TronWeekly

Crypto World News

You are here: Home / Archives for GBTC

GBTC

Bitcoin ETF Volume Hits Highest Level Since May 15th: Is a Bounce Imminent?

by

Bitcoin’s ETF volume has recently surged to its highest level since May 15th, according to data from the seven largest ETFs, reported by Santiment. This volume spike, often a precursor to price turnarounds, appears to be a reaction to recent price dips, prompting speculation on whether a market bounce is imminent.

Meanwhile, Glassnode’s latest report, “Dissecting Divergences,” provides a nuanced analysis of current market conditions. Despite significant inflows into US ETFs, the buy-side pressure seems subdued, largely due to a prevalent market-neutral Cash-and-Carry trade. This strategy, which involves holding a long spot position while shorting futures, reduces the direct impact on Bitcoin prices, highlighting the need for non-arbitrage demand to stimulate price action.

On-Chain Activity and Bitcoin ETF Interplay

Glassnode’s report also explores on-chain activity metrics, such as active addresses and transaction counts, to assess the blockchain’s health. The number of active addresses on the Bitcoin network has notably declined, a trend reminiscent of the 2021 drop following China’s mining restrictions. Currently, active addresses have decreased, but transaction counts are near all-time highs, averaging 617,000 per day—31% above the yearly average, indicating a high demand for Bitcoin blockspace.

image 29 20

Parallel to these on-chain trends, the ETF market shows contrasting dynamics. Despite impressive US ETF inflows, Bitcoin’s price has remained stagnant. The US Spot ETFs now hold 862,000 BTC, a significant share when compared to other major entities like the Mt. Gox Trustee and the US government.

Coinbase, which custody a substantial portion of these ETF assets, has seen increased whale deposits following the ETF launches. However, much of this activity is linked to outflows from the GBTC address cluster, suggesting ongoing supply pressures.

image 29 22

Additionally, the CME Group’s futures market has seen a stabilization in open interest above $8 billion, with hedge funds adopting significant net short positions. This trend underscores the impact of the cash-and-carry trade, where ETFs are used to gain long-spot exposure while futures are shorted.

image 29 24

Hedge funds’ net short positions in CME Bitcoin futures highlight this strategy’s prevalence, contributing to the subdued buy-side pressure in the spot market. However, as these dynamics unfold, the interplay between ETF inflows, on-chain activity, and futures market strategies will be crucial in determining Bitcoin’s near-term price movements.

Related Reading | Bitcoin’s Next Big Leap: Analyst Predicts $173K Target

Bitcoin ETF Inflows Surge Amidst Positive Streak, Led By BlackRock: Report

by

According to the analytical platform Spot On Chain, the Bitcoin ETF market has shown significant activity. The net inflow into the Bitcoin ETFs was stand out to an average high of $131 million on 7 June 2024. This weekly feat of having positive inflows shows that this is the 13th week in a row or the 19th trading day in a row where there has been inflows into Bitcoin ETFs. 

Screenshot 2024 06 08 175513
Bitcoin ETF Inflows Surge Amidst Positive Streak, Led By BlackRock: Report 6

However, a closer look at the data shows that these inflows are not evenly distributed across the countries. Disturbingly, 6 out of the 10 US Bitcoin ETFs recorded zero flows on this day, which depicts the population of the investments in a few ETFs. Consequently, the pattern of selective investment in certain areas reflects the selection of certain investors which may have had an impact on the funds’ performance indicators and market confidence in the funds mentioned. 

BlackRock’s ETF Dominates Bitcoin Market

Leading this surge is BlackRock’s Bitcoin ETF or IBIT as it has been dubbed by the public, and is one of the most popular products in the market. For instance, BlackRock’s ETF recorded a total net creation of $168 million on 7th June, out of all the ETFs in the market. This considerable demand not only consolidates BlackRock’s leadership in the Bitcoin ETF market but also proves the high-belief investors’ expectations in the firm’s management and approach.

