ReportWire

Tag: Bitcoin ETF

  • Coinbase Q1 Revenue Hit $1.6 Billion Amid ETF Approvals, Surging 72%

    Coinbase Q1 Revenue Hit $1.6 Billion Amid ETF Approvals, Surging 72%

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    Coinbase, the largest U.S. crypto exchange, has released its Q1 2024 earnings report, posting a total revenue of $1.6 billion, a 72% increase quarter on quarter.

    The performance has been driven by the rising crypto asset prices and the launch of spot Bitcoin ETFs in the U.S. which further improved inflows into the market.

    Coinbase Earnings Surged in Q1

    Coinbase’s net income reached $1.18 billion, $4.40 per share, translating to $1 billion in adjusted EBITDA in Q1. Comparatively, the adjusted EBITDA, which shows earnings before tax, depreciation, interest, and amortization, was $977.5 million in 2023.

    The earnings report also showed that Coinbase attributed its net income partly to $737 million in pre-tax unrealized gains on crypto assets. The firm ended the quarter with $7.1 billion in capital, including $1.1 billion in net cash raised through the sale of 2030 convertible notes.

    Consumer transaction revenue doubled to $935.2 million, and volume mirrored this, growing 93% to $56 billion. Institutional interest increased as well with transactions gaining revenue of $85 million, a 133% increase quarter on quarter. Meanwhile, the Coinbase Prime trading volume grew 105% to $256 billion, surpassing the U.S. spot market. Notably, Bitcoin accounted for a third of consumer and institutional transactions.

    Coinbase’s custodial services revenue jumped 64% to $32 million. The surge was driven by the launch of spot Bitcoin ETFs earlier in the year since Coinbase is the custodian of eight of the eleven newly launched products. Assets under custody hit $171 billion as the quarter came to an end.

    Coinbase’s Base Revenue Soars, Expenses Surge

    Since its August launch, Base, Coinbase’s Ethereum layer 2 chain, has amassed $56.1 million in revenue. It has exhibited double the transaction volume compared to Ethereum, alongside an 800% surge in developer activity.

    During the quarter, Coinbase acquired a minority stake in Circle, the issuer of USDC stablecoin, whose market capitalization increased by 30%. This boosted subscriptions and services revenue by a third, including a 15% increase in stablecoin revenue.

    Despite diversification with Base and USDC, the recent boom was due to favorable market conditions. Bitcoin’s price skyrocketed 57% to an all-time high of $73,000, fueled by over $50 billion entering 10 spot Bitcoin ETFs approved in January.

    Meanwhile, the company’s transaction expenses increased by 73% to $217 million. Due to increased trading volume, the company expects even higher costs in Q2, as high as $890 million.

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    Wayne Jones

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  • Hong Kong Bitcoin ETF Readies For Stellar Debut, Expected To Outshine $125M US Launch

    Hong Kong Bitcoin ETF Readies For Stellar Debut, Expected To Outshine $125M US Launch

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    The eagerly anticipated Hong Kong Bitcoin ETF market is scheduled to commence trading on Tuesday, marking a significant milestone in the increasing adoption of the leading cryptocurrency and building upon the success of the US ETF market. 

    With their approval, the newly regulated index funds are poised for a noteworthy debut, surpassing the first-day inflows in the United States.

    HK Bitcoin ETF Market Poised For Record-Breaking Debut

    Zhu Haokang, the Digital Asset Management Supervisor and Family Wealth Supervisor at Warsaw Fund expressed great confidence in the trading volume of Hong Kong Bitcoin ETFs on its inaugural day.

    This volume exceeded the scale achieved during the US launch on January 10th of this year, which amounted to over 125 million US dollars. 

    Haokang further stated that Huaxia, one of the three ETF issuers, is confident in becoming the largest ETF issuer on the first day of trading. At the same time, OSL, a digital asset platform, has already completed the initial fundraising with two funds, including Huaxia. 

    Furthermore, the capital inflow during the Hong Kong spot Bitcoin ETF’s first-day listing transaction has surpassed that of the US spot ETF market. 

    According to Haokang, this difference can be attributed to two factors: the purchase and redemption of spot and in-kind transactions, which are unavailable in the US spot Bitcoin ETF.

    Unprecedented Investment Options

    One unique aspect of the China Summer Fund’s Hong Kong spot ETF is its incorporation of Hong Kong dollars, US dollars, and dual counter offers (RMB counters), distinguishing it from the other two offerings. 

    Additionally, the fund features a non-listed share alongside the listed share, further setting it apart from its counterparts. Given the physical purchase method, investors, including Bitcoin miners, can directly acquire the Hong Kong virtual asset spot ETF using the Bitcoin they already hold. 

    Moreover, outreach efforts have reportedly been made to attract investors from countries and regions without ETF offerings, such as Singapore and the Middle East, generating significant interest.

    Despite the substantial market size of the current US spot Bitcoin ETF market, Hong Kong’s utilization of cash and in-kind subscriptions, coupled with the appeal of open trading during Asian market hours, is expected to attract numerous American investors, according to Haokang. 

    Mainland Chinese Investors Restricted

    Wayne Huang, OSL ETF and Trusteeship Business Manager, highlighted that Victory Securities could facilitate physical purchases, and the winning securities in China can also leverage OSL’s support. 

    Three vouchers enable physical purchases, with more expected to follow suit. Following the ETF’s listing, various voucher chambers of commerce are likely to participate, increasing the overall ecosystem of the Bitcoin ETF market in May.

    On the other hand, Zhu Haokang also clarified that mainland Chinese investors are currently restricted from investing in Hong Kong’s spot ETF market. However, qualified investors, institutional investors, retail investors, and qualified international investors in Hong Kong can participate in the spot ETF race. 

    Individuals seeking further details are advised to consult voucher providers and sales channels while closely monitoring potential regulatory adjustments and the development of a specific regulatory framework in the future.

    The daily chart shows that BTC’s price is trending downward. Source: BTCUSD on TradingView.com

    Currently, BTC is trading at $63,000 after failing to consolidate above the key $66,000 level in recent days. However, the launch of the ETF market in Hong Kong is expected to significantly impact the price of BTC in the long run. 

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Bitcoin Cannot Grow Without the Spot Bitcoin ETFs: Report

    Bitcoin Cannot Grow Without the Spot Bitcoin ETFs: Report

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    Spot Bitcoin ETFs have been a major catalyst in driving BTC to establish an all-time high months before its fourth halving. According to a new report by Ecoinometrics, Bitcoin cannot grow further without those products.

