Spot XRP Exchange-Traded Funds (ETFs) started the week surpassing most crypto-based investment products after the record debut performance of Grayscale and Franklin Templeton’s funds.
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GXRP, XRPZ See Record Debut
This week, the second batch of spot XRP ETFs went live, debuting with a record-breaking performance. Notably, Grayscale and Franklin Templeton launched their XRP-based investment products, recording over $60 million in net inflows each during their first day.
On Monday, Franklin Templeton debuted the new XRPZ ETF on NYSE Arca, highlighting that “its established utility in facilitating cross-currency settlement has made XRP a central component of the growing digital payments ecosystem.”
Moreover, Grayscale followed the same path as with its other existing crypto-based private trusts, converting its XRP fund into the publicly traded GXRP ETF. In a significant achievement, both funds broke Canary Capital’s XRPC record as the biggest ETF debut of 2025.
As reported by NewsBTC, Canary Capital launched the first single-token XRP spot ETF on November 13, smashing the initial expectations of multiple experts. After clearing the last regulatory hurdles, XRPC debuted on Nasdaq with a total volume of $58 million.
Ahead of its launch, senior ETF analysts predicted that the fund could surpass Bitwise’s BSOL, which previously held this achievement. After the first 30 minutes, XRPC surprised market observers with $26 million in volume, suggesting strong initial demand.
Meanwhile, BSOL recorded an impressive volume of $10 million in the first 30 minutes of trading, surging to $33 million by the half-day mark. The investment product closed its debut with $57 million in volume, beating all 900 other launches of the year.
According to SoSoValue data, Franklin’s XRPZ and Grayscale’s GXRP saw an impressive $62.6 million and $67.4 million on their launch day, surpassing Canary’s XRPC record and becoming the best debuts of any ETFs in 2025 so far.
XRP ETFs Steal The Spotlight
Besides the remarkable launch of Grayscale and Franklin Templeton’s investment funds, the XRP ETF category’s performance surpassed that of other leading ETFs on Monday, including those based on the largest cryptocurrencies by market capitalization, Bitcoin (BTC), Ether (ETH), and Solana (SOL).
Canary Capital’s XRPC and Bitwise’s XRP ETF brought in $16.4 million and $16.4 million, respectively, amounting to a total of $164 million in net inflows for the whole category on November 24.
This performance was followed by ETH ETFs, which recorded $96.6 million in inflows, led by BlackRock’s ETHA. Solana-based funds came third with $58 million in positive net flows, extending their 20-day streak with a total of $568 million in inflows, according to Farside Invest data.
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Notably, spot XRP ETFs have seen cumulative net inflows of $586.8 million, registering an eight-day positive streak and surpassing the total inflows of SOL ETFs.
On the contrary, Bitcoin ETFs registered the worst performance among the leading cryptocurrency funds. The investment products continued their choppy November performance, starting the week with $151 million in outflows, led by BlackRock’s IBIT.
As of this writing, XRP is trading at $2.18, a 1.6% decline in the daily timeframe.
XRP performance on the one-week chart. Source: XRPUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
Grayscale Investments will list spot ETFs for Dogecoin and XRP on the NYSE Arca on November 24, 2025, offering a new way for everyday investors to buy those coins through regular brokerages.
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According to exchange notices and regulatory filings, the funds will trade under the tickers GDOG for Dogecoin and GXRP for XRP. The listings convert Grayscale’s existing private-placement trusts into publicly traded products.
Grayscale Moves To List Dogecoin And XRP
Reports have disclosed that both ETFs received approval to be listed, and the paperwork was filed with the US Securities and Exchange Commission.
The move brings spot exposure to two smaller, but widely followed, cryptocurrencies into a mainstream vehicle. For many investors, that means access without directly managing wallets or private keys.
Grayscale Dogecoin ETF $GDOG approved for listing on NYSE, scheduled to begin trading Monday. Their XRP spot is also launching on Monday. $GLNK coming soon as well, week after I think pic.twitter.com/c6nKUeDrtI
Trading activity in related derivatives climbed in the lead up to the announcement. Dogecoin derivatives volume increased by more than 30% to roughly $7.22 billion, based on exchange data.
XRP derivatives surged as well, jumping about 51% to around $12.74 billion. Based on reports, these spikes reflect traders positioning for potential price swings around the ETF debut.
Spot ETFs do not promise higher prices, but they do change who can buy the assets. Brokers, retirement plans, and funds that avoid direct crypto custody may now step in.
That could affect liquidity in both the tokens and their markets. At the same time, the overall crypto market has seen pressure; reports say the launches come during a roughly six-week downturn.
DOGE market cap currently at $21.4 billion. Chart: TradingView
Questions Remain Over Demand And Flows
Product fees, custody details, and how the trusts convert into ETF shares will shape investor appetite. Past launches of crypto ETFs showed brisk early flows for some products, while others saw muted interest. What matters for prices is not only listings, but inflows and outflows once trading begins.
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Investors and analysts are likely to watch the first days of trading for clues. High volume and tight spreads would suggest strong demand. Low turnover or wide spreads could signal tepid interest.
Based on reports, market participants will also monitor whether the ETFs draw the same sort of speculative trading that has driven derivatives volume in recent days.
The listing of both GDOG and GXRP on the same date marks a notable step for mainstream crypto products. According to exchange filings, the funds are structured as spot ETFs that hold the underlying tokens via custodians. While that does not remove price risk, it does make buying these assets simpler for a broad group of investors.
Featured image from Gemini, chart from TradingView
Our Philly faves are back with some new magic in the form of a collab! That’s right, Grayscale and Smallpools (one of their “favorite 80s inspired alt bands ever”) teamed up to bring us a reimagined version of ‘Some Kind of Magic,’ off of their 2025 album The Hart.
‘Some Kind Of Magic’ is without a doubt one of our favorite songs off of The Hart, so you can imagine that we were thrilled to find out there’s a new version to enjoy (i.e., listen to on repeat to an almost embarrassing degree).
After months of re-working it and continually speeding up the tempo, we finally landed on an upbeat song that feels like ‘The Cure on cocaine.’ Our friends in Smallpools were the immediate choice for the feature, one of our favorite 80s inspired alt bands ever. We totally reworked the song together to give it a different feel, and we absolutely love it.
Grayscale
After hearing this new version of the track, we could not imagine it featuring anyone other than Smallpools. This new version fits their sound perfectly and we love how the distinct vocals come together to shape the track. Grayscale has said that this song is inspired by The Cure, which they listened to a lot during the writing process, and no one fits that 80s-inspired vibe better than Smallpools. Having seen Grayscale and Smallpools tour together, we knew immediately that we were going to love this collab, and we only wish it had existed during that era because getting to see it live would have been a dream. This marks the 3rd song from The Hart to get the collab treatment, joining ‘Kept Me Alive’ and ‘Summer Clothes.’ We think it would be cool to get an entire album full of Grayscale songs reimagined into collaborations tbh.
