TronWeekly

Crypto World News

You are here: Home / Archives for spot bitcoin etf

spot bitcoin etf

Bitcoin ETF Sees Best Week Ever With $1.83 Billion Inflows: Analyst Reports

by

Bitcoin has gained record investment in the recent past, and prominent influential crypto analyst Crypto Rover has shared comprehensive analysis on this amazing development. In a recent post on X, Crypto Rover mentioned that the Spot Bitcoin ETF was up for one of the Best Week, presumably witnessing an overall Inflow of $1.83 billion.

AD 4nXdI HCEH0OZpLwuVLRMUUZRCz0J5 9t dZrqbVYy2vYuSRWWcOEhbA 4FeSfhOER39VMmaWoQQBD0byhjic4tEKFcPsYPpp5 QSSZIeMw7FIuhdTLeOkr7qsb2U4ly0kjPHprCq1EvvWapK I5sa41f8GLq?key=HlFDM3yAEhzk1RbNoIAsWA

Crypto Rover focused on presenting the high daily arrivals by splitting the week’s outcome. The week began on a promising note on Monday, with $105.1 million inflows generating an equal amount of money pouring into the ETF. As it is seen Tuesday was the day of crowning high as the investor interest reached its best with net inflow of $886.6 million.

Midweek Surge Boosts Bitcoin ETF

According to analysts, Wednesday also experienced a strong repeat, with $488.1 million added to the money earned. This carried on to Thursday, albeit at a slightly lower level, with $217.7 million recorded. An extra $131 million came in on Friday alone, and cumulative flow stood at $1,828,500,000.

AD 4nXeZfur4nfIozA2ZmGlDMqp7rc6cwXF2pTPSH6pnletc5EsuoKklrgxk2cqXLfnSslAepWnTc3CYR2a VmGjPfIjKOn7uqBTV5DTCIi2

The analyst also focused on the consequences of these numbers, stating that such constant inflows in billions are evidence that investors continue to have their confidence in BTC intact and growing. “How could you be bearish now?” he asked; this is a bullish market which has an influence on investors.

This increase in the flows into ETF is in many ways important in the following respects. Firstly, it highlights a much greater level of attention by institutions and individuals to Bitcoin as a unique instrument. The Spot Bitcoin ETF which makes the investor invest indirectly and get direct exposure to bitcoins without directly investing in bitcoins has become famous. This explains the flow of capital into this ETF as underlining the acceptance and trust in Bitcoin as a valuable asset.

But at the same time, analyst insights raises the questions about fluctuations characteristic of the cryptocurrency market. However, investors are advised to be on the lookout for more inflows, while at the same time being cautious, because the stock market may decide to turn its back on them again anytime soon.

The most recent instance of inflows into the Spot Bitcoin ETF was exceptional as they set a new record over the past week for the king of cryptocurrencies. According to Crypto Rover, the exceptional daily flows and investors’ general appreciation of the cryptocurrency are proof that Bitcoin is in a growing trend through the financial structures. 

Hong Kong’s VSFG Eyes Ethereum ETF Following Bitcoin Triumph

by

Hong Kong-based financial services firm Venture Smart Financial Holdings Ltd. (VSFG) is gearing up to apply for a spot Ethereum exchange-traded fund (ETF) following the recent approval of a spot Bitcoin ETF in the United States. The move is seen as a significant step toward the broader adoption of cryptocurrencies and establishing Bitcoin as an asset class coexisting with traditional financial instruments.

VSFG Chairman Lawrence Chu revealed in a recent interview with The Block that the company is in the final stages of preparing an official application for a spot Bitcoin ETF to be submitted to the Hong Kong Securities and Futures Commission. In Hong Kong, thorough regulatory discussions usually precede such applications, and Chu emphasized that the submission indicates they are “95% there.”

Optimistic Q1 Approval and Eyes on Spot Ethereum ETF

Chu expressed optimism about the potential approval and listing of their spot Bitcoin ETF in the first quarter, paving the way for the submission of a spot Ethereum ETF application in the second quarter. However, he acknowledged that the timeline would ultimately depend on discussions with regulators, stating, “But that really depends on the conversation we have with the regulator. We will be ready.”

The move by VSFG aligns with a growing trend in Hong Kong, as Livio Weng, the chief operating officer of HashKey, mentioned that around 10 fund companies in the city are exploring the possibility of launching spot crypto ETFs. This indicates a potential race among asset managers to lower fees, similar to the observed trend in the United States.

