The Heimdall Newsletter #2

Bitcoin ETFs, Bullish Predictions, China’s Crypto Strategy, and More

Published in

Heimdall Research

8 min readJun 30, 2023

Welcome to Heimdall Newsletter #2, your concise crypto compass. This week, we’re delving into SEC’s Bitcoin ETF concerns, Tom Lee’s Bitcoin optimism, and China’s dual-faced blockchain approach. Packed with fresh crypto news, insightful market analysis, and compelling insights, the Heimdall Newsletter is your express ticket to the crypto cosmos.

Hello, Heimdall community 👋

Welcome to the second edition of Heimdall’s Newsletter 🎉

This week, we’re delving into the intriguing dynamics of the SEC’s stance on Bitcoin ETFs, the optimistic outlook of Fundstrat’s Tom Lee on Bitcoin’s future, and the intriguing blockchain mind games played by China 🚀

We’ve lined up for you: The hottest crypto news, a comprehensive market analysis from diverse perspectives, and an enlightening exploration of China’s dual approach to crypto.

But wait, there’s more! We also have a trend tracker and some compelling read you won’t want to miss.

So, are you ready to dive into the heart of this week’s crypto developments?

Let’s get started 🚀

Crypto News Flash 🔥

SEC Expresses Concerns Over Spot Bitcoin ETF Filings: The U.S. Securities and Exchange Commission (SEC) has reportedly expressed concerns over the adequacy of recent filings for spot Bitcoin ETFs. The filings, submitted by major players such as BlackRock and Fidelity, have been deemed insufficient in terms of clarity and comprehensiveness. The SEC’s concerns primarily revolve around the lack of detail regarding surveillance-sharing agreements, including the choice of spot Bitcoin exchange. Despite the setback, asset managers can update their applications and refile. The news led to a brief dip in Bitcoin’s price, but the crypto market remains resilient. Read more…

Fundstrat’s Tom Lee Optimistic About Bitcoin’s Future: Tom Lee, managing partner at Fundstrat Global Advisors, has expressed optimism about the future of Bitcoin (BTC). Despite facing significant regulatory challenges, Bitcoin has demonstrated resilience, leading Lee to believe that the digital asset is here to stay. He also notes that while the crypto space has seen some bad actors, more traditional financial players are entering the scene, which could signal a brighter future for Bitcoin. Lee also points out that Bitcoin is particularly popular among millennials, who are set to inherit substantial wealth in the coming years. This generational wealth transfer could lead to an increase in Bitcoin holders. Read more…

China Blockchain’s Mindgames: China’s approach to crypto is like a juggler with one hand in a glove and the other bare. On one side, Beijing is banning global crypto networks, while on the other, it’s promoting next-gen monetary tech that gives the Chinese Communist Party more control. But here’s the twist: Through Hong Kong, China is also carving out a niche in the global markets for digital assets. The region is heating up with the Bank of China issuing $28 million of debt on Ethereum and HSBC offering clients access to Bitcoin and Ethereum ETFs. So, what’s the big picture? China is playing both sides of the crypto coin, exerting internal financial controls on the mainland and making moves in the global crypto networks. It’s a high-stakes game, and the world is watching. Read more…

Other Crypto Highlights 🍿

Trend Tracker 🧠

Liquid Staking Derivatives (LSDs) — The New Kid on the Crypto Block

In the fast-paced crypto cosmos, a new star is shining bright — Liquid Staking Derivatives (LSDs). No, we’re not tripping on a psychedelic journey, but we’re certainly on a thrilling ride in the crypto universe.

Picture this: You’ve got tokens. You stake them. In return, you’re handed these shiny new derivatives. It’s like lending your bicycle and getting a rocket in return. Now, that’s what we call a stellar trade!

The magic of LSDs? You’re earning yield on your staked assets, but you’re not losing liquidity. It’s like your money is working double shifts, tirelessly, around the clock.

Currently, there are more than 10 million ETH staked through LSD providers, making up over half of the total staked token volume. And this is just the warm-up. The main event? It’s set to blast off in 2024.

Let’s zoom in on Lido, the big shot in the Ethereum DeFi scene. They’re sitting on a treasure chest of $12 billion in capital deposits. Their LSD, stETH? It’s the 8th largest crypto by market cap, standing tall among the giants.

