Showing posts with label bitcoin etf. Show all posts
Showing posts with label bitcoin etf. Show all posts

Sam Bankman Fried is STILL DAMAGING The Crypto Market...

FTX Exchange

With the approval of Bitcoin ETF's in the US, many were expecting to see the gains in Bitcoin's price to continue, but despite optimistic forecasts that the long-awaited ETFs would trigger a bitcoin price surge, the opposite happened - now we're learning why.

Heavy selling by FTX's bankruptcy estate appears to be a major contributor to bitcoin's price drop since the launch of US ETFs.

The Grayscale Bitcoin Trust (GBTC) was among those receiving ETF approval, so they converted their 'Trust' account into an ETF on January 11. 

FTX had purchased 22.3 million shares of GBTC valued at $597 million in October 2022, but when this converted to an ETF the value of FTX's position jumped to around $900 million.

This is when FTX liquidators decided it was time to sell, all of it.  

FTX's bankruptcy estate dumped 22 million GBTC shares worth close to $1 billion since ETFs were approved.

The irony is painful - Bitcoin ETFs finally receive approval, the crypto world celebrates this 'new gateway for mainstream investors' to get in the crypto market, logically many expected a boost in demand and price.

Instead, we're once again helpless and unable to do anything but watch Bankman-Fried's actions lead to consequences for people far outside of FTX. Their liquidation spree officially put a dampener on any immediate ETF boosts to the market. 

The Bright Side...

Now that FTX has sold its full position, pressure to sell may greatly decrease, bringing back the bull market. 

But for now, bears remain in control as today brought more downward movement. 

Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

Bitcoin ETFs Go Live... BTC Immediately LOSES Value - Why it Happened, and When Do Things Go BULLISH?!

bitcoin etfs

The announcement couldn't have happened any weirder, as the Bitcoin ETF's that were approved today were first announced by the SEC on X (Twitter) two days ago... but then they claimed their account was hacked, and stated that no ETFs had been approved.

Now that we know the supposed 'hack' simply posted accurate information before it was official, some are questioning if it was an error all along.

But how we found out doesn't really matter anymore, because it's now confirmed and re-confirmed that the Securities and Exchange Commission officially approved 11 applications for Bitcoin ETFs, the largest firms among them include BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck.

Trading Begins...Now!

Because the SEC must respond to applications  ETF applicants were anticipating an answer from the SEC at any moment, they were ready to go before officially receiving approval - because of this, they went live the next day.

In their first day, the newly approved Bitcoin ETFs saw a combined $5 billion in volume, top performers so far are BlackRock's iShares Bitcoin Trust which is trading under "IBIT.O", Grayscale Bitcoin Trust "GBTC.P", and ARK 21Shares Bitcoin ETF with symbol "ARKB.Z".

They Say It's a "Game Changer" - But To Who?

Traders from both the stock and crypto world have repeated the words "game-changer" when describing the impact this could have on cryptocurrencies, citing the new investors who now have exposure to the world's largest cryptocurrency. So who are these investors? If they're interested in Bitcoin, what were they waiting for?

The newly launched ETFs all fighting over what they believe is a large segment of both individuals and companies that are interested in investing in Bitcoin, but hesitated to pull the trigger and buy some. Many potential investors cite their main concern is simply how to securely hold worth of a digital assets, which can be intimidating on a technical level.

For a company, acquiring crypto comes with all new cyber-security concerns, where every employee is a potential security hole. Stocks can't really be 'hacked' and stolen, gold and silver can be stored in any bank vault - while storing crypto safely and securely is easy to do, people who aren't experienced with tech are often too intimidated by the risks.

Now, individuals, companies, and even smaller investment firms can pass the responsibility of storing Bitcoin securely on to the industry giants, who have the budget necessary for hiring cybersecurity experts and the tech needed to implement multi-level security systems.

A Tsunami of Money Headed Towards Crypto?

Many believe the floodgates are now open for massive amounts of institutional investment funds to enter the market, and their reasoning actually makes a lot of sense.

The companies that were just approved to offer Bitcoin ETFs represent $20+ trillion in assets under management - meaning if just 2% of that goes toward crypto we'll see $400,000,000,000 (400 billion) injected into the market. 

