U.S. spot bitcoin exchange-traded funds witnessed a second day of inflows as they captured .52 million on Thursday. The leader in terms of gains was Fidelity’s FBTC led the pack with a million increase. Modest Inflows for Bitcoin ETFs on Thursday With Fidelity’s FBTC Leading the Pack The 11 spot bitcoin ETFs had a […]
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US Spot Bitcoin ETFs Break Outflow Trend With $30M in Inflows
On Tuesday, U.S. spot bitcoin exchange-traded funds (ETFs) reversed their continuous outflow trend, attracting .01 million in net inflows. Leading the charge, Fidelity’s FBTC garnered million, while Grayscale’s Bitcoin Trust (GBTC) experienced approximately million in outflows. U.S. Spot Bitcoin ETFs Rebound On Tuesday, spot bitcoin ETFs in the U.S. reversed a week-long trend […]
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Bitwise CIO Bullish On Spot Ethereum ETFs: Envisions $15 Billion Inflows
In a significant development for the cryptocurrency market, asset managers are eagerly preparing for the launch of new spot Ethereum ETFs, pending approval from the US Securities and Exchange Commission (SEC).
Bitwise Chief Investment Officer (CIO) Matt Hougan has weighed in on the potential of these ETFs, predicting substantial inflows into the regulated market within the first months of trading.
Market Data Suggests B Demand For Spot Ethereum ETFs
Hougan’s projections are based on a thorough analysis of available data. He emphasizes that there is no need for speculation when estimating the demand for spot Ethereum ETFs. Instead, Hougan points to the existing market data to support his forecast of billion in net inflows during the initial 18-month period.
To arrive at this estimate, Hougan compares the relative market capitalizations of Bitcoin (BTC) and Ethereum (ETH). As a starting point, he expects investors to allocate to Bitcoin and Ethereum exchange-traded products (ETPs) roughly in proportion to their market capitalizations.
Bitcoin’s market cap currently stands at ,266 billion, representing 74% of the combined market, while Ethereum’s market cap is 2 billion, accounting for 26% of the combined market.
Considering US investors already have around billion invested in spot Bitcoin ETPs, Hougan anticipates reaching 0 billion or more by the end of 2025 as these ETFs mature and gain approval on prominent platforms such as Morgan Stanley and Merrill Lynch.
Using this 0 billion benchmark, he suggests that spot Ethereum ETFs would need to attract billion in assets to achieve parity, which he estimates will take approximately 18 months.
However, Hougan acknowledges that the actual inflows may differ due to various factors. For instance, the Grayscale Ethereum Trust (ETHE) is expected to convert to an ETP on the launch day, bringing along billion in assets. Factoring this in, the estimated net inflows to reach parity would be around billion.
Analysis Of International ETF Markets
To validate his estimates, Hougan looks at international ETF markets, particularly Europe and Canada, which already offer Bitcoin and Ethereum ETFs.
The asset split between the two cryptocurrencies in these markets is similar, according to Hougan, with Bitcoin ETPs accounting for approximately 78% and Ethereum ETPs representing around 22% of the total Assets Under Management (AUM). This alignment with market cap breakdowns strengthens Hougan’s earlier estimate.
Hougan also considers the potential impact of the “carry trade” on Bitcoin and Ethereum ETP markets. While a significant fraction of US Bitcoin ETP flows are linked to the carry trade strategy, he highlights that the Ethereum ETP carry trade is not profitable for institutions.
To maintain a conservative estimate, Hougan removes the billion carry-trade-related AUM when sizing the Bitcoin market, leading to a revised estimate of billion in net inflows for Ethereum ETPs.
In sum, Hougan believes that while there are several factors to consider and potential adjustments to the model, a starting point of billion in net new demand for spot Ethereum ETFs within the next 18 months is a reasonable projection.
At the time of writing, ETH was trading at ,405, up nearly 3% in the past 24 hours, after hitting a low of ,230 on Monday.
Featured image from DALL-E, chart from TradingView.com
JPMorgan Questions Sustainability of $12 Billion Crypto Inflows
JPMorgan analysts have raised concerns about the sustainability of the billion year-to-date inflow into crypto assets, given the current high bitcoin prices relative to production costs and gold. The substantial inflows this year have been primarily driven by spot bitcoin exchange-traded funds (ETFs). However, much of this inflow represents a shift from crypto wallets […]
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US Spot Bitcoin ETFs Reverse Outflows With $100M Inflows
U.S. spot bitcoin exchange-traded funds (ETFs) experienced inflows on Wednesday, following two consecutive days of outflows. The 11 ETFs trading in the United States amassed 0.9 million, with Fidelity’s FBTC leading the way. Fidelity’s FBTC Tops Bitcoin ETF Inflows With M On Wednesday, spot bitcoin ETFs reversed their two-day outflow trend. The group secured 0.9 […]
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Why Is Bitcoin Stagnant Despite ETF Inflows? Report Answers
Glassnode has discussed in a new report the reasons behind Bitcoin moving sideways despite inflows into the spot exchange-traded funds (ETFs).
