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Bitcoin Flash Crash: Crypto Market Witnesses $2.5 Billion Inflow Following Recent Downturn

The past week was largely defined by the Bitcoin price climbing above $45,800 for the first time in over 20 months, marking a great start to the year. However, the premier cryptocurrency soon experienced a sharp price pullback due to negative news about the BTC spot (ETF). 

Interestingly, the latest on-chain data has revealed that investors seem not to have completely lost faith in Bitcoin, the largest cryptocurrency by market capitalization.

$2.5 Billion Flows Into Crypto Market Following Bitcoin Crash

In a post on the X platform, crypto analyst Ali Martinez has offered on-chain insight into the aftermath of the crash that affected Bitcoin and the entire crypto market. The pundit noted in his post that a substantial amount of funds flooded back into the sector a day after the market downturn.

This revelation was based on on-chain data from blockchain analytics platform Glassnode. The relevant indicator here is the “positive 30-day capital inflows”, which tracks the net influx of capital into the crypto market over a 30-day period.

Bitcoin

The chart above shows that a significant amount of funds have been entering the cryptocurrency market over the past few months. According to Glassnode’s data, more than $2.5 billion flowed back into the cryptocurrency market on Thursday, January 4, bringing the positive 30-day capital inflows to about $27.5 billion.

This latest inflow of capital into the market offers insight into the positive shift in sentiment and market condition. It basically signals renewed investor confidence in crypto assets following a short period of uncertainty and price correction. 

As of this writing, the Bitcoin price stands at $43,661, reflecting a 0.2% decline in the past 24 hours. However, the market leader seems to be recovering well, with $44,000 not too far out of reach.

How BTC Holders Reacted To The Market Downturn

A recent analysis shows how various classes of Bitcoin investors reacted to the negative ETF news and the subsequent decline. This evaluation was based on the Spent Output Age Bands USD (SOAB) indicator on the CryptoQuant analytics platform.

The investors were divided into five classes based on the age of their holdings. According to the analysis, short-term holders who fell within the 1-week-to-1-month and 1-month-to-3-month classes exited the market at break-even and profits, respectively.  

Meanwhile, long-term holders who purchased Bitcoin in the first half of 2023, falling between the 6-month-to-12-month class, dumped about $7.6 billion worth of BTC. The 1-year-to-5-year holder class, on the other hand, barely made a move after the market downturn.

Bitcoin

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ETF Or Halving: Analyst Doubles Down On Bullish Year For Bitcoin

Bitcoin (BTC) began 2024 on a positive note gaining by 3.18% in the first week of the year, according to data from CoinMarketCap. The premier cryptocurrency is expected to herald in a bull crypto season, with many investors expecting immediate approval of Bitcoin spot ETF proposals by various asset managers. 

However, regardless of the decision of the US Securities and Exchange Commission (SEC) in the next few days, crypto analyst Ali Martinez believes Bitcoin is still poised for massive gains in 2024 as there is another bullish factor in play. 

Bullish 2024 For Bitcoin With Or Without ETF Approval – Analyst

In an X post on January 6, Martinez expressed much optimism about Bitcoin’s potential price performance in 2024. He stated that irrespective of developments in the Bitcoin spot ETF saga, BTC is still set for major price surges due to another bullish narrative – namely, the Bitcoin Halving. 

To explain, the Bitcoin Halving is an event in which the block rewards for miners are reduced by 50%. It happens every four years, with the first occurrence being in 2012. The halving event causes a reduction in BTC supply in comparison to demand, causing scarcity which leads to a price increase. 

Martinez highlighted this fact stating that historically, there has been a significant increase in Bitcoin’s price following past halvings. When the first halving occurred on November 28, 2012, BTC was trading at around $12. In the next year, the token had attained a new price of $1,000. 

A similar phenomenon was noted after the second halving on July 9, 2016, at which Bitcoin was valued at $670. However, By December 2017, BTC had surged to an all-time high of $19,700. The third halving event took place in May 2020, with Bitcoin being traded at $8,821. By November 2021, BTC had surged by 700%, attaining its current all-time high of $68,783.

Based on this price history, Martinez believes that BTC investors are well placed to reap large profits in the coming months as the next Bitcoin halving is set for April 2024. He postulates that these cyclical gains should remain constant, notwithstanding the SEC’s approval for Bitcoin spot ETF or not.

BTC Price Overview

At the time of writing, Bitcoin trades at $43,665, experiencing a slight decline of – 0.30% in the last 24 hours. On a larger scale, the leading cryptocurrency has demonstrated resilience over the past seven days, posting a noteworthy gain of 4.07%. 

Over the last year, BTC’s performance has been remarkable, witnessing a substantial surge of 159.94%. However, amidst market fluctuations, there is a noticeable dip in daily trading volume, down by 22.25%, which is currently valued at $26.8 billion.

Bitcoin

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Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC

An interesting trend looks to be developing among institutional players as their interest in the flagship cryptocurrency, Bitcoin, continues to rise. This interest has in no small way been thanks to the frenzy around the Spot Bitcoin ETFs, which could be approved sooner than later.

Other ETFs Considering Bitcoin As An Investment Option  

Crypto commentator and music producer Marty Party recently drew the crypto community’s attention to an emerging trend among fund managers and their ETFs. He noted how these asset managers are amending the prospectus of funds they manage so they can gain exposure to Bitcoin. 

These institutions are said to be looking to use 15% to 50% of assets under their management to gain exposure to BTC. One way they will be looking to achieve this is through the Spot Bitcoin ETFs that could potentially launch anytime soon. 