You can catch Grayscale on tour right now and later this year, so don’t forget to grab your tickets!
What do you think of ‘Some Kind Of Magic’ ft. Smallpools? Will you be streaming it on repeat the way we will? Are there any bands you want to see Grayscale collaborate with next? Let us know in the comments, on Facebook, Instagram, or by tweeting us @thehoneypop!
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‘Third time’s the charm’ or whatever they say… Only this time we’re talking about seeing Grayscale for the third time this year. We saw them in Arizona at 8123 Fest, then again while on tour earlier this Spring. Now they’re back in Anaheim, and we were not prepared for the show they were about to perform.
Jay Flores for The Honey POPJay Flores for The Honey POP
When it comes to seeing Grayscale on tour, it’s truly never certain what songs they’re going to sing. It could be a setlist comprised of all their hit singles that make us fall in love with their music over and over again, or it can be the hard-hitting, very-rarely-performed-live songs that remind us how lucky we are to exist at the same time as them. On this very tour, we were beyond lucky to get both. You heard that right.
The Philadelphian, alt-rock band opened with one of our favorite songs, ‘Kept Me Alive,’ and kept the vibes up and strong following with ‘Through the Landslide’. Both of these songs fresh off the press with the release of their 5th studio album, The Hart. When you have a band like Grayscale who has been in the scene for a long while, they know what the fans want to hear and how to make every show feel special and unique.
This particular night, they surprised us with not one, but two of their more hard-hitting tracks from their newest album: Talking In My Sleep and Mum ii. Back to back, mind you. (As if the Anaheim heat wasn’t enough to melt our makeup off, these two songs were.)
Jay Flores for The Honey POP.Jay Flores for The Honey POP
But it’s okay, because just as we were wiping our tears and mascara-stained faces clean, Grayscale picked the vibes back up with ‘Dance With Your Ghost.’ Collin Walsh asked us if we had come out to dance on this Saturday night, and we said yes.
If you didn’t think Grayscale could get any better, their second to last song on the setlist was none other than their cover of Van Halen’s ‘Panama.’ We’d heard this one before when we saw them on tour with Boys Like Girls, but there’s nothing like hearing it live again. (We don’t know how the logistics of this work, but can you guys pretty please put this on streaming somehow? Thanks. Sincerely, us.)
And of course, not to be forgotten, and not to be ignored, the band closed the night out with ‘Not Afraid to Die,’ the leading single to their recent album.
At this point, seeing Grayscale live feels less like just going to a concert and more like showing up for a full-on emotional rollercoaster in the best way possible. Whether it’s your first show or your thirtieth (hi, it’s us), they always find a way to make it feel brand new. From surprise deep cuts to crowd-favorite bangers, they really gave us everything in Anaheim.
Check out the full gallery below!
If you didn’t get a chance to see them yet, or in the US, Grayscale will be out on tour in the UK & Europe this fall on their “Live In Colour” tour! You can check out dates and purchase tickets here.
Did you catch them on this tour? Let us know in the comments, on Facebook, Instagram, or by tweeting us @thehoneypop!
If you know anything about us at The Honey POP, it’s that we love Grayscale. We couldn’t pass up seeing Grayscale and BOYS LIKE GIRLS together on the Lost In Wonderland Small Town USA Summer ‘24 Tour. It would’ve been the ultimate concert FOMO. So, we packed our bags and flew across the country to see our faves, without any hesitation.
It was pouring rain when we came to the venue but by the end of the night, it was “blue sun, perfect skies” (at 11:23 pm). While we could yap forever about the show, here are some of our favorite moments.
Image source: Julia Godfrey
‘Just Right’
Watching the lights go out and hearing the opening notes to this song as Grayscale takes the stage is one of our favorite moments. The anticipation and excitement felt palpable in that moment and we were ready to sing and dance our way through their entire set (as always).
‘In Violet’
You might love it, you might hate it, you might complain about your knees every time it happens, but the jump during ‘In Violet’ is one of our favorite parts of a Grayscale set. For those who aren’t familiar, lead singer Collin Walsh has the crowd crouch down low and jump back up in unison as the music kicks in. Some crowds need a little more prompting than others, but seeing an entire room jumping and singing along to this track is so special. That held true in Myrtle Beach because it had been entirely too long since we had experienced an ‘In Violet’ jump. It’s already one of our favorite songs but the live experience makes us love it even more.
‘Let Go’
They debuted this one at their 2023 holiday show and they’ve played it at The Night Shift Tour with Smallpools and Caroline Romano. Do we know all the lyrics because of rewatching our videos? Yes. Will we hear it at their upcoming tour with Marianas Trench? Most likely. Regardless, we need the studio version ASAP.
‘Summer Clothes’
Are you tired of us yapping about this song and rubber ducks yet? Well too bad because this is one of our favorite songs of the summer and we won’t stop. This was our first time hearing ‘Summer Clothes’ live and it was so much fun. The song has great energy to begin with and that energy translated perfectly into a live performance. We really hope this becomes a setlist staple, tbh. Speaking of ‘Summer Clothes,’ will Collin Walsh ever return our rubber duck? Who knows.
‘Forever Yours’
Every Grayscale song is a singalong for us, but this one especially. It’s a classic setlist staple and also one of our many favorite songs from Adornment. While we listen to the studio version frequently, there’s just something incredibly special about hearing it live. And it’s even better when you can sway and sing along with your best friend.
‘Not Afraid To Die’
Oh, the song that kicked off their new era. It’s been out for almost a year now, but trust us when we say we are nowhere near tired of ‘Not Afraid To Die.’ This song goes hard every time. Would we have crowd-surfed to this song if the venue allowed it? Absolutely. But there’s always next time.
‘Panama’ – Van Halen
One of the many things we love about Grayscale shows is that they usually close with a cover. Some past covers being Third Eye Blind’s ‘Never Let You Go’ and Tal Bachman’s ‘She’s So High.’ This time they ended with a classic Van Halen song, ‘Panama’ and we love them for it.
As always, Grayscale put on an incredible show. We are a little jealous we didn’t get to hear Collin sing ‘The Great Escape’ with BOYS LIKE GIRLS on the last night of tour but we’re so grateful we got to experience this run. Not only that, but we’re super excited for whatever new music they have in store for us! If these singles are any indication of what their next album is going to sound like then we know it’s going to be amazing (and we need it ASAP). But for now, we are counting down the days until we see them on tour with Marianas Trench! (Be sure to get your tickets, if you haven’t already!)