Chu acknowledged the competitive landscape, noting that several ETFs could emerge, but he highlighted the nuanced role of VSFG. He stated, “Our role is slightly nuanced because I think we’re also trying to help ETF issuers get into the game.” He pointed out that, unlike U.S. ETF issuers, those in Hong Kong face licensing requirements and a knowledge gap, with many lacking dedicated digital asset teams.

“In Hong Kong, there’s a bit of a licensing requirement but also a knowledge gap. Most ETF issuers don’t have a digital asset team,” Chu explained. “It becomes less of a competition for us, but rather it’s competition between ETF issuers on their marketing side. From that point of view, you can think of us as more of a service provider to all ETF issuers.”

As the crypto ETF landscape evolves in Hong Kong, the anticipation of both spot Bitcoin and Ethereum ETFs underscores the increasing acceptance and integration of digital assets within traditional financial markets. The developments in Hong Kong mirror the global trend of institutions and financial entities embracing cryptocurrencies as legitimate investment options.

Related Reading | Ethereum ETF: Standard Chartered Executive Eyes $4,000 Target On SEC Approval

Bitwise Secures $200 Million For Spot Bitcoin ETF Launch

by

Bitwise, a leading crypto asset manager, has received a strong indication of interest from an anonymous buyer who plans to invest up to $200 million in its spot bitcoin ETF, according to a filing with the SEC on Friday. The spot bitcoin ETF, which will trade under the ticker BITB, is one of the several proposals awaiting approval from the U.S. regulator.

The $200 million investment would significantly boost Bitwise, surpassing the $10 million seed money that Blackrock, the world’s largest asset manager, announced for its own spot bitcoin ETF last week. Blackrock’s ETF, which will trade under the ticker BTFD, is expected to launch on Jan. 3, 2024.

Bloomberg ETF analyst Eric Balchunas commented on Bitwise’s filing on social media platform X, saying:

Bitwise S-1 has been filed and it looks like someone (I wonder who) is going to seed BITB with $200m, which blows away Blackrock’s $10m (that we know of). That’s gonna be huge help in early days of race.

However, the asset manager warned that the potential buyer’s interest is not a binding commitment, and they could change their mind or purchase a different amount of shares.

Bitwise’s Bullish Outlook On Bitcoin and ETFs

Bitwise is optimistic about the future of Bitcoin and the ETF industry, as revealed in its 10 crypto predictions for 2024 earlier this month. The firm expects Bitcoin to trade above $80,000 by the end of 2024, driven by institutional adoption, regulatory clarity, and innovation.

Bitwise also believes that the SEC will approve spot bitcoin ETFs in 2024 and that they will be the most successful ETF launch of all time. Bitwise estimates that spot bitcoin ETFs will capture 1% of the $7.2 trillion U.S. ETF market or $72 billion in assets under management (AUM).

Bitwise is not the only firm vying for the first spot in Bitcoin ETF approval in the U.S. Other applicants include VanEck, Valkyrie, WisdomTree, NYDIG, and Galaxy Digital. The SEC has delayed its decision on several of these proposals, citing concerns over market manipulation, investor protection, and custody issues. The SEC has to decide on most ETFs in early January 2024.

Related Reading | Ethereum’s 2024 Roadmap Revealed: Vitalik Buterin Outlines Key Focus Areas

Bitcoin’s Grassroots: 74% Of Holders Own Less Than 0.01 $BTC, Grayscale Report

by

In a report titled “Demystifying Bitcoin’s Ownership Landscape,” Grayscale Research has unveiled a comprehensive analysis of Bitcoin ownership, debunking common misconceptions and shedding light on the decentralized nature of the cryptocurrency’s investor base.

Grayscale reveals a surprising fact: a staggering 74% of BTC addresses hold less than 0.01 BTC, equivalent to approximately $350 as of November 6th, 2023. It dispels the notion that BTC is concentrated in the hands of a few wealthy individuals, highlighting its accessibility to a global retail audience with internet connectivity.

Contrary to widespread belief, only 2.3% of all BTC owners possess 1 BTC or more, debunking the myth of a concentrated ownership structure. Grayscale emphasizes that the transparency of the Bitcoin blockchain allows anyone to monitor real-time information on ownership, fostering decentralization.

It identifies key ownership categories, with approximately 40% falling into identifiable groups such as exchanges, miners, governments, public companies, and dormant addresses. Notably, some of these groups represent “sticky supply,” a term coined to describe long-term holders who could influence demand-related tailwinds.