Marty Party specifically highlighted the case of Advisors Preferred Trust, which is already looking to gain the SEC’s permission to invest up to 15% of its AuM in Bitcoin-related ETFs like Grayscale’s Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF. 

MicroStrategy’s Executive Chairman and Co-founder, Michael Saylor, had previously hinted that something like this was going to happen soon enough. Then, he suggested that more institutional players were going to direct more of their capital to Bitcoin. 

A rule that was implemented by the Financial Accounting Standards Board (FASB) has also paved the way for more companies like MicroStrategy to include BTC on their balance sheet. 

The launch of Spot Bitcoin ETFs will also make it easier for these institutional investors to gain direct exposure to the flagship cryptocurrency. 

For a long time now, those who had a prior interest in the crypto token have had to either invest in Bitcoin futures ETFs or other Bitcoin derivatives on exchanges like the Chicago Mercantile Exchange (CME). But this is changing with the potential approval of a Spot Bitcoin ETF.

Bitcoin price chart from Tradingview.com

Grayscale Leading In The “Cointucky Derby”

As highlighted recently by Bloomberg Analyst James Seyffart, Grayscale looks to set the lead the way, assuming all pending Spot Bitcoin ETFs were approved simultaneously. This is because the asset manager has already established itself with GBTC and would likely have more capital than other issuers upon launch. 

Bloomberg Analyst Eric Balchunas highlighted this fact and hinted that the Securities and Exchange Commission (SEC) could decide not to let Grayscale launch on day one because of this. If that doesn’t happen and all funds launch simultaneously, then Grayscale is likely to have a sort of ‘first mover advantage.’

However, other asset managers will be looking to assert their dominance by adopting different strategies. One such strategy will be these issuers undercutting themselves in terms of the fees they will charge to manage their respective funds. Invesco already made it known that they will be waiving fees for the first six months and the first $5 billion in assets. 

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Is A Bitcoin Spot ETF Approval A Sell The News Event? Experts Respond

All attention of crypto investors has turned toward January 10 when the first Spot Bitcoin ETF is expected to be approved. As usual, the excitement triggered by this has seen prices recover across the space, with no doubt about the bull sentiment leading up to the event. However, arguments have arisen about whether this bullish sentiment would continue if a Spot ETF is eventually approved or if it will end up being a “sell the news” event.

What Is A Sell The News Event?

The phrase “sell the news” is popular in investing circles and is usually associated with a major event that ends up moving prices. BlackRock and 12 other asset managers filing for Spot Bitcoin ETFs with the US Securities and Exchange Commission (SEC) is an example of such a major event.

When the event is positive, it has a good impact on assets in the industry, and in the case of crypto, the prices of Bitcoin and other cryptocurrencies begin to rise. This is usually from the anticipation surrounding the event and investors taking up positions in order not to miss a major move. Mostly, this is because investors expect that the main event, such as the approval of a Spot Bitcoin ETF, would trigger further price increases.

However, this is not always the case for the market. There have been instances where the main event actually sees prices fall across the board. Such a case is referred to as a “sell the news” event as prices are expected to decline as the euphoria reaches its climax.

The potential approval of a Spot Bitcoin ETF has been argued to be a ‘sell the news’ event by many in the space, given that prices have already gone up so much. However, not everyone believes this is the case as crypto experts begin to chime in.

Bitcoin price chart from Tradingview.com (Spot Bitcoin ETF Sell the news)

Spot Bitcoin ETF Not A Sell The News Event

One of the first crypto experts to share their thoughts around this is Andrew Kang. Kang took to X (formerly Twitter) to explain that the Bitcoin price is actually still mispriced even after rising more than 100% in one year to cross $45,000.

Kang explains that a Spot Bitcoin ETF approval would see all of these asset managers trying to grab between $10 and $20 billion in fees. They will also be pushing for marketing which Kang believes every dollar spent on marketing in 2024 becomes even more important in 2025.

“When you think about the size of the opportunity, it shouldn’t surprise us to see marketing/ad spend on the scale of 2021 bull madness,” Kang said. “When you consider the importance of timing for issuers, maybe we even take it a level further. It’s going to be a bonanza.”

Also responding to and buttressing Kang’s point is @ChainLinkGod who gave their own insight into how bullish an approval is. They explain that all of the asset managers who have filed for Spot ETFs are inherently long on Bitcoin.

“Yes, they don’t technically have any directional exposure, but all else equal, a 10x in the price of bitcoin is a 10x in yearly management fees,” ChainLinkGod explains. They further add that each applicant will be looking to become the dominant player as this means they will be able to harvest billions of dollars in fees passively for years.

“All of which involves massive ad spend, shilling $BTC at every public appearance, and advising all their clientele *this year* to get exposure to $BTC via their ETF,” they explain. Given this, a potential approval is more bullish than bearish for Bitcoin as the players struggle for dominance.

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Bitcoin ETF: SEC May Notify Approved Issuers To Launch Very Soon – Here’s When

According to a recent report from Reuters, the US Securities and Exchange Commission (SEC) may notify the asset managers looking to launch a spot Bitcoin ETF (exchange-traded fund) if their applications have been approved as soon as next week. 

SEC To Notify Applicants Of Its Decision By Next Week: Reuters

On Saturday, December 30, Reuters reported that the SEC may notify the 14 Bitcoin ETF applicants if their applications will be approved by Tuesday or Wednesday next week. This move would come ahead of the January 10 deadline for the agency to decide whether or not to green-light the ETF application by Ark Invest and 21Shares.

