), JPMorgan holds approximately $760,000 worth of ProShares BITO, BlackRock IBIT, Fidelity FBTC, Grayscale GBTC, and Bitwise BITB. In addition, the bank also holds 25,021 shares of Bitcoin Depot, a Bitcoin ATM supplier, worth about $47,000.

Behind the Hong Kong Stock Exchange's launch of Bitcoin ETF is a balance between market opportunities and investor protection

According to Caixin, in April 2024, three Bitcoin spot ETFs and three Ethereum spot ETFs approved by the Hong Kong Securities and Futures Commission were listed on the Hong Kong Stock Exchange. It is reported that behind the launch of Bitcoin ETF by the Hong Kong Stock Exchange is a balance between market opportunities and investor protection. As the regulatory thinking becomes clearer, efforts are made to seek a balance in protecting investor interests and market development.

Bitcoin volatility is lower than Tesla and Nvidia stocks, and the price may rise to more than $100,000

Crypto analyst Yashu Gola wrote that Bitcoin's annual volatility has dropped to lower than well-known technology stocks such as Tesla, Meta and Nvidia, marking its gradual transformation into a more mature and stable asset class. According to a report by Fidelity Investments, Bitcoin's volatility is lower than 33 of the approximately 500 companies in the S&P 500 index, showing its stability. In addition, the decline in Bitcoin's volatility indicates a positive shift in investor sentiment, which may trigger a sharp rise in prices. With the approval of a variety of spot Bitcoin trading products in the United States, it is expected that major institutional investors will join in the next few months. These institutions usually have strict risk management regulations, and low-volatility asset classes are more in line with their investment strategies. Analysts point out that Bitcoin's stable growth may mean that it is gradually maturing and is expected to bring a historic price surge. Bitcoin prices are expected to rise to a range of $100,000 to $150,000 in the future.

Ethereum

Analysts: Implied volatility of Ethereum options remains high

Analysts say that uncertainty surrounding Ethereum's future price keeps the asset's option implied volatility at a much higher level than Bitcoin. In contrast, Bitcoin's implied volatility has seen a more significant decline, indicating that derivatives traders believe that the Bitcoin market is stabilizing. Data shows that the Bitcoin Volatility Index fell from 72% at the time of halving to a multi-month low of 55%. In contrast, Ethereum's indicator fell from 76% to the current 65% during the same period, a smaller decline. QCPCapital analysts pointed out that the risk reversal of Ethereum options is still -4%, and the price of put options is higher than that of call options, reflecting investors' bearish sentiment. In contrast, Bitcoin risk reversal has turned positive, and call options are more expensive than put options, indicating that the market is bullish. Golden Finance Note: Implied volatility (IV) is a measure used in the options market, representing the market's prediction of possible future changes or price fluctuations in assets or securities.

Harvest International CEO: The company is considering allowing mainland investors to invest in its Bitcoin and Ethereum ETFs through the Shanghai-Hong Kong Stock Connect program in the future

Harvest International is one of the issuers of the first spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong. The company has confirmed plans to open these funds to mainland Chinese investors through the Hong Kong Stock Connect. Han Tongli, CEO and chief investment officer of Harvest International, said that the possibility of including these ETFs in the ETF Connect program was discussed at the Bitcoin Asia Conference. The ETF Connect program is part of the broader "Stock Connect" program launched in 2014 to connect exchanges in Hong Kong with mainland China. Han Tongli said that as long as everything goes well in the next two years, we do not rule out applying to include our ETF in the interconnection plan.

Due to increased activity on the L2 network, Ethereum transaction fees hit a record low since the merger event

On May 11, as more and more activities moved to the L2 network on the Ethereum chain, the average transaction fee on Ethereum reached a historical low. Ultrasound.money data shows that the average Ethereum Gas fee has dropped to 4.81 Gwei, the lowest level since the network completed the merger event in 2022. Market observers attributed the decline to the increased activity of the L2 network after the completion of the Dencun upgrade. The Dencun upgrade greatly reduced the fees of the L2 network. Blockchain analysis platform IntoTheBlock reported that more and more transactions are now being settled on Ethereum L2. Last month, transactions on the three head L2 accounted for 82% of all Ethereum transactions, a record high.