AD 4nXcWjHVjwfKVs2zASm9irm3sYAgwUWCAxpPY0f6M33wbC 4oSiXEq1ulcyNbweDbH7ML7A8VKZ8jY3bSRkOaNa79J0nEz2Mk RZe6q2ckk1pzg8Hqe7nwLnTnVjyourovtdgXAD29nHTTH9uc zY13zAq4Fd?key=buy06gJbWtl9ml2Q 7jnXA

On the other hand Grayscale’s Bitcoin Trust (GBTC) had different narrative that could be inferred from its chart. Grayscale, however had outflows on 7th of June after having had positive inflows for two consecutive days. This change might be suggesting a rebalance by the owners of the product or circumstances that may have impacted Grayscale’s operations. The redemptions from Grayscale imply that investor attitude is active and can be changed from time to time depending on the performance on the situation in the market. 

Future fluctuations of the BTC ETF market in terms of its ETFs will be watched closely by investors and market analysts since it offers insight into the general acceptance of cryptocurrencies as investments. As seen in the positive measures of central tendency and dispersion, coupled with the foregoing successful Bitcoin ETFs, coupled with strategic investments, the market is headed for even greater growth and impact in the financial industry.

Bitcoin ETF Market Surges with $887 Million Inflows Reflecting Renewed Investor Confidence

by

The U.S. spot Bitcoin exchange­-traded funds (ETFs) market is expe­riencing a spike in investor inte­rest, with net inflows reaching the­ir second-highest daily total on June 4, 2024. According to SoSoValue­ data, these inflows reache­d a remarkable $887 million, just shy of the re­cord $1.05 billion set on March 12, 2024. This robust performance marks the­ 16th consecutive day of net inflows for spot Bitcoin ETFs, unde­rscoring a sustained shift in investor sentime­nt.

Fidelity’s FBTC and BlackRock’s IBIT led the pack on Tue­sday, drawing net inflows of $379 million and $274 million, respective­ly. These numbers highlight the­ increasing confidence of e­stablished financial institutions in the Bitcoin market. Bloombe­rg ETF analyst Eric Balchunas encapsulated the day’s e­vents, noting on X that “big-time flows all around.”

ARK Invest and 21Share­s’ ARKB attracted $139 million in funds, while Bitwise’s BITB se­cured $61 million. It’s worth noting that Grayscale’s GBTC, which shifted to a spot ETF in January, saw inflows of $28 million. This marks its se­venth day of positive inflows, making it the third-large­st since the transition. 

Howeve­r, GBTC still faces challenges due to its high 1.5% management fee, surpassing most spot ETFs. This divergence­ in pricing, coupled with a reduced discount, has le­d to substantial net outflows, exceeding $17.8 billion for GBTC. Conversely, VanEck and Valkyrie­’s spot Bitcoin ETFs have experie­nced modest net inflows in the­ single digits.

Bitcoin ETF Market Heats Up

The re­cent influx of investments showcase­s a rising enthusiasm for BTC within institutional circles, defying the­ predictions of skeptics who anticipated a subdue­d demand for Bitcoin ETFs. Nate Geraci, the­ president of ETF Store, highlighte­d how critics had previously claimed that “all of the ‘de­gen retail’ investors who we­re eager to buy had alre­ady done so. Geraci’s comments highlight the­ increasing influx of capital into the BTC market.

The­ recent investme­nt surge is partly fueled by the­ launch of a Bitcoin spot ETF on the Australian Stock Exchange (Cboe) on June­ 4, 2024. Furthermore, the de­but of Thailand’s inaugural Bitcoin ETF by One Asset Manageme­nt (ONEAM) has added to investor optimism. ONEAM’s ETF provides inve­stors with access to 11 top-tier global Bitcoin funds, bolstering liquidity and e­nsuring heightened se­curity.

While BTC’s curre­nt price, hovering near its all-time­ high of $73,780, may induce some pee­r pressure to buy, it’s crucial to acknowledge­ the cautious optimism prevalent among e­xperienced inve­stors. Traditionally, large-scale investors re­frain from entering the marke­t at peak levels. De­spite the positive inflows; BTC still lacks significant buying pre­ssure at the $71,000 leve­l necessary to trigger substantial price­ rallies.