The crazy thing is, that estimate may be way too small, as we've talked with multiple financial advisors at multiple firms over the past few years when covering various stories about crypto being implemented into their business - one thing we repeatedly heard was that they recommend their client's portfolio to contain anywhere from 5% to 10% crypto.

A recent survey of financial advisors conducted by VettaFi and Bitwise found that 88% said they support investing client's funds in bitcoin, but were waiting for spot bitcoin ETF to be approved.

Then Why Did Bitcoin DROP Following ETF Approval?

With the overwhelming opinion being that the ETFs would be approved, along with the deadline of Jan 10th being public, by the time the ETFs were officially approved every investor who bought more bitcoin with this in mind bought days or weeks ahead. 

Which is why the quote "buy the rumor, sell the news" is something most in the crypto world are used to seeing.  Most buying relating to a news story happens as speculation grows, once that speculation becomes fact, people sell.

Massive Bull Run About to Begin... VERY Soon?

In closing, the only thing we've officially gained this week are new possibilities, a 'reasonable expectation' for Bitcoin's future price just went up.  But if there's one thing I've learned in my 6 years in the crypto world; prepare for what COULD come next, and never believe you know what that will.

With that said, prices have returned to where they were before ETF hype took over the headlines - so if the 'sell the news' process is complete, the market is probably about to turn positive. If it does, I believe it'll have some strength behind it - many people recently took some profits, and in the Bitcoin world a lot of selling is followed by lot of buyers looking to buy more at a lower price. 

Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News

VanEck Applies for Ticker Symbol 'HODL' for Proposed Bitcoin ETF...

vaneck etf hodl

Major asset management company VanEck filed its fifth amended application for a spot Bitcoin Exchange-Traded Fund (ETF). This move marks a new chapter in the evolution of cryptocurrencies and their integration into mainstream financial markets.

VanEck's proposed ETF will trade under the unique ticker symbol "HODL"...

A widely used term within the Bitcoin community. "HODL" stands for "hold on for dear life" and represents a long-term investment strategy where individuals buy and retain their Bitcoin, unfazed by market volatility. This choice of ticker reflects VanEck's alignment with the core values of the Bitcoin community, emphasizing the long-term potential of the cryptocurrency.

Analysts have offered varied opinions on the "HODL" ticker. Nate Geraci, president of The ETF Store, believes it will resonate well with crypto-savvy investors but might be less intuitive for traditional ones. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, views it as a bold and unconventional approach, contrasting it with the more conservative choices seen from other firms like BlackRock and Fidelity.

The Companies Racing To Launch their Bitcoin ETF's Are The Largest Financial Intuitions in the World..

One thing justifying Bitcoin's recent price gains is that the companies interested in launching crypto based ETF's are literally the largest and most powerful financial firms in the world.  Several prominent firnms included are BlackRock, Fidelity, Valkyrie, and Franklin Templeton.

While the SEC has yet to provide a clear indication of its stance on these filings, it remains actively engaged in discussions with the firms to address technical aspects of their proposals.

VanEck anticipates SEC approval for its spot Bitcoin ETF as early as January 2024...

They're projecting a potential inflow of $2.4 billion in the first quarter following approval.

This latest move by VanEck signifies a strategic effort to connect with the Bitcoin community and tap into the growing interest in this digital asset. As the regulatory landscape continues to evolve, the anticipation surrounding SEC approval highlights the potential impact such a product could have on the crypto market, potentially making it more accessible and appealing to a wider audience.

Author: Adam Lee 
Asia News Desk Breaking Crypto News

Crypto Market Almost FULLY RECOVERED From 2022 Collapse...

Crypto Market Recovery

*Update* Jan 8th 2024 - The market has officially recovered and surpassed levels preceding the 2022 crash.

The cryptocurrency market has almost returned to levels before the damaging collapses of Terra/Luna and FTX in 2022. Bitcoin recently surpassed $39,000 for the first time since May 2022, fueled in part by growing expectations that the U.S. Securities and Exchange Commission (SEC) could finally approve a spot bitcoin exchange-traded fund (ETF) in the next few weeks, or even days.