    These funds appear to have “stopped accumulating coins” (in aggregate) for more than a month, which can be a cause of concern for the leading asset’s future price trajectory.

    Bitcoin’s Growth Hinges on ETFs

    From January to mid-March, spot Bitcoin ETFs managed to accumulate 200,000 BTC, despite significant outflows from Grayscale. This accumulation coincided with bitcoin’s price surge from $40,000 to $75,000.

    However, the inflow of BTC into ETFs stopped, leading to a halt in price movement.

    The report stated,

    “If you’re wondering why bitcoin is stuck in the $60k range, look no further. The ETFs have stopped accumulating coins for a while now. They are the only game in town. No demand from them means no price appreciation.”

    Despite the lack of action in the past thirty days, Ecoinometrics said that investors should not lose sight of the big picture. Its report further said that bitcoin is the only hedge investors need against debasement.

    Bitcoin Best Bet Against Debasement?

    Analyzing the performance of bitcoin, gold, and the NASDAQ over the last decade, adjusted for the growth of the global monetary base, the report found that the yellow metal remains flat, merely keeping pace with global liquidity despite hitting new all-time highs. This represents the baseline level of hedging against debasement.

    On the other hand, the NASDAQ has seen a threefold increase, which is commendable. However, bitcoin has outperformed both by a significant margin, boasting a staggering 44-fold increase in value. This highlighted bitcoin’s effectiveness as a hedge in today’s economic climate.

    However, certain counterarguments exist by prominent industry experts. Crypto analytics platform Kaiko, for one, said that bitcoin has failed to attract safe-haven flows even in the face of increased demand for such assets amidst the conflict in the Middle East.

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    Chayanika Deka

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  • Bitcoin ETF Outflows Hit $120M as BTC Price Slipped by $4K Daily

    Bitcoin ETF Outflows Hit $120M as BTC Price Slipped by $4K Daily

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    After a few days of hovering above $66,000, bitcoin (BTC) has dropped to a low of $63,500 amid heightened volatility.

    Coincidentally (or not), the amount of outflows from the United States spot Bitcoin exchange-traded funds (ETF) market on April 24 hit $120 million.

    BTC Plunges by 4.5%

    Data from CoinMarketCap shows that BTC lost roughly 4.5% of its value within a few hours, plummeting from $66,700 to $63,500. Although the leading cryptocurrency had recovered slightly by the time of writing and was changing hands at $64,000, it was still in the red and down 3.8% from its value the previous day.

    Bitcoin’s fall from the $66,000 level dragged a large portion of the crypto market down, wrecking over 91,000 traders with liquidations running into $208 million, per data from CoinGlass. Short liquidations totaled $32.18 million, while long positions were $176 million.

    Notably, some large-cap altcoins, including Avalanche, Shiba Inu, Toncoin, Solana, and Cardano, plunged even more than BTC did, recording losses above 7% each.

    Spot ETF Outflows Hit $120M

    Wednesday saw investors withdraw more than $120 million from spot Bitcoin ETFs, breaking a three-day streak of positive flows. Every other ETF, except Fidelity’s FBTC and Ark Invest’s ARKB, received zero inflows, bringing the total amount received by the funds to $9.8 million.

    BlackRock’s IBIT broke its 71-day inflow streak, halting its ascent on the list of the top ten ETFs with the longest inflow streaks. IBIT earned its spot on the elite list on Tuesday after experiencing inflows non-stop since its launch on January 11.

    On the other hand, Grayscale’s GBTC continued its outflows, with more than $130 million withdrawn on Wednesday. The ETF, which has witnessed consistent outflows since its launch, now holds around 302,000 BTC worth over $19.3 billion with a volume of $526 million.

    Meanwhile, analysts have urged the crypto community to remain calm on days when ETFs record zero inflows, as this is a regular occurrence. Bloomberg ETF analyst James Seyffart said the vast majority of exchange-traded funds would have no inflows on any given day, and it is nothing to be worried about.

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    Mandy Williams

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  • The $86,500 Bitcoin Question: Will The Halving Spark A Price Surge This April?

    The $86,500 Bitcoin Question: Will The Halving Spark A Price Surge This April?

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    The cryptocurrency market has undergone a substantial downturn, with many of the top 100 cryptocurrencies experiencing sharp price drops. Bitcoin, the leading digital asset, hit a low of $61,600 on Tuesday. 

    However, industry experts suggest a potential rebound to higher highs may be on the horizon as the highly anticipated Halving event draws near. 

    Adrian Zduńczyk, a crypto trader and technical analyst, provides valuable insights into the market dynamics, highlighting key factors such as bull market indicators, ETFs, and the imminent Halving event.

    Mixed Signals For BTC

    According to Zduńczyk’s analysis, the market exhibits bullish signs, with the 200-week and 50-week moving averages (MAs) at $33,700  and $39,900, respectively. 

    The Net Unrealized Profit/Loss (NUPL) ratio is 0.55, indicating a favorable trading environment. Additionally, the 7-week correlation with the S&P 500 (SPX) remains firm at 0.71. 

    In terms of daily trends, Zduńczyk notes that Bitcoin is currently in a choppy range between $59,000 and $74,000, with the 200-day Simple Moving Average (SMA) rising at $46,600 and the 200-day Bitcoin Production Cost (BPRO) rising at $57,700. 

    However, the analyst notes that the medium-term momentum is declining, and the 50-day Average True Range (ATR) volatility has increased to $3270. This suggests that Bitcoin’s overall price trend is losing strength or momentum in the medium-term timeframe.

    Bitcoin Aims For $86,500

    Zduńczyk highlights the market sentiment. The Fear & Greed Index is at 65, indicating a state of greed among market participants. The analyst notes that the current phase of the market cycle is characterized by belief. 

    Moreover, miners are still profitable at prices above $41,800, and as mining difficulty rises post-Halving, a price spike is expected. 

    Notably, previous Halving events have triggered substantial price rallies, with Bitcoin experiencing significant gains of 90X, 30X, and 7X. Importantly, Bitcoin has never returned to Halving prices after these rallies.

    Examining seasonality trends, the monthly opening price for April stands at $71,000, suggesting a positive outlook for the month. The average gain for April is estimated at 21.95%, implying an end-of-month target of $86,500, according to Zduńczyk. 

    Moreover, the period from April 16 to 30 has historically seen average gains of 14.69%, further reinforcing positive expectations and further price gains for BTC during the upcoming weeks. According to Zduńczyk, this timeframe could attract investors seeking to buy the dip. 

