The U.S. Securities and Exchange Commission has opened the window for comments on three ether spot exchange traded fund (ETF) proposals.
Bitwise CEO Predicts $11 Billion Drop In Bitcoin Supply Post Halving
Over the last week, Bitcoin (BTC) investors enjoyed much profit as the crypto asset gained 9.34% to trade above $71,000 based on data from CoinMarketCap. Currently, most of the BTC market is highly expectant of the potential large price gains that the current bull cycle could present.
However, commenting on the immediate future, Bitwise CEO Hunter Horsley has stated that the upcoming halving event – a key part of the bull cycle – could be the most significant in Bitcoin’s trading history as a result of an impending massive decline in the token’s supply.
Bitcoin Price To Impact Supply Reduction And Token Demand – Bitwise CEO
In a post on X on March 29, Hunter Horsley shared that the Bitcoin Halving event slated for April 2024 could have the most profound supply and demand effects recorded ever in the asset’s history. For context, Bitcoin halving is a phenomenon that occurs every four years in which the block reward for BTC miners is reduced by half.
The April 2024 Bitcoin halving may be the most impactful we’ve seen. Why?
The last Bitcoin halving, 2020, Bitcoin was at ~$9,000. So the supply reduction in $ terms was ~$9M a day, and ~$3B a year.
This halving with Bitcoin ~$70,000, it will be >3x greater in $ terms: ~$32M a…
— Hunter Horsley (@HHorsley) March 29, 2024
Horsley began his prediction by referencing the last Halving in 2020, during which BTC’s price was ~$9,000. The Bitwise CEO stated that Bitcoin experienced a significant decline in token supply following the Halving effect, to the tune of ~$9 million per day and ~ $3 billion per year.
Considering that Bitcoin’s price currently hovers around $70,000, Horsley believes that the expected supply reduction will likely be at least three times larger in dollars and is estimated to be $32 million per day and $11 billion.
With a higher Bitcoin price, Horsley predicts that the expected massive decline in Bitcoin’s supply will be accompanied by a greater decrease in natural selling pressure by miners. In addition, the Bitwise CEO notes this development will concise with the current rise in institutional demand.
Generally, all factors highlighted by Hunter Horsley indicate that Bitcoin will likely experience a magnanimous price surge following the Halving event. Earlier in February, the Bitwise boss predicted BTC could attain $250,000 sooner as a result of investor demand driven by the introduction of the Bitcoin spot ETF.
BTC Price Overview
At the time of writing, BTC is exchanging hands at $70,000 with a 0.65% loss on the last day. The widely acclaimed “digital gold” is up now by 10.45% on its monthly chart following the price correction in February,
Meanwhile, the BTC’s trading volume has declined by 23.16% and is valued at $24.67 billion. With a market of $1.1 trillion, Bitcoin ranks as the largest cryptocurrency in the world.
BTC trading at $69960 on the hourly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
Ether Could Run to $10,000 or Higher This Year on Numerous Catalysts: Bitwise
Bitcoin has already climbed to new all-time high while ether is lagging, but previous market cycles suggest change is coming.
Bitcoin ETF Buying Led by Retail, Hedge Funds, FAs; Larger Players Still to Come: Bitwise CIO
The ten spot bitcoin ETFs have arguably had one of the most successful launches in history with trading volume and inflows reaching new highs this week, but Bitwise Chief Investment Officer Matt Hougan expects even more demand is on the way.
Analyst: After Bitcoin Hits $50,000, Expect Another 100% to 200% Rally
David Krueger, a crypto analyst on X, thinks Bitcoin (BTC) will tear higher, surging by 100% to 200% within five months, fueled primarily by fear of missing out (FOMO) once the coin breaks above $50,000.
Will Bitcoin Break Above $50,000 And Rally To $100,000?
Citing Tom Lee’s historical analysis, Krueger believes FOMO typically kicks in when Bitcoin trades above a price level “exceeding 97% of its historical days.” Lee is the co-founder and researcher at Fundstrat.