Ethereum ETF may not appear until the end of 2025

Bloomberg ETF analyst Eric Balchunas said that due to the lack of meaningful interaction with potential issuers and the vague regulatory status of Ethereum, the US SEC may reject the application for Ethereum spot ETF on May 23, and the Ethereum ETF may not appear until the end of 2025. Faced with rejection, potential ETF issuers such as BlackRock, Fidelity or Ark Invest have two options: either sue the SEC as Grayscale did with the Bitcoin spot ETF, or file a lawsuit again later. Influencing factors include the US election. If former President Trump wins a second term in the White House, the SEC may face a change in leadership. The new chairman may be more friendly to cryptocurrencies than Gary Gensler. If there is a new president, you submit your application again and maybe you will be approved. Or you go to sue. In any case, it will take a full year to achieve.

Ethereum network gas fee drops to 2 gwei

On May 12, according to Etherscan data, the Ethereum network gas fee dropped to 2 gwei today, and is now reported at 4 gwei.

Other projects

MyShell: Testnet Phase 1 airdrop NFTs are about to be issued

The decentralized AI content platform MyShell officially announced on the X platform that the first phase of the testnet airdrop is coming soon, and the new NFT will be accompanied by more privileges, which is planned to last until the end of May. Earlier news, the first phase of the MyShell testnet has been launched.

Parallel Network: All NFT collection oracles have been updated

Parallel Network announced that all NFT collection oracles have been updated, and real-time pricing is now reflected on the Parallel application.

Former Amazon software developer creates Bitcoin wallet app called Machankura

Kgothatso Ngako, a former Amazon software developer in South Africa, created a Bitcoin wallet app called Machankura, which aims to solve the problem of millions of people in Africa without smartphones. The app can run on ordinary mobile phones and uses the Lightning Network to conduct Bitcoin transactions without a touch screen or camera. Ngako said that they already have nearly 15,000 users, covering countries such as South Africa, Nigeria, and Kenya. He mentioned that the service is similar to what Facebook does in developing countries, and reverse billing is achieved through the USSD interface. Users can use Lightning addresses, without the need for copy and paste functions, and only need to enter numbers or email addresses to conduct Bitcoin transactions.

Silent Protocol introduces "Ghost Layer" solution for Ethereum using ZK, 0VM

Silent Protocol has launched the "Ghost Layer", which is described as "the world's first 1.5 layer for Ethereum", according to an official blog post. Founder Novachrono wrote in the post that it implements a "modular secure value transfer layer, creating the first fully compliant, composable and privacy-preserving ecosystem." The team said: "Using ZK-based systems and 0VM technology, private asset storage and cross-chain value flow are realized. Silent Protocol also launched EZEE in 2023, solving the challenge of state denial. Ghost Layer marks Silent Protocol's commitment to building an Ethereum-compatible and composable framework that enables developers to create privacy-preserving applications."

NFT Market Etherity Plans to Transform to Ethereum L2

The Ethernity team said it is using Optimism to transform from an Ethereum-based NFT market to an Ethereum Layer 2 solution designed for entertainment brands. Etherity's enhanced platform integrates an AI-driven DRM protocol to ensure strong IP protection, thereby improving security and scalability. This strategic upgrade aims to redefine blockchain entertainment, aiming to attract major franchises of global entertainment brands and establish new industry standards.

Silent Protocol Introduces "Ghost Layer" Solution for Ethereum Using ZK, 0VM

Silent Protocol has launched the "Ghost Layer", which is described as "the world's first 1.5 layer on Ethereum" according to an official blog post. Founder Novachrono wrote in the post that it implements a "modular secure value transfer layer, creating the first fully compliant, composable and privacy-preserving ecosystem." The team said: "Using ZK-based systems and 0VM technology, private asset storage and cross-chain value flow are realized. Silent Protocol also launched EZEE in 2023, solving the challenge of state denial. Ghost Layer marks Silent Protocol's commitment to building an Ethereum-compatible and composable framework that enables developers to create privacy-preserving applications."

NFT Market Etherity Plans to Transform to Ethereum L2

The Ethernity team said it is using Optimism to transform from an Ethereum-based NFT market to an Ethereum Layer 2 solution designed specifically for entertainment brands. Etherity's enhanced platform integrates an AI-driven DRM protocol to ensure strong IP protection, thereby improving security and scalability. This strategic upgrade aims to redefine blockchain entertainment, aiming to attract major franchises from global entertainment brands and establish new industry standards.