What are your favorite songs from Grayscale’s setlist on the Lost In Wonderland Small Town USA Summer ‘24 Tour? Are you going to their upcoming tour with Marianas Trench? Let us know on Facebook, Instagram, or by tweeting us @thehoneypop!
The debut of spot Ethereum ETFs in the United States resulted in some of the highest inflows since December 2020 over the last week. According to CoinShares, the newly launched funds attracted $2.2 billion last week.
Since then, the trading volume of Ethereum ETPs has also surged by 542%. However, the inflows have been hampered by Grayscale’s existing $1.5 billion Ethereum trust, which resulted in ETH experiencing a net outflow of $285 million for the week.
This mirrors the situation observed with Bitcoin trust outflows during the January 2024 ETF launches.
Ethereum ETFs Drive Market Activity
According to the latest edition of the “Digital Asset Fund Flows Weekly Report,” Ethereum ETF launches drove the trading volume of digital asset investment products to $14.8 billion, the highest since May. Zooming out, the overall inflows, however, remained modest, with $245 million.
The recent price increase has further pushed the total assets under management (AuM) to $99.1 billion, with year-to-date (YTD) inflows hitting a milestone of $20.5 billion.
Bitcoin experienced strong inflows of $519 million over the past week as well, increasing its month-to-date inflows to $3.6 billion and its year-to-date inflows to a record $19 billion. CoinShares attributed the renewed investor confidence to the US electioneering remarks about Bitcoin potentially being a strategic reserve asset and the heightened likelihood of a FED rate cut in September 2024.
During the same period, short-Bitcoin investment products saw modest inflows of $0.3 million. This relatively minor increase contrasts sharply with the weekly inflows into Bitcoin, indicating that while some investors are hedging their bets against potential downturns, the overall sentiment remains bullish.
Altcoins, such as Cardano, Litecoin, and XRP, clocked in weekly inflows of $1.2 million, $0.6 million, and $0.5 million, respectively. Chainlink also saw $0.3 million in inflows for the week. However, Solana registered $2.7 million in outflows.
Germany Tops Outflows Chart
Regionally, the US saw the highest inflows, totaling $272 million, followed by Switzerland at $40.6 million. Canada and Australia also recorded mild inflows of $2.5 million and $1.7 million respectively.
At the same time, Germany saw the highest outflows with $59.6 million. Brazil, Hong Kong, and Sweden followed suit with $5.6 million, $3.5 million, and $2.6 million in weekly outflows.
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Knuckle Puck covering ‘Stick Season’ by Noah Kahan was the crossover event we didn’t know we needed, but we’re SO thankful for it. Considering the difference in genres, KP putting their pop-punk spin on Noah’s folksy twang in ‘Stick Season’ is everything. It got us reminiscing about the good old days, aka the era of Punk Goes Pop. So we started thinking, what other Noah Kahan tracks would we like to see get the pop-punk/pop-punk adjacent twist? If you think about it, Noah’s discography is the perfect candidate for the Punk Goes Pop treatment. The themes on tracks like ‘Dial Drunk’ and ‘You’re Gonna Go Far’ lend themselves perfectly to the angsty, guitar-heavy sound that pop-punk is known for.
With that in mind and with a little help from readers like you, we present our dream Punk Goes Noah Kahan tracklist (in no particular order):
‘Stick Season’ — Knuckle Puck
Of course, we have to list the track that inspired this entire idea. Yes, we said this list isn’t in any sort of order but ‘Stick Season’ (Knuckle Puck’s Version) deserves the opener slot purely for being the catalyst here. In all seriousness, we really do love this version of the song. Knuckle Puck brings their sound through while still keeping the heart of the song, further adding to our belief that Noah Kahan x pop punk is a match that’s meant to be.
‘The View Between Villages’ — Real Friends
It would actually be a crime if we didn’t include Real Friends in this list. We can’t break up the RF/KP blood pact! Aside from that though, Real Friends would absolutely kill this cover. They have the perfect angsty, emotion-driven vibe required to do this song justice. We just know ‘The View Between Villages’ in the style of Real Friends would become an instant favorite of ours.
‘Dial Drunk’ — State Champs
Next up we have ‘Dial Drunk’ A.K.A the Noah Kahan song with one of our favorite bridges. In our heads, this has to be covered by State Champs. We can totally see State Champs covering ‘Dial Drunk’ live, amping it up and bringing the energy. Being in the pit to a State Champs ‘Dial Drunk’ cover would go kind of hard tbh. We just know Derek Discanio would kill the “f*ck that sir, just let me call” line in the bridge and now we need it for reasons.
‘False Confidence’ — Carly Cosgrove
As one of our contributors said, Carly Cosgrove covering ‘False Confidence’ just “feels right” and we’re inclined to agree. Oh, you thought we were just sticking to Stick Season? No no, we’re diving into Busyhead with this list too. Sure, soundwise they couldn’t be more different, but if you pay attention you can see where we’re coming from. For science, we played ‘False Confidence’ and ‘Steered Straight’ by Carly Cosgrove back to back and the connection was there. Hearing ‘False Confidence’ in Carly Cosgrove’s style would probably be a masterpiece and we need it.
‘You’re Gonna Go Far’ — Grayscale
This is one of the tracks on Noah Kahan’s discography that really gets to us. (No, YOU sobbed to this song on your drive home the other day). So for that reason, we feel like Grayscale would do this song justice. They’re not afraid to tackle life and emotions in their music (see ‘Mum II’) and the theme of ‘You’re Gonna Go Far’ feels like it would fit in with this current era of Grayscale’s sound and songwriting. Not to mention, Collin Walsh’s vocals would absolutely do this song justice and we’d love it if they covered it.
‘Maine’ — The Maine
Okay, maybe we’re just choosing this for the haha funnies but hear us out. ‘Maine’ is giving Pioneer so of course it makes sense that The Maine has to be the one to do this cover right? We can totally see Knuckle Puck’s Sad Summer Fest tourmates doing this track justice so it has earned its spot on our list. We just know John O’Callaghan’s voice would fit this song, and honestly this genre, SO well.
‘No Complaints’ — Arm’s Length
‘No Complaints’ has a heavier, angstier, brooding vibe reminiscent of the themes and sound of Never Before Seen, Never Again Found. While Arm’s Length might not be the band you jump to when you think of Noah’s sound, we can absolutely see them doing this song justice. The last 60 seconds of ‘No Complaints’ reminds us so much of the last minute or so of ‘Overture.’ Of course, the sounds are very different, but the vocal style and production make us think that Arms Length would be able to perfectly translate ‘No Complaints’ to their sound.
