Bitcoin continued its freefall on Friday to end a volatile week, settling into a bear market.  The largest cryptocurrency by market value is down over 20% from its all-time high of $126,272 reached in October and breaking key technical levels by falling below $100,000, as noted by investor Louis Navellier, whose firm bears his name.  The largest exchange-traded funds that track bitcoin took a beating this week, with iShares Bitcoin Trust ETF, Fidelity Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust ETF ...

Core Insights - The future of Ethereum and its associated ETF, iShares Ethereum Trust ETF, remains uncertain but shows potential for growth and development in the coming years [2][3] Ethereum Developments - Vitalik Buterin, the founder of Ethereum, outlined plans for the cryptocurrency by 2030, focusing on lower usage fees and faster execution of smart contracts [4] - The Ethereum network aims to enhance scalability to handle significant workloads efficiently [4] - The scaling efforts include improvements not only to Ethereum itself but also to Layer-2 (L2) blockchains that enhance the network's performance [5] User Experience Enhancements - The integration of L2 platforms is expected to improve user experience by making it easier to move data and app links between different systems [5] - The goal is to make Ethereum-based applications as ubiquitous and user-friendly as popular programming languages like Java, Python, and C [6] ETF Insights - The iShares Ethereum Trust ETF provides a way for investors to gain exposure to Ethereum within tax-advantaged retirement accounts, such as IRAs [7] - The ETF structure also makes Ethereum accessible to institutional investors who may be hesitant to hold cryptocurrencies directly [7]

Group 1 - The article discusses the iShares Ethereum Trust ETF (NASDAQ: ETHA), which is designed to track the performance of Ethereum [1] - The focus is on identifying high-quality companies with strong balance sheets and shareholder-friendly policies [1] - The investment approach is long-only with a long-term focus, utilizing both quantitative and qualitative measures [1]

Core Insights - The article discusses how first-time crypto investors can create a diversified portfolio with just $500, focusing on Bitcoin and Ethereum as primary assets [1][2]. Group 1: Investment Options - Spot crypto exchange-traded funds (ETFs) are highlighted as a viable option for gaining exposure to Bitcoin and Ethereum without needing to purchase the cryptocurrencies directly [4][5]. - The iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF from BlackRock are mentioned as popular choices for investors [4][6]. Group 2: Market Capitalization and Portfolio Allocation - Bitcoin has a market cap of approximately $2.4 trillion, representing nearly 60% of the total crypto market cap, while Ethereum's market cap is around $530 billion, accounting for roughly 13% [9][10]. - A suggested diversified portfolio could consist of 60% Bitcoin, 13% Ethereum, 5% XRP, and 2.5% Solana, with alternative allocations also proposed [10][11]. Group 3: Practical Implementation - With a $500 investment, a practical allocation could involve $350 for five shares of the iShares Bitcoin Trust and $140 for four shares of the iShares Ethereum Trust, leaving $10 for additional investments [11]. - The article emphasizes the simplicity of this strategy, which mirrors the approach of diversified crypto ETFs currently available in the market [12]. Group 4: Long-term Strategy - The article advocates for a buy-and-hold strategy for Bitcoin and Ethereum, suggesting that this approach is more sustainable compared to investing in riskier cryptocurrencies [13][14]. - For first-time investors, focusing on Bitcoin and Ethereum through low-cost ETFs is recommended as a sound investment strategy [14].

Cryptocurrency Market Overview - Bitcoin has recently surpassed its previous all-time high of approximately $112,000, reaching new highs above $123,000, and is currently up about 24% year-to-date [1] - Ethereum has increased nearly 50% over the past month, driven by treasury announcements and renewed investor interest, as it approaches key resistance levels [2] Bitcoin Investment Vehicles - The iShares Bitcoin Trust ETF (IBIT) has become a leading vehicle for Bitcoin exposure, with assets under management totaling $86.17 billion, allowing investors to track Bitcoin's price movements without direct ownership [3] - IBIT has experienced a pullback but remains above key moving averages and support at $66, indicating potential for institutional interest if Bitcoin resumes its upward trend [4] MicroStrategy's Bitcoin Strategy - MicroStrategy (MSTR) holds over 607,770 bitcoins, making it a significant equity play on Bitcoin, with shares up 43% year-to-date after a low of nearly $240 in April [6][7] - The company's strategy, led by Executive Chairman Michael Saylor, focuses on using corporate balance sheets to accumulate Bitcoin as a long-term store of value [6] Coinbase's Market Position - Coinbase Global (COIN) has solidified its role as a core infrastructure provider in the cryptocurrency ecosystem, with its stock up nearly 60% year-to-date, driven by favorable regulatory conditions and increased crypto popularity [9] - Upcoming earnings and Bitcoin's performance are expected to be major catalysts for Coinbase's short-term trajectory [10] BitMine Immersion's Ethereum Strategy - BitMine Immersion Technologies (BMNR) is focusing on building a substantial Ethereum treasury, currently holding 566,776 Ethereum valued at over $2 billion, with a goal to acquire 5% of the total Ethereum supply [12] - The stock has surged over 400% due to its aggressive strategy and backing from notable investors [13] iShares Ethereum Trust ETF - The iShares Ethereum Trust ETF (ETHA) has emerged as a key option for investors seeking exposure to Ethereum, with net assets totaling $10.5 billion as of July 24, and has surged alongside Ethereum's recent price increase [15][16] Market Sentiment and Future Outlook - The recent breakouts of Bitcoin and Ethereum have reignited interest in the crypto landscape, with investors looking for signs of leadership and momentum in crypto-linked equities and ETFs [17] - More stable investment vehicles like IBIT, COIN, and ETHA may provide a balanced approach for investors participating in the next phase of the crypto cycle [18]