    The 1-D chart shows that BTC’s price is trending downward. Source: BTCUSD on TradingView.com

    Despite the overall positive outlook, BTC is trading at $62,600, reflecting a consistent decline over the past month. In the last 30 days, BTC has experienced a 9% drop from its mid-March all-time high of $73,700.

    Moreover, in its quest for new highs and surpassing the $80,000 threshold, BTC has encountered a significant obstacle at the $70,000 level. Despite surpassing its all-time high, BTC has struggled to consolidate above this level for over a week.

    Nonetheless, as emphasized by Zduńczyk, the potential synergy between the success of the ETF market in the United States and the upcoming Halving event may hold the key to revitalizing BTC’s price trajectory. 

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Bloomberg Analyst Issues a Warning for the Upcoming Hong Kong Bitcoin, Ethereum ETFs

    Bloomberg Analyst Issues a Warning for the Upcoming Hong Kong Bitcoin, Ethereum ETFs

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    Hong Kong regulators recently approved spot Bitcoin and Ethereum exchange-traded fund applications, but Bloomberg ETF analyst Eric Balchunas predicts that the local ETF market may not perform as well as the US due to the current lack of big players and the possibility of high fees.

    According to Balchunas, the Hong Kong Bitcoin and Ether ETF market may generate $500 million in inflows, which is small compared to the over $15 billion from BlackRock’s spot Bitcoin ETF product alone in the United States.

    Hong Kong Spot BTC ETF Smaller than the US

    The Hong Kong Securities and Futures Commission (SFC) on April 15 granted in-principle approval for spot Bitcoin and Ethereum ETF products from China Asset Management, Harvest Global Investments, and Bosera Asset Management in partnership with HashKey Capital.

    While the spot crypto approvals are a major milestone for Hong Kong, which is determined to position itself as a central digital assets hub, there are speculations that the city-state may not witness large inflows like in the United States.

    Bloomberg ETF analyst Eric Balchunas, in a tweet, predicted that the Hong Kong ETF market could see an inflow of $500 million, debating another prediction that estimated $25 billion.

    According to Balchunas, key factors such as the absence of major players in the Hong Kong ETF market and the possibility of these issuers charging high fees could hinder demand for the products.

    The ETF analysts added that the potential local issuers are small compared to the behemoths in the United States. The US boasts financial giants such as the world’s largest asset manager, BlackRock, and Fidelity, which has nearly $5 trillion in assets under management (AUM).

    In terms of fees, one to two percent, as speculated by Balchunas, may prove uncompetitive for Hong Kong Bitcoin ETF issuers, with US ETF providers offering 0.25% and lower.

    As previously reported by CryptoPotato, Grayscale, which currently charges 1.5% for a management fee on its spot Bitcoin ETF, said there would be a reduction over time, following the maturity of the ETF market.

    The company’s management fee is significantly higher than its rivals and has seen continuous outflows compared to competitors such as BlackRock, which continues to record gains.

    When Spot Ethereum ETF in the United States?

    Meanwhile, the Hong Kong spot Bitcoin ETF market could see an uptick if bigger players are involved and mainland Chinese investors are allowed access to the product, according to Balchunas.

    Although the US spot Bitcoin ETF market is larger than Hong Kong’s, the latter may have an edge over the United States, being one of the first jurisdictions with an approved spot Ethereum ETF.

    Since greenlighting almost a dozen applications in January 2024, the US Securities and Exchange Commission seems to be reluctant to give its approval for a similar product tracking the price of Ether, the second-largest cryptocurrency by market capitalization.

    BlackRock, Grayscale, Frank Templeton, Fidelity, and Invesco are among the applicants for a spot Ether ETF. The American regulator recently delayed its decision on Ethereum filings from BlackRock and Fidelity after previous delays on other applications.

    However, some analysts believe the SEC’s approval of a spot Ethereum ETF in the United States may not happen in 2024.

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    Anthonia Isichei

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  • Hong Kong approves spot Bitcoin, Ethereum ETFs by Bosera and HashKey

    Hong Kong approves spot Bitcoin, Ethereum ETFs by Bosera and HashKey

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    HashKey and Bosera International have received conditional approval from the Hong Kong regulator for two spot crypto ETFs, marking a pivotal moment for Asian investors.

    HashKey Capital and Bosera International have secured conditional approval from the Hong Kong Securities and Futures Commission (SFC) to offer spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the region. In a blog announcement on Apr. 15, HashKey said the ETFs “bridge the gap for traditional institutions to invest in virtual assets,” adding that the move will “significantly expand” mainstream and retail investors’ exposure to cryptocurrencies.

    “We sincerely thank the Hong Kong regulators for their foresight and positive approach. The virtual asset management industry holds immense potential for transformation, and we are proud to be early participants in this innovative industry.”

    HashKey Capital

    HashKey also expects the approval to stimulate the development of the crypto market in Hong Kong and Asia, as it’s anticipated to “attract more global funds and enhance the market’s underlying vitality.” However, specific details regarding the launch date of the ETFs haven’t been disclosed.

    As crypto.news reported earlier, once the SFC approves the first batch of spot Bitcoin ETFs, the Hong Kong Stock Exchange will need about two weeks to prepare for product listing and other matters.

    The approval of spot Bitcoin ETFs in Hong Kong comes shortly after a similar move by the U.S. Securities and Exchange Commission (SEC), which approved the first batch of spot Bitcoin ETFs in the United States three months ago. Currently, the top 10 spot Bitcoin ETFs collectively manage over $55 billion, with the top three accounting for more than 85% of the total assets under management. Following the news, Bitcoin (BTC) saw a 1.6% increase in value, while Ethereum (ETH) surged by over 3%, according to CoinMarketCap.


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    Denis Omelchenko

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  • Institutions Are Levering Up On Bitcoin In This ETF

    Institutions Are Levering Up On Bitcoin In This ETF

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    Though Bitcoin (BTC) spot ETFs launched by BlackRock and others have been all the rage in crypto, there’s a slightly older Bitcoin fund that’s also seen exponential gains in the past few months.

    The 2X Bitcoin Strategy ETF (BITX) has quadrupled its Bitcoin exposure since January, now reigning as one of the largest Bitcoin futures ETFs in the United States.

    Institutions Increase Bitcoin Leverage

    According to Volatility Shares’ website, BITX held net assets worth $1.58 billion as of Tuesday. By comparison, the ProShares Bitcoin Strategy ETF (BITO) – the first Bitcoin futures ETF to ever launch in the U.S. – held $2.82 billion as of Tuesday, making BITX one of its only noteworthy rivals in the futures ETF market.