‘Save Me’ — MM@TA
Meet Me @ The Altar is another one of those bands on this list where you might be thinking, are you sure? But we really do think they could cover ‘Save Me’ so well. We can practically hear Edith Victoria singing the chorus if we close our eyes. Do not ask us to elaborate because we’re right. If they can cover the Jonas Brothers, they can cover Noah Kahan. Maybe they’d keep ‘Save Me’ slower or maybe they’d amp it up to their electrifying, high-energy sound, but whatever they did, we know it would sound so good. The tempo picking up in the last part of the song solidifies this for us because we know they’d take that sound and turn it into something amazing. For science, we need this to happen.
‘Northern Attitude’ — The Wonder Years
Honestly, we were debating between this track and ‘The View Between Villages’ for The Wonder Years, and ‘Northern Attitude’ as a title just feels very TWY-coded. Did we intentionally include a bunch of Sad Summer Fest bands on this list? No, but if something works it works and TWY covering ‘Northern Attitude’ just feels right. It has an angstier edge to it and honestly? It kind of has the makings of a pop-punk song anyway. We can totally see The Wonder Years releasing ‘Northern Attitude’ in an alternate universe, maybe with a heavier pop-punk sound behind it. But “forgive my northern attitude/I was raised out in the cold” feels like it could be a TWY lyric so please TWY give us this cover.
‘She Calls Me Back’ — Young Culture
Young Culture, our beloved. We could 100% picture YC giving ‘She Calls Me Back’ a ‘Whiskey’-esque treatment. The drum kicking in on ‘She Calls Me Back’ and the entire production of the track feels like it would fit in perfectly in Young Culture’s discography if they wanted to give it the pop-punk edit. We didn’t make all those y’allternative jokes about ‘Whiskey’ to NOT include Young Culture on this list tbh, so we would love to hear this cover come to life.
‘Everywhere, Everything’ — With Confidence
Listen, we are concocting a scheme to get With Confidence back (it might involve human sacrifice, who knows?) it’s a work in progress, but until then, we can offer you this. ‘Everywhere, Everything’ may be the furthest thing sonically from what you might think of when you think of With Confidence but consider: covers can sound different. The chorus of this song sounds like it could be a With Con chorus if they sang it in their style. The first “We didn’t know that the sun collapsing /’Til the seas rose and buildings came crashing” was like hearing the ghost of With Con in a folk song, don’t ask us why, it just did. Sit with that and think about Jayden Seeley’s vocals on this track while we work on those schemes of ours.
‘New Perspective’ — Neck Deep
The introductory notes and lines of ‘New Perspective’ again, feel very pop-punk coded and for some reason, Neck Deep came to mind first. Maybe it’s because it feels like a sort of thematic parallel to ‘Can’t Kick Up The Roots,’ but we can see them singing this in a slowed-down, pop-punk ballad-style cover. It would probably be amazing too. Neck Deep would probably do a lot of the thematic elements of Noah Kahan’s music justice too and ‘New Perspective’ feels like the perfect example of that.
‘Cynic’ — Daisy Grenade
Maybe we have a Sad Summer Fest lineup agenda with these choices you’ll never know. The bassline and production of this song feel very much up Daisy Grenade‘s alley and we think they’d put such a fun spin on it. We’d love to see their take on ‘Cynic.’ Don’t ask us why, but we feel like it would be something in the realm of ‘Liquor and Kerosene’s’ sound. That feels right but we’ll leave it up to Daisy Grenade to bring the idea to life.
Whew, there you have it! Thank you for bearing with us through this dive into Noah Kahan’s discography to figure out the perfect “Punk Goes Noah Kahan” tracklist. And thank you to Knuckle Puck for the ‘Stick Season’ cover that sparked this whole thing, couldn’t have done it without you!
This is by no means a comprehensive list and we’re sure some of you have your own feelings/ideas about this. Drop your “Punk Goes Noah Kahan” suggestions in the comments below or drop us a line on our socials. You can reach us on Facebook, Instagram, or by tweeting us @thehoneypop!
If this sort of read is your thing, be sure to check out more of our content about Noah Kahan and pop-punk.
Ever since we saw her on tour with Smallpools and Grayscale this past spring, we’ve been absolutely obsessed with alt-pop artist, Caroline Romano. We immediately went home and did a deep dive into her discography and fell even more in love with her music. We’re so excited because we have an exclusive interview with Caroline Romano where we get to know more about the 22 year old musician, talk about her past tour experience, and more. Let’s jump right in!
Hello and welcome to The Honey POP! We’re so excited to have you! For our readers who may be unfamiliar with your music, could you introduce yourself? Hi! Thank you so much for having me! My name is Caroline Romano, I’m 22 years old, and I’m an artist and songwriter based in Nashville, Tennessee.
Which artists and/or genres influence your music? I feel like this is an ever fluctuating answer, but some staple influences of mine are artist2s like Holly Humberstone, Twenty-One Pilots, Noah Kahan, Charlotte Sands, and Taylor Swift. I love anything very lyric-centered over weird guitar or drum sounds.
Image source: Kelsey Runge
Was there a pivotal point in your life where you knew that you wanted to make a career out of music? Or is it something that has always been on your dreamboard of life? Music has always been one of the most important aspects of my life. Even as a little kid, I remember finding so much comfort listening to CDs in my mom’s minivan on the way to kindergarten in the morning. It’s always where I’ve felt most like myself. I think a really pivotal moment for me though was the first time I came to Nashville when I was thirteen. I had started writing songs about a year earlier, and I wanted to play some open mic nights around the city. I remember getting on stage at this tiny college bar as a 7th grader, singing a song I wrote in my bedroom to a room full of strangers, and just feeling so at peace. It’s one of the only moments in my life where I’ve felt so incredibly sure about something that it was undeniable. I know from that first show that music was what I wanted to do for the rest of my life. I couldn’t live without it.
You’ve released a ton of amazing music over the last few years. What’s your writing and recording process like? The writing and recording process looks a little different each time, which is partly what I love about it. I’m a very lyrics driven person, so that’s typically where it always begins with me. I’ll have a line or an overall idea, or even just an emotion I want to start writing about. Whether that’s to a guitar by myself in my bedroom or to a track with a producer varies from situation to situation. I love writing both ways though, I think it’s cool how much writing to track vs just to an instrument influences the overall song. I typically record vocals in one of my friends’ studios, which are always in their homes. I really love that environment, feeling like we’re all just hanging out and tracking at the same time.
You just released a new single, ‘Doesn’t Matter,’ which we absolutely love. Do you have a favorite lyric from it? Thank you!! I think my favorite lyric is “I won’t ask if you kissed her, it doesn’t matter – – where you go on the weekend” just because of the double meaning it’s sort of showcasing for the entire song.
