U.S. spot bitcoin exchange-traded funds (ETFs) saw their first day of inflows following two days of outflows. The 11 funds garnered 3.1 million during Friday’s trading sessions, closing out the week on a positive note. Friday’s ETF Action Bounces Back After 2 Days of Outflows On Friday, the 11 spot bitcoin ETFs performed significantly better […]
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Bitwise CIO Estimates Spot Ether ETPs Will Attract Billions: ‘Not a Casual Guess’
Bitwise CIO Matt Hougan has predicted that spot ether-based exchange-traded products (ETPs) will have a favorable performance in financial markets when finally trading. Hougan estimates that these products will have net flows of billion during their first 18 months of trading, taking into account the size of the ether ETP market in other regions […]
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How UpRock Is Using AI, DePIN and Crypto Rewards to Attract New Users to Web3 in an Age Where Data Is the New Oil
UpRock is a groundbreaking platform that merges blockchain and AI, allowing users to monetize their unused internet bandwidth. With a focus on democratizing data access and fostering an open AI ecosystem, UpRock is at the forefront of the digital revolution. The co-founders of UpRock, Jesse Adams (CEO) and Chris O’Connell (CTO), recently joined the Bitcoin.com […]
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Analyst Predicts Ethereum Spot ETFs To Attract 25% Of BTC Demand – Here’s Why
Following the sudden approval of the Ethereum Spot ETF last week, speculations continue to roll in on the potential performance of these funds ahead of their debut trading session. Most recently, renowned Bloomberg ETF analyst, James Seyffart has weighed in on the subject giving his thoughts on the possible level of investments the Ethereum spot ETFs could pull in relation to their Bitcoin-based equivalents.
ETH Spot ETF Limited By Ethereum’s Utility And Other Factors – Analyst
In an interview session on X on May 24 hosted by Bitwise Chief Investment Officer Matt Hougan, Seyffart stated that the Ether spot ETFs would likely experience a maximum of 25% of the demand seen by the Bitcoin spot ETFs.
Seyffart based his predictions on multiple elements starting with enormous differences in market caps between both assets. According to data from CoinMarket, Ethereum’s total market shares are valued at 9.25 billion which is roughly equal to 30% of BTC’s 1.35 trillion market cap.
Furthermore, the analyst also highlighted the large disparities in the difference between both ETFs and their base assets. According to Seyffart, there is a bigger gap between Ethereum as an ETF and as a cryptocurrency than Bitcoin as an ETF and as itself.
The ETF analyst believes that the ETH spot ETFs will limit investors from native ETF features such as staking, a prominent source of passive income, and other on-chain use cases in terms of DeFi, NFTs, DAOs, etc. Thus, certain investors might prefer to invest directly in the altcoin.
With all these factors in consideration, Seyffart predicts these novel investment funds will produce “big launches” but not at the level of the Bitcoin spot ETFs. He predicts the Ethereum Spot ETFs will record between 20-25% of investments in their Bitcoin-based peers once trading commences. Meanwhile, fellow Bloomberg analyst Eric Balchunas appears less optimistic with a projection of 15-20%.
Undoubtedly, the performance of the Ethereum spot ETFs will be influential on other crypto spot ETFs that may gain approval from the US Securities and Exchange Commission. Currently, the XRP ETF is tipped by many enthusiasts as the next debutant in the market but this is still subject to many factors, most especially regulatory clarity on the institutional sales of XRP.
Ethereum Price Overview
In other news, Ethereum is trading at ,766 with a 0.51% gain in the last day. This slight positive performance underscores Ethereum’s form all week with a combined 20.47% gain recorded in the last seven days. Meanwhile, ETH’s daily trading volume is down by 51.27% and is valued at .03 billion.
Veteran Trader Peter Brandt Says Peter Schiff Criticizes Bitcoin to Attract Attention, Increase Following
Veteran trader Peter Brandt has accused economist and gold advocate Peter Schiff of leveraging his criticisms of bitcoin to garner attention and increase his social media following. However, Schiff countered, asserting that he is simply offering his candid perspective on the investment risks associated with bitcoin. Peter Schiff’s Bets on Dead Horses Veteran trader Peter […]
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Bitcoin ETFs: Issuers Battle To Attract Investors With Google Ad Campaigns
After the approval and launch of spot Bitcoin ETFs (Exchange-Traded Funds) by the US Securities and Exchange Commission (SEC), ETF issuers have extensively promoted their products on different media platforms to attract retail investors.
