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US Mega Banks JP Morgan And Wells Fargo Unveil Bitcoin Exposure As BTC Drops To $60,000

JP Morgan and Wells Fargo, two of the largest banks in the United States, have announced their investments into Spot Bitcoin ETFs, unveiling their exposure to BTC, the world’s largest cryptocurrency. This significant development comes amidst the persistent downturn in the crypto market, resulting in BTC’s price dipping slightly above $60,000. 

US Financial Banks Expose Spot Bitcoin ETF Holdings

American financial services companies, Wells Fargo and JP Morgan, have revealed their exposure to BTC by disclosing their adoption of Spot Bitcoin ETFs in a recent filing. This decision to invest in BTC ETFs marks a notable change from the banks’ previous cautious approach to cryptocurrencies. 

Wells Fargo revealed in its new filing to the United States Securities and Exchange Commission (SEC) that it currently holds 2,245 shares of Grayscale Bitcoin Trust (GBTC), valued at $121,207, which it has since converted into an ETF. Additionally, the American bank holds 37 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $1,195. 

On the other hand, JP Morgan, which holds about $2.9 trillion in Assets Under Management (AUM), has revealed its total Spot BTC ETF holdings in an SEC filing. The bank reported that it had purchased about $760,000 worth of shares of BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and ProShares Bitcoin Strategy ETF (BITO). 

Moreover, JP Morgan also owns about 25,021 shares valued at $47,000 in cryptocurrency ATM provider, Bitcoin Depot. The investment company also unveiled its exposure to Spot BTC ETFs just hours after Wells Fargo’s announcement.

Despite the regulatory uncertainty and the market’s continuous volatility, institutional interest in cryptocurrencies, particularly BTC, has been growing rapidly. Bloomberg senior analyst, Eric Balchunas also forecasted that more financial services companies would likely follow JP Morgan and Wells Fargo’s footsteps to unveil holdings in Spot Bitcoin ETFs as market makers or Authorized Participants (APs). 

BTC Price sUFFERS More Declines

Despite the increasing interest from traditional financial institutions seeking exposure to BTC, the price of the cryptocurrency has shown a surprising lack of bullish momentum. Since its halving event on April 20, BTC has been trading sideways, witnessing continuous declines that have pushed its price down to around $57,000 previously. 

The cryptocurrency, which recorded an all-time high above $73,000 in March, has seen a 14.20% drop over the past month. Additionally, Bitcoin gave up a large portion of its gains before the halving and is currently trading at $60,494, according to CoinMarketCap. 

Blockchain analytics platform, Santiment, revealed that the ongoing lack of interest in BTC and the broader market sentiments could be a strong sign that the cryptocurrency is getting close to its bottom. 

Bitcoin price chart from Tradingview.com

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Spot Bitcoin ETFs Rocked By Outflows, BTC Price Succumbs To Bears

The Spot Bitcoin ETFs have seen their demand drop since the start of this month, and this was again evident in the considerable outflows recorded on April 26. This poor run has had far-reaching effects on the broader crypto market as Bitcoin’s price has succumbed to unfavorable market conditions. 

Spot Bitcoin ETFS Record $217 Million Of Outflows

Farside Investors revealed in an X (formerly Twitter) post that the Spot Bitcoin ETFs recorded $217 million of net outflows on April 25, one of their largest this month. Grayscale’s Bitcoin Trust (GBTC) accounted for most of these outflows, with investors moving $139.4 million out of the fund. 

Related Reading: Why Is The Dogecoin Price Down Today?

Some other funds also recorded individual outflows. Ark Invest’s Spot Bitcoin ETF recorded $31.3 million in outflows, while Valkyrie and Bitwise’s ETFs saw $20 million and $6 million in daily outflows, respectively. Notably, Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded a net daily outflow for the first time since these funds were approved, with $22.6 being moved out of the fund on Thursday. 

Meanwhile, BlackRock’s dry spell continued with its iShares Bitcoin Trust (IBIT) recording zero inflows for the second consecutive day. Although the fund has yet to record net daily outflows since launching, this undoubtedly represents a setback, considering that it had, before April 24, recorded 71 consecutive days of daily inflows. 

These Spot Bitcoin ETFs’ outflows have led to a wave of sell-offs from the fund issuers to fulfill redemptions. As a result, Bitcoin’s price action has been rather unimpressive as of late, with the flagship crypto experiencing significant price declines due to the heightened selling pressure. This development has put the bears firmly in control, with data from Coinglass showing that more Bitcoin longs than shorts have been liquidated in the last 24 hours. 

Macro Economic Factors Also Affecting Bitcoin’s Price

An initial estimate released by the Bureau of Economic Analysis on April 25 showed that the US Gross Domestic Product (GDP) grew at an annual rate of 1.6% in the first quarter, which was way below expectations. This data report further diminishes hopes of rate cuts this year and looks to have played out in investors’ minds as Bitcoin briefly dropped below $63,000 following the report’s release. 

Meanwhile, the Personal Consumption Expenditures (PCE) inflation data is set to be released on April 26. This PCE report could come in higher than expectations, adding to the growing concerns about the unlikelihood of rate cuts this year.

Interest rates have significant implications on risk assets, including crypto, and if the Federal Reserve decides to take a hawkish stance, it could negatively impact the crypto market. 

Bitcoin price chart from Tradingview.com

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Crypto Expert Predicts Bitcoin Will Reach $650,000 Due To This Reason

A crypto analyst has made a bold prediction about Bitcoin, anticipating that the pioneer cryptocurrency could surge to $650,000 as the Spot Bitcoin ETF market continues to grow. 