Related Readings | $1.6M Bet on GME: Solana Token’s Wild Price Jump

Bitcoin ETFs Persist In Outflows; BTC, GBTC Decline As IBIT Falters: Report

by

Bitcoin ETFs have seen a significant reduction in the net inflows, and on April 18, 2024 an outflow of $4 million was registered. This dip is the second time in a row when negative net inflows were recorded over five continuous trading days indicating a stormy phase of Bitcoin investing.

The financial activities of the Grayscale Bitcoin Trust (GBTC) also saw a fraction of progress among the significant players as it decreased its daily outflow from $133 million to $90 million. However, this decrease, substantial as it is, suggests continuous difficulties within the sector.

BlackRock iShares Dips Amid Bitcoin ETF Concerns

On the other hand, other Bitcoin ETFs have performed differently. In particular, the BlackRock iShares Bitcoin Trust (IBIT) is worsening, with poor inflows adding to the total market net outflow. This tendency reflects the cautious or bearish sentiment of the investors, possibly driven by general market fears, or concerns connected with the cryptocurrency industry itself.

Repeated negative net inflows reiterate a crucial point for Bitcoin ETFs. Such investment products that enable investors to access BTC without the intricacies of ownership are now the most critical in integrating the cryptocurrency into conventional investment portfolios. Nevertheless, the current negative flow indicates a withdraw of the investor’s confidence or a revaluation of Bitcoin’s future value because of volatile market.

The situation raises crucial questions concerning the future dynamics of cryptocurrency investments, particularly in products like ETFs. While market continues to navigate through these choppy waves, stakeholders and potential investors will watch these developments very closely. Bitcoin ETFs performance would act as an indicator of how much cryptocurrencies have been accepted and how stable they are in the financial landscape.

Over the next few days, the investment community is expected to watch for signs of stabilization or additional fluctuations in ETF inflows and outflows. The results will impact the tactics of retail investors and will form the strategic choices of the institutional participants, such as Grayscale and BlackRock.

In the wake of the development of the cryptocurrency market, the interaction between the market sentiment and investment flows is a significant issue of concern. The right knowledge including the outlook provided by analytical platforms like Spot On Chain are critical in order to see the trends and to act correctly in such a highly dynamic and unpredictable environment.

Grayscale’s Bitcoin Bonanza: A Ticking Clock For GBTC Holdings

by

In an eye-opener analysis by Arkham Intelligence, it has come to light that Grayscale, a prominent asset management company, has engaged in massive Bitcoin transactions since the Bitcoin Exchange-Traded Funds (ETFs) kicked off this January. The report indicates that Grayscale transferred a significant amount of 266,470 Bitcoins from their Vaults in the context of GBTC redemptions.

The analysis from Arkham Intelligence brings into focus the fast rate of depletion of Grayscale’s bitcoins with forecasted exhaustion in 96 days at the present rate of redemptions. This condition reflects an alarming average withdrawal rate of around 25,900 Bitcoins per week.

Fulfilling Arkham’s vision, Coin Wu discusses Grayscale’s strategic adjustments such as fee reductions and the spread of mini-ETFs to fit the current market environment in his WuBlockchain X post.

Grayscale CEO Plans Fee Cut For Bitcoin ETF

CEO Michale Sonnenshein of Grayscale has calmed fears over the GBTC concerns and especially over its price in the meantime. Sonnenshein adhered to a forthcoming fee reduction that was likened to other financial markets, where fees usually decrease as products mature and grow. “The same is true of all other premiums in asset classes that go from being a retail phenomenon to an institutional phenomenon,” Sonnenshein said.

At the same time, the cryptocurrency market has been following the trading activities of Bitcoin with great attention. Although Bitcoin has not hit its all-time high of $73,700, it is now trading at $65,882, resulting in a rise of 1.93% in the last day. This occurs together with a significant valuation monthly growth of 26.16%.

It is a significant moment in the burgeoning Bitcoin ETF market when Grayscale takes this strategic pivot. The huge Bitcoin transfers of the company and the strategic changes being sought by the company support a bigger issue of adaptation and recalibration in the cryptocurrency system. While Grayscale finds its way in these changing tides the impacts on the market performance of Bitcoin and the wider adoption of cryptocurrency ETFs keep on to attract investors and market watchers attention.