Looming Events: 2024 Bitcoin Halving and Spot Bitcoin ETF

Two imminent events, the 2024 Bitcoin halving and a potential spot Bitcoin ETF approval in the US, loom large on the horizon. Grayscale suggests that these events could reshape the landscape of BTC ownership, attracting a broader spectrum of investors.

Addressing the misconception of a concentrated ownership elite, the top five wallet addresses with the largest BTC holdings are revealed to belong to crypto exchanges or government entities. For instance, Robinhood, boasting 11 million monthly users, and Binance, with a massive 90 million monthly active user base, are key players in BTC’s distribution.

image 112

The research underscores the largest BTC owners and their potential impact on supply dynamics. Notably, Grayscale highlights ownership groups with potentially sticky supply dynamics, including long-term holders, miners, and exchanges, which collectively account for 20% of the total BTC supply.

image 113

The concept of “price inelasticity” is introduced, indicating that certain ownership groups remain relatively unaffected by short-term price fluctuations. This characteristic could amplify the impact of demand-related tailwinds, similar to the dynamics of “low float” stocks in traditional financial markets.

Nevertheless, Grayscale Research asserts that Bitcoin ownership is diverse and distributed, signaling the maturation of Bitcoin markets and increased acceptance by respected institutions. The dynamics of BTC’s ownership are poised to play a pivotal role in shaping its future amidst the upcoming 2024 Bitcoin halving and other market developments.

Related Reading | Indonesia Tightens Grip, Crypto Exchanges Face Registration Deadline: Report

Hong Kong’s Bitcoin ETF Ambitions Unveiled

by

Hong Kong is actively considering the introduction of a spot Bitcoin exchange-traded fund [ETF] in its crypto market, aiming to enhance its status as an Asia-Pacific digital asset hub. As reported by Bloomberg, this move comes as the city grapples with the aftermath of the JPEX scandal, a major financial fraud that recently shook the crypto community. In this scandal, the unlicensed JPEX crypto exchange was allegedly involved in duping over 2,530 individuals, leading to losses of HK$1.56 billion. Hong Kong police arrested 28 people, including a prominent crypto influencer, in connection with the case.

Despite these challenges, Hong Kong remains optimistic about the potential of spot Bitcoin ETFs, viewing them as a means to bring digital assets into the mainstream crypto sector. The Securities and Futures Commission [SFC] of Hong Kong, under the leadership of Chief Executive Officer Julia Leung, is open to innovative proposals that enhance efficiency and customer experience. Leung emphasized that while they are willing to explore new avenues, they remain committed to addressing potential risks associated with these innovations.

Bitcoin
Hong Kong's Bitcoin ETF Ambitions Unveiled 6

Several leading asset management firms, including CSOP Asset Management, Samsung Asset Management, and Mirae Asset Global Investments, have submitted their ETF applications to the SFC. Once approved, Bitcoin and Ether futures are expected to be live on the Chicago Mercantile Exchange, according to insiders familiar with the plans.

Hong Kong’s Bitcoin Ascent

Hong Kong has actively pursued its position as a digital asset hub, rolling out a dedicated virtual asset regulatory framework in June. This initiative aims to restore the city’s reputation as a cutting-edge financial center. Recent developments include the expansion of UK-based Zodia Custody, a digital asset custodian supported by Standard Chartered, into Hong Kong. Zodia Custody’s CEO, Julian Sawyer, cited the substantial demand for crypto assets, particularly from institutional entities, as a driving factor behind their decision to expand into the region.

Hong Kong’s efforts align with those of other jurisdictions seeking to develop digital-asset hubs, including Singapore, Dubai, and the European Union. Meanwhile, the United States has taken a more restrictive approach, imposing stringent regulations on the industry. As the crypto industry slowly recovers from the previous year’s $1.5 trillion market crash, Hong Kong’s proactive initiatives underscore its commitment to becoming a prominent player in the evolving digital-asset landscape.

Bitcoin ETF Frenzy: Google Searches Skyrocket

by

The anticipation for the approval of spot Bitcoin ETFs by the US SEC has reached a fever pitch, as evidenced by a surge in Google searches related to this topic. In the past week, Google searches for spot Bitcoin ETFs hit an all-time high as the crypto community eagerly awaited the green light from the regulatory body, expected to come in early 2024. The data, analyzed over a five-year period, revealed that retail investors in the United States are particularly interested in utilizing BTC through potential spot ETFs.