At the time of publishing, Bitcoin is trading around $39,700 - a gain of just $800 to $40,500 would officially represent a full recovery.

2022: A Year So Bad, it Took 2 Years To Recover From...

In 2022, two big hits cut Bitcoin's price in half over just few months.

The first came from the Terra/Luna debacle, triggered by the collapse of TerraUSD, an algorithmic stablecoin that was supposed to maintain a $1 peg but ultimately lost all value. Prior to its failure, the high interest rates offered by Terra through its Anchor protocol had attracted billions of dollars in investments, including from major crypto lending firms like Celsius Network. As the 'stablecoin' hit a liquidity crisis Terraform Labs began rapidly selling its bitcoin reserves in a desperate attempt to maintain the peg. This massive dumping of bitcoin put significant downward pressure on prices, contributing to bitcoin falling from around $30,000 down to below $20,000.

The second big hit came just months later when crypto exchange FTX filed for bankruptcy after questions arose over its financial health and potential commingling of customer funds. As one of the largest and seemingly most reputable exchanges, FTX's failure shook investor confidence and reignited worries of contagion across the crypto ecosystem. Bitcoin fell to under $16,000 amidst the fallout, its lowest level since late 2020.

Since then, the Market has Been Gradually Recovering...  

Some analysts believe bitcoin could soon surmount the key psychological barrier of $40,000 if momentum continues building ahead of a long-awaited bitcoin spot ETF approval.

Others caution bitcoin may retreat to around $35,000 if ETF approval doesn't happen soon, but still bounce past $40k when it eventually happens. 

But all are in agreement - the crypto winter is officially thawing.

Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News

SEC Expected to DELAY Bitcoin ETF Approval AGAIN...

Bitcoin ETF approval

The cryptocurrency world is watching closely this week as the Securities and Exchange Commission (SEC) faces key deadlines to approve or reject several proposed bitcoin exchange-traded funds (ETFs).

Friday marks the deadline for the SEC to make initial decisions on ETF applications from financial firms Hashdex and Franklin Templeton. The regulator could approve the applications, reject them outright, or punt the decision down the road by extending the deadline into 2023.

Another Delay Coming?

According to ETF specialist James Seyffart of Bloomberg Intelligence, there is a "good chance" the SEC will choose the third option and delay the bitcoin ETF decisions until January 2024.

In total, there are 12 pending bitcoin spot ETF applications awaiting judgement by the SEC. The chart below shows the status of the 12 firms applying...

Those in red have already been delayed or denied.

The prospect of bitcoin ETF approval in the US has already fueled a price rally for the cryptocurrency, with bitcoin rising from around $28,000 to over $36,000 over the past month.

If Not Now, Soon...

While Bloomberg's James Seyffart predicts a delay this week, he remains optimistic that some bitcoin ETFs will ultimately get approved by January 10th, giving this prediction a 90% chance of happing. 

Exploiting the Hype...

However, ETF excitement also led to some market manipulation last week. An unknown actor submitted a fake application for a Ripple (XRP) ETF from Blackrock, briefly causing XRP to spike 10%. The price quickly corrected, but not before causing $5 million in liquidations for XRP leverage traders caught on the wrong side of the swings.

The SEC has yet to approve any cryptocurrency ETFs, repeatedly citing concerns around volatility, manipulation, and adequate oversight. But many investors hope that 2023 could finally be the year bitcoin ETFs get the green light in the US, opening the doors to greater mainstream adoption.

But the SEC faces growing pressure as other countries have already begun approving bitcoin ETFs, further delays would officially put the US behind.

Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News

Fidelity Isn't The Only Company Wanting To Start A Bitcoin ETF - The Fierce Race To Be First...

Actually, it's not officially Fidelity's ETF, it would belong to a company called Wise Origin, and Fidelity Digital Assets will serve as the fund's custodian, storing Wise Origin's holdings. 

The ETF, called Wise Origin Bitcoin Trust, will aim to match an index that takes spot prices from various bitcoin markets, including popular exchanges, Fidelity said in a securities filing.

But now that their intent is public, they're becoming aware of how fierce competition to do be first will be...

Video Courtesy Of Yahoo Finance

SEC Chair Says Crypto Industry Has "Made Progress" Addressing Issues Needed for Bitcoin ETF Approval...