Bitcoin’s Price Vulnerability: Analysts Sound Alarm Over Failure To Surpass $70,300

by

Bitcoin’s price is on a precarious edge, with analysts warning of a potential further plunge if it fails to reclaim a critical level. Currently hovering around $60,000, Bitcoin faces the risk of dropping even lower if it doesn’t surge past $70,300 soon. An analyst on X has sounded the alarm, indicating that a failure to break above $70,300 could lead to a significant downturn, possibly plummeting to the $59,000 to $62,000 support range. 

This would mark a 20% decline from its recent all-time high of $73,800.The analyst points to a concerning bearish divergence formation in Bitcoin’s daily chart, signaling a disconnect between price and momentum. With bears exerting dominance, the likelihood of further downward pressure intensifies.

In order to improve the current situation, it is imperative for bullish investors to swiftly achieve a strong closing price above the $70,300 threshold. This strategic action holds the potential to mitigate the current downward pressure on Bitcoin’s value, effectively arresting the ongoing sell-off, and restoring Bitcoin’s trajectory to align with its recent upward trend.

Bitcoin’s Response To FOMC Meeting Anticipation

Multiple fundamental factors are at play, including anticipation surrounding the Federal Open Market Committee (FOMC) meeting in the United States. The recent decision by the Bank of Japan (BoJ) to raise interest rates for the first time in over a decade has added to market volatility, underlining the fragility of global financial conditions.

Moreover, significant outflows from Grayscale, coupled with diminishing capital influx into spot BTC exchange-traded funds (ETFs), are further dampening sentiment. Grayscale’s Bitcoin Trust (GBTC) winding down and the subsequent release of more coins than purchased by spot BTC ETF issuers signal a bearish trend in the market.

btc1
Bitcoin's Price Vulnerability: Analysts Sound Alarm Over Failure To Surpass $70,300 10

Despite these challenges, the broader crypto market sentiment remains bullish, buoyed by anticipation surrounding the upcoming halving event. However, Bitcoin’s immediate fate hangs in the balance as it teeters on the edge of a potential further decline.

BTC 1
Bitcoin's Price Vulnerability: Analysts Sound Alarm Over Failure To Surpass $70,300 11

As investors brace for volatility, all eyes are on Bitcoin’s ability to reclaim key levels and the outcome of the impending FOMC meeting. Whether BTC will weather the storm or succumb to further downward pressure remains to be seen, but the stakes have never been higher for the world’s leading cryptocurrency.

Bitcoin’s Meteoric Ascent Amidst Supply Constraints

by

The cryptocurrency world went through one of the most noteworthy events as Bitcoin jumped to the $63,000 mark. This surge is attributed to previously characterized bullish sentiment within the cryptocurrency space, triggered by a supply shock mechanism, clearly indicating a wide gap between supply and demand for the world’s leading virtual asset.

In a recent X post, Mr. Matt Hougan, the Chief Investment Officer at Bitwise, revealed the extreme imbalance in Bitcoin’s supply and demand profile. The Bitcoin demand is estimated to be around 30,000, with a small supply of around 6,000 BTC. This disparity is a clear representation of a supply that is insufficient to cater for the high demand which is estimated to surpass the supply by 20.5% as depicted by the face of the current market dynamics.

qLRTJuVhcscdMbIxXaj9xlk7hZgH36EMBQ6Z24 8iBifZzYRqMROfP6aavg6RGIxA6oJaNeu6I6B6KddwJTGHHmA7DPDHvhBNQjJfy9lQqNQiObhdVLo5vDNQW9

Each time Hougan speaks on the issue, the theory of the gap between demand and supply seems to be stronger than ever, meaning that investors cry out and sometimes pay unimaginable amounts just to become a part of the industry. This is worsened by the escalating position of Bitcoin ETFs (Exchange-Traded Funds), which eventually drive the heightened demands even higher.

