Shiba Inu, Ripple ETFs Debut: Crypto Market Yawns

Shiba Inu, Ripple ETFs: A Quiet Launch

By Omkar Godbole

The SEC's perceived embrace of crypto reached a new level with the approval of spot ETFs for Shiba Inu (SHIB) and Ripple (XRP). On Thursday, these ETFs debuted in the U.S.

Unlike Bitcoin (BTC), Ether (ETH), and stablecoins which serve as stores of value and drive decentralized finance, meme coins like SHIB often thrive on social media trends and community enthusiasm. The introduction of an ETF raises concerns about potentially overstating the legitimacy of such assets, which could pose risks for investors.

This move might be considered a peak moment for crypto adoption by regulators, with even meme coins gaining institutional investment vehicles. It also reflects a period of high liquidity, where traders are more willing to take risks. This could influence the Federal Reserve's approach to future rate adjustments.

Market Reaction: A Collective 'Meh'

The crypto market's response has been lukewarm. SHIB dipped over 2% in 24 hours, a stark contrast to the price surges seen in 2021 fueled by endorsements. Other meme tokens, including M, PUMP, and TOSHI, have also experienced declines, down nearly 10% over the same period.

XRP is also feeling the pressure, down 2%. Bitcoin and Ether remain under pressure, as well, with traders actively seeking downside protection in the options market. The CoinDesk 20 Index was down 1.3% at press time.

Other Developments

Consensys CEO hinted at an upcoming Metamask token launch.
Ethereum's Fusaka upgrade, aimed at improving data availability and reducing layer-2 costs, is scheduled for December 3, according to Christine Kim.

Macroeconomic Influences

Traditional markets are adding headwinds. The dollar index and Treasury yields have increased. The Bank of Japan held steady on rates but signaled potential hikes in the coming months and plans to gradually sell ETFs to reduce its balance sheet.

What to Watch

Crypto
- September 19: Grayscale Digital Large Cap Fund (GDLC) uplists to NYSE Arca.
Macro
- September 19, 8:30 a.m.: Canada July retail sales data.
- September 19: S&P 500 rebalancing adds Robinhood (HOOD).

Token Events

Governance Votes & Calls
- Gnosis DAO: Voting on a $40,000 pilot growth fund until September 23.
- Balancer DAO: Voting on an ecosystem roadmap and funding plan until September 23.
Unlocks
- September 20: Velo (VELO) unlocks 13.63% of its circulating supply.
Token Launches
- September 19, 9 a.m.: Enosys introduces XRP-backed stablecoin to Flare.
- September 19: Lombard (BARD) lists on Poloniex.
- September 20: Reserve Rights (RSR) to conduct a token burn.

Token Talk

By Oliver Knight

Aster, the DEX token, surged 33% in the last 24 hours, gaining 650% since launch.
Binance founder Changpeng Zhao promoted Aster as a competitor to HyperLiquid.
Aster saw nearly 330,000 wallets active before exchange listings, with $420M in daily trading volume.
Concerns arose about fund withdrawals, prompting the Aster team to assure users funds were safe.
Some claim Aster is a rebrand of Apollox, a decentralized perpetuals exchange.
Despite controversies, traders view Aster as a HyperLiquid alternative.

Derivatives Positioning

AVAX shows the only increase in perpetual futures open interest among top 20 cryptos.
Glassnode data shows 5,000 BTC in long positions vulnerable to liquidation below $117,000.
Most majors saw net selling in futures, indicating a potential altcoin drop and risk aversion.
CME bitcoin futures OI rose to 149K BTC, ending a downtrend.
Deribit traders are buying put options tied to BTC, signaling downside concerns.

Market Movements

BTC is down 0.9% from 4 p.m. ET Thursday at $116,531.51 (24hrs: -0.61%)
ETH is down 1.81% at $4,523.65 (24hrs: -1%)
CoinDesk 20 is down 1.82% at 4,334.77 (24hrs: -1.27%%)
Ether CESR Composite Staking Rate is up 3 bps at 2.92%
BTC funding rate is at 0.0042% (4.5651% annualized) on Binance

Bitcoin Stats

BTC Dominance: 57.92% (+0.31%)
Ether-bitcoin ratio: 0.03879 (-1.01%)
Hashrate (seven-day moving average): 991 EH/s
Hashprice (spot): $52.08
Total fees: 3.69 BTC / $432,583
CME Futures Open Interest: 149,110 BTC
BTC priced in gold: 31.9 oz.
BTC vs gold market cap: 9.03%

Technical Analysis

Open interest in BTC futures listed on the CME has surged from 133K to 149K BTC, ending a two-month downtrend. The change shows renewed capital inflows into the market, although the direction of the flows remains unclear.

Crypto Equities

Coinbase Global (COIN): closed on Thursday at $343.13 (+7.04%), -0.62% at $341.00 in pre-market
Circle (CRCL): closed at $140.42 (+7.16%), +2.53% at $143.97
Galaxy Digital (GLXY): closed at $33.08 (+0.21%), -1.75% at $32.50
Bullish (BLSH): closed at $65.61 (+20.72%), -2.85% at $63.74
MARA Holdings (MARA): closed at $18.5 (+6.69%), -0.65% at $18.38
Riot Platforms (RIOT): closed at $17.51 (-0.62%), -0.69% at $17.39
Core Scientific (CORZ): closed at $16.75 (+2.95%), -0.12% at $16.73
CleanSpark (CLSK): closed at $13.46 (+17.66%), -1.26% at $13.29
CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $41.1 (-0.12%), -1.41% at $40.52
Exodus Movement (EXOD): closed at $29.26 (+3.61%)

Crypto Treasury Companies

Strategy (MSTR): closed at $349.12 (+5.89%), unchanged in pre-market
Semler Scientific (SMLR): closed at $29.49 (+6.54%), unchanged in pre-market
SharpLink Gaming (SBET): closed at $17.22 (+0.58%), -0.41% at $17.15
Upexi (UPXI): closed at $6.82 (+12.08%), -1.03% at $6.75
Lite Strategy (LITS): closed at $2.71 (+3.83%), +3.69% at $2.81

ETF Flows

Spot BTC ETFs

Daily net flows: $163 million
Cumulative net flows: $57.46 billion
Total BTC holdings ~1.32 million

Spot ETH ETFs

Daily net flows: $213.1 million
Cumulative net flows: $13.89 billion
Total ETH holdings ~6.6 million

Source: Farside Investors