MicroStrategy leveraged ETF gets SEC green light, what’s next

The SEC gives the green light to the Defiance Daily Target 1.75X Long MicroStrategy ETF, which tracks daily investment returns with leverage of 1.75 times the stock’s daily percentage change.

• Bitcoin, Ethereum and XRP trade at key levels after outflows to Spot BTC ETFs on Wednesday.
• Ripple makes key partnership announcement, but fails to catalyze gains in XRP.

Bitcoin, Ethereum and XRP update

• Bitcoin is trading below $60,000 early Thursday. Bitcoin Spot Exchange Traded Funds (ETFs) saw a net outflow on Wednesday.
• According to a Nasdaq regulatory update, the US Securities and Exchange Commission (SEC) has approved the Daily Target 1.75X Long Microstrategy ETF MSTR, a leveraged ETF.
• Ethereum is trading with key support at $2,750 on Thursday.
• XRP dipped below support at $0.57 as traders digested news of Ripple’s partnership with Japanese financial giant SBI Digital Commodity.

Chart of the day

AAVE extended gains by nearly 4% on Thursday. The DeFi token could rise almost 9% to its target of $120, the lower limit of an imbalance zone on the daily chart. AAVE could face resistance at $111, the 50% Fibonacci retracement level of the decline from the March 13 high of $153.72 to the April 13 low of $70.

Moving Average Convergence Divergence (MACD) shows a positive underlying momentum in the AAVE price trend.

AAVE/USDT Daily Chart

AAVE could find support in the disequilibrium zone between $100 and $104.18.

Market updates

• Bitcoin’s price performance is consistent with that of the past two years, seen in August. BTC has erased nearly 10% of its value and is likely to extend gains in Q4 if the pattern repeats.

• Lido announces that users can connect their Ether to Binance Chain and access the ecosystem of DeFi protocols.

• The number of weekly AAVE borrowers reached a new all-time high for Dune Analytics data.

Total weekly debtors on AAVE

Industry updates

• Data shows that 50% of all active Ethereum Layer 2 addresses are based on Coinbase.

• The Cronos chain has launched its zk chain on the mainnet, according to the official announcement.

• Decentralized blockchain AI in web3 raises $43 million in funding from Binance Labs and Polychain.