Invest ideasNews
20 Jan 2026, 11:39
FETH: Not A 'Buy' Without Staking (Rating Downgrade)
Summary Fidelity Ethereum ETF is downgraded due to a lack of staking and extreme ETH valuation concerns. ETH network fees collapsed 86% YoY in Q4-25, driving the P/F multiple to a historic high of 3,260x. FETH lags peers in inflows; Grayscale Ethereum Mini ETF is favored for its lower fee and staking capability. Ethereum's stablecoin usage and capital flows remain strong, but success may already be priced into ETH. It has been about 6 months since I last covered the Fidelity Ethereum Fund ETF ( FETH ) for Seeking Alpha. To briefly recap my thoughts on the fund, it was my preferred spot Ethereum USD ( ETH-USD ) ETF back when it launched in July 2024. I have generally liked that Fidelity relies on self-custody for asset holdings rather than third-party providers like Coinbase Global, Inc. ( COIN ), though Fidelity has deviated from the self-custody strategy in the newer Fidelity Solana Fund ETF ( FSOL ). In this update, we'll look at Ethereum's key metrics for Q4-25 as well as capital flow considerations broadly and for FETH specifically. Ethereum Network Metrics Q4-25 was a continuation of the broad trend that we've seen for Ethereum over the last several quarters. Namely, on-chain activity is up when viewed through usage metrics like Daily Active Addresses and transactions; each of which was up by nearly 30% year-over-year. However, we continue to see what I view to be one of the most important economic numbers for the network declining. Ethereum Q4-25 Q3-25 Q4-25 YoY QoQ DAAs (000s) 400.8 516.0 509.9 27.2% -1.2% Transactions (millions) 112.1 147.3 145.2 29.5% -1.4% Fees (millions) $552.10 $125.40 $76.60 -86.1% -38.9% Source: Artemis Analytics. Fees in the quarter were down 86% year-over-year from $552 million in Q4-24 to just $76.6 million in Q4-25. The sequential decline in fees was also high at nearly 40% in a single quarter. This decline in fees took Ethereum from the top network in the public blockchain industry in Q4-24 down to the third-ranked chain by fees in Q4-25. Even though network fees have essentially collapsed over the last several years, Ethereum's stablecoin footprint continues to be terrific. Not only has the chain seen more than 89% year-over-year growth in stablecoin supply from Q4-24 to Q4-25, but the actual usage of those coins has seen tremendous growth. Stable Tx Vol Q4-25 Q3-25 Q4-25 YoY QoQ Total Market (trillions) $10.2 $15.8 $19.7 93.1% 24.7% Ethereum (trillions) $2.3 $5.0 $7.5 226.1% 50.0% ETH Share 18.40% 24.04% 27.57% 49.9% 14.7% Supply (billions) $87,100 $130,300 $164,700 89.1% 26.4% Source: Artemis Analytics. In the last three months, Ethereum settled $7.5 billion in stablecoin transaction volume. This was good for 226% year-over-year growth and 27.6% shares of the total stablecoin market. Importantly, Ethereum's share of stablecoin transaction volume also grew both year-over-year and sequentially. Digital Asset Capital Flows Capital markets are still viewing Ethereum favorably from where I sit. During the full year 2025, Ethereum saw $12.7 billion in positive net flows into investment products. This was good for just under 27% of the total asset flows in the market. That trend is generally continuing in 2026, with $553 million in year-to-date net flows giving Ethereum 23% share of capital flows. Asset (millions) YTD Flows AUM 2025 Flows Bitcoin $1,664.0 $149,776 $26,984 Ethereum $552.9 $27,543 $12,698 Multi-asset -$32.1 $6,881 -$214.0 XRP $108.1 $3,865 $3,697.0 Solana $75.8 $3,832 $3,562.0 ETH Dominance 23.0% 14.2% 26.9% Source: CoinShares, Bloomberg as of 1/16/25. Considering Ethereum's investment AUM in the digital asset space is just 14.2% share of the market, Ethereum should continue to see a bid from investors if the network can continue to scale both stablecoin supply and stablecoin usage on-chain. FETH Vs. Peers While the market demand for Ethereum products in 2026 remains strong relative to AUM share, not all the digital asset ETF providers are seeing the same success. Despite having the third largest AUM in the broad space, Fidelity's products are underperforming a broad market that has already seen $2.4 billion in net inflows to begin 2026: Provider (millions) MTD Flows YTD Flows AUM 2025 Flows iShares $1,798 $1,798 $87,477 $35,056 Grayscale $28 $28 $27,636 -$2,851 Fidelity -$126 -$126 $23,048 $2,151 Bitwise $262 $262 $8,448 $1,105 Volatility Shares -$77 -$77 $4,352 $372 Total $2,404 $2,404 $193,556 $47,153 Source: CoinShares, Bloomberg as of 1/16/25. With $126 million already coming out of Fidelity products to begin the year, this could actually get worse for the provider before it gets better, given the fact that it has been Fidelity's Bitcoin USD ( BTC-USD ) product rather than its Ethereum product that has created the outflow year to date. Fidelity's ETH product has generated a little under $23 million in positive inflows. But that inflow is lagging competing funds: Fund Expense Ratio Staking? YTD Net Flows iShares Ethereum Trust ETF ( ETHA ) 0.25% Pending $369.90 Grayscale Ethereum Mini Staking ETF ( ETH ) 0.15% Yes $137.30 Bitwise Ethereum ETF ( ETHW ) 0.20% Pending $59.90 FETH 0.25% Pending $22.60 21Shares Ethereum ETF ( TETH ) 0.21% Pending $6.60 Source: Farside. The biggest issue I