Citing people familiar with the process, Reuters highlighted that asset managers that met their end-of-the-year filing revision deadlines may be able to launch by January 10, 2024. Some of the firms that recently updated their Bitcoin ETF filings with the SEC include Black Rock, Van Eck, Bitwise, WisdomTree, Invesco, Valkyrie, and Fidelity.

Notably, Fidelity Investments revealed more information and technical details about its potential ETF product in its S-1 form update. The asset management firm hopes to beat fellow applicants in winning investors over by proposing the lowest sponsor fee at 0.39%.

Invesco announced a 0.59% rate while offering a fee waiver on the first $5 billion in assets within the first six months after launch. Meanwhile, BlackRock, the world’s largest asset manager and a frontrunner in the Bitcoin ETF race, unveiled Jane Street Capital and JP Morgan Securities as its authorized participants in its updated application. 

From the latest development, it seems the SEC is looking to wrap up the Bitcoin ETF chapter as soon as the new year arrives. Nonetheless, Reuters’ latest report adds optimism to the possibility of the agency approving several ETF applications by January 10.

How Bitcoin ETF Approval Could Impact Price

There have been wide speculations on the possible effects of the ETF approval on the Bitcoin asset. Options platform Greeks.live has offered insight into the potential impact of the exchange-traded fund on the value of the premier cryptocurrency.

Using options data, Greeks.live believes that the market has priced the potential approval of the Bitcoin ETF, and it may not yield greater returns for the asset. This means that the market has already factored in this information, and any positive development might not lead to significant price movement.

According to the platform, this reasoning is based on the little volatility observed across the major term implied volatilities (IVs) and the price of Bitcoin. For context, implied volatility reflects the market’s expectation of how much an asset will move in the future. 

However, options IV on January 12, which is believed to be strongly correlated to the Bitcoin ETF, decreased rather than increased. This lack of volatility and decrease in implied volatility of options suggests that there may not be a substantial impact on the Bitcoin price, even with significant news on the horizon. 

As of this writing, Bitcoin is valued at $42,154, reflecting a mere 0.4% in the past day. The price of BTC has increased by more than 150% this year, partly due to the anticipation of a Bitcoin spot ETF.

Bitcoin ETF

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Goldman Sachs Exec Predict Massive Growth For Digital Assets In 2024

Head of Digital Assets at Goldman Sachs, Matthew McDermott, has projected a massive growth in the cryptocurrency market in 2024. McDermott shared these positive predictions in a recent interview with Fox Business, expressing much optimism in the future of digital assets. 

Goldman Exec Expects Spot ETFs To ‘Gradually’ Boost Institutional Demand For Crypto Assets

Speaking to Fox Business, McDermott has backed the continuous growth of cryptocurrencies as he foresees a rise in the institutional adoption of these assets. 

Notably, the Goldman executive shares popular sentiment with many crypto enthusiasts that the approval of a Bitcoin or Ethereum spot ETF will open up the digital asset ecosystem to more institutional investors who are weary of the market volatility attached to direct crypto investments. 

McDermott said:

One, it broadens and deepens the liquidity in the market. And why does it do that? It does that because you’re actually creating institutional products that can be traded by institutions that don’t need to touch the bare assets. And I think that, to me, that opens up the universe of the pensions, insurers, etc. 

However, McDermott has cautioned crypto enthusiasts against expecting a sudden impact of crypto spot ETFs. He believes the anticipated increased demand and price rise will be a gradual process that will occur over the course of 2024. 

The US Securities and Exchange Commission (SEC) is expected to grant approval orders to several Bitcoin spot ETF applications in the coming weeks following discussions between the regulator and multiple asset managers. Bloomberg analyst Eric Balchunas has set a potential decision window of January 8 – January 10, stating there is a 90% chance the SEC finally delivers a verdict on these various applications putting an end to the 6-months chronicle.

Asset Tokenization In 2024

In addition to potential crypto spot ETFs, McDermott also mentioned a potential increase in commercial blockchain application as another contributing factor to his projected rise in institutional demand for digital assets.

Particularly, he spoke about an improvement in existing tokenization systems, which can lead to the creation of secondary liquidity on blockchains.

He said:

When I think about tokenization, which is obviously a topic that’s kind of talked about quite extensively, I think for me next year what we’ll start to see is the development of marketplaces. So where we start to see scale adoption, particularly across the buy side in the context of investors. And that’s because we’ll start to see the emergence of secondary liquidity on chain, and that’s a key enabler. So for me, that’s one of the key developments for next year.”

At the time of writing, the entire crypto ecosystem is valued at $1.602 trillion, with a 15.09% gain in the last month. The market’s leader Bitcoin currently trades at $42,082, having declined by 1% in the past day.

Goldman Sachs

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Key Factors That Bitcoin Needs To Keep Bullish Momentum

Amid the bearish impression circling the cryptocurrency market lately, a prominent crypto analyst has revealed a recent trend for Bitcoin (BTC), which will help bolster the continuation of its price rally.

What Bitcoin Needs To Sustain And Expand Its Rally

A cryptocurrency analyst known as Ali recently shared this crucial information with the entire cryptocurrency community on December 18, 2023. The analyst took to X (formerly Twitter) to highlight what Bitcoin needs to maintain its upward trajectory.

Ali said the crypto asset experienced a dip in network growth over the past month, which raised concerns about the stability of BTC’s recent price move to $44,000.

He added that creating new Bitcoin addresses must expand to guarantee a robust continuation of its rally. This will provide the much-needed support for the crypto asset to maintain its bullish momentum. 

