OUR INTERN DROPPED THE BALL ON $AVAX 👎

OUR INTERN DROPPED THE BALL ON $AVAX 👎
In our Monday morning all hands meeting, LG asked if we expect the two new Avalanche ($AVAX) treasuries to have an impact.

Source: The Block

Without hesitation, our social media intern, Archie, promptly responded: “No.”

Archie is annoyingly good at most things and naturally intuitive – but boy did he drop the ball on this one.

He’s since done some digging, and dropped the following in our shared research doc:

1/ Spot volume is popping off

Since these $AVAX Digital Asset Treasuries (DATs) were proposed last week, Avalanche’s spot trading (immediate buying/selling of the token at the current market price) has gone berserk.

Source: @kyle_chasse

2/ Other onchain metrics are following suit

Dashboards across the Avalanche ecosystem have lit up – and bonus: it’s not just because of the recent DAT announcements, this activity has been growing for months (that’s a good sign!).

Source: @JasonYanowits

And now…

3/ Resistance is on the verge of breaking

To break upward resistance, an asset’s price candle (in this case, the weekly candle) needs to close above its (you guessed it) resistance line.

To break a downward trend, it needs to make a “higher high” and close above the price of its previous peak.

If $AVAX can close out this week at ~$34, it will break its upwards resistance level and take the first step towards reversing a 4yr long down trend. 👇

Source: TradingView

So, LG: on behalf of Archie, I would like to formally apologize.

This $1B investment isn’t just expected to have an effect on Avalanche – it’s already doing so.

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CRYPTO ETF LAUNCHES MAY BE ABOUT TO TRIPLE 🤘
We dropped this story as a cookie yesterday, but it’s too big not to write about.

In fact – we’re surprised more people aren’t talking about it.

Source: @umikathryn

Wait, no. Yep. Just re-read it. Sounds boring as hell. No wonder people are fading it.

The thing is: it’s a big deal!

Here’s the basic gist of the changes…

Previously: each crypto ETF would be considered based on its own unique mix of criteria, with approvals taking 240 days or more.

Now: certain crypto ETFs can be considered under a universal set of criteria, with approvals taking ~75 days.

Here’s what the change looks like in practice…

The SEC can now approve new crypto ETFs if just one of these three criteria are met:

A similar ETF is already trading on foreign exchanges that practice a certain type of market surveillance.

A similar ETF with at least 40% market exposure to the token is already trading on a US exchange.

The token has had its own CFTC-regulated futures trading for at least 6 months on approved exchanges (they previously demanded 2-3 years.)

(The SEC is essentially outsourcing its trust/verification to outside regulators/exchanges.)

Here’s the effect this rule change had when it hit non-crypto ETFs back in 2019…

Source: @Matt_Hougan

Yeah – the average amount of ETFs launched per year more than tripled!

Which means we can likely look forward to a whooole bunch of new crypto ETF launches in the coming year. 🫡