Stake your ETH in Lido, and voila, you’ve got stETH. You can trade it, toss it into a liquidity pool, or sell it when you’re ready to cash out. It’s all about making your money work smarter, not harder.

So, LSDs. They’re shaking up the crypto universe. But don’t just take our word for it. Dive in, do your research, and see what the hype is all about.

That’s all for this week’s trend tracker, folks! Stay tuned for more exciting updates from the ever-evolving crypto universe.

Market Analysis 🔍

As we sail through the vast ocean of the crypto market, let’s take a moment to assess the current landscape. The global crypto market cap is $1.24 trillion today, marking a 1.68% change in the last 24 hours. The total trading volume in the last 24 hours has swelled to $45.8 billion, with Bitcoin and Ethereum holding the helm, commanding 48.31% and 18.34% market dominance, respectively.

Now, let’s dive a bit deeper. We’re currently looking for the break of the $31,000 mark, which could confirm a new upward tide. If this wave catches on, we could look at targets of $32,500, $35,000, and even $39,000.

However, it’s crucial to remember that these waters can be unpredictable. For this upward movement to hold its course, it’s extremely important that we manage to stay afloat above the $29,500 support level.

Global marketcap cryptocurrency market — Source: СryptoBubblesDaily

Biggest Price Movers

Fear and Greed Index

Protocol Rankings

Yield Rankings

Cryptocurrency Longs vs. Shorts

Featured Article ✨

This week’s featured article is an insightful piece from Heimdall’s Research 👉 Introducing Polygon 2.0: The Value Layer of the Internet.

The blockchain space is buzzing with anticipation for the upcoming launch of Polygon 2.0, a significant development that promises to revolutionize the industry. Here are the key takeaways from the article:

The Vision of Polygon 2.0: This next iteration of the Polygon platform is set to introduce a host of new features, each designed to enhance scalability, interoperability, and security, thereby potentially reshaping the decentralized finance (DeFi) landscape.
The Architecture of Polygon 2.0: The architecture of Polygon 2.0 is formalized as a collection of protocol layers, each enabling an important process within the network: the Staking Layer, Interop Layer, Execution Layer, and Proving Layer. These layers together form the backbone of Polygon 2.0, making it an elastically scalable, unified environment for accessing value: the Value Layer of the Internet.
The Economic Impact of Polygon 2.0: Polygon 2.0 is set to bring about significant changes in the blockchain industry, with potential economic implications. Its scalability and interoperability features are designed to attract a broad range of developers and users, which could lead to increased activity on the platform and potentially influence the demand for the Polygon token.
The Potential Use Cases of Polygon 2.0: Polygon 2.0 is not just an upgrade but a radical reimagination of the Polygon network. It is designed to be the Value Layer of the Internet, providing unlimited scalability and unified liquidity. This makes it an ideal platform for various use cases, from DeFi applications to gaming, supply chain management, and healthcare applications.
The Risks and Challenges of Polygon 2.0: Despite its promising features and potential use cases, Polygon 2.0 is not without its risks and challenges. As with any blockchain platform, it faces the ongoing challenge of ensuring the security and integrity of its network. Achieving widespread adoption and managing the dynamic nature of Polygon 2.0’s development are also significant challenges.

This article provides an in-depth understanding of Polygon 2.0, its unique features, and the potential impact it could have on the DeFi landscape. It’s a must-read for anyone interested in the future of blockchain technology.

Conclusion 🫰

And just like that, we’ve reached the end of another exhilarating week in the crypto universe, dear Heimdall community! 🎉

From diving into the world of Liquid Staking Derivatives to deciphering the SEC’s stance on Bitcoin ETFs, and navigating the dynamic currents of the crypto market, we’ve covered quite a bit of ground together.

What’s next on this thrilling journey? Well, you’ll just have to stay tuned to find out next week! 🚀

Now, it’s your turn! Got a burning question or a hot take on the latest crypto trends? Don’t hesitate to reach out. If you’ve enjoyed our journey together, why not invite a friend to join the ride? Share the love, spread the word, and make this crypto journey an epic adventure together.

Remember, you’re not just a reader. You’re a part of the Heimdall family. So keep that curiosity burning, keep those questions coming, and we’ll catch you next week for more crypto escapades.

Until then, keep shining, crypto comrades!

See you soon 🤝