To get the present each day, observe the podcast right here.
At this time’s episode of “Markets Every day” begins with a minute of markets updates, adopted by an interview with host Jennifer Sanasie and Leo Mizuhara, CEO of Hashnote on layer 2s to look at, the continued Coinbase versus SEC case and the resurgence of the Solana ecosystem.
This episode was hosted by Jennifer Sanasie. “Markets Every day” is government produced by Jared Schwartz and produced and edited by Eleanor Pahl, alongside Senior Reserving Producer Melissa Montañez. All authentic music by Doc Blust and Colin Mealey.
Audio Transcript: This transcript has not been edited and should comprise errors.
In response to CoinDesk Indices, at 8 a.m. Japanese time, bitcoin was buying and selling down 2.18% over the previous 24 hours at $40,802 after one other disappointing week for bitcoin. In the meantime, ether was down 3.95% over the identical time interval, sitting at $2372. At this time’s ‘Mover’ within the CoinDesk Market Index is Cartesi, ticker CTSI, up 37% on the day. In conventional markets, each the NASDAQ and the S&P 500 rose over a % within the final buying and selling session. Notably, the S&P 500 reached a document excessive Friday, bolstered by sturdy efficiency within the tech sector. Inventory futures are trying constructive to start out the week as merchants purpose to construct on Friday’s standout efficiency. And in commodities, the Brent crude benchmark was buying and selling at 75 {dollars} and 88 cents a barrel whereas gold was buying and selling at 2029 {dollars} an oz..
JENNIFER SANASIE:
For extra on the markets motion, let’s herald Hashnote CEO Leo Mizuhara.
LEO MIZUHARA:
Hey, good to be again. Jen. How are you?
JENNIFER SANASIE:
I am nice. Leo, Pleased New 12 months.
LEO MIZUHARA:
Pleased New 12 months. Very thrilling begin to the brand new yr.
JENNIFER SANASIE:
It has been a really, very thrilling begin to the brand new yr. Let’s begin off very broadly. What market developments are you watching? And I feel I do know what you are gonna say.
LEO MIZUHARA:
Nicely, we’re clearly all watching bitcoin and the way the brand new bitcoin ETF has modified our outlook on bitcoin and the affect that we’re anticipating there. However I feel the actual story post-ETF has been Ethereum’s outperformance as we’re popping out of this. I feel the market has actually rotated from the story main as much as the ETF being that bitcoin goes to be purchased as much as the subsequent story, which is doubtlessly that Ethereum ETF is popping out. I might even recommend that we’ll proceed to look ahead. And so the questions grow to be what’s after the ether ETF? Are we taking a look at staked ETH, for instance? You already know, we’re fairly targeted on that at Hashnote proper now when it comes to having the ability to present staked eth funds and altcoin funds as properly. So I feel the outperformance of eth is attention-grabbing and I feel that continued rotation goes to be the story of the primary quarter right here.
JENNIFER SANASIE:
Let’s discuss eth as a result of everybody was anticipating the value of bitcoin to rally on that preliminary announcement and eth took off earlier than bitcoin did. Have been you anticipating to see that? And the way do you count on to see ether’s value progress over the remainder of 2024?
LEO MIZUHARA:
Yeah, we had combined opinions right here at Hashnote truly, my private opinion was that the bitcoin ETF is an enormous deal, however it’ll be a gradual trickle. Proper? As RIAs come on board, more cash managers begin to onboard the ETF, we’re gonna see lots of flows into bitcoin. And that’ll be large over the course of 2024. However everybody was anticipating this large soar maybe the weekend after or the week after, and that was not likely my view. Though to be honest, you realize, a number of others on my employees did imagine that this might be a continued influx, and they might see rather more coming straight out of the ETF. I feel it is fairly telling that Ethereum had its rally and hasn’t bought off the identical means bitcoin has thereafter. And I feel that is actually a rotation into what we’re on the lookout for subsequent, that Ethereum ETF is nearly actually on the horizon. I feel Ethereum has lots of attention-grabbing options, together with the truth that it has a pure inborn yield provision or a dividend provision, relying on the way you have a look at staking yields. And so, you realize, I feel staked ETH funds are going to have lots of lots of room to run over the subsequent yr. Not lots of purpose for individuals to remain in Ethereum ETFs, if they will get the dividend yield or the staking yield inside a fund automobile. And the subsequent step after that’s nearly actually altcoins. So we have seen an enormous run up in Solana, we have seen an enormous run up in Ethereum Layer 2s. I feel the use circumstances across the Ethereum and the potential money flows that come off of a few of these Layer 2s in addition to Ethereum itself are actually attention-grabbing to buyers going ahead.
JENNIFER SANASIE:
Let’s discuss these Layer 2s. We noticed a number of the tokens related to Layer 2s additionally rally on the information of the spot bitcoin ETF approval. What Layer 2 tokens are you watching?