Why Bitcoin Has Been Stagnant Despite Spot ETF Inflows
In its latest weekly report, the analytics firm Glassnode has talked about how the impressive inflows into the US spot ETFs have failed to make the price break its sideways trend.
The spot ETFs, which the US Securities and Exchange Commission (SEC) approved in January of this year, have provided investors with an alternate means of gaining exposure to the cryptocurrency.
These funds buy and hold Bitcoin on behalf of their users, letting them get indirect exposure to the coin’s price movements without having to own the asset itself.
The more traditional investors, who don’t want to attempt to navigate cryptocurrency exchanges and wallets, have found the spot ETFs to be a comfortable investment option.
Since their launch, the spot ETFs have brought large demand for the asset. Initially, these fresh capital inflows helped BTC rise to a new all-time high (ATH), but recently, the asset has been consolidated.
Below is a chart that shows how the combined reserve of these funds compares against the other large entities in the sector.
From the graph, it’s visible that the spot ETFs hold 862,000 BTC. This is more than what the miners (excluding Patoshi) hold (706,000 BTC) but notably less than the reserve of the centralized exchanges (2.3 million BTC).
Glassnode has noted that the cryptocurrency exchange Coinbase alone holds a big part of the total exchange reserve and the US spot ETF balance through its custody service.
“With Coinbase serving both ETF clients and conventional on-chain asset holders, the gravity of the exchange in the market pricing process has become significant,” reads the report.
The data for the whale deposits to the platform reveal a rising trend until mid-April.
According to the analytics firm, a significant portion of these whale deposits had come from the Grayscale Bitcoin Trust (GBTC), adding to the selling pressure in the market.
The whale exchange inflows shooting up may partly explain why the spot ETFs haven’t proven as effective. Another factor behind the consolidation can be the trend in the futures market.
The chart below shows that the CME’s future open interest has recently been at high levels.
The report thinks this could signal that an increasing number of traders have been adopting a cash-and-carry arbitrage strategy.
This arbitrage involves a market-neutral position, coupling the purchase of a long spot position, and the sale (short) of a position in a futures contract of the same underlying asset which is trading at a premium.
This could explain why the spot ETF inflows have only been able to have a neutral impact on the prices in the Bitcoin market recently.
BTC Price
Bitcoin has swiftly recovered more than 4% in the past 24 hours as its price is now back above ,700.
Ethereum Inflows Soar: Record Week With $69M As ETFs Near Trading Launch, What’s Next?
Following the recent price spike that brought Ethereum (ETH) close to the ,000 mark, the second-largest cryptocurrency has experienced inflows and renewed market enthusiasm. This comes in response to the US Securities and Exchange Commission’s (SEC) approval of Ethereum ETF applications by major asset managers.
Best Week For Ethereum Since March
According to a report by CoinShares, digital asset investment products have witnessed a total of billion inflows, contributing to a five-week consecutive run of inflows amounting to .3 billion.
Additionally, trading volumes in exchange-traded products (ETPs) have risen to .8 billion for the week, a 55% increase from the previous week.
Notably, inflows have been observed across various providers, indicating a turnaround in sentiment. Incumbent providers have also experienced a slowdown in outflows, reinforcing the positive market sentiment.
As seen in the image above, Bitcoin (BTC) continues to dominate the market, with inflows totaling .97 billion for the week. On the other hand, short Bitcoin products saw outflows of .3 million for the third consecutive week.
Similarly, Ethereum has also seen a notable surge in inflows, recording its best week since March with a total of million, which for CoinShares is likely a reaction to the unexpected SEC decision to allow spot-based ETFs on Ethereum.
Differing Perspectives On ETH’s Price
Despite the positive developments, Ethereum’s price has struggled to maintain bullish momentum, failing to retest its yearly high of ,100 reached in March. On Friday, the price dropped as low as ,577.
However, Ethereum addresses holding more than 10,000 ETH have increased by 3% in the past three weeks, indicating a significant spike in buying pressure.