    In a post to X on Wednesday, Bloomberg ETF analyst Eric Balchunas said that BITX “is way bigger than most of us would have predicted.”

    “Institutions are cranking up their leveraged Bitcoin exposure,” added Nic Puckrin, CEO and co-founder of CoinBureau. “Just goes to show, the institutions are just as degen as the rest of us.”

    Traditional Bitcoin futures ETFs – such as BITO – seek to provide investors with returns that closely track those of Bitcoin by investing in Bitcoin futures contracts.

    BITX, however, is leveraged: it aims to produce daily returns corresponding to 2X the daily returns of CME Bitcoin futures. That makes it an extra risky and volatile crypto investment option for people to buy within their brokerage accounts – but also an extra juicy choice for Bitcoin bulls.

    Since first launching in June 2023, BITX has performed as intended: first-day buyers are up 235% on their investments, while they’d be up 117% had they bought Bitcoin itself. Across certain timeframes, BITX has more than doubled Bitcoin’s performance.

    Risks Of A Leveraged ETF

    According to K33 Research, inflows to the fund since March surpassed most of the new Bitcoin spot ETFs, including the ARK 21Shares Bitcoin ETF (ARKB) and the Bitwise Bitcoin ETF (BITB).

    “The flows are still considerably less than those that are going into the spot products, but its rate of growth is higher,” Puckrin noted, referring to the largest newborn Bitcoin spot ETFs run by BlackRock (IBIT) and Fidelity (FBTC).

    While its returns seem promising, BITX notes in its prospectus that returns can fluctuate in the long term and not correspond to 2X that of Bitcoin.

    “For periods longer than a single day, the Fund will lose money if the Index’s performance is flat, and it is possible that the Fund will lose money even if the level of the Index increases,” it states.

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    Andrew Throuvalas

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  • Hong Kong is reportedly set to approve first spot Bitcoin ETF by mid-April

    Hong Kong is reportedly set to approve first spot Bitcoin ETF by mid-April

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    Hong Kong’s Securities and Futures Commission is reportedly ready to approve the spot Bitcoin exchange-traded fund, signaling a major breakthrough in the city’s crypto market.

    Hong Kong is gearing up to approve the first batch of spot Bitcoin ETFs in the region by Apr. 15, Tencent News has learned, citing multiple sources close to the Hong Kong Securities and Futures Commission. The report says the Hong Kong regulator initially planned to approve only four spot Bitcoin ETFs in the first batch.

    However, the latest changes revealed that at least two applications didn’t meet the requirements for crypto asset management in Hong Kong. The timing and recipients of permission to offer the first spot Bitcoin ETFs in the region remain uncertain.

    Currently, several Hong Kong-based companies and proxies from mainland China have signaled their interest in launching spot crypto exchange-traded funds. China Southern Fund as well as Harvest Fund, Jiashi Fund, Huaxia Fund, and Southern Fund have submitted applications via their Hong Kong arms and are awaiting regulatory approval.

    Once the Securities and Futures Commission of Hong Kong approves the first batch of spot Bitcoin ETFs, the Hong Kong Stock Exchange will need about two weeks to prepare for product listing and other matters.

    The potential approval of spot Bitcoin ETFs in Hong Kong could follow three months after the U.S. Securities and Exchange Commission’s approval of the first batch of spot Bitcoin ETFs in the U.S. So far, the top 10 spot Bitcoin ETFs allocated around $57 billion under the management, with the top three accounting for over 88%.


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    Denis Omelchenko

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  • SEC Delays Decision on NYSE Proposal for Spot Bitcoin ETF Options Trading

    SEC Delays Decision on NYSE Proposal for Spot Bitcoin ETF Options Trading

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    The United States Securities and Exchange Commission (SEC) has postponed its decision on the New York Stock Exchange’s proposal to introduce option trading on spot Bitcoin exchange-traded funds (ETFs).

    Grayscale Bitcoin Trust and Bitwise Bitcoin ETF are directly affected since they hold BTC on the NYSE.

    SEC Delays Decision on Spot BTC ETF Options Trading

    The SEC cited in its April 8 filing that it will require a longer time to take action on the suggested rule change so that it has enough time to deliberate on it. Notably, the next deadline for the SEC to delay, approve, or deny the proposed rule change is May 29.

    The rule change proposal was submitted to the SEC in February 2024, after which it was opened for public feedback. The proposal would allow trading options on certain Bitcoin ETFs by changing Rule 915.

    Options are financial derivatives that allow investors to speculate on the movement of underlying assets, bringing about hedging and leverage.

    The same delay decision for Grayscale and Bitwise was given for Nasdaq’s request for options trading on BlackRock’s iShares Bitcoin Trust (IBIT) last month.

    In an earlier March 6 filing, the regulator also delayed responding to the CBOE exchange and the Miami International Securities Exchange requests to offer spot Bitcoin ETFs options.

    Grayscale CEO Urges SEC for Spot Bitcoin ETF Options

    Michael Sonnenshein, the Grayscale CEO, was one of the two people who approached the SEC with a request to have the rule changed on options trading.

    In a letter on February 28, Sonnenshein said it only made sense for the SEC to approve options trading on the spot Bitcoin ETFs since the regulator already approved futures and spot ETFs on the NYSE.

    In a February 5 post, Sonnenshein wrote that options for spot Bitcoin ETFs could lead to a “robust and healthy market.”

    Meanwhile, the SEC is still deliberating on the seven spot Ethereum ETFs after postponing the decision until May 23, the same deadline set for the VanEck ETF application.

    Spot Bitcoin ETFs have been on an upward trend this year, attracting attention beyond the United States. Recently, Chinese mainland-based equity funds filed applications to introduce spot Bitcoin ETFs through their Hong Kong subsidiaries. One of the funds, Harvest Fund Management’s Hong Kong branch, has been awaiting approval from the Securities & Futures Commission (SFC) of Hong Kong since January.

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    Wayne Jones

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  • Will Bitcoin (BTC) Break its $73.8K ATH Following This Record USDC Transfer?

    Will Bitcoin (BTC) Break its $73.8K ATH Following This Record USDC Transfer?

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    Bitcoin has been trading around $70,000 after a major retracement that dragged the leading crypto asset below $63,000 briefly. Despite a few flat trading sessions, data reveals that a pump could be in the offing that could further trigger a new wave of buying pressure.

