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Tag: Bitcoin spot ETF

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

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

    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.

    Samuel Edyme

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  • Coinbase Custody Accounts For 90% Of All Bitcoin ETFs – Details

    Coinbase Custody Accounts For 90% Of All Bitcoin ETFs – Details

    Coinbase Custody reportedly now holds over 90% of all Bitcoin ETFs in the United States. This development was revealed by the crypto exchange’s CEO, Brian Armstrong, while appraising the company’s performance in the fourth quarter (Q4) of 2023.

    Coinbase Emerges As Major Player In Bitcoin ETF Market

    In an X post on February 16, Brian Armstrong shared specific highlights of Coinbase’s achievement in Q4 2023. In particular, He noted that the American crypto exchange has played a crucial part in facilitating the adoption of cryptocurrencies by traditional financial firms (TradFi).

    A major part of this adoption is the Bitcoin ETF market which is worth $37 billion, ranking as the second largest commodity ETF market after Gold. Armstrong noted that Coinbase has played a significant role in this development, serving as custodian for 90% of the investment funds in the Bitcoin ETF market.

    For context, a custodian is a regulated financial institution that holds customers’ securities and assets, providing protection against any form of loss or theft. Notably, Coinbase is listed as the custodian for eight of the 11 recently launched Bitcoin spot ETFs. These include BlackRock’s IBIT, Ark Invest’s ARKB, Bitwise’s BITB, and Grayscale’s GBTC, among others.

    These statistics indicate that Coinbase is well placed to record larger milestones as the top traditional financial institutions are tipped to finally invest in Bitcoin ETFs, especially upon the proven success and stability of the Bitcoin spot ETFs.

    According to Armstrong, other notable Coinbase achievements in Q4 2024 include the launch of the exchange’s international wing, and the layer-2 blockchain solution Base. The crypto exchange also claimed to slash its annual costs by 45% while generating a total income of $3.1 billion.

    Looking Forward To 2024

    In retrospect to 2024, Armstrong stated that Coinbase will maintain focus on its international expansion and new derivatives products. In addition, they will aim to promote the adoption of crypto payments by transforming the Coinbase wallet into a super app. 

    Finally, the exchange CEO states that Coinbase will continue to advocate for a clear regulatory framework applicable to the crypto space. Armstrong says that Coinbase is committed to this course and is willing to explore all means, including legal processes as well as engaging the federal legislators.

    

COIN trading at $180.28 on the trading chart | Source: COIN chart on Tradingview.com

    Featured image from CNBC, 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.

    Semilore Faleti

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  • Bitcoin price eyes $55k after Valentines Day Record Inflows

    Bitcoin price eyes $55k after Valentines Day Record Inflows

    Bitcoin’s (BTC) price broke above $51,000 on Feb. 14 to form a rare Valentine’s Day winning pattern, while ETF fund inflows suggest a possible $55,000 retest. 

    Bitcoin made history on Valentine’s Day as BTC prices rose to a new-yearly peak of $52,040 within the daily time frame on Feb. 14. 

    Bitcoin enters five-year Valentine’s Day winning streak

    Thanks to an unusually high buying trend among institutional investors, BTC price crossed the $52,000 mark for the first time since 2021, bringing its month-to-date gains to 20%. 

    The data shows that Bitcoin price has generated 1.3%, 3.03%, 1.13%, and 1.9% gains in the last four Valentine’s Days, respectively, dating back to 2020.

    BTC price rallied 3.66% to peak at $52,040 within the daily timeframe on Feb. 14, extending its Valentine’s winning streak to five consecutive years. 

    Bitcoin (BTC) price performance, Valentine’s Day 2024 Source: TradingView

    Breaking it down further, starting in 2020, holders who bought a BTC the night before Valentine’s Day and sold it at midnight would have earned a total profit of $4,196. 

    Looking beyond the price charts, BTC spot ETFs have received significant capital inflows this week, which could drive the rally toward $55,000. 

    Bitcoin ETFs AUM crosses $10 billion

    In another bullish Valentine’s Day record, BTC spot ETFs saw a record $631 million in net inflows. As the initial uncertainty heralded the Grayscale’s (GBTC) billion-dollar sell-off cools, investors have intensified capital inflows in the spot ETF derivatives products this week.

    As of Feb. 14, the cumulative Asset Under Management (AUM) of all 10 newly-launched spot ETF products has hit $10.9 billion.  

    Bitcoin (BTC) Spot ETFs Asset Under Management
    Bitcoin (BTC) Spot ETFs Asset Under Management | Source: TheBlock

    The ETF entities captured in TheBlock’s computation include BlackRock, Fidelity, ARK Invest/21Shares, Bitwise, Franklin, Invesco/Galaxy, VanEck, Valkyrie, WisdomTree, and Hashdex. 

    At the end of the first trading day on Jan. 11, the total AUM of these firms stood at $851 million. This implies the capital stock has grown by 1,150% over the last 31 days at a cumulative daily growth rate of about 9.2%, or $77 million daily. 

    Effectively, the chart shows that investors are growing more confident after an initial few weeks of uncertainty, reflected in the accelerated capital inflows. 

    If this buying trend continues at its current rate, BTC price looks poised to enter another leg-up towards the $55,000 area in the coming days. 


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    Ibrahim Ajibade

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  • Ripple job listing has a key detail: ‘drive ETF initiatives’

    Ripple job listing has a key detail: ‘drive ETF initiatives’

    Ripple (XRP) appears to be laying the groundwork for a future XRP exchange-traded fund (ETF).

    A recent job opening for a Senior Manager for Business Development at Ripple listed a key responsibility: “drive cryptocurrency-related ETF initiatives with internal trading teams and relevant partners.” This has led some in the crypto community to wonder whether the blockchain payments company is aligning its strategy with the evolving crypto landscape.

    This development surfaces as Ripple navigates through a high-profile legal tussle with the U.S. Securities and Exchange Commission (SEC), which many speculate could eventually lead to clearer regulations and the much-anticipated approval of other crypto ETFs besides the Bitcoin spot ETF.