LEO MIZUHARA:
Yeah, that is proper. We noticed lots of, I feel the entire ecosystem actually rallied after after the bitcoin ETF. It sort of gave the entire trade some credibility, proper. We’re watching a number of the large ones round significantly Arbitrum, we’re occupied with out how to consider the Optimism layer as properly. Matic is a traditional Layer 2, though it hasn’t seen as a lot of a rally as the opposite ones have. I feel one of many issues I you realize, Coinbase inventory is definitely a great way to play the Layer 2s proper now as properly, as Coinbase is just not going properly, it would not sound like Coinbase goes to return out with a base token. However the profitability of the Base Layer 2 will go immediately into Coinbase inventory. These are attention-grabbing in that they are often, they are often analyzed extra like conventional monetary devices, they’ve a enterprise mannequin that’s nearly like a secondary market reseller, they take blockspace that they’re buying on Ethereum and reselling it to to Layer 2 or a secondary market customers. And I feel that is going to be actually interesting to Wall Avenue going ahead. The truth that a number of the layer ones like bitcoin have some type of financial worth, they really feel like gold, I feel will give technique to this very attention-grabbing, straightforward to research set of options on Layer 2s, and thus make them very interesting for Wall Avenue going ahead.
JENNIFER SANASIE:
On the subject of Coinbase’s inventory, we’re ready for choose to decide on whether or not or not the case the SEC introduced in opposition to Coinbase goes to get thrown out. If it would not, do you suppose that is going to have a bearing on the value of COIN?
LEO MIZUHARA:
I imply, it’s going to have some bearing. However I feel the truth that it is getting taken so significantly could be very attention-grabbing. Typically talking, getting these circumstances thrown out, my understanding is it is fairly troublesome and uncommon. Nonetheless, the truth that it is getting a lot airtime and there that the choose is taking it so significantly. I feel it is a very revealing when it comes to how contentious this case is. And even in our preliminary oral arguments or in her response to the oral arguments, she confirmed an excellent understanding of what the issues at stake are. I imagine she mentioned one thing alongside the traces of “You already know, I am introduced with the specter of collectibles being regulated by the SEC, which incorporates issues like sneakers and buying and selling playing cards and luxurious watches.” Prefer it all feels very out of the purview of the SEC, usually. However she has a really clear understanding that that is the that is the slippery slope that she’s standing on the precipice of.
JENNIFER SANASIE:
We’ll proceed watching what occurs in that case. However we won’t speak concerning the markets lately with out speaking concerning the Solana ecosystem. It’s actually making a comeback originally of 2024. SOL has seen some main positive aspects together with a number of the meme cash within the Solana ecosystem like Dogwifhat, which I at all times have a extremely enjoyable time saying and Bonk. Are you watching something particularly there?
LEO MIZUHARA:
Yeah, I’ve at all times been a fan of the Solana ecosystem. I feel the tech is basically attention-grabbing. Definitely, we have seen lots of renewed exercise on Solana. It is actually picked up. At one level, Solana was seeing extra exercise in DeFi than Ethereum, which was one of many large headlines. It is perhaps price noting that even on the current peak, it is nonetheless about 10% of what it was at its like at the actual peak in 2021. Additionally, maybe price noting that whereas the DeFi exercise on Solana is perhaps greater than that of Ethereum, in case you add Ethereum plus to Layer 2s, it is not fairly as stark that Solana is is taking over a lot vitality. However, actually attention-grabbing to see the exercise, I feel they’ve a terrific product there. I feel the meme coin stuff is just not actually my purview, so I do not I do not perceive any of that, sadly, nevertheless it’s fairly humorous. I imply dogwifhat, I haven’t got any, I want I did. The opposite layer ones the opposite layer ones I am taking a look at proper now our guys like Close to and Tron. I feel they’re additionally doing a little attention-grabbing issues, I do know Close to is constructing is basically trying to construct some actual world use circumstances. And Tron is tremendous attention-grabbing simply due to the quantity of steady cash which might be buying and selling on Tron. However yeah, there’s there’s rather a lot occurring and alt layer ones and I feel it is displaying a really clear use for a multi layer one ecosystem shifting ahead.
JENNIFER SANASIE:
Leo, you are not the one one that does not actually perceive what is going on on with that meme coin. So that you’re in good firm, however they’re enjoyable to look at.
LEO MIZUHARA:
Yeah, I want I understood it higher. I say it is a spot the place you get the actual volatility, proper. However however, I additionally am not likely an artwork collector, so you realize.
JENNIFER SANASIE:
I do not I haven’t got the abdomen for that sort of volatility. Leah, thanks a lot for becoming a member of “Markets Every day” at present. That was Hashnote CEO Leo Mizuhara. That is it for at present’s present.