BTC’s Next Price Target Expected At $650,000

In an X (formerly Twitter) post published on Monday, Willy Woo, a popular analyst and crypto expert with over 1 million followers, predicted Bitcoin’s next price target, fueled by the growth and demand of Spot Bitcoin ETFs.

According to Woo, Spot Bitcoin ETFs could propel the price of BTC to $91,000 at bear market bottoms, while during bull market tops, the cryptocurrency could skyrocket as high as $650,000. It’s important to note that at the time of writing, Bitcoin haD not even reached $100,000, and is trading at $63,408, according to CoinMarketCap.

Woo has explained that BTC’s surge to this exponential level can only be possible when ETF investors completely utilize their capital. He highlights that a total capital deployment typically takes time, emphasizing that his price predictions are not constrained to the current crypto market cycle. 

The crypto analyst also predicted that BTC will eventually flip gold’s market capitalization as the asset manager’s capital is deployed. Basing his forecast on gold’s 12-year bull run after the launch of its ETF, Woo disclosed that Bitcoin could have a similar bullish trend soon.  

How Bitcoin Will Surge To $650,000

To efficiently explain his predictions, Woo provided a brief but clear insight into the potential impact Spot Bitcoin ETFs could have on the price of Bitcoin. He provided “back-to-envelope calculations” that could be used to fully understand how BTC could surge to $650,000.

During his calculations, the crypto analyst estimated the total capital managed by asset managers at $100 trillion. He mentioned that the current allocation recommendation was 2% for Bitcoin, and given the total amount of assets managed, it would mean $2 trillion could potentially flow into BTC. 

Presently, Bitcoin holds about $561,159,959 of investments that can be measured on-chain. By adding the potential inflow from asset managers, the total investment in BTC would rise to $2.56 trillion. 

Woo also introduced a Market Value to Realized Value (MVRV) ratio, which compares the total market capitalization of Bitcoin to the amount of funds invested into it. The crypto analyst claimed that historically, this ratio usually surges by 5x during bull market tops and by 0.7x during bear market bottoms. 

Based on this ratio, Woo calculated the potential market capitalization of BTC, estimating a price of $12.8 trillion during bull tops and $1.8 trillion during bear bottoms. Dividing this total market capitalization by the amount of Bitcoin in circulation would position BTC’s price per coin at $650,000 and $91,000 respectively. 

Bitcoin price chart from Tradingview.com

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Bitcoin ETF Outflows Are Ramping Up Again, What Does This Mean For BTC Price?

Bitcoin ETF outflows are on the rise once again after a change in the tide last week. These outflows, given the ETFs’ correlation with the Bitcoin price, have a substantial impact on how well the cryptocurrency performs over time. So, as outflows are ramping up, will it trigger a crash in the BTC price?

ARK Invest And Grayscale Lead Outflows

While Grayscale’s Spot Bitcoin ETF has been the natural culprit for ETF outflows due to its high fees, another fund has joined the trend in a surprising turn of events. Cathie Wood’s ARK Invest saw a substantial outflow from its ETF, leading to a new record for the investment firm.

The Ark 21Shares Fund (ARKB) saw a record $87.5 million leave its fund on Tuesday, April 2. Interestingly, the fund’s outflows were even higher than that of Grayscale, which saw around $81.9 million in outflows in the same day.

For both these funds, it marked the second consecutive day of outflows, although it was more concerning on the part of the Ark 21Shares Fund. This is because Grayscale saw a decline in outflows between Monday and Tuesday, going from $302.6 million to $81.9 million. Whereas the ARK Invest fund saw outflows go from $0.3 million on Monday to $87.5 million on Tuesday, resulting in a 29,000% increase in outflows in a single day.

Only these two funds have experienced outflows this week though, as the other ETFs continue to see upside. While Monday’s net flows ended up being negative to the tune of $85.7 million, Tuesday’s numbers looked better with positive net flows of $40.3 million.

How Will This Affect Bitcoin Price?

Since the Spot Bitcoin ETFs were approved in January, their effect on the Bitcoin price has been positive overall. However, there have been points where outflows from the funds have affected the BTC price, causing it to crash.

A few instances of this is back in January, a week after the ETFs were first approved. Outflows had plagued the funds and the Bitcoin price had declined as a result. Then again, in March, when outflows turned negative between March 18 and March 22 and the Bitcoin price crashed from $73,000 to $61,000.

Given BTC’s performance during periods where outflows prevail in Spot ETFs, this current trend does not bode well for the price. There has been a recovery in the BTC price after inflows turned positive on Tuesday. But unless they stay positive through the end of the week, the BTC price could see further crashes toward the $60,000 level.

Bitcoin price chart from Tradingview.com

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The Bulls Are Back: Spot Bitcoin Inflows Surge With New Records

Bitcoin bulls look to be firmly back in the driver’s seat following weeks of seeing BTC suffer a bearish sentiment with its price dips. The current bullish outlook for the flagship crypto is evident in the fact that the Spot Bitcoin ETFs are again recording an impressive amount of inflows. 

Spot Bitcoin ETFs Record $243 Million In Inflows

Farside Investors revealed in an X (formerly Twitter) post that the Spot Bitcoin ETFs recorded $243 million in inflows on March 27. This record was primarily thanks to BlackRock’s iShares Bitcoin Trust (IBIT) and the ARK 21Shares’ Bitcoin ETF (ARKB), which saw individual inflows of $323.8 million and $200.7 million, respectively. 