Market analysts have provided differing perspectives on Ethereum’s future price action. “Trader Tank” predicts that ETH may drop to ,500 while acknowledging the potential for a bullish reversal upon reclaiming the ,700 level.
On the other hand, crypto analyst Lark Davis highlights that Ethereum’s supply on exchanges is at an eight-year low, suggesting that the upcoming ETFs could cause a “massive supply shock” and potentially lead to a substantial increase in ETH’s price.
Ultimately, as Ethereum’s price remains uncertain, market participants eagerly await the next movements in the cryptocurrency. As investors and analysts closely monitor the market dynamics, the question of whether a breakout above ,000 or a retest of lower support levels at ,500 awaits an answer.
The second-largest cryptocurrency on the market is currently trading at ,690, down 6.5% in the past two weeks.
Featured image from DALL-E, chart from TradingView.com
Blackrock’s IBIT Leads as US Spot Bitcoin ETFs Enjoy 19th Day of Inflows
U.S. spot bitcoin exchange-traded funds (ETFs) marked their 19th straight day of inflows on Friday, gathering 0.99 million. Blackrock’s IBIT was once again at the forefront, with net inflows amounting to 8 million. Consistent Inflows for U.S. Spot Bitcoin ETFs The inflow trend for U.S. spot bitcoin ETFs continued, adding another day of positive movement. […]
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Bitcoin ETFs Witness 18 Straight Days Of Inflows, Options Traders Eye $100,000
US spot Bitcoin ETFs have experienced a noteworthy streak of net inflows for 18 consecutive days, contributing to the upward momentum of the leading cryptocurrency as it inches closer to its all-time high levels set in March.
According to Bloomberg data, these ETFs, managed by some of the world’s largest financial institutions, have attracted net subscriptions of .6 billion since their launch on January 11, bringing total assets under management to a substantial .3 billion.
Record-Breaking Demand For Bitcoin ETFs
According to Bloomberg, the success of Bitcoin ETFs introduced by BlackRock and Fidelity Investments has made them some of the most successful launches in the ETF sector’s history.
These products have significantly influenced the center of gravity for cryptocurrency investments, shifting it from Asia to the United States.
Sean Farrell, Head of Digital Asset Strategy at Fundstrat, noted the significant inflows into spot Bitcoin ETFs and highlighted that the macroeconomic environment favors the cryptocurrency market. Economic growth is advancing at a “non-recessionary pace” and signs of disinflation persist.
Recently, BlackRock’s iShares Bitcoin Trust, with .4 billion in assets, became the world’s largest Bitcoin fund, surpassing Grayscale’s .1 billion Bitcoin trust (GBTC). On the other hand, the Fidelity Wise Origin Bitcoin Fund (FBTC), with .3 billion in assets, currently holds the third position.
The US Securities and Exchange Commission (SEC), which had been cautious about digital assets, reluctantly permitted spot Bitcoin ETFs in January due to a court reversal in its lawsuit against Grayscale in 2023.
Although the SEC remains critical of the digital asset industry’s compliance with regulations, recent efforts in Congress to establish clearer legislative frameworks for cryptocurrencies have gained momentum.
BTC Options Traders Target 0.00
In addition to the Bitcoin ETF inflows, options traders are increasingly optimistic about Bitcoin’s future. Open interest is concentrated on call options with strike prices of ,000, 0,000, and ,000.
Luuk Strijers, CEO of Deribit, the largest crypto options exchange, noted the bullish sentiment in the BTC options market. Traders anticipate new all-time highs, driven by strong Bitcoin ETF flows, expectations of US interest rate cuts, the European Central Bank’s rate cuts, and the recent approval of an ETH ETF.
While Bitcoin experienced a minor retreat from its record high of ,700 set in March, renewed inflows into Bitcoin ETFs and expectations of interest rate cuts have reignited optimism among traders. Call options expiring in late June and December are particularly active, indicating a positive short- and long-term outlook.
As of press time, the largest cryptocurrency on the market has successfully consolidated above the ,000 milestone. Its gains over the past seven days amount to 5%, favoring the price of BTC and resulting in a current value of ,320.
Featured image from DALL-E, chart from TradingView.com
Investor Confidence Soars With $488M Inflows Into US Bitcoin ETFs
On Wednesday, U.S. spot bitcoin exchange-traded funds (ETFs) saw inflows amounting to 8.1 million, with Fidelity’s FBTC leading the way. These inflows marked the 17th consecutive day of contributions from the 11 publicly traded funds. U.S. Spot Bitcoin ETFs See More Inflows on 17th Consecutive Winning Day U.S. spot bitcoin ETFs have been enjoying a […]
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