Zooming at the development in the monthly chart, the analyst notes that this price point sits at $50,000, a key psychological level that bulls have failed to overcome since the bull run from mid-November 2023.
Accordingly, if Lee’s analysis and the analyst’s assertion come true, BTC prices will likely float higher in the sessions ahead. However, what’s unclear is when BTC will clear this $50,000 level, paving the way for $100,000 and even $200,000 five months after the decisive breakout.
When writing, BTC prices are firm and rallying. The coin is trending above $46,500 and will likely clear above January 2024 highs of around $48,700. Even so, whether the current uptrend will cause excitement, possibly creating FOMO, is yet to be seen.
Looking at Google Trends data and organic search related to Bitcoin, interest is fizzling out. Data shows that the number of people searching for Bitcoin in the United States has dropped and is at around early 2021 levels. Even so, around that time, Bitcoin prices began trending higher, eventually rising to as high as $69,000.
Halving And Spot ETF Issuers Loading Up More Coins
While FOMO appears elusive at spot rates, another analyst offers a different perspective. In response to Krueger’s outlook, the analyst notes that sharp interest in Bitcoin historically arrives around six months after halving, lasting up to 18 months. This event and steady or increasing demand create a supply-demand imbalance that may pump prices.
Bitcoin will halve its miner rewards in early April 2024. It is an event that may anchor bulls, setting the base for more gains as projected by analysts.
The coin might also edge higher considering the pace at which spot Bitcoin exchange-traded fund (ETF) issuers have been buying BTC in the past few weeks since the product was approved in mid-January 2024.
With Wall Street players like Fidelity, BlackRock, and other crypto firms like Bitwise loading up more coins, BTC will likely be more scarce than it has been after past halving events.
Bitwise Becomes First Spot Bitcoin ETF Provider to Provide Wallet Address
Crypto asset manager Bitwise on Wednesday became the first of the ten spot bitcoin exchange-traded fund (ETF) issuers to share its digital wallet address with the public.
Ben Franklin’s Laser Eyes Suggest a Tough – and Quirky – Battle for Bitcoin ETFs
Franklin Templeton, the $1.5 trillion asset manager, gave its famous logo a glowing, crypto-y tweak after the SEC approved bitcoin ETFs, possibly girding for a tough battle with BlackRock and other Wall Street giants.
Bitcoin Rebounds Above $44K as Spot BTC ETF Approval Looks Increasingly Likely
Reports swirled that the SEC was giving final comments to issuers and may approve multiple spot-based bitcoin ETF applications very soon.
Bitcoin Spot ETF: Bitwise Closes Ranks With $200 Million Seed Fund
The competition among the Spot Bitcoin ETF issuers is heating up as the period for potential approval of these funds draws nearer. Asset manager Bitwise is the issuer currently making waves as it could potentially outrank the world’s largest asset manager, BlackRock, in terms of seed funds for their respective ETFs.
Bitwise’s Bitcoin ETF Could See $200 Million Seed Fund
Bitwise’s latest amendment to its S-1 filing with the Securities and Exchange Commission (SEC) shows that the asset manager has gotten interest from an investor to have its ETF seeded with $200 million upon launch. Bloomberg analyst Eric Balchunas highlighted its significance as he stated that it “blows away” BlackRock’s initial seed fund of $10 million.
The analyst noted that Bitwise actually seeding its ETF with such an amount could be a “huge help” in the early days of the race. It is believed that the SEC is likely to approve the pending ETF applications simultaneously. As such, Bitwise being able to create $200 million of shares could give the asset manager an advantage in terms of meeting demands by clients.
Bitwise had previously shown its intention to lead the way from the get-go following the release of its Bitcoin ETF commercial. This move could help the asset manager gain much interest in its Bitcoin ETF even before launch. That way, the public sees it as the first choice upon launching.
Notably, Bitwise didn’t mention who the authorized participant (AP) for its ETF would be. The AP would act as the middleman between the ETF investor and issuer, as they are responsible for creating and redeeming the ETF shares. While Bitwise failed to name its AP, other issuers like BlackRock however included it in their latest S-1 filing with the SEC.