These inflows were enough to overshadow the $299.8 million that Grayscale’s Bitcoin ETF GBTC recorded on the day. Meanwhile, this marks the third consecutive day that these Spot Bitcoin ETFs have recorded net inflows, having seen net outflows throughout last week. These funds recorded an inflow of $418 million and $15.4 million on March 26 and 25, respectively. 

This is undoubtedly a welcome development for the crypto community, considering that analysts at JPMorgan already predicted that the wave of profit-taking from the BTC ETFs could last until Halving. Therefore, seeing sustained inflows into these ETFs could mean that the sentiment among these ETF investors has changed. 

Irrespective of the current outlook for these ETFs, there is reason to be confident about their future trajectory and how much funds could still flow into the Bitcoin ecosystem. Matt Hougan, the Chief Investment Officer (CIO) at Bitwise, recently suggested that the demand for these Bitcoin ETFs is far from its peak. That means that these funds could still witness an astonishing amount of inflows.

BTC Still Primed For More Upside Move Before Halving

The current bullish sentiment towards BTC suggests that the flagship crypto move could see further moves to the upside before the Halving event in mid-April. Besides the Spot Bitcoin ETFs, which are back to recording net inflows, other fundamentals hint at a price surge for BTC soon enough. 

NewsBTC recently reported that the supply of BTC on centralized exchanges (CEX) has been declining lately, which means that the sell pressure for the crypto token has reduced significantly. With Bitcoin whales cooling off on selling, that leaves room for BTC to embark on an upward trend. 

At the time of writing, BTC is trading at around $70,300, up in the last 24 hours according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com

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Bitcoin Spot ETFs See 4 Consecutive Days Of Outflows, Here’s What Happened Last Time

Bitcoin Spot ETF outflows have ramped up this week and has seen the week characterized by price declines throughout the crypto space. These outflows, like before, are being led by the Grayscale Spot ETF as investors believe their fees are too high. This has led to four consecutive week of outflows, which is the second time it is happening since Spot ETFs were approved for trading. So, where does the Bitcoin price go from here?

Bitcoin Spot ETFs Hit 4 Consecutive Days Of Outflows

The outflows began on Monday and continued into subsequent days. So far, the highest single-day outflow happened on Tuesday, March 19, with total net flows for the day coming out to $326.2 million, a new record for Bitcoin funds.

Subsequent days have seen lower figures when it comes to overall net flows but they continue to come out in the negative. On Wednesday, net flows were $261.5 million, and on Thursday, March 22, net flows came out to $94 million. This marked the second time that the Spot Bitcoin ETFs are seeing four consecutive days of outflows this year.

The vast majority of these outflows, as mentioned above, are coming from the Grayscale Bitcoin ETF. In the last day alone, the fund saw outflows of 5,900 BTC, which translates to $339 million at current prices. Then, over the last week, Coinglass data shows that 28,207.5834 BTC has left the fund, causing its total BTC under management to fall by 7.35% in one week.

Other funds have also seen outflows during this time but to a much lower degree. For example, the Invesco Galaxy Bitcoin ETF saw the second-highest outflow of all the funds, but only 667 BTC flowed out of the fund in the last day. The WisdomTree Bitcoin Fund saw 10.8.2635 BTC in outflows, while all other outflow figures came in below 100 BTC.

What Happened To BTC The Last Time?

The last time that Spot Bitcoin ETFs saw four consecutive days of outflows was in January, lasting from January 22 to January 25. This also bears some similarities to the current outflow trend in some was, one of which was the outflows began at the start of the week and carried through to the end.

However, a difference between both times is that the ETFs had just begun trading with trading days fluctuating between inflows and outflows. Meanwhile, the current trend has come after almost two consecutive weeks of inflows, something that could have an impact on the BTC price going forward.

In January, after four days, the outflows had begun to slow down, and by Friday, there was a change in direction, with inflows beginning to dominate. Once the tide turned and ETF inflows began to rise, the BTC price followed sharply.

With the climb came a more established rally in the Bitcoin price, causing it to go from $40,000 to over $70,000 in the space of two months. If this trend repeats and inflows into Spot BTC ETFs outpace outflows, then the BTC price is expected to start climbing again. However, if the outflows continue, then the BTC price could be in for further crashes.

Bitcoin price chart from Tradingview.com

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Bitcoin Spot ETF Inflows Eye New Record As BTC Price Touches $57,000

Bitcoin Spot ETFs are gunning for a new record after an incredible start to the new week. The price of BTC has risen 8% in the last day, and this has caused euphoria in the market. There could be a number of factors behind this; however, institutional investors seem to be playing a big role as daily inflows continue to rise.

Spot Bitcoin ETF Inflows Cross $400 Million

According to Bloomberg analyst James Seyffart, the Spot BTC ETF inflows are not slowing down. In a screenshot shared by the analyst on Tuesday, Seyffart reveals that inflows into Spot BTC ETFs climbed above $400 million.

The image shows that the Fidelity Wise Origin Bitcoin Fund is leading the charge with $243.3 million in inflows, which accounts for more than 50% of the total inflow. The ARK 21Shares Bitcoin ETF follows behind with significant inflows of $130.6 million. The third-largest inflow to a single fund for the day was recorded in the Bitwise Bitcoin ETF, which saw $37.2 million in inflows.