    The crypto analytics community and industry reporters have been quick to dissect the implications of this role. On Jan. 27, the cryptocurrency insights forum, Good Morning Crypto, took to X to highlight the possible significance of the little tidbit contained within the small print of the advertised position.

    Eleanor Terrett of Fox Business subsequently commented on Good Morning Crypto’s post, noting that the recruitment of such an expert could represent a preliminary move toward establishing an XRP ETF.

    However, Terrett pointed out the necessity of a Ripple futures ETF as a precursor to the approval of an XRP spot ETF.

    She drew attention to the precedent set by the approval of Bitcoin futures by the Chicago Mercantile Exchange (CME), which was crucial for the SEC to greenlight Bitcoin spot ETFs.

    Crypto journalist Colin Wu echoed Terrett’s sentiment, emphasizing the significance of the job posting in anticipation of an XRP ETF application.

    Bloomberg’s James Seyffart previously highlighted the need for having XRP futures listed on a significant derivatives exchange, such as CME, before the SEC’s approval of an XRP ETF. The rationale is that the presence of XRP on CME would provide an underlying asset for the ETF to track, which is a critical requirement for ETF approval.

    XRP’s performance over the broader timeframe underscores the challenges it faces amid the ongoing regulatory debate. Over the last 30 days, per data from CoinGecko, the coin has lost more than 16% of its value. It also registered a 7.3% price drop in the previous fortnight and a 3.2% loss over the last seven days.

    However, in the past 24 hours, the price of XRP has gone up by a modest 1%, a change accompanied by a 24-hour trading volume of $637.9 million.


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    Julius Mutunkei

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  • BlackRock’s IBIT Maintains Lead In Bitcoin ETF Race, Crosses $2 Billion In Inflows

    BlackRock’s IBIT Maintains Lead In Bitcoin ETF Race, Crosses $2 Billion In Inflows

    According to data from BitMEX Research, BlackRock’s Bitcoin spot ETF – IBIT –  has now set a new record, achieving a total net inflow of $2 billion. This feat allows IBIT to maintain its position as the best-performing fund of the bunch, following the approval of 11 Bitcoin spot ETFs by the US Securities and Exchange Commission on January 10.

    BlackRock’s IBIT Maintains Dominance As Total Net Flows Reach $744.6 Million

    On January 25, which marked the tenth trading day of the Bitcoin spot ETF market, BlackRock’s IBIT produced an unsurprising positive performance, notching $170.7 million in inflows. This gain allowed the investment fund to move into an exclusive list as the first Bitcoin spot ETF to amass $2 billion in market cap.

    Commenting on this feat, Bloomberg analyst James Seyfarrt has credited the recent rise in BTC’s price as a major contributing factor. He said:

    Yes, the #Bitcoin price has pushed $IBIT‘s assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close.

    Following the trading debut of BTC spot ETFs on January 11, IBIT quickly emerged as an investor’s favorite, recording the highest individual daily inflows of the market at $386 million on January 12. BlackRock’s BTC spot ETF has managed to retain this investors’ attention over the first two trading weeks, evidenced by its consistent positive performances, which has culminated in a total flow of $2.086 billion.

    IBIT’s performance is closely followed by Fidelity’s FBTC, which recorded $101 million in inflows on January 25, moving its total flows to $1.825 billion. Meanwhile, other Bitcoin spot ETFs with notable performances include Bitwise’s BITB and Ark Invest’s ARKB, both of which boast individual cumulative AUMs of over half a billion dollars.

    In other news, the outflows in Grayscale’s GBTC remain a constant trend; however, there has been a notable decline in selling volume over the last few days. At the time of writing, GBTC’s total outflow is valued at $4.786 billion. In comparison with a cumulative inflow of $5.53 billion, total flows in the Bitcoin spot ETF market stand at $744.6 million. 

    Source: BitMEX

    Bitcoin Price Overview

    At press time, Bitcoin is currently trading at $41,725.19 following a 4.52% price gain in the past day, according to data from CoinMarketCap. This recent uptick is quite significant, considering the asset’s previous bearish form, marked by a 20% decline over the last two weeks which resulted in BTC’s dipping below $39,000. 

    Bitcoin’s price has been negatively affected by GBTC’s massive outflows; however, as the selling pressure appears to be decreasing, coupled with consistent positive performances of other ETFs, notably BlackRock’s IBIT, that crypto market leader could soon pull off a market recovery.

    BlackRock’s IBIT

    BTC trading at $41,802.61 on the daily chart | Source:  BTCUSDT chart on Tradingview.com

    Featured image from Reuters, 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.

    Semilore Faleti

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  • Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

    Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

    The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness. 

    When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.

    However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies. 

    However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry. 

    The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking. 

    Bitcoin Spot ETF Explained

    The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?

    Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians. 

    This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.

    Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors. 

    The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)

    The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval. 

    This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.

    The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.

    Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.

    This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.

    The Turning Point: A Decade Of Persistence Pays Off (2018-2023)

    While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.

    This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision. 

    Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.

    The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.

    Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.

    Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)

    The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above $1 Trillion after the launch of Bitcoin Spot ETFs.

    Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.

    Investor Crossroads

    For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as $80,000 as a result of Bitcoin Spot ETFs’ approval. 

    The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry. 

    However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.

    Institutional Embrace Bitcoin

    The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.

    Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.

    Market Redefined

    Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.

    The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.

    Beyond Bitcoin

    Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.

    The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.

    The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved  on January 10, 2024, are:

    • Blackrock’s iShares Bitcoin Trust (IBIT)
    • ARK 21Shares Bitcoin ETF (ARKB)
    • WisdomTree Bitcoin Fund (BTCW)
    • Invesco Galaxy Bitcoin ETF (BTCO)
    • Bitwise Bitcoin ETF (BITB)
    • VanEck Bitcoin Trust (HODL)
    • Franklin Bitcoin ETF (EZBC)
    • Fidelity Wise Origin Bitcoin Trust (FBTC)
    • Valkyrie Bitcoin Fund (BRRR)
    • Grayscale Bitcoin Trust (GBTC)
    • Hashdex Bitcoin ETF (DEFI)

    Conclusion

    The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.

    Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.

    Final Thoughts

    The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.

    Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

    However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system. 

    While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.

    BTC price struggles post-Bitcoin Spot ETF approval | Source: BTCUSD on Tradingview.com

    Featured image from Cryptopolitan, 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.

    Scott Matherson

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  • Crypto investment products get $1.18b inflows amid spot Bitcoin ETF launch

    Crypto investment products get $1.18b inflows amid spot Bitcoin ETF launch

    The influx of investment products into digital assets amounted to $1.18 billion.

    Despite the launch of the Bitcoin ETF, capital inflows of $1.18 billion did not break the October 2021 record of $1.5 billion, according to a CoinShares report.

    At the same time, trading volumes have broken records, with trading volume of $17.5 billion last week, the highest ever, compared with an average of $2 billion per week in 2022. These trading volumes accounted for almost 90% of the daily trading volumes on trusted exchanges on January 12.

    Geographically, experts added that in the United States last week there was an inflow of funds in the amount of $1.24 billion. Countries such as Germany, Canada and Sweden recorded an outflow. Analysts believe that this distribution of funds occurred due to the desire of traders to switch from Europe to the United States.

    Bitcoin (BTC) inflows were $1.16 billion, Ethereum (ETH) inflows were $26 million, and XRP inflows were $2.2 million. Solana (SOL) was a notable exception, receiving just $0.5 million in inflows last week.

    “Blockchain equities also saw large inflows totaling $98m, bringing total inflows over the last seven weeks to $608m.”

    CoinShares report

    In the period from Jan. 1 to Jan. 5, the inflow of funds into crypto funds amounted to $151 million. Analysts also emphasized that the total inflow of funds since the trial between Grayscale and the SEC reached $2.3 billion.


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    Anna Kharton

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  • Bitcoin To $34,000? Analyst Predicts Next Move For BTC With This Chart Pattern

    Bitcoin To $34,000? Analyst Predicts Next Move For BTC With This Chart Pattern

    Bitcoin had a surprisingly underwhelming price performance over the past week despite the United States Securities and Exchange Commission (SEC) approving the trading of spot BTC ETFs. The price of the flagship cryptocurrency almost broke into $49,000 at the peak of this positive news but has since retraced back below $43,000.

    Ali Martinez, a popular crypto analyst on the X platform, has offered insight into the current market climate of Bitcoin, highlighting that the cryptocurrency’s price may face further downward pressure over the coming weeks.

    Analyst Forecasts 20% Price Drop For BTC 

    In a recent post on X, the crypto pundit shared an update on his analysis of the Bitcoin’s price chart on the three-day timeframe. On January 4, Martinez initially identified an ascending parallel channel, which seems to be governing the Bitcoin price action since September 2023.

    In price analysis, an ascending parallel channel is a technical analysis pattern that features two parallel upward-sloping trend lines. While it is mostly a bullish chart pattern, the ascending parallel channel can signal a short-term bearish move or even a trend reversal.

    BTC price in an ascending parallel channel on the three-day timeframe | Source: Ali_charts/X

    Martinez noted in his post that the current setup appears to be holding true after the Bitcoin price faced rejection from the parallel channel’s upper boundary at $48,000. Following this price correction, the analyst has predicted $34,000 at the channel’s lower boundary as the natural next stop for the premier cryptocurrency.

    A downward move to $34,000 would represent a significant 20% decline from Bitcoin’s current price point. However, according to Martinez’s analysis, it might not be looking all gloomy for the world’s largest cryptocurrency.

    On the bright side, the analyst expects a quick recovery for the Bitcoin price after the downward spiral to $34,000. Martinez said that the pioneer crypto could make a rebound back to the upper boundary at $57,000.

    Bitcoin Price Overview

    As of press time, the Bitcoin price stands at $42,909, reflecting a negligible 0.6% decline in the past 24 hours. The premier cryptocurrency has struggled to hold above $43,000 since experiencing a massive downturn to below $42,000 on Friday.

    Meanwhile, BTC’s profits since the turn of the year have been cut back to a mere 1.6%, putting the bullish future of the coin into question. Bitcoin is down by nearly 3% on the weekly timeframe, according to data from CoinGecko.

    Nevertheless, BTC maintains its position as the largest asset in the cryptocurrency sector, with a market capitalization of roughly $841 billion.

    Bitcoin price hovers around $43,000 on the daily timeframe | Source: BTCUSDT chart on TradingView

    Featured image from iStock, 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.

    Opeyemi Sule

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  • Bitcoin Flash Crash: Crypto Market Witnesses $2.5 Billion Inflow Following Recent Downturn

    Bitcoin Flash Crash: Crypto Market Witnesses $2.5 Billion Inflow Following Recent Downturn

    The past week was largely defined by the Bitcoin price climbing above $45,800 for the first time in over 20 months, marking a great start to the year. However, the premier cryptocurrency soon experienced a sharp price pullback due to negative news about the BTC spot (ETF). 

    Interestingly, the latest on-chain data has revealed that investors seem not to have completely lost faith in Bitcoin, the largest cryptocurrency by market capitalization.

    $2.5 Billion Flows Into Crypto Market Following Bitcoin Crash

    In a post on the X platform, crypto analyst Ali Martinez has offered on-chain insight into the aftermath of the crash that affected Bitcoin and the entire crypto market. The pundit noted in his post that a substantial amount of funds flooded back into the sector a day after the market downturn.

    This revelation was based on on-chain data from blockchain analytics platform Glassnode. The relevant indicator here is the “positive 30-day capital inflows”, which tracks the net influx of capital into the crypto market over a 30-day period.

    Chart showing aggregate market realized value net position change | Source: Ali_charts/X

    The chart above shows that a significant amount of funds have been entering the cryptocurrency market over the past few months. According to Glassnode’s data, more than $2.5 billion flowed back into the cryptocurrency market on Thursday, January 4, bringing the positive 30-day capital inflows to about $27.5 billion.