Bitcoin ETF Issuers Looking To Attract Retail Investors
At the end of January, giant technology company Google changed its advertisement policy to allow crypto fund managers to advertise crypto products in the search engine. Beginning on January 29, the company would “update the Cryptocurrencies and related products policy to clarify the scope and requirements for the advertisement of Cryptocurrency Coin Trusts.”
This decision followed the approval of 11 spot Bitcoin ETFs on January 10 by the US SEC, a significant decision that marked a milestone for the crypto industry and investors, as the approval by the US regulator provided more legitimacy to digital assets and the flagship cryptocurrency in the eyes of traditional investor.
As several members of the community reported, the asset managers that have issued ETFs launched their ads on Google following the policy change.
@BlackRock, @Fidelity, @Grayscale and @vaneck_us are all using google ads to promote their ETFs.
The #Bitcoin Spot ETF approval is bigger than you think, we have just got started pic.twitter.com/9WpBenXYwo
— Alessandro Ottaviani (@AlexOttaBTC) February 1, 2024
BlackRock, Fidelity, Grayscale, VanEck, Invesco, and Bitwise are among the ETF issuers that have taken the biggest search platform in the world to advertise their exchange-traded products. The news seems to have fueled a bullish sentiment for crypto investors due to the exponential increase of exposure that Bitcoin ETFs and the cryptocurrency sector will receive from the tech giant’s platform.
Although most issuers have taken an interest in advertising their products on Google after the policy change, it’s worth mentioning that Valkyrie Digital Assets hasn’t taken the same route as its counterparts, and it’s not using Google ads to advertise its ETF.
A Financial Times report highlights Invesco’s positive reception to Google’s ads update. A spokesperson told the news media outlet:
We believe Google — among other search engines — is an important piece of our larger marketing strategy.
Will Facebook And Instagram Follow Google’s Steps?
The advertisement battle between the ETF issuers has also taken advantage of traditional media. Bitwise has its “The Most Interesting Man in the World” ad campaign on mainstream TV, and Blackrock projects its Ads on different buildings across the US, including buildings near Wall Street in New York.
#BitcoinETF Being Advertised On Mainstream TV
Is the #bullrun officially BACK??
pic.twitter.com/dlBw5cjCuz
— Satoshi's Sip (@SatoshisSip) February 4, 2024
Now, the ads war has broadened as social media platforms have started to show interest in advertising the newly approved crypto-based investment products. Nate Geraci, President of the ETF Store Inc., shared on his X account a fragment of a Wall Street Journal report explaining that Facebook and Instagram may soon allow spot Bitcoin ETF ads.
The report highlighted the comments from a spokesman for Alphabet, Google’s parent company, which began approving ads in the US for Bitcoin ETFs on its platforms, including Google Search and YouTube.
Similarly, Facebook and Instagram are likely to follow Google’s steps soon. Per the report, a spokesperson for the Parent Company Meta Platforms said that the company is updating its US advertisement policies after the US SEC’s decision.
Geraci considers that there’s “no bigger boomer honeypot than Facebook.” Notably, the social media platform could help broaden the reach of Bitcoin ETFs as it holds a large pool of older users.
The potential interest of older users in expanding their investment portfolios and being exposed to digital assets like Bitcoin, without the need to self-custody their keys, has been a significant advertisement component of the ad campaigns from the ETF issuers.
Ark Invest CEO Expects Spot Bitcoin ETFs to Attract ‘Substantial’ Institutional Flows, Pushing BTC ‘Much Higher’
Ark Invest CEO Cathie Wood expects spot bitcoin exchange-traded funds (ETFs) to move the price of bitcoin “much higher.” The securities regulator is expected to make a decision on spot bitcoin ETFs by Wednesday. “We think that the SEC approval, should we and others get it, is a green light for institutions. We’ve been talking to quite a few of them, and they’re much more interested now that the SEC effectively is paving the way,” the executive shared.
Cathie Wood on Potential Spot Bitcoin ETF Approvals
The CEO of Ark Investment Management, Cathie Wood, shared her view on the potential spot bitcoin exchange-traded fund (ETF) approvals by the U.S. Securities and Exchange Commission (SEC) in an interview with CNBC Monday. Her firm’s joint proposal with 21shares is up for a decision on Wednesday, the first deadline for spot bitcoin ETF applications this year.
Regarding whether institutional investors are more open to investing in bitcoin with the expected approval of spot bitcoin ETFs, the Ark executive said:
We think that the SEC approval, should we and others get it, is a green light for institutions. We’ve been talking to quite a few of them, and they’re much more interested now that the SEC effectively is paving the way.