The post read:

There’s been a noticeable dip in #Bitcoin network growth over the past month, casting doubt on the sustainability of $BTC’s recent move to $44,000. For a robust continuation of the bull rally, it’s crucial to see an uptick in the number of new $BTC addresses. This would provide the needed support for sustained bullish momentum.

BTC needs further investor and institutional support to sustain its rally. A chart accompanied the crypto analyst’s X post to support his projection further.

Bitcoin

This prediction means further corrections may be a scenario for the digital asset. This is because of the discrepancy between the creation of new addresses and the current price increase of Bitcoin.

Nonetheless, approving a Bitcoin Spot exchange-traded fund (ETF) in the US might create an avenue for more institutional investment, thereby reversing this trend.

As of the time of writing, BTC was trading at $40,980, indicating a decrease of over 2% in the past 24 hours. According to CoinMarketCap, its market capitalization decreased by the same percentage in the past 24 hours.

Digital asset prices have increased by 146% in the last year, demonstrating amazing growth throughout this timeframe. Its performance over the same year exceeded 73% of the leading 100 crypto assets, putting it among the top performers.

The Crypto Asset Fell Below Its Crucial Supply Area

Ali has also shared another post on X showing that Bitcoin has witnessed a dip below its key supply zone. The analyst pointed out that the zone ranges from $41,200 to $42,400, of which the asset has recently fallen below this range.

He added that 1.87 million addresses in this region have accumulated about 730,000 BTC. With this decline, these holders may sell the token to reduce losses.

Bitcoin

The crypto analyst also highlighted a potential decline to the next demand zone ranging from $37,500 to $38,700. Meanwhile, about 1,28 million addresses in this region have accumulated 553,000 BTC tokens.

Bitcoin

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Bitcoin Spot ETF Applicants To Integrate Mandatory Cash Redemption Model

Recent reports have revealed that the United States Securities and Exchange Commission (SEC) has implemented a “new regulatory standard” for all Bitcoin Spot Exchange-Traded Fund (ETF) applicants while awaiting approval from the regulatory body.

Cash Redemption Model For Bitcoin ETF Applicants

Top Bloomberg Analyst James Seyffart took to X (formerly Twitter) to share the latest update by the regulatory watchdog. According to him, every Bitcoin Spot ETF applicant will have to bend their knees to this new model.

The SEC’s latest “Cash Redemption Model” came amid the spot Bitcoin ETF issuers ironing their filings with the US regulator. It seems that the SEC is unwavering in its demand, rather than approve the different model that other issuers have suggested.

The model enables authorized participants to deposit funds in the ETF equal to the net asset value of the creation units to be created. The underlying assets, which in this case is Bitcoin, are subsequently purchased by the fund using this money.

Seyffart’s X post was accompanied by another post from financial lawyer Scott Johnsson, who initially shared the update. The financial lawyer shared a screenshot which revealed more details about the new model by the regulatory body.

Johnsson asserted that Invesco is the most recent company to adopt the cash creation and redemption standard for its ETF. The trust anticipates that “creation and redemption transactions will be made in cash at first.”

However, in the future, the Trust may permit/require creation and redemption transactions to be carried out with the “in-kind” model. This is the initial model that several ETF applicants have suggested.

For the in-kind model, the participant deposits a collection of securities that are weighted and composed in accordance with the ETF’s portfolio. This will allow investors to receive creation units from the fund without having to sell the securities for cash instantly.

Bloomberg Senior ETF analyst, Eric Balchunas has also confirmed Invesco’s adoption of the latest cash model. The analyst asserted that the firm is embracing the initiative as per its just updated S-1 filing.

Blackrock’s In-Kind Redemption Model

Blackrock recently adjusted its Spot Bitcoin Exchange-Traded Fund (ETF) application introducing an in-kind redemption model called “Prepay.” This is to tackle the restrictions that financial firms are facing in order to hold cryptocurrencies.

The adjustment aims to make it easier for Wall Street Banks to participate in the fund. With this modification, authorized participants (APs) would be allowed to issue new fund shares using cash instead of just Bitcoin. 

The funds that the APs use for this procedure can subsequently be converted into Bitcoin through an intermediary and kept in storage by the ETF’s custody provider. As a result of this, it provides access to banks that are unable to store cryptocurrencies directly. 

So far, Blackrock believes the model will offer greater protection against market manipulation, which has since been the major reason behind the SEC’s rejection of an ETF.

Bitcoin

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Bitcoin Spot ETF Applicants To Integrate Mandatory Cash Redemption Model

Recent reports have revealed that the United States Securities and Exchange Commission (SEC) has implemented a “new regulatory standard” for all Bitcoin Spot Exchange-Traded Fund (ETF) applicants while awaiting approval from the regulatory body.

Cash Redemption Model For Bitcoin ETF Applicants

Top Bloomberg Analyst James Seyffart took to X (formerly Twitter) to share the latest update by the regulatory watchdog. According to him, every Bitcoin Spot ETF applicant will have to bend their knees to this new model.

The SEC’s latest “Cash Redemption Model” came amid the spot Bitcoin ETF issuers ironing their filings with the US regulator. It seems that the SEC is unwavering in its demand, rather than approve the different model that other issuers have suggested.

The model enables authorized participants to deposit funds in the ETF equal to the net asset value of the creation units to be created. The underlying assets, which in this case is Bitcoin, are subsequently purchased by the fund using this money.

Seyffart’s X post was accompanied by another post from financial lawyer Scott Johnsson, who initially shared the update. The financial lawyer shared a screenshot which revealed more details about the new model by the regulatory body.

