The Daily: Kamala and crypto, Bitcoin's price surge, ETHE, Ledger Flex and more

The Block2024/07/26 18:55

By:James Hunt

Kamala Harris’ team wants to take a position on crypto, source says, as outreach to the industry forges onBitcoin breaks above $67,000 ahead of Trump’s upcoming keynote speechThere won’t be a ‘long list of crypto ETFs,’ BlackRock’s Robert Mitchnick saysThe following is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

It's Friday! In today's Daily, Kamala Harris' team reaches out to the crypto industry, bitcoin gains ahead of Trump's keynote speech, BlackRock says there won't be a "long list" of crypto ETFs and more.

Let's get started.

Kamala Harris' team reaches out on crypto

Vice President Kamala Harris' team wants to learn more about crypto, a source who spoke with a member of her campaign said , adding that the team didn't know a lot about the industry.

Harris' campaign team has already begun reaching out to ask questions, according to the source.
The source said her team asked why crypto is getting a lot of attention and wanted more information on past conversations the crypto industry had with President Joe Biden's advisor.
"My impression is they get that this matters," the source added. "They want to have positions on it … they're going to take their time."
Harris has swiftly become the likely Democratic nominee to run against former President Donald Trump in the upcoming election after Biden announced he would not seek reelection on Sunday.
Crypto industry leaders believe a Harris presidency could signify a shift from the current Biden Administration's stance on crypto.
Trump, meanwhile, has pledged to end an "unlawful and un-American crackdown" on the U.S. crypto industry and has reportedly called himself the first "crypto president."
As Harris becomes the presumptive Democratic nominee, the crypto industry is searching for indicators that could reveal how her potential presidency might impact bitcoin and the wider cryptocurrency sector.

Bitcoin breaks above $67,000 ahead of Trump's upcoming keynote speech

Bitcoin's price surged back above $67,000 on Friday , causing more than $30 million in short liquidations on centralized exchanges over the past 24 hours.

The rally comes ahead of Donald Trump's keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee — marking the first time a U.S. presidential candidate has appeared at such an event.
The former U.S. president is scheduled to appear on the Nakamoto Stage at 3 p.m. ET on Saturday for a 30-minute session.
Trump has shown strong support for crypto in recent months, despite previously being critical of the industry, accepting donations in cryptocurrencies, and advocating for holders' right to self-custody and U.S. bitcoin miners.

There won't be a 'long list of crypto ETFs,' BlackRock's Robert Mitchnick says

BlackRock's Head of Digital Assets, Robert Mitchnick, stated at the Bitcoin 2024 conference on Thursday that the launch of spot Ethereum ETFs is unlikely to lead to a proliferation of funds tracking other crypto assets like Solana's SOL or Polygon's MATIC.

"If you think of bitcoin, today it represents about 55% of the market cap. Ether is at 18%. The next plausible investible asset is at, like, 3%. It's just not close to being at that threshold or track record of maturity, liquidity, et cetera," Mitchnick said in a conversation with Bloomberg ETF analyst James Seyffart.
Mitchnick, who is sometimes called "the guy who 'orange-pilled' BlackRock CEO Larry Fink," added that the SEC wants to draw the line somewhere and is also unlikely to approve spot Ethereum ETFs with staking components.
"We don't view bitcoin and ether really as competitors," Mitchnick continued. "Bitcoin is trying to be as a global monetary alternative, as a potential global payment system," while Ethereum is better thought of as a technological platform for building applications. "So, really, they're more complements rather than substitutes."

Ledger unveils its latest hardware wallet amid product-line revamp

Ledger unveiled its latest hardware device on Friday , Ledger Flex, featuring the same E-Ink touchscreen technology used in its Ledger Stax wallet, designed to make it easier to navigate compared to traditional devices.

Founded in 2014, Ledger claims to have sold over seven million hardware wallets, securing more than 20% of the world's digital assets.
In addition to integrating Ledger's "Secure OS" operating system, Flex also connects to the mobile and desktop app Ledger Live. However, at a $249 price point, Flex is one of the firm's more expensive offerings.
Last year, the company faced controversy following the launch of its Ledger Recover service, which some critics saw as a potential backdoor for accessing users' private keys.

At this rate, Grayscale's ETHE could run out of ether within weeks

Grayscale's converted ETHE spot Ethereum ETF has experienced substantial net outflows in the first few days of trading — totaling $1.2 billion.

ETHE's outflows have overwhelmed net inflows into the other spot Ethereum ETFs, but its assets under management could be depleted in a matter of weeks at this rate.
Until ETHE's net outflows subside, it is likely to continue exerting selling pressure on the price of ether, analysts said.

Looking to next week

Eurozone CPI inflation data and the U.S. Fed's latest interest rate decision are due Wednesday. The Bank of England's interest rate decision follows on Thursday. U.S. nonfarm payrolls are out on Friday.

Bank of England Governor Andrew Bailey will speak on Thursday.

Bitcoin 2024 concludes in Nashville on Saturday.

Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.