see for FETH at this time is that the fund lacks staking. While it is widely expected that the SEC will eventually approve staking for FETH, among other funds, right now, Grayscale is the only provider that does indeed have staking enabled for the fund assets. In a prior article , I detailed why I liked Grayscale's Mini ETF compared to Grayscale's original Ethereum product despite the lower staking ratio. Until FETH has staking enabled, the Grayscale Ethereum Mini ETF is likely the better long-term bet due to its lower fee and staking of assets. Risks There are numerous risks to consider before allocating capital to digital assets. Those risks include, but are not limited to, declining network usage, potential for speculative capital outflows, sales from DAT companies, and regulatory headwinds. Aside from all the standard risks that go with buying digital assets and their proxies, these things generally trade at nosebleed valuations when compared to traditional equities. Circulating P/F Ratio (Token Terminal) For instance, on a circulating price-to-fees multiple, ETH has never in its history been as 'overvalued' as it is today. At 3,260x fees, the decline in network fees coupled with the elevated price of the token has created a parabolic rise in the P/F multiple. I'm very concerned about this personally and see it as possible, if not likely, that Ethereum's potential success in stablecoin payments is already being priced in by the market. Not only is stablecoin payment success far from a sure thing broadly within the industry, but there is no guarantee that Ethereum will remain the long-term winner should such success manifest. Closing Summary I'm no longer personally holding FETH. My personal Ethereum exposure is limited to on-chain holdings and a speculative position through Grayscale's Mini fund. In the event FETH does get staking enabled, I could see myself revisiting the product. But for now, I'm downgrading FETH on two core factors: I like an alternative product better, and I'm highly concerned about the token's valuation.
20 Jan 2026, 11:31
This Man Lost $3M Worth of XRP Overnight. Here’s What Happened
A North Carolina man experienced a devastating loss in the early hours of October 15, 2025, when over $3 million in XRP disappeared from his wallet. The incident involved Brandon LaRocque, a long-time investor who had accumulated 1,210,000 XRP over the past eight years. YouTuber and crypto pundit BullRunners (@BullrunnersHQ) recently drew attention back to this event by sharing LaRoque’s video. He believed his assets were stored securely in an Ellipal cold wallet. Instead, the funds were exposed, leading to a complete loss. This man lost $3 Million Worth Of #XRP Overnight On Oct 15, 2025, a North Carolina man watched $3M+ in XRP — his life savings — vanish overnight. What he believed was a secure cold wallet may have actually been a hot wallet, exposed by confusing branding. Blockchain sleuth… pic.twitter.com/IKTRROnwMl — BULLRUNNERS (@BullrunnersHQ) January 19, 2026 Confusing Wallet Design The incident centers on the nature of the wallet LaRocque used. While marketed as a cold wallet , which is generally considered secure for long-term storage, BullRunners noted that it may have functioned with hot wallet vulnerabilities. Confusing branding likely contributed to the exposure of his funds, allowing attackers to access them without warning. Clarity in wallet design is essential. A wallet’s labeling and actual security protocols must align to prevent accidental exposure. In this case, the gap between expectation and reality proved financially catastrophic. Tracing the Funds BullRunners also revealed that blockchain analyst ZachXBT traced the stolen XRP as it moved through the network. The funds were bridged, split, and transferred across multiple chains. According to his findings, the assets ultimately entered networks linked to Southeast Asian scam operations. The tracing confirms the movement but does not provide a path to recovery . Law enforcement agencies, including the FBI and local cyber units, were unable to recover the stolen assets. Efforts by private recovery services proved ineffective, often operating as scams themselves. LaRocque’s case illustrates the challenges of recovering cryptocurrency once it leaves the original wallet. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Lessons on Security LaRocque’s experience emphasizes the importance of careful security management. He noted that he had held XRP since 2017 and took what he believed were standard precautions. Despite this, a single mistake resulted in the loss of years of accumulated savings. The case demonstrates that even well-established wallets require users to understand their functions. Investors are frequently advised to store their tokens in cold wallets . However, they must confirm the wallet’s actual operational protocols rather than rely solely on branding or marketing. The story also serves as a reminder for the cryptocurrency community. LaRocque’s situation suggests the need for ongoing vigilance, particularly with high-value holdings stored in wallets that claim enhanced security. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post This Man Lost $3M Worth of XRP Overnight. Here’s What Happened appeared first on Times Tabloid .