The Night Shift Tour with Smallpools and Grayscale is your first time on tour. Congrats! What’s been your favorite part about touring? Thank you so much!! I had the absolute time of my life on tour. Live performance has always been just so important to me. It’s where I feel the most like myself, and where I feel like I get to connect with people the most. I’d say my favorite part of touring is just getting to do what I love every night, with a band that I love, and meet so many new people and see so many new places.
What’s your favorite memory from the tour? I’d say my favorite memory from the tour happened in LA when we played the El Rey theater. I was really nervous just because it was such a big show, but I go out there and on the first song I hear people singing back the words. It was just such a cool experience to see people I’d never even met or played in front of before know every word to one of my songs. I got pretty emotional, haha.
What was choosing the setlist like? Were there any songs you wanted to play that didn’t make the setlist? Choosing the set list was SO hard! I’m someone who wants to fit everything I possibly can into a 25 minute set, so I really struggled to choose. Some of my favorite songs that I often play live like “Guts” and “St. George” didn’t make the cut just from a tempo/timing standpoint and I was pretty devastated about that. But I think the set we ended up with was great, as it moved quickly but still told a story. It was a good mix of released and unreleased music as well.
Image source: Kelsey Runge
Speaking of wrapping up your first tour, if you could tour with any two artists, who would you choose and why? This is a very hard question haha, but I’d have to say it would be Taylor Swift and Noah Kahan. Those have been probably the two most influential artists in my life, both personally and professionally. Their music has truly changed my life, and to get to tour with either of them would be an absolute dream come true.
Last question! We are all about the power of manifestation at THP. If you could speak one thing into existence for yourself, what would it be? I’m going to say selling out a headline tour by myself! I believe it’s going to happen someday, and I’m working towards it every day 🙂
We’d like to thank Caroline Romano for taking the time to chat with us! Did you also see her this past tour or did we just introduce you to your new favorite artist? Let us know in the comments, on Facebook, Instagram, or by tweeting us @thehoneypop!
It’s almost time for new Grayscale music! We may not have an album title or release date, but we have an inside source that promises us a Grayscale album is coming. The inside source of course being the band themselves on tour this spring. So while we anxiously await news regarding the album of the year, let’s go over everything we know so far.
Not Afraid To Die EP
Our favorite thing is when artists release multiple versions of a song. We can’t get enough of ‘Not Afraid To Die,’ and we have three ways to enjoy it! This song is everything Grayscale does best. They immediately hit us with a standout intro, and they had us obsessed from the first note. We’ve spoken before about everything we love in this song, so we won’t put you through too much more.
However, you won’t get rid of us that easily. What we will go on about is how much we love the other two versions released on the EP. First, ‘Not Afraid To Die (Live at the Fillmore)’ somehow made us fall in love with the song even more. This live recording manages to capture all the best feelings about hearing a song live. Not only does it sound like they’re really singing in the room with you, but you can hear the crowd singing every word. We don’t know, maybe we died and are listening to this recording as we enter heaven. Who knows?
Now you know we all love the banging of the drums and the shredding of the guitars. But sometimes we need a chill version too. This way, we can listen to ‘Not Afraid To Die’ at any time. In the middle of the dance floor? ‘Not Afraid To Die.’ Falling asleep? ‘Not Afraid To Die (Acoustic).’ It always works!
‘Let Go’
We don’t mean to sound impatient, but we will need this song right now. If you need us anytime before Grayscale’s album drops, we will be watching the previews of ‘Let Go.’ Lucky fans that have heard this song on tour recently know how well this song blends a catchy melody with personal lyrics. And as grateful as we are for the tease and for the early listen on tour, we would love to know when we can stop listening to this song through live YouTube videos.
‘Mum II’
We’re sure longtime fans of Grayscale know where we’re going with this one. The last song from the next album that we have so far is ‘Mum II,’ a sequel to 2017’s ‘Mum.’ This one is an incredibly vulnerable song, and it makes us even more excited to see what Grayscale has in store for us with this next era.
“Many of the lyrics in ‘Mum II’ call back to specific details/imagery of the previous song’s story as well as other Grayscale songs that involve her. I found myself not wanting to play “Mum” live anymore, I think out of an emotional protectiveness and empathy towards what she has been through, her struggles, and her problems. As this feeling grew, I eventually wanted to replace the song with one that reflects how I feel now and how our relationship has grown.“
Collin Walsh
Are you just as excited as us for the next Grayscale album? What song have you liked best so far? Let us know in the comments or at @thehoneypop on Twitter, Instagram, or Facebook!
Grayscale’s Bitcoin Trust (GBTC), the largest Bitcoin (BTC) exchange-traded fund (ETF) by assets, has reported its first net inflow since its launch in January 2024.
This comes after the fund experienced $1.6 billion in outflows before the Bitcoin halving.
On May 3, GBTC recorded a net inflow of $63 million, according to data from Farside Investors. This marked the first positive net flow for the fund since its conversion to an ETF in January, when 11 new spot Bitcoin ETFs were launched in the U.S.
Several factors contributed to the consistent outflows from GBTC since its conversion to an ETF. One of the major reasons is the fund’s annual management fee of 1.5%, which is substantially higher than other Bitcoin ETFs that charge less than 1%.
Furthermore, the sell-off of GBTC shares by bankrupt crypto companies, like FTX and Genesis, has also driven the outflows. FTX sold about $1 billion worth of GBTC shares, and Genesis liquidated approximately 36 million shares, valued at $2.1 billion, to purchase Bitcoin.
On the same May 3, the market as a whole experienced a net inflow totalling $378 million. Noteworthy performances included Franklin Templeton’s Bitcoin ETF (EZBC), which recorded its highest-ever inflow of $60.9 million, and Fidelity’s Bitcoin ETF (FBTC), which led the day with $102.6 million in inflows.
The inflow has stopped the streak of net withdrawals from Grayscale’s Bitcoin Trust (GBTC), At present, GBTC has $18.1 billion in assets, while IBIT has reached $16.9 billion. IBIT began with zero assets in January, whereas GBTC had over $26 billion. Although the inflow is a positive sign for GBTC, IBIT’s rapid growth is adding competitive pressure.
This shift from outflows to inflows in GBTC and the broader Bitcoin ETF market has brought a sense of optimism among investors, with some suggesting that this could be an early indicator of Bitcoin reaching new all-time highs. However, it remains to be seen if this momentum will continue, given the ongoing regulatory and market uncertainties.
Ethereum ETF: Grayscale remains hopeful
Grayscale says it’s confident that the U.S. Securities and Exchange Commission (SEC) will approve its spot Ethereum (ETH) exchange-traded funds (ETFs) by May, despite recent concerns about the SEC’s level of engagement with applicants and its ongoing investigation into the Ethereum Foundation.