Johnsson asserted that Invesco is the most recent company to adopt the cash creation and redemption standard for its ETF. The trust anticipates that “creation and redemption transactions will be made in cash at first.”

However, in the future, the Trust may permit/require creation and redemption transactions to be carried out with the “in-kind” model. This is the initial model that several ETF applicants have suggested.

For the in-kind model, the participant deposits a collection of securities that are weighted and composed in accordance with the ETF’s portfolio. This will allow investors to receive creation units from the fund without having to sell the securities for cash instantly.

Bloomberg Senior ETF analyst, Eric Balchunas has also confirmed Invesco’s adoption of the latest cash model. The analyst asserted that the firm is embracing the initiative as per its just updated S-1 filing.

Blackrock’s In-Kind Redemption Model

Blackrock recently adjusted its Spot Bitcoin Exchange-Traded Fund (ETF) application introducing an in-kind redemption model called “Prepay.” This is to tackle the restrictions that financial firms are facing in order to hold cryptocurrencies.

The adjustment aims to make it easier for Wall Street Banks to participate in the fund. With this modification, authorized participants (APs) would be allowed to issue new fund shares using cash instead of just Bitcoin. 

The funds that the APs use for this procedure can subsequently be converted into Bitcoin through an intermediary and kept in storage by the ETF’s custody provider. As a result of this, it provides access to banks that are unable to store cryptocurrencies directly. 

So far, Blackrock believes the model will offer greater protection against market manipulation, which has since been the major reason behind the SEC’s rejection of an ETF.

Bitcoin

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The Bitcoin Spot ETF Boom: VanEck Forecasts $2.4 Billion Inflows In Q1 2024

The crypto market is on the brink of a potentially game-changing shift, as investment management firm VanEck predicted. In a recent analysis, VanEck forecasts a substantial inflow of funds into Bitcoin spot exchange-traded funds (ETFs), expecting more than $2.4 billion to be injected in the first quarter of 2024 alone.

This bullish prediction aligns with the anticipated launch of the first Bitcoin spot ETF in the US, which could positively change the crypto landscape.

Bitcoin Bullish Forecast

This forecast emerges against a backdrop where investors are increasingly gravitating towards ‘hard money’ assets, those which remain largely unaffected by the whims of US authorities, as indicated by VanEck

In this context, Bitcoin emerges as a particularly appealing option due to its “resilience” and limited correlation with conventional financial markets.

Despite the expected market volatility, VanEck’s analysts maintain strong confidence in Bitcoin’s market stance, projecting that its price will unlikely fall below the $30,000 mark in early 2024.

Bitcoin (BTC) price chart on TradingView

VanEck’s report delves further into Bitcoin’s future, highlighting the significance of the upcoming Bitcoin halving in April 2024. This event is anticipated to “proceed without a major fork or missed blocks” catalyzing a surge in Bitcoin’s value.

Unsurprisingly, the firm predicts that November 9, 2024, could witness Bitcoin attaining a new all-time high three years after its last peak.

Bitcoin cycle price peak.

VanEck added that such a milestone could even see Bitcoin’s mysterious creator, Satoshi Nakamoto, being named Time Magazine’s “Man of the Year,” particularly if Bitcoin reaches the $100,000 threshold.

Ethereum And Solana’s Rising Tide: VanEck’s Perspective On Altcoin Market Dynamics

In contrast to Bitcoin’s expected dominance, VanEck casts a different light on Ethereum’s future. The firm anticipates that while Ethereum will not surpass Bitcoin in market cap in 2024, it is likely to outperform every major tech stock.

However, Ethereum is projected to face challenges from other smart contract platforms like Solana, which present fewer uncertainties regarding scalability. VanEck’s analysis suggests that while Ethereum will show strong performance, it will lose market share to these emerging platforms.

The report also touches upon geopolitical implications for Bitcoin. Countries like Argentina are expected to follow El Salvador’s lead by sponsoring state-level Bitcoin mining and leveraging their energy resources.

This trend, combined with Bitcoin’s regulatory clarity and energy intensity, is predicted to draw attention from quasi-state entities in Latin America, the Middle East, and Asia.

According to VanEck’s insights, the post-halving period will see a market rally led by Bitcoin, with value eventually flowing into smaller tokens.

Lastly, VanEck casts a spotlight on Solana, predicting its rise to become a top-three blockchain by market cap, Total Value Locked (TVL), and active users. This ascent is anticipated to fuel Solana’s entry into the spot ETF wars, with a surge of filings expected from asset managers.

Featured image from Unsplash, Chart from TradingView

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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 $69,000. From their analysis, Spot Bitcoin ETFs have a huge role to play in all of this. 

Bitcoin Hitting $69,000 Dependent On Spot BTC ETFs

QCP Capital stated that revisiting its ATH of $69,000 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 $45,000 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.’

Bitcoin price chart from Tradingview.com

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 $14 billion of inflows in the first year of launch. 

Specifically, Galaxy Digital estimates that these funds will see an adjusted inflow of over $10 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 $70.5 billion could flow into Bitcoin due to increased demand from institutional investors.

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Former FTX US President Says Bitcoin Spot ETF Will Come In 2024, Gives Price Targets

Former FTX US President Brett Harrison recently had an interview with Cointelegraph Magazine. As part of the discussion, Harrison gave his thoughts on when a Spot Bitcoin ETF will be approved and the possible price level the foremost crypto token could attain when this happens. 