When asked about whether her firm’s spot bitcoin ETF proposal will be approved by the SEC, she replied: “We do think the probability is very high that the bitcoin ETF will be approved this week, and the reason, as we’ve been saying, is the SEC actually, after denying, denying a number of times, started asking questions — very good questions, very detailed questions, very technical questions — So, I think they’ve asked all the questions they need answered, and I think most of us have probably been a part of that process.”
Wood also believes that spot bitcoin ETF approvals might not be a sell-the-news event some have predicted. “I think so many people are expecting a ‘sell on the news’ that we might not have,” she said, emphasizing: “Once you hear that enough, their positionings are already taking place. Who knows, it’s a very short-term.” The Ark Invest CEO continued:
All we know is with our five-year investment time horizon, we think the flows into this new asset class, especially institutional flows … are going to be quite substantial, and it won’t take much of an allocation by institutions into bitcoin to drive what’s becoming a scarce asset much higher.
The Ark Invest CEO proceeded to detail why she thinks the price of bitcoin will “continue to move higher.” Firstly, she explained that bitcoin is digital gold, noting that gold is a trillion asset. “I think bitcoin might be up to 0 billion right now. So we do think there is some substitution taking place,” she explained.
“And the institutional flows, if the allocations were as little as 2.5% to 5%, which is where we think they will end up,” she added. “You’ll see 0.5% and then 1%. You’ll see a legging in that could be the biggest reason for a bitcoin to go up.” Wood concluded:
Because, you know, we’re at 19.5 million bitcoin outstanding already. 15 million roughly are in long-term hands. They haven’t moved their bitcoin in more than 155 days. And we know we’re only going to 21 million units ever. So this indeed … is becoming a scarce asset.
Do you agree with Ark Invest CEO Cathie Wood about the impact of spot bitcoin ETFs? Let us know in the comments section below.
Can Bitcoin Spot ETFs Attract Enough Capital? Experts On What Will Lead To ATH
Trading firm QCP Capital has shared its thoughts on what could drive the flagship cryptocurrency, Bitcoin, to its all-time high (ATH) of ,000. From their analysis, Spot Bitcoin ETFs have a huge role to play in all of this.
Bitcoin Hitting ,000 Dependent On Spot BTC ETFs
QCP Capital stated that revisiting its ATH of ,000 will depend on the “genuine flows the actual ETF will bring in the first few weeks of trading.” If the inflows are below par, the trading firm noted that it could set things up for the classic ‘sell-the-news’ moment.
This assumption seems to stem from their belief that the news could already be priced in. They highlighted how Bitcoin has so far enjoyed incredible gains on the back of optimism that the SEC is going to approve these Spot Bitcoin ETFs. Bitcoin has already risen to as high as ,000 this month and is said to be up 15% MTD in the first week.
With this in mind, QCP Capital is conscious of the fact that investors are most likely already positioned for an approval order by the SEC. If that is the case, Bitcoin and the broader crypto market will need something else to sustain this bullish momentum. That is why the trading firm has singled out liquidity flowing into these Spot Bitcoin ETFs as being key.
Renowned Economist Peter Schiff had previously warned of a possible sell-the-news event when he mentioned that Bitcoin is unlikely to rally again once a Spot BTC ETF is approved. That is because he believes that the current Bitcoin rally is a result of many already ‘buying the rumor.’ As such, once approval comes, the next thing could be these ‘investors selling the news.’
Capital Expected To Flow Into These Spot BTC ETFs
There is reason to believe that enough liquidity will flow into these Spot Bitcoin ETFs and the Bitcoin ecosystem to sustain the current market rally. Crypto research firm Galaxy Digital once published a report that stated that these funds could see billion of inflows in the first year of launch.
Specifically, Galaxy Digital estimates that these funds will see an adjusted inflow of over billion in their first month. These inflows should be enough to sustain Bitcoin’s rally as the research firm projects that Bitcoin’s price could see a 74.1% increase in the first year of these funds launching.
Meanwhile, Blockchain analytics firm Glassnode is of the opinion that an approval order by the SEC will bring in a substantial influx of investors. They predict that about .5 billion could flow into Bitcoin due to increased demand from institutional investors.
Ethereum’s Liquid Staking Protocols Attract 400,000 Ether After Shapella Upgrade
Just over two weeks have passed since Ethereum’s Shapella upgrade on April 12, 2023, which occurred at block height 6,209,536, enabling stakers to withdraw for the first time. At the time of the upgrade, slightly over 8 million ethereum was locked into liquid staking protocols. Since then, over 400,000 ether, valued at 3 million, has been added to 17 liquid staking platforms.
Ethereum Liquid Staking Platforms Continue to Swell
As of today, April 30, 2023, the total value locked into liquid staking protocols such as Lido Finance, Coinbase’s Wrapped Staked Ether, Rocket Pool, Frax, Stakewise, Stakehound, Ankr, Ether.fi, and Bitfrost is just over billion.