Bitcoin ETFs Propel Demand

Lately, the valuation of Bitcoin briefly passed $63K again, getting closer to the high point of this year at $68.7K. The acceleration reflects an ever-increasing urge among the traders to hop onto this high-speed train. In contrast, there was a decrease in the price of it. The value is $61,954.46, around 0.97% less than the previous day. This modified trend comes after a period of great interest that was mired with Bitcoin ETF speculation.

The ETF landscape also developed some other noteworthy changes, aside from a $139 million position liquidation from Bitcoin spot ETFs on the previous Friday, showing up the end of a seven-day influx streak, per  SoSoValue data. The Grayscale GBTC ETF posted unrealized losses in a single day of $492 million, while the IBIT ETF of BlackRock managed to secure a $202 million inflow. 

The net inflow for IBIT is mounting to $7.96 billion so far. However, in contrast, BlackRock’s investment into iShares Bitcoin Trust (IBIT) is much lesser than the investments made during the pre-COVID times, as BlackRock experienced a net inflow to its asset base by more than $10.5 billion in one month, which includes the latest contributions.

This week’s ongoing story reflects the play of demand and supply output, ETF flow readings, and wider economic indices, providing a fascinating insight into the intricate dance of supply and demand forces, ETF movements, and wider economic indicators. Comprising all these aspects, Bitcoin’s image becomes a painted gallery of stories, masterfully grasping the vague but thrilling course of the most adored cryptocurrency in the digital era.

Bitcoin ETF Frenzy: Record Trading Volume Hits $2.4 Billion

by

Nine new spot Bitcoin ETFs, other than GBTC, have set a record in the world of cryptocurrency trading with a tremendous daily volume of $2.4 billion. Bloomberg analyst Eric Balchunas reported that this is an incredible feat to achieve, and it represents twice the number of trades that had been made beforehand.

According to the tweet on this milestone by Balchunas, the BlackRock IBIT alone contributed about $1.3 billion to the total volume, which was up almost 30% from their prior record high. He spoke about why this happened with reference to a rally in prices as being among factors that may have caused increased demand, as shown especially in the first Monday trading after the weekend. He stressed that such an increased volume indicates large institutional interest and reveals liquidity’s significance in ETF markets.

image 113

Moreover, Bloomberg analyst James Seyffart also added to the discussion by pointing out how Bitcoin ETFs collectively had their second most traded day ever recorded, involving $3.2 billion worth of trading. Seyffart said that his total does not include GBTC due to its uniqueness so as to avoid complexity.

Balchunas addressed any possible misunderstandings about the data and identified the differences between his graphs and Seyffart’s graph, stressing that he did not include GBTC in his analysis so as to make it more understandable among other new ETFs. Although they are dissimilar, both of these analysts offer useful information on increased Bitcoin ETF trading activity that has never occurred before.

Net Inflows, Bitcoin ETFs in Focus

Meanwhile, based on the latest data from SoSoValue, there was a $519 million net inflow in Bitcoin spot ETFs on February 26th. However, Grayscale’s GBTC had a net outflow that was worth $22.37 million marking a decrease during the fourth straight trading session and an all-time low.

In this regard, Fidelity’s FBTC recorded the largest single-day net inflow at about $243 million contributing to its aggregate historical net inflow of around $4.35 billion. Afterward, Ark ETF ARKB followed suit with one-day net inflows worth $130 million, raising its total historical net inflow to $1.53 billion.

image 114

Nonetheless, the heightened trading activity and increased net inflows underscored rising investor appetite and trust in Bitcoin ETFs revealing a maturing market and potentially paving the way for more institutional adoption broadly.

Related Reading | Will Dogecoin (DOGE) Repeat History? Analyst Suggests Possible Price Explosion

Bitwise Bitcoin ETF Gains Edge: $100 Billion Firm’s Approval Ignites Competition

by

In the constantly changing world of exchange-traded funds (ETFs), the Bitwise Bitcoin ETF (BITB) has found its special place amongst others. Utilizing key milestones, BITB has secured its place in the cutthroat market, standing out among leaders such as Grayscale’s GBTC and BlackRock’s IBIT. With the leadership of CEO Hunter Horsley, Bitwise has been agitating its strategic alliances, building the adoption and reputation of BITB.