Spot Bitcoin ETF

Other funds, including the Franklin Bitcoin ETF, VanEck Bitcoin Trust, and the WisdomTree Bitcoin Fund, all saw minor inflows of $7.9 million, $6.2 million, and $0.9 million, respectively. In total, the inflows to all six funds came out to $426 million.

However, the Grayscale Bitcoin Trust (GBTC) continues to bleed during this time, with outflows of $22.4 million in the 24-hour period. This brought the total net flows to $403.6 million. At the same time, funds such as the iShares Bitcoin Trust, the Invesco Galaxy Bitcoin ETF, and The Valkyrie Bitcoin Fund all saw negligible inflows during this time frame.

Gunning For A New Record

The inflows into the Bitcoin Spot ETFs over the last day are a testament to the demand that these products are getting from the market. With institutional investors gaining more exposure to BitBTCcoin, demand is expected to rise, especially as the BTC price continues to do well.

The inflow volumes, while not the largest single-day inflows so far, are significant when measured up to others. For example, Seyffart points out that the daily record was from the first day of trading when inflows climbed as high as $655 million. The second-largest single-day net flow was then recorded earlier in the month on February 13 with $631 million. “A big day from $IBIT could push us beyond that Day 1 record,” Seyffart declared.

At the time of writing, the BTC price is experiencing a retracement after reaching a new 2-year high of $57,000. It has seen 8.58% gains in the last 24 hours to trade at $55.900, according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com

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Bitcoin Spot ETF Jitters Subside: Grayscale Outflows Drop To New Lows

Outflows from Grayscale’s Bitcoin Trust (GBTC) seem to be slowing down, as shown by the trading activity of Bitcoin ETFs. This comes as investor anxiety over Grayscale’s Spot ETF seems to finally be subsiding, with the entire ETF cohort continuing to attract huge trading volumes and rapid growth in assets under management. As a result, the GBTC saw daily outflows drop steadily over the course of the week to just $44.2 million on Friday, the lowest since spot Bitcoin ETFs went live.

Outflows Drop As Grayscale’s BTC ETF Stabilizes

After several weeks of elevated outflows totaling over $7.44 billion, investors pulled just $436.2 million of Grayscale’s Bitcoin Trust last week. Notably, the lowest daily outflow of $44.2 million came on the last day of the week.

Grayscale’s GBTC is undoubtedly the biggest Bitcoin ETF among its cohort. This is because GBTC was launched in 2013 as a Bitcoin trust available only in OTC markets., allowing it to grow over the years as it was the only go-to for investors looking to dive into the crypto industry.

However, after a lengthy regulatory procedure, the SEC finally approved GBTC’s conversion into a Spot Bitcoin ETF. Consequently, Grayscale’s new Bitcoin ETF went live on January 11, along with nine other recently approved ETFs. 

GBTC held around $27 billion worth of BTC assets when it first began trading as an exchange-traded fund (ETF). Surprisingly, Grayscale’s conversion into an ETF came along with a vast amount of withdrawals from investors, and by the end of January, GBTC had witnessed $5.55 billion worth of withdrawals. 

Many analysts have attributed Grayscale’s high management fees (1.5%) to the outflows. During this period, other Bitcoin ETFs continued to attract new money. BlackRock’s iShares Bitcoin Trust (IBIT) now has over $6.64 billion worth of BTC in its ETF, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) with $4.73 billion.

What’s Next For Grayscale’s Bitcoin ETF?

While last week’s outflow data is an encouraging sign for Grayscale and the wider ETF market, outflows could continue in the coming weeks. Bankrupt crypto lending firm Genesis recently received court approval to sell its $1.3 billion worth of GBTC in order to repay its creditors. 

The prospect of a liquidation of such gravity has propelled concerns amongst investors of the potential downward implications on the price of BTC. However, many others remain optimistic. According to a report by crypto exchange Coinbase, full liquidation would have a neutral impact on the market as the majority of funds are expected to remain in the crypto ecosystem.

At the time of writing, Bitcoin was trading at $51,300, while Grayscale’s GBTC now had $22.7 billion worth of assets under management.

Bitcoin price chart from Tradingview.com

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Bitcoin Spot ETFs: Issuers Set New Record As Weekly Inflows Cross $2.2 Billion

Bitcoin spot exchange-traded funds have been online in the US for only two months, but their performance has far eclipsed any other asset class. These ETFs recently hit a new milestone, drawing over $2.2 billion in inflows last week alone, shattering the previous weekly record set on the first week of trading. This is a particularly noteworthy development because, as senior Bloomberg analyst Eric Balchunas pointed out, this inflow skyrocketed past the 3,400 plus ETFs available in the US, like the SPLG US and the SPY US. 

Bitcoin ETF Inflows Surge Amid Competition

Bitcoin ETFs have fully captured the interest of institutional investors, with trading volume indicating their appealing nature. Trading volume statistics reveal these 10 ETFS have been experiencing a great deal of activity since their launch, netting more than $2.3 billion last week alone to bring the total inflow to $4.926 billion since they went live. As pointed out by Eric Balchunas, the significant inflow last week puts the ETFs above more established ETFs in the United States.

Notably, most of this inflow went into BlackRock’s iShares Bitcoin Trust (IBIT), which has outperformed the nine other Bitcoin ETFs and ETFs of other asset classes. IBIT accumulated $1.673 billion in net inflows throughout the week, making it the third-largest inflow among any of the 3,500 plus exchange-traded funds. 

At the close of last week’s trading session, BlackRock’s IBIT has received a $5.2 billion net inflow since its launch. Notably, this amounts to 50% of the investment company’s net inflow of $10.4 billion from its 417 ETFs since the beginning of the year. 