    This latest inflow of capital into the market offers insight into the positive shift in sentiment and market condition. It basically signals renewed investor confidence in crypto assets following a short period of uncertainty and price correction. 

    As of this writing, the Bitcoin price stands at $43,661, reflecting a 0.2% decline in the past 24 hours. However, the market leader seems to be recovering well, with $44,000 not too far out of reach.

    How BTC Holders Reacted To The Market Downturn

    A recent analysis shows how various classes of Bitcoin investors reacted to the negative ETF news and the subsequent decline. This evaluation was based on the Spent Output Age Bands USD (SOAB) indicator on the CryptoQuant analytics platform.

    The investors were divided into five classes based on the age of their holdings. According to the analysis, short-term holders who fell within the 1-week-to-1-month and 1-month-to-3-month classes exited the market at break-even and profits, respectively.  

    Meanwhile, long-term holders who purchased Bitcoin in the first half of 2023, falling between the 6-month-to-12-month class, dumped about $7.6 billion worth of BTC. The 1-year-to-5-year holder class, on the other hand, barely made a move after the market downturn.

    Bitcoin

    Bitcoin price at $43,690 on the daily timeframe | Source: BTCUSDT chart on TradingView

    Featured image from iStock, 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.

    Opeyemi Sule

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  • ETF or Halving: Analyst Doubles Down On Bullish Year For Bitcoin

    ETF or Halving: Analyst Doubles Down On Bullish Year For Bitcoin

    Bitcoin (BTC) began 2024 on a positive note gaining by 3.18% in the first week of the year, according to data from CoinMarketCap. The premier cryptocurrency is expected to herald in a bull crypto season, with many investors expecting immediate approval of Bitcoin spot ETF proposals by various asset managers. 

    However, regardless of the decision of the US Securities and Exchange Commission (SEC) in the next few days, crypto analyst Ali Martinez believes Bitcoin is still poised for massive gains in 2024 as there is another bullish factor in play. 

    Bullish 2024 For Bitcoin With Or Without ETF Approval – Analyst

    In an X post on January 6, Martinez expressed much optimism about Bitcoin’s potential price performance in 2024. He stated that irrespective of developments in the Bitcoin spot ETF saga, BTC is still set for major price surges due to another bullish narrative – namely, the Bitcoin Halving. 

    To explain, the Bitcoin Halving is an event in which the block rewards for miners are reduced by 50%. It happens every four years, with the first occurrence being in 2012. The halving event causes a reduction in BTC supply in comparison to demand, causing scarcity which leads to a price increase. 

    Martinez highlighted this fact stating that historically, there has been a significant increase in Bitcoin’s price following past halvings. When the first halving occurred on November 28, 2012, BTC was trading at around $12. In the next year, the token had attained a new price of $1,000. 

    A similar phenomenon was noted after the second halving on July 9, 2016, at which Bitcoin was valued at $670. However, By December 2017, BTC had surged to an all-time high of $19,700. The third halving event took place in May 2020, with Bitcoin being traded at $8,821. By November 2021, BTC had surged by 700%, attaining its current all-time high of $68,783.

    Based on this price history, Martinez believes that BTC investors are well placed to reap large profits in the coming months as the next Bitcoin halving is set for April 2024. He postulates that these cyclical gains should remain constant, notwithstanding the SEC’s approval for Bitcoin spot ETF or not.

    BTC Price Overview

    At the time of writing, Bitcoin trades at $43,665, experiencing a slight decline of – 0.30% in the last 24 hours. On a larger scale, the leading cryptocurrency has demonstrated resilience over the past seven days, posting a noteworthy gain of 4.07%. 

    Over the last year, BTC’s performance has been remarkable, witnessing a substantial surge of 159.94%. However, amidst market fluctuations, there is a noticeable dip in daily trading volume, down by 22.25%, which is currently valued at $26.8 billion.

    BTC trading at $43, 691.10 on the hourly chart | Source: BTCUSDT chart on Tradingview.com

    Featured image from Mint, 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.

    Semilore Faleti

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  • Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC

    Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC

    An interesting trend looks to be developing among institutional players as their interest in the flagship cryptocurrency, Bitcoin, continues to rise. This interest has in no small way been thanks to the frenzy around the Spot Bitcoin ETFs, which could be approved sooner than later.

    Other ETFs Considering Bitcoin As An Investment Option  

    Crypto commentator and music producer Marty Party recently drew the crypto community’s attention to an emerging trend among fund managers and their ETFs. He noted how these asset managers are amending the prospectus of funds they manage so they can gain exposure to Bitcoin. 

    These institutions are said to be looking to use 15% to 50% of assets under their management to gain exposure to BTC. One way they will be looking to achieve this is through the Spot Bitcoin ETFs that could potentially launch anytime soon. 

    Marty Party specifically highlighted the case of Advisors Preferred Trust, which is already looking to gain the SEC’s permission to invest up to 15% of its AuM in Bitcoin-related ETFs like Grayscale’s Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF. 

    MicroStrategy’s Executive Chairman and Co-founder, Michael Saylor, had previously hinted that something like this was going to happen soon enough. Then, he suggested that more institutional players were going to direct more of their capital to Bitcoin. 

    A rule that was implemented by the Financial Accounting Standards Board (FASB) has also paved the way for more companies like MicroStrategy to include BTC on their balance sheet. 

    The launch of Spot Bitcoin ETFs will also make it easier for these institutional investors to gain direct exposure to the flagship cryptocurrency. 

    For a long time now, those who had a prior interest in the crypto token have had to either invest in Bitcoin futures ETFs or other Bitcoin derivatives on exchanges like the Chicago Mercantile Exchange (CME). But this is changing with the potential approval of a Spot Bitcoin ETF.