Bitcoin
Bitcoin ETF Frenzy: Google Searches Skyrocket 8

According to Google data, the search phrase “bitcoin ETF” reached a value of 39, the highest since ProShares’ futures-based ETF was introduced two years ago. This surge in interest indicates a growing curiosity among mainstream individuals about these investment funds and their potential impact on the market capitalization of Bitcoin, which is already the world’s largest cryptocurrency. Historically, a search value of 100 has coincided with bull market tops in BTC and Solana.

The recent trend suggests a positive shift in the adoption of cryptocurrencies as more people seek information about these innovative investment options. The market’s optimism has been further fueled by the SEC’s failure to meet the deadline to appeal a court ruling related to Grayscale’s Bitcoin Trust (GBTC) conversion to an ETF. This situation has bolstered confidence that spot ETF approval is imminent in early 2024.

Ark Invest Modify Bitcoin ETF Application

Additionally, prominent asset management firms such as BlackRock and Ark Invest are actively competing for top positions in ETF approval. Ark Invest, led by Cathie Wood, has made strategic modifications to its applications, including agreements with Coinbase that emphasize the segregation of the trust’s assets from the custodian. The SEC had previously raised concerns about spot Bitcoin ETF applications lacking robust surveillance-sharing agreements.

These encouraging developments have not only led to a surge in Bitcoin’s price to touch $30k briefly but have also spiked the age consumption metric, indicating the movement of previously dormant BTC to different wallets. A recent analysis by Santiment highlighted that this scale of movement has not been observed since July 27, suggesting renewed interest among traders and revitalization in overall network activity.

Crypto Crossroads: NYDIG Warns Of Possible U.S. Government Shutdown & Its Impact

by

NYDIG, a leading Bitcoin-focused financial services firm, has predicted that the United States government could face a shutdown lasting anywhere from 1 to 35 days due to Congress’s inability to pass a federal appropriations bill. This looming shutdown has raised concerns in financial markets, particularly cryptocurrency.

Though rare historically, the recurring specter of government shutdowns has become more frequent in recent years. With three shutdowns in the last decade alone, the potential impact on financial markets, particularly crypto, has become a cause for concern.

Moody’s, the sole major rating agency still assigning a AAA credit rating to the U.S., warns of negative repercussions if the government shuts down. 

image 65 1

This isn’t the first time the US’s financial stability has come into question. In 2011, Standard & Poor’s downgraded the country’s credit rating amid debt ceiling negotiations, citing concerns about policymaking effectiveness and political instability.

In the event of a government shutdown, the Department of Justice (DOJ) is likely to be minimally affected, given its crucial role in ensuring public safety. However, financial regulators, such as the SEC, face significant disruptions. With a lean staff operating during a shutdown, the SEC delays decisions on ETFs, including the iShares Bitcoin Trust.

Spot Bitcoin ETF decisions are postponed, hinting at the SEC’s preparedness for a potential prolonged shutdown. The SEC aims to maintain flexibility in the approval process, anticipating renewed interest post-shutdown. A crucial deadline of January 10, 2024, looms, requiring the SEC to decide on the entire spot Bitcoin industry, potentially adopting a consistent approach for all ETFs.

Divergence In the Cryptocurrency Landscape

While Bitcoin faces uncertainty, Ethereum’s landscape sees divergence. Ethereum futures ETFs appear set for launch as firms like VanEck and Valkyrie update registration statements. However, spot Ethereum products face SEC disinterest, with decisions swiftly deferred to future deadlines.

However, the intertwined fate of financial markets and cryptocurrency decisions hangs in the balance as the government shutdown looms, awaiting a resolution in Congress and its potential repercussions on the economy at large.

Despite the looming government shutdown, Bitcoin managed to end the week with a 1.9% increase, possibly benefiting from concerns about the U.S.’s creditworthiness. Meanwhile, gold, a traditional fiat hedge, fell by 2.9%. 

image 65 2

Concerns about economic growth and consumer stress led to a 1.3% decrease in the S&P 500 and a 0.2% drop in the Nasdaq Composite. Bonds also experienced declines, while oil saw an increase of 2.3% due to tight supply.

