This is an ETF bull market

On June 27, Matthew Sigel, head of digital asset research at VanEck, stated that it had applied for the Solana ETF with the SEC. The new fund, called VanEck Solana Trust, is the first Solana ETF to be applied for in the United States. He said: "The function of the native token SOL is similar to other digital commodities such as Bitcoin and Ethereum, and is used to pay for transactions on the blockchain. Fees and computing services, like ETH on the Ethereum network, SOL can be traded on digital asset platforms or used for peer-to-peer transactions. James Seyffart, an ETF analyst at Bloomberg, posted on social media that the Solana ETF is "more promising than expected." "Early", but the passing rate is still unknown. Whether passed or not, this is enough to excite the silent crypto community. After all, this market can be described as an ETF bull market.

"Bitcoin Alone"

After the adoption of spot ETF, BTC, as a representative of digital assets, became the first "logical run-through" target in the currency circle.

Bitcoin spot ETF gives Wall Street a formal channel to allocate crypto assets, bringing a large amount of OTC funds to the crypto market. It can also be seen from the key nodes of Bitcoin’s rise that the new highs from US$25,000 to US$69,000 are almost all driven by ETFs. Whether it is a lawsuit victory or fake news, the excitement of the news has always affected the market.

1. On August 30, 2023, Grayscale won its lawsuit with the SEC, overturning the SEC’s decision to block Grayscale’s ETF.
2. Bitcoin stands firm at $34,000 as fake news swirls about October’s Bitcoin spot ETF passage.
3. On January 11, the SEC approved 11 spot Bitcoin ETFs at the same time, and the price of Bitcoin surged to $48,590 that day.

After the Spring Festival, Bitcoin started a violent rise mode. After crossing the US$69,000 mark, Bitcoin's market value reached US$1.35 trillion, surpassing Meta Platforms and jumping to the 9th place in the world's mainstream asset market value.

Data show that from January 21st to 26th, the total asset management scale of Bitcoin ETF fell from US$29.160 billion to US$26.062 billion in 5 days, losing more than US$3 billion. Since February, the total assets under management of Bitcoin ETFs have risen steadily from $28.3 billion, surpassing $40 billion in less than a month.

With the massive inflow of funds, the price of Bitcoin has experienced a major rise. Throughout February, the price of Bitcoin has experienced the largest fluctuation in history. The price of each Bitcoin has increased by US$18,615, which is higher than 15 The value of Bitcoin was even higher a month ago.

In comparison, the altcoins are struggling to catch up with the rise of BTC. The major benefits of the Ethereum ecosystem were diluted by the Cancun upgrade. Solana made a brilliant debut with the meme coin. However, the emergence of pre-sales, celebrity coins, etc. continued to disrupt the market trend. In addition, the rise of pumpfun further allowed meme to further divide the market attention. Crypto VCs are constantly being squeezed into opposition to retail investors by highly profitable memes and airdrop chaos.

At the same time, the Bitcoin ecosystem headed by Rune has been developing strongly. Because there is no clear business model and asset logic, many people believe that this cycle is Bitcoin’s “single bull”.

BlackRock Wants, BlackRock Gets

If you insist on finding a reason to start this bull market, then the reason must be BlackRock. With markets in deep bear territory and the industry facing heavy-handed regulation, BlackRock’s ETF has single-handedly turned the tables on the crypto market.

After the launch of the Bitcoin spot ETF, IBIT is also the one with the strongest performance and the best liquidity. Last week, HODL15Capital listed the top ten companies in the world that currently hold Bitcoin, and BlackRock’s IBIT topped the list with 305,614 BTC.

1. BlackRock’s status as a financial giant

• There is a saying circulating on Wall Street: “BlackRock Wants, BlackRock Gets”.
• As a financial giant in charge of $10 trillion in assets, the SEC seems to have to give in before BlackRock.

2. BlackRock’s tokenization layout

• What many people don’t see clearly is that the launch of Bitcoin spot ETF may be just the appetizer for the financial giant’s layout in the tokenized world.
• At the end of 2022, BlackRock CEO Larry Fink said: "The next generation of markets, the next generation of securities, will be the tokenization of securities."

3. The success of BUIDL Fund

• BlackRock’s entry into Bitcoin is much bigger than we thought. What we then saw was the launch of the BUIDL fund, a US dollar institutional digital liquidity fund launched by BlackRock, on Ethereum.
• On April 30, BUIDL, the first digital asset fund launched by BlackRock in partnership with Securitize, successfully reached the top in just six weeks, occupying nearly 30% of the digital treasury market with a total size of US$1.3 billion.

4. Growth of Tokenized RWA Market Value

• The market value of tokenized U.S. Treasury bonds has grown significantly this year, with tokenized RWA (including Treasury bonds, bonds and cash equivalents) growing by 35% in these two months.
• Leading the way is BlackRock’s BUIDL, which has grown 65% since the beginning of the quarter, pushing the total market value of tokenized Treasury bonds to over $1.5 billion.

5. The dramatic turn of the Ethereum spot ETF

• Less than a month after the launch of BUIDL, the Ethereum spot ETF with regulatory issues regarding staking staged a dramatic reversal, with one application Pass directly.
• On May 24, the Ethereum spot ETF went from being unpopular with a pass rate of only 7% to a pass rate of 75% overnight, and the price of ETH has repeatedly exceeded the $3,800 mark.

6. BlackRock’s compromise

• On May 30, BlackRock stated in a filing with the SEC that it would purchase $10 million in ETH to fund its Ethereum ETF.

7. Possibility of altcoin ETF funding

• This month’s new trends in ETH and SOL spot ETFs have brought newer and clearer logic to attracting and creating liquidity in the crypto industry. ETF funding will not Only Bitcoin is exclusive, and altcoins can also cover it.

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