Craig Salm, Chief Legal Officer at Grayscale, noted the similarities between the approval processes for spot Bitcoin ETFs and spot Ethereum ETFs, emphasizing that the core operations are fundamentally the same, with the key difference being the underlying asset – Bitcoin versus Ethereum.
This consistency, according to Salm, should make the SEC’s review process more straightforward, contributing to Grayscale’s optimism for a positive outcome.
Grayscale’s outlook stands in contrast to that of Bloomberg ETF analysts Eric Balchunas and James Seyffart. Both observers have reduced their expectations for spot Ethereum ETF approval in May to just 25%.
Balchunas suggested that the SEC’s apparent lack of engagement could be deliberate rather than merely a delay.
Cryptocurrency exchange Coinbase has also encouraged the SEC to approve Grayscale’s proposed spot Ethereum ETF. In a letter to the SEC, Coinbase argued that the logic used to justify the approval of spot Bitcoin ETFs applies equally, if not more strongly, to the case for spot Ethereum ETFs.
The SEC is expected to make a decision on VanEck’s application by May 23, with the fate of other applicants expected to be announced around the same time. Companies like BlackRock, VanEck, Fidelity, and Grayscale are all actively pursuing approval for their spot Ethereum ETFs.
Grayscale’s confidence in the SEC’s approval of spot Ethereum ETFs is based on the parallels between the processes for spot Bitcoin and spot Ethereum ETFs.
The company believes that the key issues the SEC addressed during the spot Bitcoin ETF approval process are largely the same for spot Ethereum ETFs, suggesting that the regulator’s experience with Bitcoin may pave the way for Ethereum.
On March 29, the firm announced its Grayscale Dynamic Income Fund (GDIF) stating that it is its first actively managed investment product.
Grayscale added that the new fund aims to optimize income in the form of staking rewards associated with proof-of-stake crypto assets.
It is the latest effort from the world’s largest crypto asset manager to retain clients and capital following a huge exodus from its flagship product (GBTC) and its conversion to a spot Bitcoin ETF.
Grayscale Dynamic Income Fund $GDIF is our first actively managed investment product. It seeks to optimize income in the form of staking rewards associated with proof-of-stake digital assets. For important disclosures and more information: https://t.co/v5IR7nJQY1pic.twitter.com/YTBJzJJbTQ
“Using qualitative and quantitative factors, we invest capital across a portfolio of proof-of-stake tokens,” it stated.
The fund will monetize token rewards into cash on a weekly basis, distribute the earnings to investors quarterly, and rebalance tokens to optimize income.
The disclosed holdings of the fund were very vague. It will be comprised of 24% of the decentralized Cosmos exchange Osmosis token, OSMO. An additional 20% will be held in Solana (SOL), and 14% will be in Polkadot (DOT).
The remaining 43% was mysteriously labeled as “other,” and there was no mention of the world’s largest proof-of-stake token, Ethereum. The Portfolio Manager for GDIF is Matt Maximo, who has been with Grayscale Investments since 2021.
Additionally, the new fund is only available to high-net-worth individuals with assets under management of more than $1.1 million or a net worth of more than $2.2 million, and it has a 10% performance fee.
Grayscale’s industry-leading Grayscale Bitcoin Trust (GBTC) has been hemorrhaging capital since it converted to a spot ETF in January. The fund, which once held a whopping 620,000 BTC, has shrunk by 46%, having lost 284,846 BTC worth $20 billion over the past eleven weeks.
This week alone, GBTC has shed $967 million worth of BTC. However, competing products from BlackRock and Fidelity have scooped up more, reversing a trend of outflows for Bitcoin ETFs.
The global staking market capitalization is around $355 billion, according to Staking Rewards.
It lists ETH as the leading staking asset, with $110 billion worth staked. Solana is the second-largest with $72 billion staked, followed by SUI, Aptos, and Cardano, which have around $15 billion worth staked each.
The average reward rate is 6%, it reported, though many of the higher-cap coins, such as ETH, SUI, ADA, and BNB, are lower than that.
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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.
Interesting is price of bitcoin still went up yesterday and yet it went down second half of last week when Ten saw net inflows = there are other players controlling this market. ETFs def a factor but bigger forces at work here.
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.
A normal Bitcoin bullrun pullback is 30%. Back in December, we were already in the longest winning streak in Bitcoin’s history. A 20% pullback here takes us to $59K. A 30% pullback would be $51K. These are all levels we should be comfortable expecting as possibilities.
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.
Asset management firm Grayscale Investments has updated its application for an Ethereum spot ETF (exchange-traded fund) with the United States Securities and Exchange Commission (SEC).
Ethereum Spot ETF Case Just As Solid As Bitcoin’s, Grayscale Argues
According to a recent post on X by Craig Salm, Grayscale’s chief legal officer, the asset management firm has revised its 19b-4 form for an Ether spot ETF. Salm claimed that this move was “important” in an effort for Grayscale to list and trade shares of its Ether Trust on the New York Stock Exchange (NYSE) Arca.
The chief legal officer stated in his post that investors “want and deserve access” to Ethereum via a spot exchange-traded product, likening the situation to the Bitcoin ETF story. “We believe the case is just as strong as it was for spot Bitcoin ETFs,” Salm said.
The asset manager is amongst the numerous firms looking to issue the first Ethereum spot ETF in the United States, having filed an application with the SEC on October 10, 2023. However, these ETF applications have faced delays multiple times, with the most recent coming against BlackRock’s filing on March 4, 2024.
As a result, the likelihood of the SEC approving an Ethereum spot ETF has taken a nosedive in recent weeks. Once-optimistic Bloomberg ETF expert Balchunas even revealed in his latest analysis that the ETH funds now have only a 35% chance of approval.
Two US senators of the Democrat party, Sens. Laphonza Butler of California and Jack Reed of Rhode Island, have urged the SEC chairman to avoid approving crypto investment products. In a letter dated March 11, the lawmakers, who are also members of the Senate Banking Committee, asked the Commission to limit future crypto ETF applications.
The success of the BTC spot products clearly ruffling some feathers on the Hill. @SenatorJackReed and @Senlaphonza write to the @SECGov urging: -no further ETPs for other tokens -make life difficult (i.e. examinations/reviews) for brokers and advisers that recommend BTC ETPs pic.twitter.com/enxdumC02N
Following the approval of 11 Bitcoin spot ETFs in January, the attention of the crypto public has somewhat turned to whether the SEC will do the same for the Ethereum versions. However, this latest letter from the senate seems to further hurt the chances of an ETH ETF approval.
A part of the letter read:
Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes,” they said. “The Commission is under no obligation to approve such products, and given the risk, it should not do so.