It’s important to note that these staggering inflow numbers have come amidst an ongoing outflow from the Grayscale Bitcoin Trust ETF (GBTC). While outflows from the ETFs have slowed down compared to recent weeks, the GBTC witnessed $624 million in outflows during the week. “Again, this is all net GBTC bleed,” Balchunas noted.

BTC Bullish Price Momentum Set To Continue

Bitcoin’s price has skyrocketed over 33% in the past 30 days, recently topping $52,000 per coin for the first time since 2021. Current price action shows Bitcoin has somehow stabilized around this price point, with the crypto trading between $52,700 and $50,700 in the past five days. At the time of writing, Bitcoin is trading at $52,307.

However, the fear of missing out on further gains is driving many new investors to Bitcoin ETFs. According to an analyst, inflows into these ETFs are on track to reach $150 billion by the end of 2025. With a new all-time high now looking plausible, Bitcoin is set to continue on its price gain as spot ETF trading commences throughout the week.

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Here Are The Largest Institutional Buyers Of Bitcoin This Week

The Spot Bitcoin ETFs have lived up to the hype, as these funds have ramped up institutional adoption of the flagship cryptocurrency, Bitcoin. This is further evident in a recent analysis that captured how much Bitcoin BlackRock and other issuers amassed in this week alone. 

Spot Bitcoin ETF Issuers Purchased Over 19,908 BTC This Week

Data from the on-chain analytics platform Lookonchain shows that the Spot Bitcoin ETF issuers combined to purchase over 19,908 BTC ($860 million) this week. Meanwhile, it is worth mentioning that Lookonchain’s data didn’t capture WisdomTree’s BTC purchases in its analysis, suggesting that the figure could be way higher when the asset manager’s purchases are also factored in. 

Further data obtained from Arkham Intelligence provided insights into how much Bitcoin Wisdom Tree obtained for its Bitcoin fund this week. 74 BTC is shown to have gone into the asset manager’s wallet address for its Spot Bitcoin ETF. The addition of these crypto tokens means that all Spot Bitcoin ETF issuers combined to purchase almost 20,000 BTC this week alone. 

Interestingly, Bitcoin ETFs were recently reported to hold 3.3% of Bitcoin’s circulating supply, underscoring their success since launching. Data from Lookonchain shows that these ETFs currently hold over 657,000 BTC (excluding WisdomTree). 

Matt Hougan, Bitwise’s Chief Investment Officer (CIO), also revealed how these funds have seen flows of $1.7 billion after their first 14 trading days. This is more impressive as he made a comparison to Gold ETFs, which saw $1.3 billion in a similar time frame. In another X post, he mentioned how these Spot Bitcoin ETFs have taken $700 million in net inflows this week alone.

Bitcoin price chart from Tradingview.com (Institutional investors)

BlackRock Finally Trumps Grayscale

Bloomberg analyst James Seyffart mentioned in an X post that BlackRock’s IBIT looks to have become the first ETF to trade more than Grayscale’s GBTC in a single day. Before now, Grayscale had continued to record the most daily trading volume, although IBIT had come close on a couple of occasions. 

From the data that Seyffart shared, IBIT looks to have recorded $301 million in trading volume on February 1, while GBTC saw $290 in trading volume. However, he further stated that the total trading on the day “was kind of a dud,” with all Spot Bitcoin ETFs combined recording $924 million in trading volume.

Institutional Bitcoin buyers

Interestingly, that happened to be the first day that the daily volume for Spot Bitcoin ETFs was under $1 billion. The Bloomberg analyst didn’t, however, give any opinion as to what could have caused this relatively sub-par performance. 

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JP Morgan Reveals Likelihood Of Spot Ethereum ETFs Getting Approved

Now that Spot Bitcoin ETFs have been approved by the United States Securities and Exchange Commission (SEC), the crypto space anticipates more ETFs to enter the market, particularly Spot Ethereum ETFs. 

Despite this, analysts at JP Morgan, an American multinational financial service firm, have revealed a less than optimistic outlook for the potential approval of Ethereum Spot ETFs. 

Ethereum Spot ETF Approval Prospects

In a note to clients issued on Thursday, January 18, JP Morgan analysts led by Nikolaos Panigirtzoglou, the Managing Director at the financial service firm, expressed their reservations regarding the anticipated approval of Spot Ethereum ETFs by the SEC.

The analysts cited regulatory and judicial reasons as the basis for their prediction, asserting that the likelihood of Ethereum Spot ETF approval is no higher than 50%. 

“While we are sympathetic to the above arguments, we are skeptical that the SEC will classify ether as a commodity as soon as May,” analysts at JP Morgan stated. 

Just last week, the SEC delayed the approval of Fidelity’s Ethereum Spot ETF. The regulator postponed its decision date to March 5, 2024, stating it needed more time to evaluate Fidelity’s application. Additionally, the deadline for the SEC’s final decision on the Spot Ethereum ETF applications extends from late January to August 2024. 

The most decisive date that would give the crypto space a better outlook on the potential launch of these ETFs is January 25, the deadline for Grayscale’s Ethereum Spot ETF application. 

Earlier in June 2022, Grayscale took legal action against the SEC for its rejection of its Spot Bitcoin ETF. In August 2023, the asset management company emerged victorious in its lawsuit, after the US Columbia Court of Appeal ruled that the SEC was wrong to reject Grayscale’s Bitcoin ETF application. 