    BTC price holds $45,000 | Source: BTCUSD on Tradingview.com

    Grayscale Leading In The “Cointucky Derby”

    As highlighted recently by Bloomberg Analyst James Seyffart, Grayscale looks to set the lead the way, assuming all pending Spot Bitcoin ETFs were approved simultaneously. This is because the asset manager has already established itself with GBTC and would likely have more capital than other issuers upon launch. 

    Bloomberg Analyst Eric Balchunas highlighted this fact and hinted that the Securities and Exchange Commission (SEC) could decide not to let Grayscale launch on day one because of this. If that doesn’t happen and all funds launch simultaneously, then Grayscale is likely to have a sort of ‘first mover advantage.’

    However, other asset managers will be looking to assert their dominance by adopting different strategies. One such strategy will be these issuers undercutting themselves in terms of the fees they will charge to manage their respective funds. Invesco already made it known that they will be waiving fees for the first six months and the first $5 billion in assets. 

    Featured image from Finra, 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.

    Scott Matherson

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  • VanEck: spot Bitcoin ETF launch will not impact BTC price

    VanEck: spot Bitcoin ETF launch will not impact BTC price

    VanEck advisor Gabor Gurbacs does not expect the launch of Bitcoin (BTC) spot exchange-traded funds (ETFs) to impact Bitcoin price much.

    In a post to X, financial guru Gabor Gurbacs noted that while the launch of a spot Bitcoin ETF will not greatly impact the price of BTC, it will significantly impact capital flows into the cryptocurrency sector.

    Bitcoin ETFs are widely expected to bring in trillions of dollars over the long term, but Gurbacs believes they will not move the needle that much in the short-term.

    “Bitcoin is forcing its own capital markets systems and products well beyond the ETF, and that’s not priced in. The question is not what BlackRock adopts, but what Bitcoin company is the next BlackRock.”

    Gabor Gurbacs, VanEck advisor

    Gurbacs also believes that the initial impact of the Bitcoin ETF is vastly overestimated – estimating that net inflows could only amount to about $100 million of “mostly recycled” money from large institutional investors.

    That being said, following the widely expected approval of a spot Bitcoin ETF in the U.S., Bitcoin’s price trajectory may well follow in the footsteps of gold, but it will likely happen “much faster” due to its limited supply and scarcity-increasing events such as halvings.

    The Securities and Exchange Commission (SEC) set the filing deadline for updated applications for a spot Bitcoin ETF to Dec. 29, 2023. If companies failed to meet that deadline, they will lose the opportunity to receive SEC approval in early January.

    Matrixport platform analysts predicted the likely launch of the product in January 2024. Experts believe that the SEC will allow trading of spot Bitcoin ETFs in the US until January next year. Presumably, trading will begin in February or March.


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    Anna Kharton

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  • SEC may approve Bitcoin ETF for imminent launch: here’s when

    SEC may approve Bitcoin ETF for imminent launch: here’s when

    Speculations about the ETF approval’s potential effects on Bitcoin (BTC) have been widespread. Greeks.live, an options platform, provides insights into how the exchange-traded fund could influence the value of the leading cryptocurrency.

    Potential Bitcoin ETF approval imminent

    The U.S. Securities and Exchange Commission (SEC) is reportedly set to inform asset managers seeking to launch a spot Bitcoin (BTC) ETF about the approval status of their applications as early as next week.

    A seasoned trader, renowned for accurately predicting the year’s crypto breakout, now provides insights on Bitcoin’s optimal trajectory post potential approval of spot market BTC exchange-traded fund applications (ETF).

    DonAlt, the pseudonymous analyst, says a prolonged consolidation period would be the most favorable scenario for Bitcoin after potential ETF approval. According to The Daily Hodl, he anticipates a “sell-the-news” reaction to the upcoming ETF announcement on Jan. 10. Afterward, the price of BTC is unlikely to drop significantly below $20,000.

    However, Greeks.live suggests that the market has already factored in the potential approval of the Bitcoin ETF. As a result, it anticipates that the approval may not bring substantial returns for the asset or cause significant price movement.

    The platform bases its assessment on the minimal volatility observed in major-term implied volatilities (IVs) and the current Bitcoin price. Implied volatility, indicating the market’s expectation of an asset’s future movement, plays a crucial role in this analysis.

    On Jan. 12, despite the belief in a strong correlation between options IV and the Bitcoin ETF, there was a decrease rather than an increase. This decline in implied volatility, coupled with the overall low volatility, suggests that even with significant impending news, the impact on Bitcoin’s price may not be substantial.

    At the time of writing, Bitcoin is trading at $42,509, reflecting a modest 0.7% price increase in the past day. Notably, the cryptocurrency has experienced a remarkable 156% increase this year, partly fueled by expectations surrounding a spot ETF.

    Goldman Sachs predicts bullish year

    Investment bank Goldman Sachs forecasts substantial expansion in the cryptocurrency market, specifically highlighting the potential growth of Bitcoin and Ether exchange-traded funds (ETFs). 

    Per CoinGape, Goldman managing director Mathew McDermott cautions against expecting an immediate transformation in the cryptocurrency landscape post-ETF approval. Instead, he envisions a gradual evolution over the next year, dependent on regulatory approval.

    With major players like BlackRock and Fidelity awaiting the SEC’s decision on their spot bitcoin ETF applications. The prevailing sentiment is optimistic, with hopes for a positive outcome that could unlock new avenues for institutional investments in Bitcoin.

    Looking to 2024, McDermott foresees substantial growth in the crypto market. This optimism stems from the increased integration of blockchain technology in commercial applications and traditional financial institutions’ growing involvement in the crypto space.

    A focal point for McDermott is the development of tokenization marketplaces. He predicts these platforms will gain significant traction, particularly among investors, driven by the emergence of secondary liquidity on-chain — a crucial factor enabling market expansion.


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    Ogwu Osaemezu Emmanuel

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  • Bonk, Injective and CorgiAI were 2023's top crypto gainers

    Bonk, Injective and CorgiAI were 2023's top crypto gainers

    In a historic year marked by significant crypto market volatility, Bonk (BONK) emerged as 2023’s top gainer.