As of this writing, the price of the Ethereum token stands at $3,731, reflecting a 1.2% increase in the past day.
Ethereum price on a deep correction on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from The Economic Times, 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.
Wall Street titan and Asset manager Franklin Templeton has applied for an Ethereum Spot Exchange-Traded Funds (ETF) after a struggle to gain approval for their Bitcoin Spot ETF in early January.
Asset Manager Files For Spot Ethereum ETF
Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product.
The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.
James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.
According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.
It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”
Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.
The Price Of ETH Rallies Amidst The Update
Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.
Ethereum was trading at $2,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%.
Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.
ETH trading at $2,679 on the 1D chart | Source: ETHUSDT on Tradingview.com
Featured image from iStock, 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.
The Bitcoin market is currently experiencing a turning point, largely driven by recent trends in Bitcoin exchange-traded funds (ETFs). Yesterday, Bitcoin’s price rose above $43,000, a movement closely tied to changing dynamics in ETF inflows and outflows, particularly involving the Grayscale Bitcoin Trust (GBTC).
On January 29, (Bitcoin ETF Day 12), a notable shift occurred. The Bitcoin spot ETFs witnessed a substantial net inflow of US$255 million, while Grayscale’s GBTC experienced a significant net outflow of $191 million. The other nine ETFs, led by Fidelity and BlackRock, saw a combined net inflow of $446 million, making it the third-highest inflow day for Bitcoin ETFs.
This scenario of high inflows and reduced outflows from Grayscale’s GBTC presents an intriguing change from previous days, where GBTC outflows dominated and weighed heavily on the market sentiment.
Crypto analyst @WhalePanda, who’s part of the “Magical Crypto Friends” YouTube channels (along with Samson Mow, Charlie Lee, and Riccardo Spagni), commented on this development, stating, “Net inflow of $250 million in a day is crazy. That’s 5800 Bitcoin being removed from the market in just one day.”
He highlighted the significance of this volume, especially when compared to the daily Bitcoin mining rate of 900 BTC. MicroStrategy bought $615 million BTC between November 30 and December 26.
While WhalePanda acknowledged that inflows will slow down one day, he expects this to happen later on. “The increased price is driving more exposure, leading to more inflows, which in turn pushes the price even higher. This is a classic example of the bull cycle flywheel mechanics at play, even before the halving,” he remarked.
The renowned crypto expert further elaborated that “the amount of Bitcoin float will significantly drop over the next couple of days and once the price starts moving with limited supply left… Things can go crazy. No, not $1 million crazy. Crazy for me is breaking ATH before halving.”
In a separate post on X, @WhalePanda expressed his outlook for the week, “This is going to be a big week for #Bitcoin. With GBTC outflows decreasing and a strong inflow day last Friday, we might be seeing the beginning of a new trend.” He emphasized the potential of this momentum to become a self-fulfilling prophecy, driving Bitcoin’s price higher.
Spot BTC ETFs Remain The Focus
Thomas Fahrer, co-founder of Apollo Sats, added context to these massive spot BTC figures, noting, “The 9 New ETFs hold more BTC than Tether, Tesla, Block, and all of the Public Miners combined. Soon they will surpass MSTR, and later even GBTC.”
Bitcoin holdings | Source: X @thomas_fahrer
Alex Thorn, head of research at Galaxy, commented on the potential implications for BTC’s price trajectory, especially in relation to ETH: “With Grayscale outflows appearing to slow down and other Bitcoin ETF flows remaining positive, I’m curious about the future direction of the ETHBTC cross. A lower trajectory seems like the path of least resistance in the near term.”
with grayscale outflows seeming to abate and other #bitcoin etf flows now appearing holding positive, i’m again wondering where the ETHBTC cross is headed. lower again feels like the path of least resistance near-term pic.twitter.com/DVPi1pdWP0
This confluence of ETF inflows, decreasing outflows from Grayscale, and the anticipation of the upcoming Bitcoin halving are creating a unique bullish market environment. However, at press time, BTC is trading below a key resistance at $43,444.
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.
Analysts at market intelligence platform CryptoQuant have revealed that BTC’s price bottoming signal can not be triggered until unrealized profit margins for short-term holders reach -10%.
According to the CryptoQuant Institutional Insights weekly crypto report, short-term holders’ profit margins have approached zero, and this has caused ease in selling pressure. However, the leading digital asset is yet to call a price bottom.
BTC Falls Below $40K
Earlier this week, BTC fell below $40,000 for the first time since December 3, 2023, triggering roughly $230 million in short and long liquidations. The asset recorded its lowest price since the United States Securities and Exchange Commission (SEC) approved numerous spot Bitcoin exchange-traded funds (ETFs) for listing on securities exchanges.
Before BTC dumped under $40,000, the cryptocurrency had lost a significant portion of its post-ETF approval gains, plunging from roughly $49,000 to the $43,000 level, leaving the crypto community in anticipation of a price bottom as there will not be any rally until one takes place. The decline has also taken a toll on miners suffering an 87% decrease in fees.
As of last week, short-term holders’ unrealized profit margins hovered around 16%, and two days ago, CryptoPotato reported that the figure may need to go below 0% before we can call a bottom and expect a rally. Although BTC had recovered a little by press time, CryptoQuant’s analysts have set the margin at -10% as price support based on short-term holders’ realized price, which is currently between $39,000 and $37,000.
New ETFs Amass Over 100K BTC
While BTC has been on a downward spiral, the holdings of spot Bitcoin ETFs in the U.S. have continued to rise. At the time of writing, the products held approximately 641,000 BTC, representing significant growth since they launched on January 11.
Grayscale’s GBTC holds the highest, 536,000 BTC; the other nine funds have collectively amassed around 104,000 BTC. BlackRock’s IBIT and Fidelity’s FBTC are leading the new ETFs, with holdings sitting at 44,000 and 34,000, respectively.
It is worth noting that GBTC held roughly 619,000 BTC before the product’s conversion into a spot ETF was approved; however, constant outflows have diminished the stash.
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The Grayscale Bitcoin Trust (GBTC) has recorded massive outflows since the United States Securities and Exchange Commission (SEC) approved its conversion and listing as a spot Bitcoin exchange-traded fund (ETF). This has led to a significant plunge in its Bitcoin (BTC) stash, and from the look of things, the withdrawals are not slowing down.
According to data shared by Ki Young Ju, the founder and CEO of on-chain analytics platform CryptoQuant, GBTC’s BTC holdings fell by 15% in the past seven trading days.
GBTC’s Bitcoin Stash Declines 15%
A deeper on-chain analysis by Lookonchain revealed that Grayscale’s ETF has lost more than 95,600 BTC since January 11, when it went live on national securities exchanges.