With the SEC’s recent approval of Spot Bitcoin ETF after months of legal and regulatory challenges, many crypto enthusiasts anticipate a lengthy regulatory process before the potential approval of Spot Ethereum ETFs. If Ethereum Spot ETFs are accepted by the SEC, then it would offer investors an unprecedented opportunity to gain exposure to the cryptocurrency without the need to own it. 

ETH price chart from Tradingview.com (Ethereum Spot ETFs JP Morgan)

Why ETH Spot ETF Approval Hovers At 50%

Presently, the regulatory framework surrounding cryptocurrencies in the United States is still shrouded in uncertainty. This includes XRP, which suffered a lawsuit from the SEC after the regulator labeled it a security in 2020. Additionally, there have been many other cryptocurrencies the SEC has identified as a security. 

The potential approval of Ethereum Spot ETFs generally hinges on the SEC’s classification of the digital asset, whether it is a commodity or a security. In January 2024, the regulatory agency approved Ethereum futures ETFs, ‘implicitly’ accepting Ethereum as a commodity. 

If the SEC identifies Ethereum as a commodity, then the potential approval of an ETF application may be in sight. However, as JP Morgan analysts have stated, it may take a considerable amount of time before the SEC makes that decision.

The regulatory agency has continually taken an aggressive approach in its regulation of cryptocurrencies in the US. Following the approval of Spot Bitcoin ETFs, SEC Chairman Gary Gensler publicly declared that the agency still does not approve or endorse Bitcoin, labeling all cryptocurrencies as investment contracts subject to federal securities laws.

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Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness. 

When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.

However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies. 

However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry. 

The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking. 

Bitcoin Spot ETF Explained

The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?

Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians. 

This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.

Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors. 

The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)

The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval. 

This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.

The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.

Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.

This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.

The Turning Point: A Decade Of Persistence Pays Off (2018-2023)

While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.

This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision. 

Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.

The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.

Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.

Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)

The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above $1 Trillion after the launch of Bitcoin Spot ETFs.

Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.

Investor Crossroads

For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as $80,000 as a result of Bitcoin Spot ETFs’ approval. 

The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry. 

However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.

Institutional Embrace Bitcoin

The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.

Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.

Market Redefined

Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.

The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.

Beyond Bitcoin

Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.

The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.

The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved  on January 10, 2024, are:

  • Blackrock’s iShares Bitcoin Trust (IBIT)
  • ARK 21Shares Bitcoin ETF (ARKB)
  • WisdomTree Bitcoin Fund (BTCW)
  • Invesco Galaxy Bitcoin ETF (BTCO)
  • Bitwise Bitcoin ETF (BITB)
  • VanEck Bitcoin Trust (HODL)
  • Franklin Bitcoin ETF (EZBC)
  • Fidelity Wise Origin Bitcoin Trust (FBTC)
  • Valkyrie Bitcoin Fund (BRRR)
  • Grayscale Bitcoin Trust (GBTC)
  • Hashdex Bitcoin ETF (DEFI)

Conclusion

The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.

Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.

Final Thoughts

The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.

Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system. 

While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.

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

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Grayscale Bitcoin ETF Bleeds: Traders Make $579 Million Run On The Fund

Grayscale, an American digital asset management company, has witnessed a staggering amount of outflows in its Spot Bitcoin ETF, Grayscale Bitcoin Trust (GBTC). Analysts speculate that the outflows may be linked to several factors, including high trading fees and accounting irregularities. 

Grayscale Experiences Massive Outflows

After successfully securing approval for its Spot Bitcoin ETF against the United States Securities and Exchange Commission (SEC), Grayscale experienced steady inflows in its GBTC. However, recent reports suggest that the company’s gains may have been premature, as Grayscale’s GBTC recently experienced a significant outflow of approximately $594 million. 

According to James Seyffart, a Bloomberg Analyst on X (formerly Twitter), Grayscale has encountered total net outflows of $1.173 billion for its Spot Bitcoin ETF. 

Seyffart presented a screenshot of a spreadsheet detailing the cumulative inflows and trading volumes witnessed by various Spot btc ETF companies, including Bitwise, ARK/21 Shares, VanEck, and more. The analyst revealed that while many of these companies saw large amounts of inflows, the gains were not sufficient enough to offset Grayscale’s substantial outflow of almost $600 million. 

Seyffart suggested that Grayscale’s lagging outflows may be a result of T+1 accounting and settlement processes causing outflows from previous days to be reflected in recent data. On the other hand, an X user has published a scathing critique on Grayscale, stating that the crypto asset management company may continue to experience a massive exodus of shareholders due to its exorbitant ETF fees. 

Several investors may have shifted towards more affordable Spot Bitcoin ETFs, as GBTC’s ETF has an expense ratio of 1.5%, making it the most expensive Spot Bitcoin ETF in the United States. 

When asked by an X user why there were heavy outflows in Grayscale’s Spot Bitcoin ETF, Senior Bloomberg Analyst Eric Balchunas stated:

“A lot of traders came in to play the discount closing so they left to take profits, there are also captive average investors who may have decided to stomach the tax hit in order to flee the 1.5% fee, I’d expect more over time.”

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

Spot Bitcoin ETF Records $10 Billion In Trading Volume

The crypto market’s recent response to the increased levels of trading activities in Spot Bitcoin ETFs has been remarkably positive. 

Seyffart shared in a post on X that Spot Bitcoin ETFs have achieved an impressive trading volume of almost $10 billion in just three days. This massive trading activity underscores the growing interest and positive shift in investor sentiment regarding Spot BTC ETFs. 