    The meme coin skyrocketed by an astonishing 7,302.9% from $0.0000002 to $0.0000146.

    Bonk’s remarkable surge was largely catalyzed by a strategic airdrop, according to CoinGecko, which captured the data in an end-year survey it shared on Dec. 29.

    The airdrop drew widespread trader and investor attention, which also propelled Solana’s ecosystem back into the limelight.

    Per CoinGecko’s data, Injective (INJ) followed closely, logging an impressive 2,976.4% increase, buoyed by the introduction of pre-launch token futures by its decentralized exchange, Helix.

    Injective’s early-year establishment of a $150 million ecosystem fund aimed at accelerating the adoption of interoperable infrastructure and DeFi also played a crucial role in its success.

    Meanwhile, CorgiAI (CORGIAI) emerged as the year’s third-largest crypto gainer, surging by 1,959.7%, driven primarily by its ascent as the main meme coin on the Cronos blockchain. The top 10 crypto gainers of 2023 all outperformed both Bitcoin (BTC) and Ethereum (ETH), often considered the industry’s gold standard.

    Top crypto performers of 2023. Source: CoinGecko

    Interestingly, these top performers were also strongly associated with the year’s most popular narratives, including meme coins, layer 1 protocols, artificial intelligence, and layer 2 solutions. According to analysts at CoinGecko, this indicates a correlation between market trends and their respective success.

    Not all coins enjoyed such a bullish year, however. Eight out of the top 100 cryptocurrencies, including Tether (USDT), USD Coin (USDC), Dai (DAI), Binance USD (BUSD), TrueUSD (TUSD), Toncoin (TON), Chiliz (CHZ), and Sui (SUI), ended 2023 in the red.

    Despite these laggards, Bitcoin still managed to outperform 65 tokens in the top 100, increasing by 162.5% from $16,540 to $43,418. Bitcoin’s growth was fueled by spot ETF applications from market giants like BlackRock and Fidelity, whose approval market observers believe could significantly boost its value in 2024.


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    Julius Mutunkei

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  • Goldman Sachs Exec Predict Growth For Digital Assets In 2024

    Goldman Sachs Exec Predict Growth For Digital Assets In 2024

    Head of Digital Assets at Goldman Sachs, Matthew McDermott, has projected a massive growth in the cryptocurrency market in 2024. McDermott shared these positive predictions in a recent interview with Fox Business, expressing much optimism in the future of digital assets. 

    Goldman Exec Expects Spot ETFs To ‘Gradually’ Boost Institutional Demand For Crypto Assets

    Speaking to Fox Business, McDermott has backed the continuous growth of cryptocurrencies as he foresees a rise in the institutional adoption of these assets. 

    Notably, the Goldman executive shares popular sentiment with many crypto enthusiasts that the approval of a Bitcoin or Ethereum spot ETF will open up the digital asset ecosystem to more institutional investors who are weary of the market volatility attached to direct crypto investments. 

    McDermott said:

    One, it broadens and deepens the liquidity in the market. And why does it do that? It does that because you’re actually creating institutional products that can be traded by institutions that don’t need to touch the bare assets. And I think that, to me, that opens up the universe of the pensions, insurers, etc. 

    However, McDermott has cautioned crypto enthusiasts against expecting a sudden impact of crypto spot ETFs. He believes the anticipated increased demand and price rise will be a gradual process that will occur over the course of 2024. 

    The US Securities and Exchange Commission (SEC) is expected to grant approval orders to several Bitcoin spot ETF applications in the coming weeks following discussions between the regulator and multiple asset managers. Bloomberg analyst Eric Balchunas has set a potential decision window of January 8 – January 10, stating there is a 90% chance the SEC finally delivers a verdict on these various applications putting an end to the 6-months chronicle.

    Asset Tokenization In 2024

    In addition to potential crypto spot ETFs, McDermott also mentioned a potential increase in commercial blockchain application as another contributing factor to his projected rise in institutional demand for digital assets.

    Particularly, he spoke about an improvement in existing tokenization systems, which can lead to the creation of secondary liquidity on blockchains.

    He said:

    When I think about tokenization, which is obviously a topic that’s kind of talked about quite extensively, I think for me next year what we’ll start to see is the development of marketplaces. So where we start to see scale adoption, particularly across the buy side in the context of investors. And that’s because we’ll start to see the emergence of secondary liquidity on chain, and that’s a key enabler. So for me, that’s one of the key developments for next year.”

    At the time of writing, the entire crypto ecosystem is valued at $1.602 trillion, with a 15.09% gain in the last month. The market’s leader Bitcoin currently trades at $42,082, having declined by 1% in the past day.

    Total crypto market valued at $1.602 trillion on the daily chart | Source: TOTAL chart on Tradingview.com

    Featured image from Money, 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.

    Semilore Faleti

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  • BlackRock and Bitwise amended applications for spot Bitcoin ETF yet again

    BlackRock and Bitwise amended applications for spot Bitcoin ETF yet again

    Asset manager BlackRock has updated its application to launch the first-ever spot Bitcoin ETF in U.S.

    The document appeared on the website of the U.S. Securities and Exchange Commission (SEC). Bitwise has also updated its application to launch a similar tool.

    Analysts believe the action signals that the SEC is continuing discussions with the market about opportunities to approve a spot Bitcoin ETF.

    The updates could be a step that allowed companies to “tailor” applications to the regulator’s requirements.

    BlackRock’s updated document included new language about the efforts the trust administrator will make to monitor unusual price movements. It also added anti-money laundering compliance language and included a verified PricewaterhouseCoopers statement.

    Bloomberg analysts expect approval of a spot Bitcoin ETF in the U.S. in January 2024. James Seyffarth and Eric Balchunas believe there is a 90% chance of a spot Bitcoin ETF being approved before January 10, 2024, the day by which the SEC must make a final decision on ARK Invest’s application.