According to 30-day statistics, six out of the top ten protocols, ranked by value locked, have experienced gains over the past month, with four of them showing double-digit growth. At present, Lido dominates the billion market, holding 73.6% or 6,206,101 of the 8,431,605 ethereum locked in liquid staking protocols.
Data shows that just after the Shapella upgrade, 400,735 ethereum worth 3,600,542 using today’s ether exchange rates has been added to the liquid staking cache. Lido’s 30-day metrics show an increase of 5.50% while Coinbase’s liquid staking platform saw a loss of 0.64% over the last month.
Rocket Pool’s total value locked (TVL) jumped 29.24% in 30 days while Frax’s TVL rose by 31.65%. Like Lido, Stakewise, the fifth-largest liquid staking protocol saw a modest 30-day increase rising 1.23% higher.
Recent data reveals that following the Shapella upgrade, a notable 400,735 ethereum, totaling 3.6 million in value, has been added to the liquid staking cache. While Lido’s 30-day metrics depict an increase of 5.50%, Coinbase’s liquid staking platform suffered a loss of 0.64% over the past month.
In the same period, Rocket Pool experienced a substantial 29.24% jump in total value locked (TVL), while Frax’s TVL rose by 31.65%. Similar to Lido’s small rise, Stakewise, the fifth-largest liquid staking protocol, witnessed a modest 1.23% increase over the past 30 days.
Binance has thrown its hat in the ring, entering the fray with a newly launched liquid staking product, now standing as the tenth largest platform under Bitfrost. As of now, the protocol’s total value locked (TVL) is approximately .69 million, with 20,305 ether staked into the application.
Liquid staking protocols have gained significant traction in recent months providing users with the convenience of earning passive staking rewards while still retaining control of their assets. The addition of 400,000 ether to the liquid staking TVL within just two weeks of the Shapella upgrade underscores the growing interest and attention this sector is receiving.
How do you think liquid staking protocols will impact the overall cryptocurrency market and the future of staking? Share your thoughts about this subject in the comments section below.
ApeCoin Performance Could Attract The Whales – How About The Bulls?
ApeCoin has recently made it to the top 10 in terms of trading volume from over 100 of the largest ETH whales as seen in the past 24 hours.
- APE made it to the top 10 in terms of trading volume
- ApeCoin’s MRV has been seeing sustained growth
- APE price up by 1.46%
The Bored Ape Yacht Club isn’t running out of cards to play with the integration of a new staking rewards program that caught the attention of many ETH whales. The developments surrounding the BAYC token could be the main culprit for its recent popularity.
The buoyancy experienced with the increase in whale interest is just one of the many impressive developments happening for APE.
ApeCoin Bullish Technical Indicators
For one, ApeCoin’s MRV has been seeing sustained growth and doing tremendously well over the past month. With all of these positive indicators flashing, investors will see this as a bullish streak for APE.
Additionally, APE’s market capitalization has also surged from .46 billion to as much as .65 billion as of this writing.
According to CoinMarketCap, the APE price has skyrocketed by 1.46% or trading at .40 as of this writing.
However, APE’s trading volume has seen a massive reduction from 590.45 million to 141.08 million. ApeCoin also registered a drop in terms of activity which shows the limited wallet transactions.
Based on this scenario, the APE price could sink below the .135 key support line in the coming days. Moreover, the altcoin’s RSI at 39.64 and CMF at -0.03 also demonstrate a bearish movement.
Based on the APE chart, there really isn’t much traction noted since its launch in March. Notably, APE has plunged by as much as 80% from its ATH with NFT demand going down; the demand for APE also dwindled down.
There is really so much going on in the NFT market that is causing the sideways motion of ApeCoin.
BAYC Innovates With Rewards Staking Program
If there’s one thing really impressive about the BAYC, it is the creators who continuously reinvent themselves and innovate their brand to be more relevant to their target market. Its staking rewards program is one of its huge developments so far.
With a rewards staking program, the crypto is locked up for a certain period at which you’re not allowed to trade it but it generates passive income for you as the owner. By letting someone gain access to your crypto for a prescribed time, you earn rewards.
Staking rewards are extremely popular with investors because you gain more revenue by staking your altcoin especially if it’s relatively going up in value.
The sneak peeks of the ApeCoin rewards staking program were rolled out on September 3. Recently, on September 22, Apecoin revealed that the rewards staking program will go live on October 31.
APE total market cap at .65 billion on the daily chart | Source: TradingView.com
Featured image from MakeUseOf, Chart: TradingView.com
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