In a similar vein, Balchunas disclosed that several recently launched Spot Bitcoin ETFs had seen significant inflows totalling $1.4 billion. Leading the group, iShares Bitcoin Trust (IBIT), the Spot Bitcoin ETF of BlackRock, has secured the top spot with half a billion in inflows, followed by Fidelity in second place ahead of other ETFs. 

According to Balchunas, all 500 ETFs introduced in 2023 have accumulated approximately $450 million in volume, indicating a promising upward trend for the Spot Bitcoin ETF market.

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Crypto Community Raises Alarm Over Coinbase’s Dominance Of Bitcoin Held In Spot ETFs

Coinbase, the largest cryptocurrency exchange in the United States, is presently serving as the custodian of the majority of the Spot Bitcoin ETFs managed by various asset management companies in the industry. This notable concentration is raising worries in the crypto community about significant centralization and potential risks associated with the custodianship. 

Coinbase Dominate ETFs As Major Custodian

Coinbase’s significant role in the advancement of Spot Bitcoin ETFs has become a target of scrutiny in the crypto community. The American crypto exchange is currently the custodian of 9 out of 11 Spot Bitcoin ETF companies, including BlackRock, Grayscale, Ark/21 Shares, Bitwise, WisdomTree, Invesco/Galaxy, Valkyrie, GlobalX, and Franklin Templeton. 

Notably, only Fidelity and VanEck have opted for alternative custodianship approaches. Fidelity is employing a self-custody program for its Spot Bitcoin ETF, while VanEck has selected Gemini, a crypto exchange, as the custodian for its Spot BTC ETF. 

The prominent role of Coinbase as the major custodian for Spot BTC ETFs has raised serious questions and concerns in the crypto community. Specifically, Gabor Gurbacs, Director of Digital Assets Strategy at VanEck, has deemed Coinbase’s concentrated level of custodianship to be a “double-edged sword.” 

Gurbacs stated that Coinbase would bear substantial responsibility as the primary custodian for Spot Bitcoin ETFs and would reap significant benefits from it. However, he also hinted at potential counterparty risks associated with concentrating assets within a single entity. 

Similarly, a crypto analyst on X (formerly Twitter) highlighted the potential for increased scrutiny from the United States Securities and Exchange Commission (SEC) regarding Coinbase, given its prominent position in the Spot Bitcoin ETF market. The crypto exchange is presently in a legal battle with the SEC, and many crypto enthusiasts believe that Coinbase’s regulatory challenges may pose a threat to the success of Spot BTC ETFs. 

Bitcoin price chart from Tradingview.com

Coinbase CFO Bullish On Bitcoin ETFs

The Chief Financial Officer of Coinbase, Alesia Haas appeared recently in an interview on Bloomberg TV, discussing the effects of Spot Bitcoin ETFs in the crypto market. 

When asked if the momentum of Spot Bitcoin ETFs would become a “game-changer” in the future, Haas responded confidently with a resounding “absolutely.”

The Coinbase CFO declared that the SEC’s approval of Spot Bitcoin ETFs was an important day for crypto, as it positions Bitcoin into a much broader investable asset class. She also revealed that the deployment of Spot Bitcoin ETFs would allow investors to have greater access to BTC products, extending its reach to billions of people around the globe and increasing the amount of inflows into ETFs. 

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Institutional Inflows Into XRP Surges 244% Amid ETF Speculation

XRP has reacted positively since the launch of spot Bitcoin ETFs in the US, both in its price and general market sentiment. At the same time, recent data from CoinShares on the weekly inflow into digital asset funds reveal that the positive sentiment flowed into XRP-based investment products, with institutional investors increasing interest amid speculations of whether a spot XRP ETF might soon hit the market. As a result, weekly net inflows into XRP jumped 244% last week, registering a total of $2.2 million.  

Institutional Investors Look To XRP Amid Crypto ETF Hopes

According to various reports, particularly one from on-chain analytics platform Santiment, social media mentions and popularity of XRP increased alongside Ethereum in the days after the SEC gave the green light on spot Bitcoin ETFs. 

This isn’t surprising, as the approval of these ETFs signalled a change in the crypto investment landscape, leaving investors wondering whether we might see the US regulator approving an XRP spot ETF soon. For instance, Valkyrie’s Chief Investment Officer, Steve McClurg, noted that an XRP ETF could also be approved in the near future.

According to CoinShares data, the speculation led to the crypto receiving a net inflow of $2.2 million last week, a dramatic 244% jump from $0.9 million recorded in the week before. Notably, this inflow is significantly more than the one recorded in the days following Ripple’s partial victory against the SEC in court.

Consequently, this year’s total inflow into XRP-based products now sits behind only Cardano and Ethereum among altcoins.  

XRP price chart from Tradingview.com

Inflow Into Asset Funds Post Bitcoin ETF Fail To Break Record

 Digital asset funds recorded an enormous inflow of $1.18 billion last week. While this number represented a spike of 680% from the $151 million registered in the week before, it failed to break the $1.5 billion record set at the launch of the futures-based Bitcoin ETFs in October 2021. On the other hand, trading volume was $17.5 billion last week, the highest weekly volume on record. 

As expected, the majority of last week’s inflow went to Bitcoin-based funds, with $1.14 billion. However, Bitcoin’s price has failed to meet expectations after spot Bitcoin ETFs hit the market. At the time of writing, the crypto is trading at $42,847 and is posting an 8% decline in a 7-day timeframe. 