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    Anna Kharton

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  • Binance ex-CEO faces travel ban; BTC ETF | Weekly Recap

    Binance ex-CEO faces travel ban; BTC ETF | Weekly Recap

    Changpeng Zhao, Binance’s former CEO, faced a setback; the Bitcoin spot ETF craze continues, with BlackRock and Grayscale modifying their filings; and BTC clinched the $39,000 spot amid a sustained market uptrend.

    Binance ex-CEO’s travel ban

    • Recall that the U.S. Justice Department argued against letting Zhao leave to the UAE, adding that he might not return to the U.S. to face his sentencing, as the country does not have an extradition agreement with the UAE.
    • This week, District Judge Richard Jones agreed that authorities restrict Zhao from leaving the U.S. before his sentencing in February next year. Zhao would have to remain in the U.S. until then.

    Zhao resigns as Binance.US chairman amid probe

    • Despite getting the global Binance entity to admit to financial violations and a fine of $4.3 billion, U.S. authorities are still onto the Binance brand. The U.S. Securities and Exchange Commission (SEC) recently revealed it has continued its probe into Binance.US’ operations.
    • The agency believes the exchange might have also employed a backdoor mechanism similar to what FTX leveraged for its illegal financial operations involving customer assets.
    • A day after the SEC’s disclosure, Binance.US announced that Zhao had resigned from his position as the board Chairman of the company. Binance.US also emphasized its independence from the global Binance entity.

    Ronaldo caught in the crossfire, Binance’s woes in the Philippines

    • This week, soccer icon Cristiano Ronaldo found himself caught in the Binance saga. Binance customers initiated a class action against the Al-Nassr forward, claiming they incurred losses due to his promotion of Binance.
    • Binance’s woes did not end in the U.S., extending to Southeast Asia this week. Notably, the Philippines SEC released a warning statement on Nov. 28, revealing that Binance had been operating in the country without a valid license.
    • Shortly after this disclosure, reports suggested that the Philippines securities regulator was looking to enact measures to block Binance’s operations in the country.

    Spot BTC ETFs: Grayscale, BlackRock modify filings 

    • The crypto community also witnessed developments surrounding the spot BTC ETF filings. Documents on the SEC’s website confirmed that Grayscale modified its GBTC agreement to make it suitable for a spot ETF as they await an approval of the conversion.
    • In addition, BlackRock also made changes to its filings. The minutes of the asset manager’s meeting with the SEC revealed that the firm modified the spot BTC ETF filing to tackle concerns raised by the regulatory agency.

    Discussions surrounding a BTC ETF

    • Amid the delay in the approval of a spot BTC ETF, discussions surrounding the investment product emerged this week. When asked, SEC Chairperson Gary Gensler refused to comment on the approval process of the multiple filings on the regulatory agency’s desk.
    • However, Gensler did highlight the crypto industry’s susceptibility to fraud and market manipulation. Meanwhile, Bloomberg ETF analyst James Seyffart revealed on Nov. 30 that the next window for an approval is between Jan. 5 and Jan. 10 next year.
    • As efforts to get approval intensified. Grayscale hired John Hoffman, a former Invesco executive, to lead its team of partnerships and distribution. This move was in preparation for an approval of its spot BTC ETF filing.

    Scams, hacks and everything in between

    • This week saw no shortage of developments surrounding scams, hacks and enforcements. The U.S. Treasury sanctioned another crypto mixer Sinbad, claiming that North Korean hackers used it to launder stolen frauds from protocols such as Atomic Wallet and Ronin Bridge.
    • Meanwhile, the Kyberswap hacker who stole $47 million on Nov. 23 from the protocol finally made his demands for the return of the funds. The exploiter demanded full control of the protocol and a change of governance. 
    • USDC issuer Circle denied allegations that it was actively facilitating illegal financial transactions, which include funds flows involving Hamas. Circle’s rebuttal came in response to concerns from Sherrod Brown and Elizabeth Warren, U.S. senators.

    UN turns to Algorand, MSTR buys more BTC

    • Despite the growing concerns surrounding illicit blockchain and crypto activities, adoption did not slow this week. The United Nations collaborated with the Algorand Foundation to educate its staff on blockchain.
    • Reports further demonstrated MicroStrategy’s sustained optimism in Bitcoin. A disclosure from this week revealed that the firm had pumped $593.3 million on 16,130 more BTC tokens at an average price of $36,785.
    • Meanwhile, Circle turned its eyes toward Japan, inking a partnership with Japanese financial giant SBI Holdings, intending to offer stablecoin services in the East Asian country.
    • While blockchain and cryptocurrency have endured growing adoption in most spheres, reports suggested a different story in the gaming industry. According to a CoinGecko report this week, over 75% of Web3 games in the past five years have not been successful.

    Bitcoin conquers $39,000

    • Bitcoin extended its multi-week uptrend into this week amid sustained bullishness. As the broader market saw bullish momentum last week, CoinShares confirmed that digital asset products recorded an 18-month high of $346 million in inflows.
    • Starting the week at $37,447, BTC conquered two pivotal psychological resistance thresholds amid an impressive run. The asset surged past $38,000 on Dec. 1, closing the day at $38,682, before conquering $39,000 on Dec. 2.
    • Following the massive price spikes, IntoTheBlock revealed that over 80% of BTC holders are in profit. Bitcoin now sits well above the $39,000 mark. At last check on Dec. 3, it hovered just above $39,641 and aims to reclaim the $40,000 territory.


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    Wahid Pessarlay

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  • Bitcoin Spot ETF Will Bring $70 Billion In New Money – Glassnode

    Bitcoin Spot ETF Will Bring $70 Billion In New Money – Glassnode

    Blockchain analytics firm Glassnode has estimated a substantial influx of investor demand following the approval of Bitcoin Spot ETF. The analysis indicates around $70 billion in new money flowing into Bitcoin, potentially setting the stage for a BTC price rally. 

    Bitcoin Spot ETF Set To Ignite New Inflows

    Blockchain data and intelligence provider, Glassnode has recently published research insights on the potential impacts of Bitcoin Spot ETF approvals on the price of Bitcoin and the broader crypto market. The on-chain analytics company has predicted about $70.5 billion flowing into Bitcoin from increased demand from institutional investors. 