Sec Chair Jay Cayton previously shared the concerns that were holding him back from approving a Bitcoin ETF. 

They including custody, and price manipulation - specifically the potential for foreign exchanges with little oversight being able to manipulate price.

Asked if the industry has made any progress addressing these concerns, he says - yes!

Financial expert Ric Edelman on Bitcoin ETF approval challenges, the 'big players' addressing them, and why he's 'virtually certain' approval will follow...

Ric Edelman is the chairman and co-founder of Edelman Financial Services, LLC, the author of several personal finance books and the host of a weekly personal finance talk radio show called The Ric Edelman Show. 

He also shares his belief that Bitcoin manipulation is 'about the same as oil or gold' prices, and the SEC will just have to learn to accept it. 

Last time a Bitcoin ETF was denied, markets dropped. This time the crypto world didn't care - and just HODL'd!

Editors notes: There's a few interesting parts of this clip.  The comparison of the market's reactions to this week's ETF rejections to the Winklevoss twins ETF rejection earlier this year. As well as the SECs reasons for rejecting this latest batch.

I believe this means the people holding Bitcoin today are overwhelmingly those who believe in it long term - and the "news of the day" doesn't scare us, because we're thinking way beyond that.

We realized a lot of people have been too scared to ask - what the hell is a Bitcoin ETF!? Here's all you need to know...

There's definitely a thing in the cryptocurrency world where everyone has to pretend to know everything.  I've seen a lot of heated online arguments where people are going back and forth, then there's a strange pause where you know someone took a minute to Google a term their opponent used so they could reply pretending they knew the whole time.

I knew the basics of what an ETF was, but only because I played around in the traditional stock market a bit before cryptocurrency grabbed my full attention.

Then during a recent conversation with some of my very bright friends here in the Silicon Valley tech world where they confessed they have no idea what an ETF is, I realized a lot of crypto investors have never invested in anything else - so this "ETF" thing we keep talking about is a new term to them.

So for everyone too afraid to ask, and those who tried to look it up... but only found 10 page long answers - here's the "what you need to know" on ETF's from experts in the field.

I reached out to some of the most respected people in the world of finance, and asked them share the most important things those of us in the crypto world should know - before our two worlds come together (assuming a Bitcoin ETF gets approved soon - personally I think it will happen before the end of the year).

Lee Kranefuss, CEO of The Kranefuss Group told me:

"One of the things that makes stock stock is that it trades, all day, on a stock exchange. This is a central place for buyers to find sellers and vice versa (at least virtually).

An ETF is nothing more or less than a stock that allows the same thing. The difference is that an ETF isn't a company that makes widgets, or provides services. It simply invests in one or more other things - like stocks and bonds in companies.

So, with an ETF, you are buying (maybe) a fund that holds 500 stocks, or at the other extreme a security that invests in crude oil, or (possibly) BitCoin. (The latter, by the way, would technically be Exchange-Traded Products, or ETPs in the U.S. due law; in Europe they could be ETFs)."

President of ProChain Capital, David Tawil explained it to me like this:

"An ETF enables easy investment in assets. The ETF is listed on a stock exchange and given a ticker. The assets included in an ETF can range from liquid assets, that an investor could easily invest in directly, such as stocks, but the ETF might offer the valuable feature of being diversified or targeting a particular industry or geography. Additionally, as it relates to Bitcoin and other crypto-assets, an ETF can offer investors a very easy way to invest in those assets, which are otherwise difficult or administratively challenging to access. The bottom line is that a Bitcoin ETF should create massive additional liquidity in Bitcoin (or other crypto-assets, to the extent that they are included)."

And Morris Armstrong, founder of Armstrong Financial Strategies added this important note:

"An ETF can be something that simply tracks the value of either one or many cryptocurrencies and is traded throughout the day. If you own the Exchange Traded Fund, you do not own the underlying crypto assets but you can make a profit or loss on the way those assets move."

I think that about covers it!  If you have any more ETF related questions you'd like me to ask the experts, drop me a line!

Author: Ross Davis
E-Mail: Twitter:@RossFM
San Francisco News Desk