Top 10 Cryptos for August 2024

Working through some logical points before we get into strategy…

1. The Ethereum ETF is now live and has seen nearly $1Bn of volume in the second day of trading after $106M of net inflows on day one. These are the huge numbers that we hoped for and will solidify Ethereum's ETF as the second most successful ETF in history, after its big brother, Bitcoin.

Something to note….

After Bitcoin’s ETF, there was a sizable selloff that happened when Grayscale converted their Trust to an ETF and held a fee of 2.5% to its competitors 0.25%. They held nearly $40Billion worth of Bitcoin on the day of the ETF listing in comparison to just under $10Billion Ethereum. They later reduced the Bitcoin ETF rate to 1.5% and as of today they hold $17.4Billion in Bitcoin assets.

Here we are again for round 2 and they are holding a 2.5% fee at this stage for their Ethereum ETF which will lead to an outflow from the Grayscale product to either other ETFs that are charging much lower fees. Grayscale created another Ethereum ETF that is offering 0.15% fees to try and capture the ‘leak’. They learned something from last time at least!

Expect ongoing sell pressure as investors offload out of the 2.5% Grayscale product. We want to see a transition to other ETH ETF products ideally, but we may see a short term dip in Ethereum's price before an expected rally.

2. Bitcoins ETF launches are still accumulating at record levels! The top 10 ETFs are holding 913K Bitcoins!

3. The Bitcoin hash ribbon has finally triggered a buy. After the halving, the cost of production was higher than what a miner was generating in revenue, due to the halving of Bitcoin rewards being issued to miners per block that was mined. Now just 450 Bitcoins are being created daily instead of the prior 900, which means 3.125 Bitcoin per block mined (every 10 minutes).

When miners are making less than costs, they go into what is called a capitulation event. This typically means they need to sell Bitcoins that they may have been holding onto the market to sustain operations. Which leads to downside pressure on Bitcoins price.

The Hash Ribbon has finally flicked a buy after many months of miner capitulation, meaning miners are now in profit again and will likely not sell onto the market anymore as they don’t need to. The buy signal has alway flicked on right before HUGE price run ups! 

4. With president Biden stepping down, Kamala Harris has stepped in. Everyone knows that Biden has been anti crypto and pumped the brakes on its growth where he could.

Whilst it was only rumours that Kamala will speak alongside Trump at the Bitcoin 2024 Nashville event, it is apparent that she has reached out to world leading entrepreneur, Mark Cuban, to get more of an understanding about crypto.

She may have Tweeted that Bitcoin is for criminals, showing her hand, but she currently stands at 33% in the polls against Trumps 63%! I think the writing is on the wall. She had her chance and blew it as 50 million Americans own Crypto!

5. Solana ETF on the horizon…. With the decision likely to be made in March 2025 latest, the top ETF crypto players such as Van Eck and BlackRocks 21 Shares, are already paving the Solana path.

Comments from Eric Balchunus, Bloomberg's ETF analyst…

“Keep in mind after launch, there are flows, and then add ETH products, I’m sure, then Solana, and then… It’s probably never going to end. The dam has broken.”

With all this being said, it is very clear that the crypto space has a very exciting future ahead. I will discuss strategies in the sections below.

One BIG Addition!

“Give the people what they want!” Joe said to me this week, so that's exactly what we are going to do.

We are introducing 5 Hyper-Speculative Altcoins under our Top 10 table that we think are great BUY & HOLD longer term investments with enormous payoffs!

These will be rotated periodically and aimed at interesting assets that our research team has identified under $1 Billion Market Cap

Check out these below the Top 10 👇

Our current portfolio of Cryptocurrencies was chosen for technical outlook, narrative capture and market sentiment.

*Please refer to the Technical Terms Glossary at the end of this section for an explanation of technical terms.

*All prices below are current at the time of writing - $US
*Date of completion 25/07/2024

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