    CryptoQuant’s latest analysis reveals a remarkable surge in USDC deposits, surpassing $1.4 billion on Coinbase.

    $1.4 Billion USDC Inflow

    Stablecoins serve as a bridge between traditional finance and the digital assets market, facilitating seamless transactions. An influx of USDC into the market can signify an increased willingness to purchase because it is pegged to the US dollar, providing stability and liquidity within the crypto ecosystem.

    When there’s a surge in USDC entering the market, it typically means that investors or traders are converting their fiat currency (such as US dollars) into USDC to participate in trading. This influx of USDC can indicate confidence in the market and a readiness to deploy capital into various assets, including Bitcoin.

    It is also important to note that a similar deposit occurred only once before, on January 9th, 2023, which preceded a notable price surge from a cycle low of $16,800, representing a crucial bottom.

    Such a significant deposit could signal a similar turning point, potentially impacting the current market cycle positively, according to the CryptoQuant analyst ‘maartunn’ in his latest update.

    “Several hours ago, the largest influx of USDC ever recorded occurred, with over $1.4 billion of USDC deposited on Coinbase. This sizable deposit signals potentially significant buying pressure, as these stablecoins can be utilized to purchase bitcoin.”

    Increased Demand for Exposure to Bitcoin

    Further validating the bullish momentum is the continued inflows into spot Bitcoin ETFs after flipping positive from five consecutive days of outflows earlier this month.

    Additionally, the foray of new participants, such as Hashdex, into the already crowded space to offer such funds to investors, both big and small, depicts a continued demand.

    Earlier CryptoQuant report also revealed the sharp rise in monthly demand for Bitcoin from 40,000 to over 213,000 BTC in 2024. As demand surged, the supply of the crypto asset, on the other hand, decreased to 2.7 million, marking the lowest liquidity levels.

    Besides the increase in ETF holdings, large-scale investors, known as whales, also greatly influenced this trend.

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    Chayanika Deka

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  • Bitcoin ETF Inflows Could Eclipse $1 Trillion, Predicts Bitwise CIO

    Bitcoin ETF Inflows Could Eclipse $1 Trillion, Predicts Bitwise CIO

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    Following a week of net outflows, the spot Bitcoin ETF market has rebounded with impressive net inflows this week, highlighting a growing investor confidence in Bitcoin and its associated financial products. This week’s market activities have shown a remarkable reversal from the previous 5-day net outflow streak, with Tuesday witnessing a substantial net inflow of $480 million, followed by $243.5 million on Wednesday.

    Yesterday’s resurgence in investor interest was notably boosted by Blackrock’s massive inflow of $323.8 million, effectively offsetting Grayscale GBTC’s $299.8 million outflows. Moreover, Ark Invest’s ARKB reported its best day yet, with $200 million in inflows, despite Fidelity experiencing its worst day with a mere $1.5 million in outflows. Nevertheless, Fidelity managed to bounce back with significant inflows of $261 million and $279 million on Monday and Tuesday, respectively.

    1% Down, 99% To Go For Bitcoin ETFs

    However, according to Bitwise Chief Investment Officer (CIO) Matt Hougan, this is just the mere beginning of what is to come in the upcoming months. Hougan’s commentary, part of his weekly memo to investment professionals, sheds light on the current market dynamics and the colossal potential that lies ahead. “1% Down; 99% to Go,” Hougan wrote, highlighting the nascent yet promising journey of Bitcoin ETFs.

    Lately, the market has been characterized by its volatility, with Bitcoin’s price oscillating between $60,000 and $70,000. Hougan advises a calm and long-term perspective amidst this fluctuation, especially as the sector anticipates the upcoming Bitcoin halving around April 20, the approval of Bitcoin ETFs on national account platforms, and the soon-to-come completion of due diligence by various investment committees.

    Despite the current sideways movement of Bitcoin’s price, Hougan remains bullish about its long-term trajectory. “Bitcoin is in a raging bull market,” he asserts, noting a nearly 300% increase over the past 15 months. The launch of spot Bitcoin ETFs in January has marked a significant milestone, opening up the Bitcoin market to investment professionals on an unprecedented scale.

    Hougan’s analysis points to a profound shift as global wealth managers, who collectively control over $100 trillion, begin to explore investments in the “digital gold.” He suggests that even a conservative allocation of 1% of their portfolios to Bitcoin could result in approximately $1 trillion of inflows into the space.

    This perspective is backed by historical data showing that even a 2.5% allocation to Bitcoin has enhanced the risk-adjusted returns of traditional 60/40 portfolios in every three-year period of Bitcoin’s history.

    The recent inflows into Bitcoin ETFs, though impressive, are seen by Hougan as merely the beginning of a much larger movement. “We are all excited about the $12 billion that has flowed into ETFs since January. And it is exciting: Collectively, the most successful ETF launch of all time..But imagine global wealth managers allocate just 1% of their portfolios to bitcoin on average,” Hougan elaborates, emphasizing the scale of potential growth awaiting the cryptocurrency market. He concludes:

    Think about the implications. […] A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment. 1% down, 99% to go.

    At press time, BTC traded at $70,644.

    BTC price, 4.-hour chart | Source: BTCUSD on TradingView.com

    Featured image created with DALL·E, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Jake Simmons

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  • Bitcoin ETFs Bleed – Can Price Recover To $73,000?

    Bitcoin ETFs Bleed – Can Price Recover To $73,000?

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    Last week was rough for Spot Bitcoin ETFs as they failed to attract strong inflows day after day. As a result, these Spot Bitcoin ETFs witnessed consecutive daily outflows every day last week, indicating the bullish sentiment among institutional traders might actually be waning. This seems to have been reflected in the price of Bitcoin, as the cryptocurrency fell to as low as $61,370 during the week. 

    Bitcoin ETFs See Sustained Outflows

    Investor interest in Spot bitcoin ETFs skyrocketed throughout February and early March amid Bitcoin’s bull run, pushing its price to an all-time high of $73,737.

    This maximum investor interest saw the ETFs setting new trading records for exchange-traded funds in the US. However, these ETFs have now set a negative record of five consecutive days of outflows to beat a four-day outflow streak set in January.

    According to data from BitMEX Research, these ETFs witnessed five days of consecutive outflows of $154.4 million, $326.2 million, $261.6 million, $93.1 million, and $51.6 million. At the same time, Grayscale’s GBTC set a new record for the most daily outflow.