    Glassnode bases its analysis on the assumption that substantial portions of capital invested in the stocks, bonds, and gold market might shift toward Bitcoin investments. The blockchain analytics firm has stated that this influx of new capital could have a huge effect on the Bitcoin market, potentially driving its price to greater levels. 

    “Based on these assumptions, we estimate approximately $60.6 billion could flow into Bitcoin from the combined stock and bond ETFs, and about $9.9 billion from the gold market, totaling around $70.5 billion in potential new capital influx,” Glassnode stated. 

    It added:

    “This significant infusion of new capital could have a considerable impact on Bitcoin’s market, potentially driving up its price as it gains broader acceptance and becomes integrated into more traditional investment portfolios.”

    Bitcoin Futures And Altcoins Soar On BTC ETF Hype 

    Glassnode has extended its analysis to examine how Spot Bitcoin ETF applications are influencing Chicago Mercantile Exchange (CME) Bitcoin futures and various altcoins. 

    The blockchain analytics firm has stated that the recent crypto market recovery has been driven by the surrounding anticipation of Spot Bitcoin ETF potential approval by the United States Securities and Exchange Commission (SEC). 

    Bitcoin (BTC) is currently trading at $37.696. Chart: TradingView.com

    “The market’s upward trajectory was largely driven by the anticipation of Spot BTC ETF approvals, with market movements significantly influenced by updates on filings from major financial entities like Invesco and BlackRock,” Glassnode stated. 

    The on-chain analysis firm revealed that the growing optimism in Spot Bitcoin ETFs has caused a notable increase in Bitcoin futures on CME. According to the blockchain intelligence provider, CME Bitcoin futures rose to an all-time high of 27.8%, exceeding Binance for the first time since the start of the crypto bear market. 

    Various other altcoins like Ethereum and Solana also experienced staggering price increases. Solana surged by 79.05%, and Ethereum’s price is presently above the $2000 mark. 

    The most notable increase caused by the ongoing hype on Spot Bitcoin ETFs was seen in Bitcoin. BTC surged above $37,000 as the optimism of regulator approvals for the first Spot Bitcoin ETF spread. 

    Additionally, institutional engagement in open interest in Bitcoin call options also rose by $4.3 billion, marking an 80% increase to surpass $9.7 billion. These recent spikes in investor demand and crypto prices have signaled a potential bullish trajectory for the maturing crypto market. 

    Featured image from Pexels

    Scott Matherson

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  • BlackRock spotlights stablecoin risks in Bitcoin ETF filing

    BlackRock spotlights stablecoin risks in Bitcoin ETF filing

    In a recent filing for a spot Bitcoin ETF, BlackRock, the world’s largest asset manager, has highlighted the indirect risks posed by stablecoins, emphasizing the nuanced complexities of the crypto market.

    BlackRock, the world’s largest asset manager, has made headlines with its application for a spot Bitcoin Exchange-Traded Fund (ETF). The application, keenly awaited by the digital asset sector, includes a notable mention of stablecoins as a risk factor, an aspect that has drawn considerable attention.

    Stablecoins, digital currencies like Tether USD (USDT) and Circle USD (USDC), are designed to maintain a stable value as they are pegged to traditional currencies. In its filing, BlackRock highlights that while the ETF does not directly invest in stablecoins, there exists an indirect exposure to the risks they pose to Bitcoin and the broader digital asset market. This acknowledgment is significant, considering the firm’s stature and stablecoins becoming increasingly pivotal in digital asset transactions.

    The inclusion of stablecoins in the risk assessment reflects a nuanced understanding of the interconnected nature of the crypto ecosystem. BlackRock’s caution stems from the historical volatility of stablecoins and their potential impact on Bitcoin’s price (BTC).

    This perspective resonates with concerns raised by U.S. regulators, such as the Federal Reserve, which have previously labeled stablecoins as a financial risk.

    BlackRock’s move to file for a spot Bitcoin ETF is part of a broader race among various financial entities, both from traditional finance and the digital asset industry, to capitalize on the growing interest in cryptocurrencies.

    The U.S. Securities and Exchange Commission’s decision on these filings is highly anticipated, as it could significantly influence the future of crypto investments.


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    Bralon Hill

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  • CEHV partner suggests uncertain times ahead amid Genesis shutdown 

    CEHV partner suggests uncertain times ahead amid Genesis shutdown 

    With many analysts speculating the outcomes of the Spot Bitcoin ETF race, partner at CEHV, Adam Cochran, shares his perspective in a Nov. 8 post on X.

    From Cochran’s perspective, while odds are good for other ETFs, the Digital Currency Group (DCG) and more specifically the asset management unit Grayscale, may be have a tough road ahead.

    Effects of Genesis’ downfall

    Cochran suggests that DCG CEO Barry Silbert’s situation comes as a result of the Genesis shutdown, the absence of updates regarding GBTC conversion following a court case, the lack of price arbitrage opportunities on smaller trusts, ongoing discussions surrounding a potential fraud investigation, and the ongoing legal case with Gemini, all contributing to an atmosphere of uncertainty and concern.

    In a follow-up post in his thread, Cochran goes on to share that although there remains the possibility of obtaining a GBTC conversion, the likelihood of GBTC gaining approval does not necessarily insulate Silbert and Grayscale from broader challenges. 

    Cochran ends the thread questioning whether the 10% discount offered is worth the decision to refrain from holding direct BTC while awaiting BlackRock’s potential approval.

    Continuing the race

    Days earlier, Co-founder of Valkyrie Investments Steven McClurg shared that the SEC is in a position to grant approval to several spot Bitcoin ETF applications in November 2023.

    In the evaluation, McClurg notes that companies have effectively addressed the concerns related to market manipulation that had been raised by the regulator. Therefore, while the SEC may issue another round of comments to the entities that submitted ETF applications in the coming one to three weeks, an approval of 19b-4 rule changes is likely shortly after.


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    Sarah Jansen

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