20 Jan 2026, 11:30
Solana Meme Coin WhiteWhale Price Plunges from $200M to $20M in Minutes
A Solana-based meme coin called WhiteWhale suffered a dramatic collapse on Monday, losing 60% of its market value within five minutes. The crash came after the project's largest holder sold $1.3 million worth of tokens in a single transaction. The token, which launched three months ago on the Pump.fun platform, saw its market capitalization plummet from $200 million to approximately $80 million in rapid succession. Community members and observers quickly labeled the incident a potential rug pull. Largest Holder Triggers Market Panic On-chain data reveals the sell-off originated from WhiteWhale's biggest wallet holder. The sudden dump created immediate panic among investors who had no advance warning of the massive liquidation. Market analyst Darky first brought attention to the crash on social media. According to his observations, the token dropped from a $200 million valuation to just $20 million in minutes. The speed and severity of the decline caught most holders off guard. Early Trader Walks Away With Substantial Profits Despite widespread losses, at least one investor profited significantly from the WhiteWhale rally . A trader identified as ”Remus” purchased 1.5% of the total token supply for just $370 during the early stages. This position grew to a peak value of $1.2 million as the token gained popularity. Remus sold approximately $220,000 worth of tokens during Monday's crash. The timing of this sale contributed to the downward pressure on the token's price. Blockchain records show Remus still holds nearly $1 million in WhiteWhale tokens. However, the current value of these holdings has diminished substantially following the crash. The WhiteWhale community issued a statement attempting to reframe the incident. They described the event as a ”planned liquidity event” designed to distribute token ownership and reduce concentration risks more evenly. This explanation has received skepticism from outside observers. At the time of writing, the token showed signs of recovery. WhiteWhale climbed back to a $31.2 million market capitalization, with individual tokens trading at $0.03120. This represents a partial rebound but still reflects major losses from the pre-crash peak.
20 Jan 2026, 11:30
Bitcoin Axed By Top Wall Street Strategist On Quantum Fears
Jefferies strategist Chris Wood has removed Bitcoin from his long-term model portfolio, citing quantum computing as a risk that weakens Bitcoin’s store-of-value framing for pension-style allocations. VanEck head of research Matthew Sigel flagged the change on X, calling it a notable “downgrade” from one of the Street’s most widely followed global strategists. Veteran Strategist Chris Wood Exits Bitcoin Wood wrote that he is not positioning for an imminent price shock, but that the long-duration mandate is where the quantum question bites. “While GREED & fear does not believe that the quantum issue is about to hit the Bitcoin price dramatically in the near term, the store of value concept is clearly on less solid foundation from the standpoint of a long-term pension portfolio,” Wood wrote. “For that reason, GREED & fear will remove the 10% allocation to Bitcoin this week with 5% reallocated to gold and 5% reallocated to gold-mining stocks.” The move is framed as risk management rather than a retrospective performance critique. Wood noted that despite gold’s recent outperformance versus Bitcoin, Bitcoin remained well ahead since his model first added it: Bitcoin had risen 325% since December 17, 2020, while gold bullion was up 145% over the same period. In a note dated January 15, 2026, Wood described how the quantum discussion has moved from abstract theory into something asset allocators are being asked to underwrite. “GREED & fear is no pure mathematician,” he wrote, adding that he has found himself pulled into conversations about “elliptic curves” because of “the growing focus in recent months on the threat posed to the Bitcoin system by the arrival of quantum computing .” His core claim is that the perceived timeline is compressing. He referenced rising concern that cryptographically relevant quantum computers could arrive “a few years away rather than a decade or more,” and argued that any credible threat to Bitcoin’s security model is “potentially existential” because it undermines the store-of-value concept that underpins the “digital alternative to gold” narrative . Wood’s mechanism is straightforward: what is computationally infeasible today could become tractable under CRQCs. He wrote that the current asymmetry, easy to derive a public key from a private key, effectively impossible to reverse, could collapse, with the time to derive a private key from a public key shrinking to “mere hours or days.” Wood said the industry is already debating potential responses, including whether to “burn” quantum-vulnerable coins to protect system integrity or to do nothing and accept the possibility that vulnerable coins could be stolen by entities with CRQCs. He presented the dispute as a conflict between preserving Bitcoin’s property-rights ethos and