In a recent X post, Bitwise CEO Horsley revealed that a major approval came at the moment, which is managing more than $100 billion in assets and has adopted BITB. As Horsley pointed out, investment firms’ cooperation is a silent and resolved action to ensure their advisors and clients get access to BITB. 

Bitwise ETF Redefines Bitcoin Access And Transparency

In a recent interview with Axios, Horsley stressed that Bitwise’s ETF is topical and cost-efficient. Coming in as the cheapest Bitcoin ETF in the market with asset values of over $1 billion, BITB provides an attractive proposition for investors looking for expertise in that field. Its high trading efficiency, minimal bid-ask spread, and the unique transparency provided by a publicly accessible wallet address for asset tracking without cost make it more alluring.

The regulatory scene could be on the verge of transformation as the U.S. Securities and Exchange Commission (SEC) considers rule changes permitting Spot Bitcoin ETFs to be listed and traded alongside derivatives on exchanges. This initiative, led by the NYSE, which responded to the growing need of investors to trade options on Bitcoin holdings such as BITB and GBTC, might integrate crypto products better and more smoothly into the financial market.

The approval of the proposal would not only be a significant achievement of crypto integration but also broaden the chances for the participants of the stock market to be involved in hedging, generating incomes, and speculating on the BTC price movements by ETF options.

This trend indicates a growing desire to merge digital and traditional financial services. With its BITB ETF, Bitwise is paving the way for the integration of Bitcoin, offering investors a simplified, cost-effective, and transparent tool to access Bitcoin through the ETF space.

Bitcoin ETFs Shatter Records: $631M Inflows, BlackRock Dominates

by

The crypto investment vehicle achieved an eye-watering peak, following an astonishing net inflow totaling $631.23 million into Bitcoin spot ETFs on February 13. This not only etched a new record in the history annals of Bitcoin ETFs but also was the thirteenth trading day of net inflows in a row, signaling continued appetite for exposure to the digital asset.

As the numbers roll in, the data paints a vivid picture of investor sentiment and market dynamics. As of February 13th, the cumulative total net inflow had reached $3.89 billion, while the total value traded had amounted to $1.58 billion. One could, therefore, easily see that the allure of Bitcoin ETFs continues to captivate the market participants.

image 63
Source: SoSovalue.

While othe­r funds were filled with joy from rising inflows, the­ Grayscale ETF GBTC saw something differe­nt—a one-day net outflow of $72.83 million. Odd as it see­med, this did little to dampen the­ positive outlook. Other ETFs had a significant net inflow. Notably, the­ BlackRock ETF IBIT shined with a one-day net inflow of $493 million—more­ than others—forming a large part of the daily influx.

X (Twitter) became a battleground of insights, expe­rts, and analysts sharing thoughts on evolving events. Lookonchain, in a post, offered a brie­f rundown of the day’s hustle-bustle, spotlighting the­ inclusion of 12,073 BTC ($590 million) in 8 ETFs, led by iShares (Blackrock) and Fidelity with notable­ Bitcoin purchases.

Bloomberg’s Se­nior ETF Analyst, Eric Balchunas, also shared his thoughts. He focused on the­ swift and impressive growth of $IBIT. In just 23 trading days, it climbed to top-tie­r ETF levels. This quick rise and durability of this ne­wcomer shows how fast cryptocurrency investme­nt are changing.

Bitcoin Price Rally

Meanwhile, when it comes to Bitcoin price analysis, recently, BTC investors have been rewarded for their patience and conviction, with BTC prices rallying to multi-year highs above $50k. It’s been another positive and strong year for Bitcoin investors as market trading to new multi-year highs puts a YTD return at +18.5%.

image 64

As per Glassnode, only 141 days during 2021 have seen a daily closing price higher than $50.2k, which represents just 2.84% of Bitcoin trading history. Bitcoin is also up +130% over the last 12 months and over +207% since the Nov 2022 lows and is now trading just -28.6% below its ATH.

Related Reading | Unlocking Cardano’s Potential: Resistance Breakthrough & Long-term Confidence