A Spot Bitcoin ETF Could Be Approved In Q1 of 2024

Harrison is said to have mentioned that there is a very “high probability” that the Securities and Exchange Commission (SEC) will approve a Spot BTC ETF in the first quarter of 2024. His prediction happens to be in line with the fact that the SEC has to make a decision on ARK 21Shares Spot Bitcoin ETF on or before January 10, 2024.

As such, there is indeed a high likelihood that a Spot Bitcoin ETF could be approved in Q1 of 2024 (and as early as January). Bloomberg analysts James Seyffart and Eric Balchunas had also earlier mentioned that there is a 90% chance that approval will come by the January 10 deadline. 

Meanwhile, there is a growing belief that we might have more than one Spot Bitcoin ETF application approved by January 10. Seyyfart had, after the Templeton and Hashdex delay, reasoned that the SEC could be lining up all ETFs for a “full wave of approvals.” 

Bitcoin price chart from Tradingview.com

Bitcoin’s Potential Price When This Happens

Harrison also gave his thoughts on what price level Bitcoin could hit when a Spot Bitcoin ETF is approved. The former FTX US President seemed to have been conservative with his price prediction as he put BTC’s potential price between $50,000 and $55,000. He doesn’t foresee the foremost crypto token hitting six figures towards the end of 2024 or early 2025. 

His prediction about when Bitcoin could hit six figures coincides with Matrixport’s prediction of $125,000. The crypto financial services firm predicts that BTC will hit this price level by the end of 2024. Harrison’s prediction of the BTC price rising to as high as $55,000 on the back of approval seems plausible when looking at Matrixport’s projection of BTC hitting $63,140 by April 2024.

Harrison is undoubtedly bullish about a Spot Bitcoin ETF and the success such an investment vehicle can enjoy. He alluded to the first day of a Bitcoin Futures ETF launching to back up his optimism. The ProShares Bitcoin Strategy (BITO) ETF (the first Bitcoin futures ETF) is reported to have seen more than $1 billion in its first two days after launch. 

BITO became the fastest ETF ever to hit that figure. However, Harrison believes that a Spot Bitcoin ETF could go on to break more records. 

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Bitcoin Spot ETF In January 2024: A New Player Just Joined The Game

In the ongoing Spot Bitcoin ETF mania, Pando has joined the race aiming to seize the opportunities that may arise following the potential approval of BTC Spot ETFs by the US SEC. 

Pando Submits Spot Bitcoin ETF Filing

Switzerland-based asset management company, Pando Asset has become the latest entrant into the Spot Bitcoin Exchange Traded Fund (ETF) race. The investment firm officially submitted its Spot BTC ETF filing to the United States Securities and Exchange Commission (SEC) on November 29.

The news of the late filing comes as a surprise to the crypto space, as the final dates for the SEC’s decision on the Spot Bitcoin ETF approval approach. 

In the filing, Pando Asset provided a lengthy outline of its Spot BTC ETF, PBTC, highlighting its purpose, offerings, net asset value, regulatory compliance, tax considerations, and other factors. 

“The Trust was formed as a Delaware statutory trust on November 16, 2023. The purpose of the Trust is to own bitcoin transferred to the Trust in exchange for Shares issued by the Trust. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of bitcoin held by the Bitcoin Custodian on behalf of the Trust,” the filing stated. 

Pando’s BTC Spot ETF brings the total number of filed Spot Bitcoin ETFs in the crypto space to 13. Among them are applications from prominent financial institutions such as Grayscale, BlackRock, Ark Invest, WisdomTree, and others.

The crypto space is presently anticipating the approval of these ETFs, as many crypto experts have predicted that a Bitcoin Spot ETF debut could result in massive inflows for BTC which may trigger a bull run. 

Spot ETF Approval Prediction

While the crypto community awaits the US SEC’s final verdict on Spot Bitcoin ETF approval, a Bloomberg analyst, James Seyffart has predicted a favorable approval outcome for BTC Spot ETFs.

According to Seyffart, Spot Bitcoin ETFs could see potential approval by January 10, 2024. His prediction has also been backed by another ETF specialist, Senior Bloomberg analyst, Eric Balchunas who gives a strong 90% likelihood for the approval of Spot Bitcoin ETFs. 

“People asking me if we changed the odds. No, we are still holding the line at 90% odds of approval by Jan 10 (aka this cycle), the same odds we’ve had for months (before it was cool/safe). What we are watching for now: more amended/final filings to roll in and clarity on in-kind vs cash creates,” Balchunas stated.

BTC price chart from Tradingview.com (Bitcoin Spot ETF)

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Bitcoin Spot ETF In January 2024: A New Player Just Joined The Game

In the ongoing Spot Bitcoin ETF mania, Pando has joined the race aiming to seize the opportunities that may arise following the potential approval of BTC Spot ETFs by the US SEC. 

Pando Submits Spot Bitcoin ETF Filing

Switzerland-based asset management company, Pando Asset has become the latest entrant into the Spot Bitcoin Exchange Traded Fund (ETF) race. The investment firm officially submitted its Spot BTC ETF filing to the United States Securities and Exchange Commission (SEC) on November 29.

The news of the late filing comes as a surprise to the crypto space, as the final dates for the SEC’s decision on the Spot Bitcoin ETF approval approach. 

In the filing, Pando Asset provided a lengthy outline of its Spot BTC ETF, PBTC, highlighting its purpose, offerings, net asset value, regulatory compliance, tax considerations, and other factors. 

“The Trust was formed as a Delaware statutory trust on November 16, 2023. The purpose of the Trust is to own bitcoin transferred to the Trust in exchange for Shares issued by the Trust. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of bitcoin held by the Bitcoin Custodian on behalf of the Trust,” the filing stated. 