Related Reading | Crypto Regulation Battle Lines Drawn as Congressman Takes Charge

Bitcoin: SEC Delays Decision On 7 ETFs, Setting the Stage for Mid-October Drama

by

Bitcoin spot ETF proposals are likely heading toward a mid-October showdown as the Securities and Exchange Commission [SEC] has announced the postponement of decisions on seven such applications. While Bitwise Bitcoin ETP Trust faces a decision deadline extension until October 16, BlackRock, Fidelity, VanEck, WisdomTree, and Invesco Galaxy Bitcoin ETFs are granted an extended deadline until October 17. The Valkyrie Bitcoin Fund deadline has been pushed to October 19, according to separate filings by the regulator.

The SEC explained that it requires more time to thoroughly evaluate the proposed rule changes and the concerns raised, particularly in the case of the WisdomTree fund. Bitwise CIO Matt Hougan expressed no surprise at the SEC’s decision during a Bloomberg interview, given the typical 45-day window for responding to spot BTC ETF applications, which concludes on September 1, with the next pivotal deadline being October 16.

image 2
Bitcoin: SEC Delays Decision On 7 ETFs, Setting the Stage for Mid-October Drama 12

The SEC has yet to approve a spot Bitcoin ETF, citing concerns related to fraud and market manipulation. While a BTC futures ETF was permitted to trade in 2021, a spot BTC ETF still remains elusive for U.S. investors.

In contrast, Europe has witnessed the launch of its first Bitcoin spot ETF on the Euronext Amsterdam stock exchange. The Jacobi FT Wilshire BTC ETF, managed by Jacobi Asset Management, is the continent’s sole regulated exchange-traded fund that directly holds BTC.

Bitcoin Headed For A Bumpy Road Ahead

Trading under the symbol BCOIN, this ETF entrusts Fidelity Digital Assets with custodial responsibilities and boasts significant collaborators such as Flow Traders as market makers, with Jane Street and DRW serving as authorized participants.

As Bitcoin’s future remains uncertain, investors brace themselves for potential turbulence ahead. Historical data suggests that September typically brings volatility to the cryptocurrency, but ETF analysts recommend shifting focus to mid-October as the next pivotal period to monitor. Bloomberg ETF analyst James Seyffart has stated that delays in spot BTC ETF approvals were anticipated, estimating a 75% chance of approval by the end of the year, with the mid-October deadlines marking the SEC’s final decisions for 2023.

JPMorgan Downplays Impact Of Spot Bitcoin ETF Applications, Citing Historical Trends

by

JPMorgan, a leading banking giant, has expressed skepticism regarding the impact of recent spot Bitcoin ETF applications on the cryptocurrency space. Following BlackRock’s filing of a spot Bitcoin ETF last month, which triggered a surge in BTC prices to $31,000, other significant players like Fidelity and WisdomTree also submitted their applications to the US Securities and Exchange Commission (SEC).

In a research report published on Thursday, July 6, JPMorgan outlined several reasons behind its analysis, tempering the optimistic outlook in the market. The primary concern raised by JPMorgan is the SEC’s historical reluctance to approve spot Bitcoin ETFs. While previous applications were rejected, investors are hopeful that the concerns raised by the SEC have been adequately addressed this time.

Nikolaos Panigirtzoglou, head of JPMorgan’s analysts, highlighted, “Spot bitcoin ETFs have existed for some time outside the U.S., in Canada and Europe, but have failed to attract large investor interest.”

JPMorgan Foresees Bright Future For Spot Bitcoin ETFs

JPMorgan further emphasized that spot Bitcoin ETFs will likely surpass futures-based ETFs in the long run due to their ability to reflect real-time supply and demand. The approval of spot ETFs in the United States could enhance liquidity and improve price transparency in spot Bitcoin markets, according to the JPMorgan report obtained by CoinDesk.

The report also highlighted certain advantages of physically backed Bitcoin ETFs over futures-based funds, albeit minor ones. Spot ETFs provide a more straightforward and secure method for investing in Bitcoin, eliminating complexities related to custody, BTC transfer, and the basis risk associated with futures-based products.

In addition, the JPMorgan report noted that Bitcoin funds, including both futures-based and physically backed funds, have experienced sluggish inflows since Q2 2021. Furthermore, they have failed to benefit from investor outflows from gold ETFs over the past year.

As the crypto community eagerly awaits the SEC’s decision on the pending spot Bitcoin ETF applications, JPMorgan’s cautious stance serves as a reminder of the challenges faced by such funds in the past. Despite renewed optimism among investors, only time will tell if spot Bitcoin ETFs will gain significant traction and reshape the cryptocurrency investment landscape in the United States.

Related Reading: | BlackRock CEO Larry Fink: Beyond Bitcoin, The Rise Of Tokenization In Crypto