    BitMEX also reveals that the world’s largest crypto asset manager saw redemptions of 9,539.7 BTC worth over $642.5 million on Monday, the largest single-day outflow in GBTC’s history.

    Grayscale’s outflow wasn’t particularly surprising, considering that the fund has witnessed consistent daily outflow since its launch. The surprise came from very weak inflow into other Spot ETFs like BlackRock (IBIT) and Fidelity (FBTC), whose huge inflows have always offset outflows from GBTC. 

    Particularly noteworthy is the fact that Blackrock (IBIT), which has consistently been the target of the majority of inflow, established a new inflow low of $18.9 million on Friday, March 22. Fidelity, on the other hand, also saw its inflow fall to as low as $5.9 million on Monday, March 18.

    Bitcoin is now trading at $65.122. Chart: TradingView

    Can Bitcoin Price Recover?

    The big question now is whether Bitcoin can stage a strong recovery and reclaim its recent all-time high above $73,000. A continuation of outflows from Spot Bitcoin ETFs could further weigh on Bitcoin price. 

    Interestingly, the weak inflow hasn’t really related to low trading activity, as trading volume remained significant throughout the week. Data shows that the cumulative trading volume of the 10 ETFs is now at $164 billion after witnessing $22.71 billion in trading volume last week.

    After a week of deep outflows, the coming days will be crucial in determining the next major move in the price of Bitcoin. Despite the rough week, Bitcoin still has a chance to rebound back to $73,000 or higher, especially with the approach of the next Bitcoin halving event. 

    Featured image from Pexels, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Beyond Bitcoin ETFs: ‘There Are Other Players Controlling This Market’ – Says Analyst

    Beyond Bitcoin ETFs: ‘There Are Other Players Controlling This Market’ – Says Analyst

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    Recent observations by Eric Balchunas, a senior ETF analyst at Bloomberg, suggest that the movements in Bitcoin’s price are influenced by factors beyond just the flows of spot Bitcoin Exchange Traded Funds (ETFs).

    According to Balchunas, who shared his insights on X, “bigger forces at work” shape the largest cryptocurrency’s valuation. This indicates that the correlation between spot ETF flows and Bitcoin’s price action is less direct than some assume.

    The ETF Influence And Market Movements

    This analysis emerges amid a period of significant financial activity for Grayscale, which has seen substantial outflows, described by Balchunas as experiencing a “second wind” of departures.

    Yesterday, Grayscale reported outflows of $281.57 million, marking a notable decrease in its Bitcoin holdings by more than 40% since the inception of spot Bitcoin ETFs on January 11.

    This scenario highlights a broader narrative within the cryptocurrency investment sphere, where the relationship between ETF activities and Bitcoin’s market performance is complex and multifaceted.

    Despite the record outflows from Grayscale’s GBTC, Bitcoin’s market behavior has shown resilience. The cryptocurrency recently exceeded the $67,000 mark before experiencing a slight retracement, currently trading at a price of $66,106.

    BTC price is moving sideways on the 30-minute chart. Source: BTC/USD on TradingView.com

    This movement coincides with comments from Federal Reserve Chair Jerome Powell, which seemingly spurred a rally across various risk assets, including cryptocurrencies.

    Powell’s reassurances regarding the outlook on rate cuts prompted a slight recovery in Bitcoin’s price, demonstrating how external economic factors and sentiments can impact cryptocurrency markets. It is worth noting that Bitcoin traded below $65,000 before the announcement.

    On-Chain Insights And Bitcoin Future Prospects

    Further deepening the analysis, Charles Edwards, a crypto analyst, recently suggested that pullbacks are common in Bitcoin’s bull runs, with corrections of around 30% within the realm of possibility.

    In related news, data from the on-chain analysis platform CryptoQuant has recently indicated a nearly 40% reduction in Bitcoin’s supply on exchanges over the past four years.

    This trend points towards a bullish sentiment within the Bitcoin ecosystem, suggesting that investors are inclined to hold onto their assets in anticipation of future value increases.

    Moreover, CryptoQuant’s data reveals that Bitcoin’s demand has consistently outstripped its supply since 2020, a trend that supports the asset’s value on the premise that scarcity enhances perceived value.

    This dynamic is expected to intensify following the upcoming Bitcoin halving event, which will reduce the miners’ supply by half, potentially leading to further increases in Bitcoin’s price.

    Featured image from Unsplash, Chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Samuel Edyme

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  • Here’s Why VanEck Thinks Ethereum ETFs Could Outpace Bitcoin Funds

    Here’s Why VanEck Thinks Ethereum ETFs Could Outpace Bitcoin Funds

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    American investment management firm VanEck thinks spot Ethereum exchange-traded funds (ETFs) could become bigger than similar Bitcoin products after the United States Securities and Exchange Commission (SEC) eventually approves them in the coming months.

    In a recent interview, Pranav Kanade, portfolio manager of VanEck, one of the issuers of the spot Bitcoin ETFs launched in January, said Ethereum ETFs could attract more demand as they have a market size as big, if not bigger, than Bitcoin ETFs.

    Ethereum ETFs Could Surpass Bitcoin ETFs

    Kanade’s belief contrasts with some crypto community members, who think Ethereum ETFs will not make much sense as the products may not allow staking reward distribution. Recall that Ethereum transitioned into a Proof-of-Stake protocol in 2022. Ether (ETH) holders can earn diverse yields by staking their assets on the blockchain.

    Market analysts believe crypto investors should buy and stake their own ETH rather than invest in the ETFs. However, Kanade insists otherwise.

    “The world of investors who are looking for cash producing assets is massive and ETH obviously generates fees that goes to the token holders. Even if you don’t have an ETF that can offer staking as a part of it, it’s still a cash producing asset, so I think ETH could make more sense as an asset to more people than Bitcoin does,” he stated.

    While the VanEck portfolio manager thinks Ethereum ETFs could surpass Bitcoin funds, he sees such a feat as a huge task, considering the inflows exceeding $11 billion that the spot Bitcoin ETFs have seen within two months of their launch.

    Odds of SEC Ethereum ETF Approval at 50%

    In addition to Kanade’s controversial belief that Ethereum ETFs will outpace Bitcoin funds, he placed the odds of the SEC approving the former at 50%, contrary to Bloomberg analysts’ 30% prediction.

    Considering that the SEC was legally forced to approve the spot Bitcoin ETFs, courtesy of the Grayscale court ruling, it seems unlikely that the agency is eager to greenlight similar products for Ethereum.