Pando’s BTC Spot ETF brings the total number of filed Spot Bitcoin ETFs in the crypto space to 13. Among them are applications from prominent financial institutions such as Grayscale, BlackRock, Ark Invest, WisdomTree, and others.

The crypto space is presently anticipating the approval of these ETFs, as many crypto experts have predicted that a Bitcoin Spot ETF debut could result in massive inflows for BTC which may trigger a bull run. 

Spot ETF Approval Prediction

While the crypto community awaits the US SEC’s final verdict on Spot Bitcoin ETF approval, a Bloomberg analyst, James Seyffart has predicted a favorable approval outcome for BTC Spot ETFs.

According to Seyffart, Spot Bitcoin ETFs could see potential approval by January 10, 2024. His prediction has also been backed by another ETF specialist, Senior Bloomberg analyst, Eric Balchunas who gives a strong 90% likelihood for the approval of Spot Bitcoin ETFs. 

“People asking me if we changed the odds. No, we are still holding the line at 90% odds of approval by Jan 10 (aka this cycle), the same odds we’ve had for months (before it was cool/safe). What we are watching for now: more amended/final filings to roll in and clarity on in-kind vs cash creates,” Balchunas stated.

BTC price chart from Tradingview.com (Bitcoin Spot ETF)

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Bitcoin Spot ETF Will Bring $70 Billion In New Money To Trigger Price Rally – Glassnode

Blockchain analytics firm Glassnode has estimated a substantial influx of investor demand following the approval of Bitcoin Spot ETF. The analysis indicates around $70 billion in new money flowing into Bitcoin, potentially setting the stage for a BTC price rally. 

Bitcoin Spot ETF Set To Ignite New Inflows

Blockchain data and intelligence provider, Glassnode has recently published research insights on the potential impacts of Bitcoin Spot ETF approvals on the price of Bitcoin and the broader crypto market. The on-chain analytics company has predicted about $70.5 billion flowing into Bitcoin from increased demand from institutional investors. 

Glassnode bases its analysis on the assumption that substantial portions of capital invested in the stocks, bonds, and gold market might shift toward Bitcoin investments. The blockchain analytics firm has stated that this influx of new capital could have a huge effect on the Bitcoin market, potentially driving its price to greater levels. 

“Based on these assumptions, we estimate approximately $60.6 billion could flow into Bitcoin from the combined stock and bond ETFs, and about $9.9 billion from the gold market, totaling around $70.5 billion in potential new capital influx,” Glassnode stated. 

It added:

“This significant infusion of new capital could have a considerable impact on Bitcoin’s market, potentially driving up its price as it gains broader acceptance and becomes integrated into more traditional investment portfolios.”

Bitcoin Futures And Altcoins Soar On BTC ETF Hype 

Glassnode has extended its analysis to examine how Spot Bitcoin ETF applications are influencing Chicago Mercantile Exchange (CME) Bitcoin futures and various altcoins. 

The blockchain analytics firm has stated that the recent crypto market recovery has been driven by the surrounding anticipation of Spot Bitcoin ETF potential approval by the United States Securities and Exchange Commission (SEC). 

“The market’s upward trajectory was largely driven by the anticipation of Spot BTC ETF approvals, with market movements significantly influenced by updates on filings from major financial entities like Invesco and BlackRock,” Glassnode stated. 

The on-chain analysis firm revealed that the growing optimism in Spot Bitcoin ETFs has caused a notable increase in Bitcoin futures on CME. According to the blockchain intelligence provider, CME Bitcoin futures rose to an all-time high of 27.8%, exceeding Binance for the first time since the start of the crypto bear market. 

Various other altcoins like Ethereum and Solana also experienced staggering price increases. Solana surged by 79.05%, and Ethereum’s price is presently above the $2000 mark. 

The most notable increase caused by the ongoing hype on Spot Bitcoin ETFs was seen in Bitcoin. BTC surged above $37,000 as the optimism of regulator approvals for the first Spot Bitcoin ETF spread. 

Additionally, institutional engagement in open interest in Bitcoin call options also rose by $4.3 billion, marking an 80% increase to surpass $9.7 billion. These recent spikes in investor demand and crypto prices have signaled a potential bullish trajectory for the maturing crypto market. 

Featured image from Pexels

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Bitcoin Price Is Up Despite SEC Delay, Is The Spot ETF Decision Priced In Already?

On Wednesday, the Bitcoin price rallied toward $38,000 amid expectations of the United States Securities and Exchange Commission (SEC) finally approving the first Spot BTC ETF. The regulator would end up exercising its right to delay its decision further, something that has usually been bearish for the price. However, the Bitcoin price continued to show strength, suggesting that a Spot Bitcoin ETF approval might be priced into the market already.

SEC Delays Spot BTC ETFs

The SEC announced on Wednesday that it had decided to further delay its decision on Spot Bitcoin ETF filings; in particular, the Hashdex Spot Bitcoin ETF filing which was due to a decision or a delay on November 15. The Commission had decided that it needed more time to contemplate and thoroughly investigate the filing before giving a final answer. This means that a decision for the Hashdex ETF filing is not expected until 2024.

Not only did the SEC decide to delay its decision on the Hashdex Spot ETF filing, but it also chose to do so on the Grayscale Ethereum Futures filing. This comes even after Grayscale had emerged victorious over the regulator in court, which demanded that the SEC review Grayscale’s Spot Bitcoin ETF filing.

Just like the Hashdex ETF, the SEC choosing to defer its decision on the Grayscale Ethereum Futures ETF pushes its deadline date into 2024, dashing hopes of the ETFs coming this year. However, both Bitcoin and Ethereum seemed to have shaken off this news with little to no reaction.