Some of the highest outflows were seen on January 16, 18, 22, 23, and 24, with the fund recording withdrawals of 13,793 BTC, 14,301 BTC, 14,292 BTC, 15,986 BTC, and 13,179 BTC, respectively. The lowest outflow was recorded on the day the ETF went live, with 2,083 BTC being offloaded.
While GBTC’s BTC stash is plunging, that of the other eight ETFs is rising. Since their launch, the products have increased their holding by more than 110,000 BTC. As GBTC offloaded around 13,179 BTC yesterday, the others added 8,251 BTC to their stash, with Fidelity’s FBTC recording the highest increase of 4,023 BTC.
CryptoQuant’s founder expressed concern about the GBTC outflow trend continuing till mid-March and reducing the ETF’s BTC stash to zero, asking, “What’s their plan?”
GBTC Sell-off to Affect BTC
At the beginning of the year, GBTC’s initial stash of roughly 619,162 BTC was valued at approximately $25 billion. With the exchange-traded product having suffered almost $4 billion of outflows, around $21 billion of its shares remain to be liquidated.
Crypto market analysts have predicted that BTC’s price would likely remain stagnant or plunge until the $21 billion liquidation is complete due to the selling pressure from the process. BTC has already fallen under $40,000, losing roughly 20% of its value since it jumped above $49,000 following the SEC’s ETF approval.
However, Galaxy Digital founder Mike Novogratz countered the view, insisting that investors would eventually shift their focus to alternative ETFs, leading to a rally in bitcoin’s price.
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In a recent discussion with CNBC, Grayscale’s CEO, Michael Sonnenshein, shed light on the company’s decision to offer the highest fee among the 11 issuers of spot Bitcoin ETFs in the United States.
Amid this 1.5% fee, Grayscale’s newly converted spot Bitcoin ETF has attracted the most substantial trading volumes compared to other issuers. Sonnenshein shared the rationale behind Grayscale’s decision to maintain the highest fees and emphasized the significant market share the investment firm has secured.
GBTC Sees Over $25B in AUM
A few days before the approval date of the ETFs, most of the financial companies that had filed for the investment vehicle and were awaiting approval started reducing their fees to attract more investors. Firms like BlackRock, Fidelity, WisdomTree, and others joined the frenzy by downsizing their fee structure, with some even introducing a zero-fee structure.
Since the approvals, some of these Bitcoin ETF issuers have slightly increased their fees after gaining user attention. On the other hand, Grayscale maintained its stance on a 1.5% fee. Despite having the highest fee, the firm currently records over $25 billion in assets under management (AUM) for its Grayscale Bitcoin Trust ETF (GBTC).
Why is Grayscale’s Fee the Highest?
Explaining the reasons for his comment, Sonnenshein said:
“Investors are weighing heavily things like liquidity and track record and who the actual issuer is behind the product. Grayscale is a crypto specialist. And it has really paved the way for a lot of these products coming through.”
According to the Grayscale boss, investors have more confidence in established platforms like the company. Sonnenshein’s comment also suggests that investors would have minimal confidence in most Bitcoin ETF issuers who have reduced their fees to attract more clients because they “don’t have a track record” of offering such a product.
The CEO also mentioned that some existing Bitcoin ETF issuers will not survive for long. However, he believes that others will rake in substantial profits from the business.
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In a significant development that could potentially impact the Bitcoin price, Arkham Intelligence data reveals that Grayscale, the manager and owner of the Grayscale Bitcoin Trust (GBTC), has been sending a significant amount of Bitcoin to Coinbase since the launch of Bitcoin spot exchange-traded funds (ETFs) on January 12.
According to the data, four days ago, Grayscale initiated the first batch of BTC outflows from their holdings to the US-based exchange in four separate batches, totaling 4,000 BTC, which amounted to approximately $183 million. However, the asset manager resumed outflows from the Trust to the exchange on Tuesday.
A portion of Grayscale’s transfers to Coinbase. Source: Arkham
In a recent update, approximately three hours ago, the asset manager sent an additional 11,700 BTC to Coinbase, amounting to $491.4 million. This additional selling pressure could push the Bitcoin price to test lower support levels.
Furthermore, Bloomberg reports that investors have withdrawn over half a billion dollars from the Grayscale Bitcoin Trust during the initial days of trading as an ETF.
According to Bloomberg’s data, outflows from the Grayscale Bitcoin Trust reached approximately $579 million, while the other nine spot Bitcoin ETFs witnessed inflows totaling nearly $819 million.
Investors Shift Capital To ‘Lower-Cost’ Spot Bitcoin ETFs
James Seyffart, an ETF analyst at Bloomberg Intelligence, noted that investors may be profit-taking following the ETF conversion. The flow data provides valuable insights into the ETF’s performance following SEC approval.
Although over $2.3 billion of GBTC shares were traded on its first day, the outflows indicate that a portion of that volume was due to selling. Seyffart anticipates that a significant amount of capital will enter other Bitcoin exposures.
The outflows from Grayscale’s ETF were somewhat expected. Bloomberg Intelligence had previously projected that the fund would experience outflows of over $1 billion in the coming weeks.
Some of this outflow can be attributed to investors shifting towards more cost-effective spot Bitcoin ETFs. With an expense ratio of 1.5%, GBTC is the most expensive US ETF directly investing in Bitcoin. In contrast, the VanEck Bitcoin Trust, the second-most expensive fund, charges 0.25%.
On the other hand, other spot Bitcoin ETFs have witnessed net inflows. BlackRock’s IBIT attracted nearly $500 million in the first two days of trading, while Fidelity’s FBTC received approximately $421 million.
According to Bloomberg, these inflows suggest strong demand for Bitcoin exposure in physically backed ETFs, even beyond potential seed funding from the fund issuers.
Bitcoin Price Finds Support At $42,000
Currently, the Bitcoin price remains unaffected by the news of Grayscale’s transfers to Coinbase. The leading cryptocurrency is trading at $43,100, showing a slight increase of 0.8% over the past 24 hours.
However, since the commencement of ETF trading, it is important to note that the Bitcoin price has experienced a significant retracement, declining by 8%. This decline can be attributed to profit-taking and selling pressure, with Grayscale’s involvement being noteworthy.
In the event of a further drop in the Bitcoin price, a significant support level has been established at $42,000. If this level is breached, the next key level for Bitcoin bulls to watch is $41,350, followed by a potential dip below $40,000.
The market is eagerly observing whether Grayscale and its BTC selloff will continue and how this will impact the Bitcoin price leading up to the scheduled halving event in April, which many consider to be the main catalyst for the year.
Featured image from Shutterstock, chart from TradingView.com
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