    Nevertheless, agency commissioner Hester Pierce, popularly known as Crypto Mom, believes the regulator would not need a lawsuit or court order to approve pending applications for Ethereum ETFs.

    Meanwhile, VanEck recently reduced the management fee for its Bitcoin ETF, HODL, from 0.2% to 0% to lure more investors to the product. The current fee will stay until March 2025 or until HODL amasses $1.5 billion in assets under management.

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    Mandy Williams

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  • Here’s What Financial Advisors Think Of The Bitcoin ETFs, According To Bitwise

    Here’s What Financial Advisors Think Of The Bitcoin ETFs, According To Bitwise

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    Bitwise CIO Matt Hougan is spreading the word about his company’s Bitcoin spot ETF to potential investors, and has discovered how the digital currency is being perceived by finance pros.

    “I am no longer surprised at the size of the inflows into the Bitcoin ETFs,” Hougan wrote to X on Wednesday, noting high demand among professional investors. “The demand is widespread and strong, and will persist for a while.”

    What Financial Advisors Think Of Bitcoin

    Since launching on January 11, Bitcoin ETFs have experienced net inflows exceeding $11 billion, including a $1 billion inflow on Tuesday alone. Now holding over 800,000 BTC, the ETFs have shattered most people’s expectations, and left onlookers wondering who is buying them, why, and for how long.

    So far, many of Hougan’s discussions have been with family offices and financial advisors – who he said last month are some of the primary drivers behind ETF demand right now.

    Major wirehouses and platforms, he said, are still “plugging in” to the new products as they work through due diligence procedures, and will finish the process within the next few months. Regarding their views on Bitcoin itself, he claims the “classic FUD points” are being whittled away.

    “People no longer ask about criminal use, Tether, FTX, Binance, or the government banning Bitcoin,” said Hougan, referencing major media concerns last year regarding stablecoin fraud, crypto theft, and sanctions violations.

    Meanwhile, concerns about Bitcoin’s environmental impact are “fading but still exist,” while confusion around Bitcoin’s “lack of cash flows” is still prominent. The latter concern is largely believed to explain Vanguard’s refusal to enable access to Bitcoin ETFs for its clients.

    The National Debt Problem

    However, some investors are intrigued by Bitcoin as a potential hedge against rising US debt levels – now exceeding $34.5 trillion. Hougan explained:

    “Many advisors have clients who are worried about the U.S. fiscal situation, and are using bitcoin as a release valve for that concern. I think the elections may be a catalyst to bring this concern to the forefront of people’s minds.”

    Former Coinbase CTO Balaji Srinivasan predicted last week that overwhelming debt will force the U.S. government to confiscate its citizens’ assets and that Bitcoin would shield them from that overreach.

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    Andrew Throuvalas

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  • Bitcoin Faces Potential Sell-Side Liquidity Crisis in 6 Months

    Bitcoin Faces Potential Sell-Side Liquidity Crisis in 6 Months

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    In a recent thread on X, CryptoQuant founder Ki Young Ju raised concerns about the continuous influx of capital into spot Bitcoin ETFs, warning of a potential sell-side liquidity crisis within six months if the trend persists.

    Ju’s remarks come amidst a surge in spot Bitcoin ETF inflows, surpassing the $10 billion inflow mark for the first time.

    Sell-Side Liquidity Crisis Concerns

    Ju emphasized, “Bears can’t win this game until spot Bitcoin ETF inflow stops.” He pointed out that in the past week alone, spot Bitcoin ETFs witnessed netflows exceeding 30,000 BTC, with major players such as exchanges and miners collectively holding approximately three million BTC, with 1.5 million BTC held by entities within the U.S.

    Recent data from BitMEX Research indicates that spot Bitcoin ETFs surpassed the $10 billion inflow mark for the first time since their launch in January. This surge in inflows has raised concerns among market observers about the potential for a future sell-side crisis.

    Ju further forecasted that once the tipping point from spot Bitcoin ETF demand is reached, the impact on BTC’s price could surpass market expectations. He emphasized that a sell-side liquidity crisis could lead to a cyclical top exceeding projections due to limited sell-side liquidity and a thin orderbook.

    Highlighting ongoing trends, Ju noted an uptrend in BTC held by “accumulation addresses” – wallets characterized by only inbound transactions. However, he stated that the accumulation address must reach around 3M BTC for the crisis to happen.

    Bitcoin ETF Inflows Surge

    Recent findings show that there has been a notable surge of capital directed towards spot Bitcoin ETF products within the U.S. market.

    Specifically, on March 11, $505 million was the netflows in these products, with BlackRock leading the way with daily inflows amounting to $562 million. VanEck’s HODL product also observed a noteworthy uptick, as inflows soared to a remarkable $118 million on the same day.

    The surge in inflows into VanEck’s HODL product can be attributed to a campaign announced by the company. VanEck has initiated a fee waiver campaign effective from March 12 until March 31, 2025. During this period, fees for the product will be waived until its assets reach $1.5 billion, after which a 0.20% fee will be imposed.

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    Wayne Jones

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  • Hong Kong’s CSOP Bitcoin Futures ETF Sees 5-Fold Surge in Assets Amid BTC Rally

    Hong Kong’s CSOP Bitcoin Futures ETF Sees 5-Fold Surge in Assets Amid BTC Rally

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    CSOP Asset Management, a capital market firm in Hong Kong, disclosed in an interview with Reuters that its exchange-traded product, the CSOP Bitcoin Futures ETF (3066.HK), has witnessed a surge in assets under management (AUM) over the past five months.

    The ETF’s Assets Under Management (AUM) has soared five-fold to over $100 million.

    Rising Trading Volumes and AUM

    Regarding trading volumes, the CSOP Bitcoin Futures ETF has increased in average daily turnover, reaching $2.8 million this year compared to $0.97 million last year.

    The growth in AUM is not limited to Bitcoin alone; the CSOP Ether Futures ETF (3068.HK) has also experienced a surge in AUM, doubling over this year.

    As noted by Alessandro Zhu, Deputy Head of Fixed Income at CSOP Asset Management, the surge in demand has primarily been driven by various factors. These include the recent approval and launch of spot Bitcoin ETFs in the U.S., which have sparked investor enthusiasm due to the perceived potential for further price appreciation resulting from BTC’s limited supply.

    Bitcoin’s strong performance relative to Hong Kong stocks on the Hang Seng Index (.HSI) has also amplified investor interest in the asset.