BTC price chart from Tradingview.com (Spot Bitcoin ETF, Ethereum futures ETF)

Bitcoin Price Already Accounts For ETF Approvals?

The approvals for a Spot Bitcoin ETF and an Ethereum Futures ETF have been anticipated by the crypto community for months now. And like any asset, investors may be becoming indifferent to whether the news affects their investment decisions or not.

Such a development would mean that the Bitcoin and Ethereum ETF approvals are being priced in already, and would not have much effect on the price when they are eventually approved. However, this does not seem to be entirely the case.

One example is when the price of XRP surged upon the rumors of BlackRock filing an XRP ETF, and then subsequently crashing once it was debunked. Then again, on Wednesday, as expectations around the SEC’s decision mounted, the prices of Bitcoin and Ethereum rallied to $38,000 and $2,080, respectively, suggesting that investors are still expecting approval to significantly move the market.

What seems to be happening is that news of delays from regulators is no longer having the bearish effects that they used to have. In this case, investors are simply not reacting to the news of a delay as they usually would seemingly because it is not widely understood that it is not the same thing as a rejection.

The Bitcoin price has since retraced since hitting $38,000 but it maintains a healthy $37,000 at the time of this writing. Ethereum has also followed suit, dropping to $2,046 from its Wednesday peak of $2,080.

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Ethereum Price Propels To 52-Weeks High, Here’s What Behind It

Ethereum (ETH) has been experiencing an upward trajectory for quite a while now, reaching its highest yearly price point in the week and presenting an impressive 52-week high. 

Ethereum’s Price Supported By Latest Developments 

The Ethereum’s price surge can be traced back to several factors that have propelled the cryptocurrency’s growth. The asset reached its 52-week high of $2,137 on Thursday, November 9, as seen in the chart below. 

Ethereum

One of the factors that has contributed to the crypto asset’s price surge is the number of ETH staked. A rise in ETH staked, which stood at over 28 million, according to data from Beaconscan. 

As of August, the number of validators in the Beacon Chain was approximately 786,000, but today that number is currently at 884,000. This indicates confidence in Ethereum’s long-term stability, which can be promising to investors.

In addition, the token’s on-chain volume has also increased significantly over time. Recent data shows that the asset’s volume now sits at approximately 2.62 billion from 1.5 billion as of September. This indicates an over 70% increase since September.

Blackrock’s Spot Ethereum ETF Sparks Increase

The most recent development that has propelled the asset’s price is BlackRock‘s registration of a spot Ethereum Exchange Traded Fund (ETF). Since the firm made known its registration of a Spot Ethereum ETF, there has been quite an improvement encompassing the cryptocurrency.

Blackrock is the world’s largest asset manager with trillions of dollars in assets under management, the firm that has also applied for a Bitcoin spot ETF. The firm applied for a Bitcoin spot ETF in June 2023. However, it is awaiting a decision from the United States Securities and Exchange Commission (SEC).

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Galaxy Digital and Invesco Bitcoin Spot ETF Join BlackRock On The DTCC

In a recent development, another proposed Spot Bitcoin ETF has been listed on the Depository Trust and Clearing Corporation’s (DTCC) website, becoming the second proposed Spot Bitcoin ETF to appear on the corporation’s website. 

BTCO Joins IBTC On DTCC Website

The Invesco Galaxy Bitcoin ETF under the ticker ‘BTCO’ recently appeared on the DTCC website, joining BlackRock’s spot Bitcoin ETF, which goes under the ticker ‘IBTC’ as uncertainty around a possible approval of these funds continues to heighten. 

Galaxy Digital Invesco Spot Bitcoin ETF DTCC

Many had speculated an approval was imminent when BlackRock’s IBTC was earlier listed. However, the optimism has sort of cooled off following a recent revelation by a spokesperson for the financial services company. The representative clarified that the listing of these ETFs was simply “Standard Practice” and that it doesn’t indicate any potential approval by the SEC. 

An ETF expert had also weighed in and stated that DTCC’s listing didn’t mean anything in the grand scheme of things regarding a possible approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). Going by this, the DTCC listing only suggests that these asset managers are preparing just in case they get approved by the SEC. 

Such preparations also include asset managers BlackRock and VanEck recently revealing their plans to begin seeding for their respective funds. While such a move doesn’t guarantee that the SEC is likely to approve these funds anytime soon, it, however, shows the optimism of these firms that their Spot Bitcoin ETF will launch sooner or later. 

Valkyrie Joins The Spot Bitcoin ETF Amendment Train

In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart noted that the asset management firm Valkyrie had joined the “prospectus amendment train” with the latest filing of their revised Spot Bitcoin ETF prospectus. Valkyrie joins the likes of ARK Invest, BlackRock, Fidelity, and Bitwise, who have also filed amendments to their prospectus. 

Seyffart happens to be one of those who believe that these amendments could mean something. ARK Invest was the first asset manager to amend its prospectus, which led Seyffart and fellow Bloomberg analyst Eric Balchunas to predict that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.

Meanwhile, it is worth mentioning that the SEC has so far not said anything regarding Grayscale’s application despite the Commission opting not to file an appeal. But that could change soon as ETF enthusiast and prominent financial lawyer Scott Johnsson said that the Commission is set to have a closed meeting on November 2; its first since the Grayscale deadline expired, and one of the agenda for the meeting includes resolving litigation claims. 

Bitcoin price chart from Tradingview.com (Spot Bitcoin ETF)