BTC ETF Issuers Show Their Hands In Latest Wave Of Filings
Spot Bitcoin ETF issuers made some notable inclusions in their latest and final amendment to their S-1 filings. These inclusions also give an idea of what strategy these issuers may be looking to adopt in order to lure investors to their funds. In Fidelity’s case, the asset manager will be looking to entice investors with its relatively low fees.
Balchunas noted that Fidelity’s ‘sponsor fee’ of 0.39% happens to be the lowest so far among other issuers that have made theirs known. Interestingly, Invesco is adopting a more enticing strategy as they revealed in their latest amendment that they will be waiving fees for the first six months and the first $5 billion in assets.
The Bloomberg analyst mentioned that the fee war is going to continue being a thing in the Spot Bitcoin ETF terrain as issuers will be looking to outdo themselves.
Invesco, Fidelity, BlackRock, Others Dot Their Bureaucratic I’s as Likely SEC Action on Spot Bitcoin ETF Looms
Bitwise launches crypto ETF media campaign with ‘The Most Interesting Man in the World’
The ad spot came as the U.S. Securities and Exchange Commission is looking at multiple spot crypto exchange-traded fund applications from asset managers.
Bitcoin ETF Ad War Officially Underway With Bitwise Campaign
The short video advertisement featured the actor known for portraying the “Most Interesting Man in the World.”
Bitwise Reveals Two Major Triggers That Will Send Bitcoin Price To $80,000
Bitwise, a crypto index fund manager, has forecasted a bullish price for Bitcoin that would take it past its current all-time high. Bitcoin is currently in a bullish sentiment, and the price has doubled this year. But according to this fund manager, this sentiment will continue into next year. In a recently released report, Bitwise predicted BTC will hit $80,000 in 2024, identifying two major catalysts that will send the crypto soaring.
Bitwise Predicts $80,000 Bitcoin
In its report, Bitwise laid out 10 things to look out for in the crypto industry in 2024, one of which included the crypto’s price trajectory. The world’s largest crypto has outperformed other asset classes in terms of price performance this year. Data shows Bitcoin is currently up more than 125% this year, and many analysts think this growth isn’t stopping soon. For comparison, the S&P 500 returned 21% this year.
2023 was a great year for crypto. But we see even brighter things ahead. In this must-read report, the Bitwise research team lays out ten bold predictions for 2024. https://t.co/d8Pa4NkzJU
— Bitwise (@BitwiseInvest) December 13, 2023
In its first prediction, Bitwise predicted Bitcoin would trade above $80,000 in 2024, setting a new all-time high. A major catalyst for this growth is the highly anticipated launch of spot Bitcoin ETFs in the US. A spot ETF would allow mainstream investors to gain direct exposure to the coin through traditional investment companies.
Bitcoin has mostly reacted positively to various news surrounding spot ETFs this year. The launch is poised to be the most successful ETF launch, with many analysts estimating that a spot ETF could push Bitcoin over $100,000 in its first year.
The other potential catalyst is the next bitcoin halving, one of the most anticipated events in the crypto industry. The next Bitcoin halving is set for April 2024, reducing mining rewards from its current 6.25 BTC to 3.175 BTC per block. According to Bitwise, at the current price of Bitcoin, the next halving will lead to a $6.2 billion reduction in new Bitcoins entering the market every year until another halving.
The halving, coupled with the anticipated frenzy after spot Bitcoin ETFs are approved, is expected to significantly tip the balance between supply and demand. We could even see the price of Bitcoin surge as the halving approaches, as investors buy in hoping to get ahead of a price rally.
Other Predictions By Bitwise
Other predictions in the Bitwise report paint a picture of a prosperous year for the crypto industry in 2024, mainstream acceptance, and increased institutional interest. A particular bullish prediction is the growth of stablecoins, with Bitwise estimating more payments in stablecoins than Visa.
Other predictions include JP Morgan, the world’s largest bank, launching a tokenized fund using blockchain technology, Ethereum’s annual revenue doubling as transactions increase, and crypto becoming the native currency of the internet.