    Zhu also noted that despite cryptocurrency trading being prohibited in mainland China, offshore Chinese financial institutions have been actively investing in Bitcoin ETFs in Hong Kong, taking advantage of the city’s regulatory framework. This influx of institutional capital and the growing retail interest have propelled the CSOP Bitcoin Futures ETF to new heights.

    Market Players Eye Crypto-Friendly Future

    Market participants anticipate further developments in the Hong Kong ETF landscape, with expectations increasing for approving the first spot Bitcoin ETF.

    Kennix Chan, executive director of Victory Securities, highlighted the promising signs, citing a significant number of spot Bitcoin ETF applications submitted to the Hong Kong Securities and Futures Commission in recent months.

    Amidst these developments, Hong Kong continues to solidify its position as a hotspot for crypto-related activities. Harvest Fund Hong Kong recently filed for a spot Bitcoin ETF with the Hong Kong Securities Regulatory Commission.

    Meanwhile, discussions are underway between Harvest Global Investments, a subsidiary of Harvest Fund, and the Hong Kong Monetary Authority regarding planned stablecoin trials within regulatory frameworks.

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    Wayne Jones

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  • BlackRock Spot Bitcoin ETF Launches In Brazil, ETF Market Secures 4% Of Total BTC Supply

    BlackRock Spot Bitcoin ETF Launches In Brazil, ETF Market Secures 4% Of Total BTC Supply

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    BlackRock, the world’s largest asset manager, announced the iShares Bitcoin Trust ETF (IBIT39) launch in Brazil on Thursday. Starting today, Friday, March 1, shares of this index fund, which tracks the spot price of Bitcoin (BTC), will be traded on the Brazilian Commodities and Futures Exchange, known as B3.

    BlackRock Launches IBIT39 Bitcoin ETF In Brazil

    Karina Saade, president of BlackRock in Brazil, highlighted the company’s commitment to providing high-quality access vehicles to investors in the digital asset market. She stated:

    IBIT39 is a natural progression of our efforts over many years and builds on the fundamental capabilities we have established so far in the digital asset market.

    Felipe Gonçalves, Superintendent of Interest and Currency Products at B3 discussed the growth of the listed crypto market in Brazil. He noted that the market, which started in 2021, now has 13 ETFs with total assets of R$2.5 billion, or about $505 million.

    While the market experienced fluctuations in its early years, it reached an eye-catching daily trading volume of R$30 million reais ($6.6 million) by the end of last year, according to local media reports in Brazil. 

    Gonçalves mentioned that investors in crypto ETFs include institutional investors, such as funds, and individual investors, with a current number of 170,000. Liquidity in the market is provided by non-residents investing in B3 as a whole.

    IBIT39 will reportedly have a management fee of 0.25%, with a one-year waiver that reduces the fee to 0.12% once the fund reaches its first $5 billion in assets under management (AUM). The product will be made available to the general public, allowing broader participation in the Bitcoin market.

    $7.5B Net Inflow In Bitcoin ETFs Since Launch In The US

    BlackRock’s IBIT (iShares Bitcoin Trust) ETF has emerged as a notable player in the US ETF race, countering a significant outflow from Grayscale’s Bitcoin Trust (GBTC).

    BitMEX research data shows that on February 29, 2024, positive flows amounted to $92 million for the day. Notably, BlackRock and GBTC offset each other, experiencing $600 million in opposite directions. The data shows that since the ETFs began trading on January 11, 2024, there has been an impressive net inflow of $7.5 billion.

    The overall holdings of spot funds, which directly hold Bitcoin, stood at 776,464 BTC (equivalent to $47.7 billion) on Friday morning, according to BitMEX Research. It’s essential to consider that the total BTC supply currently in circulation is 19.64 million, with a maximum limit of 21 million. 

    With this context, the fact that the ETFs have secured 4% of the total BTC supply is a significant milestone. It demonstrates the growing demand for Bitcoin among investors utilizing these index funds to gain exposure to the cryptocurrency.

    The daily chart shows the consolidation of BTC prices. Source: BTCUSD on TradingView.com

    BTC continues to consolidate above the $62,000 mark, rising 1.3% in the past 24 hours.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Reversal: Merrill Lynch, Wells Fargo Begin Offering Bitcoin ETFs To Clients

    Reversal: Merrill Lynch, Wells Fargo Begin Offering Bitcoin ETFs To Clients

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    Leading U.S. investment platforms Meryll Lynch and Wells Fargo are now offering clients access to Bitcoin spot ETFs despite initially hesitating on the move.

    As reported by Bloomberg, the firms are offering the ETFs to certain wealth management clients who specifically request the product, which allows clients to directly invest in BTC through an ETF wrapper.

    Merrill Lynch Embraces Bitcoin

    Last month, Merrill Lynch, the investment management division of Bank of America, was one of U.S. financial giants to receive major rebuke for its initial refusal to allow customer access to the ETFs after their historic launch last month.

    At the time, Fox Business reported that Merrill Lynch was waiting to see whether the ETFs could trade efficiently before changing their internal policy, which did not allow for such products.

    By all measures, the ETFs have had a massively successful launch. Since approval, shares for funds like the Grayscale Bitcoin Trust (GBTC) now trade at perfect parity with their underlying BTC value after years of trading at a discount.

    The ETFs have also drawn massive trading volume, collectively processing a record-breaking $7.7 billion in trades on Wednesday, alongside a record $673 million in net flows. BlackRock and Fidelity’s Bitcoin ETFs proved to be the two most successful ETF launches in history after thirty days.

    Given their proven demand, multiple analysts suspected that major wirehouses would likely hurry to offer the products to clients for fear of missing out.

    “I’m sure pressure is mounting for them,” wrote Bloomberg ETF analyst Eric Balchunas to X on Wednesday. “They like to see [a] track record and get paid off, but with grassroots demand like this they [are] gonna have to expedite.”

    Meanwhile, Bitwise CIO Matt Hougan believes the ETFs are still awaiting a wave of demand from investment platforms that haven’t offered them to clients yet.

    “I think there’s an even bigger wave coming in a few months as we start to see the major wirehouses turn on… but this has been Bitcoin’s IPO moment,” he told CNBC on Thursday.

    Vanguard Still Opposed to Bitcoin

    While Merrill welcomes the ETFs, Vanguard – the world’s second-largest asset manager after BlackRock – still won’t let clients buy the asset through its platform, citing a difference in investment philosophies.

    The firm is still a major investor in MicroStrategy and several major Bitcoin mining firms, however.

    On Thursday, Vanguard CEO Tim Buckley stepped down from his role after a 33-year run.

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    Andrew Throuvalas

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