avoiding a policy choice that looks confiscatory, adding that one computer scientist he spoke with described the do-nothing stance as a “suicidal delusion.” Wood said his thinking was informed by discussions with knowledgeable parties and pointed to a Chaincode report as background reading, without treating it as a near-term trading trigger. VanEck’s Sigel Responds Sigel’s takeaway was less about whether quantum risk exists and more about how different systems respond. When one user argued that quantum would wipe out bank accounts, email, and brokerage systems as well, Sigel dismissed that as “not a sufficient take anymore,” drawing a sharp distinction between upgrade paths and reversibility. “Banks upgrade top-down; BTC requires years of consensus,” Sigel wrote. “Banks have an ‘undo’ button; BTC is finality-first.” Sigel also linked the debate to a familiar fault line inside Bitcoin governance. Asked how representative Wood’s view might be, Sigel said that in the “Adam Back vs. Nic Carter” debate he is “on Nic’s side,” and described Wood’s decision as supporting evidence. At the same time, Sigel emphasized process: he met Wood in New York before the note was published and said that although he disagreed with the conclusion, Wood “came to it honestly.” On positioning, Sigel said he has “added quantum exposure” previously to VanEck’s Onchain Economy ETF (NODE) and made small hedges, with a preference for “diversified” AI miners over “DATs / leveraged BTC,” while keeping spot BTC via an ETF as the largest holding. He framed the quantum issue as “solvable” and akin to a “wall of worry like blocksize wars,” rather than a thesis-breaker. At press time, BTC traded at $90,941.
20 Jan 2026, 11:30
Here’s Why The Litecoin Price May Be Getting Ready For Another Massive Rally
The Litecoin price has seen its fair share of volatility and corrections over the past few weeks. Despite the downtrend, a crypto analyst has forecasted that LTC could be laying the groundwork for another explosive rally. He has shared a detailed technical analysis and price chart explaining why he believes Litecoin could eventually flip into a bullish position. Litecoin may be positioning itself for another powerful rally, as its market structure remains broadly intact. According to a recent analysis from market expert The Penguin (@ThePenguinXBT), LTC’s structure continues to point toward much higher price levels, with recent volatility and declines doing little to change the overall macro outlook. Litecoin Price Gets Ready For Explosive Rally Sharing a 4-hour price chart, The Penguin gave a detailed breakdown of why he believes Litecoin is preparing for another price surge. He explained that LTC has now swept the October 10 wick, a key technical move that could signal the end of downside liquidity grabs. At the same time, the chart shows a completed five-wave move lower into what appears to be the final leg of Litecoin’s correction. Related Reading: Why The Litecoin Price Could Stage A 33% Rally To $110 The Penguin noted that LTC’s price had earlier stabilized within a clear horizontal range, then briefly dipped below it and quickly reclaimed that level. This rebound took place near the lower support zone around $70, where a sharp sell-off was met with strong buying pressure. As a result, price action formed a rounded recovery from the recent low, which the analyst identified as Litecoin’s final corrective wave. According to The Penguin, the internal structure of Litecoin’s recent move suggests two things: the final correction has been completed, or there might be one last marginal low for LTC. Either way, he emphasized that the broader setup remains strongly bullish. The Penguin has projected that once Litecoin begins its next impulsive move, it could become difficult for the price to be pushed back into previous trading ranges. From the rounded recovery line, the chart points toward a potential move to $82. The analyst has also highlighted an upper blue resistance line above $86 as an additional upside target. If the chart setup plays out as expected, Litecoin could see its price skyrocket by more than 17% from current levels around $70. Analyst Sets Ambitious $1,600 Price Target For LTC In a more recent analysis, The Penguin shared a new chart suggesting that Litecoin could be gearing up for a dramatic price rally. The chart highlights a key descending triangle pattern, traditionally known as a bearish continuation signal, especially when it forms after a downtrend. Related Reading: Litecoin 2M Bollinger Band Width Hits New Lows, CMT-Certified Analyst Reveals What It Means According to the analyst, Litecoin is attempting to break out of a multi-year descending triangle on its weekly chart, signaling the potential end of its consolidation and the start of a new bullish phase. Once this happens, The Penguin predicts that the cryptocurrency could embark on a sharp vertical rally toward $1,600. Featured image from Adobe Stock, chart from Tradingview.com
20 Jan 2026, 11:28
Bitcoin and QQQ Fall on Greenland Tariffs
Trump has taken charge of the market once again by by threatening tariffs on a weekend, giving us a Tuesday red.