Featured image from Shutterstock
Bitcoin to surge to $80K as stablecoins overtake Visa in 2024: Bitwise
Bitwise isn’t alone in its bullishness on stablecoins with Circle CEO Jeremy Allaire predicting the explosive growth of the sector due to a “huge appetite” for digital dollars.
BlackRock, Bitwise File Updated Applications for Spot Bitcoin ETF
Asset manager BlackRock and crypto investment firm Bitwise both filed amended S1 forms with the Securities and Exchange Commission (SEC) on Monday, answering further questions likely asked by the regulator in earlier conversations.
Crypto exchange FTX gets nod to sell $873M of assets to repay creditors
Nearly $700 million of the $873 million trust assets allowed to be sold by FTX comes from Grayscale’s flagship product, the Grayscale Bitcoin Trust, or GBTC.
Bitwise insists ‘no affiliation’ with startup facing SEC charges
Bitwise Asset Management stresses it has no relationship with the startup Bitwise Industries whose founders have been charged with conspiring to commit wire fraud.
FTX Wants to Sell $744M Worth of Grayscale, Bitwise Assets
Bankrupt crypto exchange FTX and its debtors have asked the U.S. Bankruptcy Court in Delaware to approve the sale of trust assets, funds of Grayscale and Bitwise amounting to an estimated $744m, through an investment adviser.
Bitcoin Braces For $50 Billion Influx Following ETF Launch, Bitwise CEO Says
Bitcoin (BTC) enthusiasts and investors have their eyes fixed on the potential launch of a spot Bitcoin exchange-traded fund (ETF), eagerly awaiting its impact on the cryptocurrency market. With predictions of substantial inflows, industry experts are delving into the potential ramifications of such a development, exploring its capacity to transform the landscape of digital assets.
Matt Hougan, the CEO of Bitwise, the world’s largest crypto index fund manager, shared his insights on the promising future of a spot BTC ETF, projecting a surge of around $50 billion within the first five years of its launch.
The Potential Impact Of A Spot Bitcoin ETF
The concept of a Bitcoin exchange-traded fund centers around the idea of a fund that tracks the price of Bitcoin and can be traded on a stock exchange. This financial product allows investors to gain exposure to the price movements of Bitcoin without needing to directly own the cryptocurrency.
The introduction of a spot BTC ETF is anticipated to pave the way for an influx of institutional and retail investors, catalyzing a significant flow of capital into the crypto market. Hougan’s projections foresee an impressive $5 billion inflow in the initial year alone, setting a solid foundation for the anticipated five-year influx of $50 billion.
Considering the potential impact of a spot Bitcoin ETF, market analysts remain cautiously optimistic about its influence on the value of Bitcoin. While Hougan suggests an increase in demand for Bitcoin, the exact magnitude of this effect remains uncertain. The current market conditions, marked by a recent 1.1% dip in Bitcoin’s price following a week-long surge of 17.0%, underscore the sensitivity of the cryptocurrency market to external economic indicators.
Inflation, Interest Rates, And The Crypto Market
Amidst the anticipation surrounding the potential launch of a spot BTC ETF, the looming release of the United States Core Price Consumption Expenditure (PCE) data by the US Bureau of Economic Analysis (BEA) poses a significant concern for the crypto market. This widely watched inflation measure is closely monitored by the Federal Reserve, with expectations of a rise in the upcoming report. If the PCE data aligns with projections, the ramifications for the crypto market could be notably bearish.
The potential for higher inflation to indicate a prolonged period of elevated interest rates could prompt a shift in investor sentiment, leading to a reduction in the allocation of funds towards riskier assets such as Bitcoin and other cryptocurrencies. The perceived stability and security offered by traditional assets like Gold might lure investors away from the volatility of the crypto market, adding a layer of complexity to the already intricate dynamics of digital asset investments.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
Bitcoin ETFs have 75% chance of approval this year: Bloomberg analysts
Bloomberg ETF analysts raised their odds for a spot Bitcoin ETF approval after the recent Grayscale victory against the SEC.