Ethereum came in second place with $25.47 million in inflows last week. In terms of geographical location, the United States dominated, seeing $1.24 billion of inflows last week, while Switzerland followed with a $21 million inflow. 

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Institutional Inflows Into XRP Surges 244% Amid ETF Speculation

XRP has reacted positively since the launch of spot Bitcoin ETFs in the US, both in its price and general market sentiment. At the same time, recent data from CoinShares on the weekly inflow into digital asset funds reveal that the positive sentiment flowed into XRP-based investment products, with institutional investors increasing interest amid speculations of whether a spot XRP ETF might soon hit the market. As a result, weekly net inflows into XRP jumped 244% last week, registering a total of $2.2 million.  

Institutional Investors Look To XRP Amid Crypto ETF Hopes

According to various reports, particularly one from on-chain analytics platform Santiment, social media mentions and popularity of XRP increased alongside Ethereum in the days after the SEC gave the green light on spot Bitcoin ETFs. 

This isn’t surprising, as the approval of these ETFs signalled a change in the crypto investment landscape, leaving investors wondering whether we might see the US regulator approving an XRP spot ETF soon. For instance, Valkyrie’s Chief Investment Officer, Steve McClurg, noted that an XRP ETF could also be approved in the near future.

According to CoinShares data, the speculation led to the crypto receiving a net inflow of $2.2 million last week, a dramatic 244% jump from $0.9 million recorded in the week before. Notably, this inflow is significantly more than the one recorded in the days following Ripple’s partial victory against the SEC in court.

Consequently, this year’s total inflow into XRP-based products now sits behind only Cardano and Ethereum among altcoins.  

XRP price chart from Tradingview.com

Inflow Into Asset Funds Post Bitcoin ETF Fail To Break Record

 Digital asset funds recorded an enormous inflow of $1.18 billion last week. While this number represented a spike of 680% from the $151 million registered in the week before, it failed to break the $1.5 billion record set at the launch of the futures-based Bitcoin ETFs in October 2021. On the other hand, trading volume was $17.5 billion last week, the highest weekly volume on record. 

As expected, the majority of last week’s inflow went to Bitcoin-based funds, with $1.14 billion. However, Bitcoin’s price has failed to meet expectations after spot Bitcoin ETFs hit the market. At the time of writing, the crypto is trading at $42,847 and is posting an 8% decline in a 7-day timeframe. 

Ethereum came in second place with $25.47 million in inflows last week. In terms of geographical location, the United States dominated, seeing $1.24 billion of inflows last week, while Switzerland followed with a $21 million inflow. 

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American Investment Bank TD Cowen Says Ethereum ETF Will Be Delayed

Despite the United States Securities and Exchange Commission (SEC) granting approval for Spot Bitcoin ETFs, TD Cowen, a prominent American investment bank and financial service firm, foresees potential delays in the approval process of Ethereum Spot ETFs. 

Ethereum Spot ETF Faces Potential Hold-Up

TD Cowen, an investment bank and financial service division of TD Securities has made a bold forecast, predicting that the US SEC is unlikely to approve Ethereum Spot ETFs before its deadline. Presently, the SEC is obligated to make its final decision on its rejection or acceptance of Ethereum Spot ETF from May 23 to August 7, 2024. 

Earlier on January 10, the SEC officially approved Spot Bitcoin ETFs, triggering expectations that ETH Spot ETFs would follow suit. Several major firms including Ark 21 Shares, VanEck, Fidelity, BlackRock, and Hashdex have submitted applications for a Spot Ethereum ETF. Additionally, the regulatory agency has fixed a new deadline for Grayscale’s Ethereum Spot ETF to January 25. 

TD Cowen’s predictions align with the SEC’s typical cautionary approach towards cryptocurrency-related investment products. The investment bank has disclosed that the regulator may delay ETH Spot ETFs until it accumulates sufficient knowledge and experience from its previously approved Bitcoin Spot ETFs. The bank estimates that while the delay may not take as long as 26 months, it is likely to persist beyond the upcoming elections.

Similarly, Scott Melker, a crypto investor on X (formerly Twitter) has highlighted the possibility of the SEC hesitating to approve Ethereum Spot ETFs. Melker predicted that the SEC would be reluctant to approve Ethereum ETFs without external legal pressures similar to those observed during the approval process of Spot Bitcoin ETFs. 

“Gary Gensler isn’t going to entertain an Ethereum Spot ETF unless the courts force it on him. I very seriously doubt we will see one anytime soon, but would love to be proven wrong,” Melker stated. 

Ethereum price chart from Tradingview.com

Class Before Approval

JP Morgan, an American multinational financial service firm has introduced another layer of complexity in the approval process of Ethereum Spot ETFs. Managing Director at JP Morgan, Nikolaos Panigirtzoglou stated that there was a 50% chance of the US SEC approving these Spot ETFs by its May deadline. 

Panigirtzoglou revealed that the SEC would need to classify ETH as a commodity, similar to Bitcoin before it can officially grant authorization for Spot Ethereum ETFs. 

In contrast, Bloomberg senior analyst, Eric Balchunas is more optimistic on Ethereum Spot ETF approvals. The analyst has disclosed a 70% chance of the SEC approving ETH Spot ETFs. Balchunas said previously that he could not imagine a scenario where the SEC would approve Spot Bitcoin ETFs and reject Ethereum Spot Bitcoin ETFs. 

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Valkyrie Exec Expects SEC To Approve XRP ETF, Can This Push Price To $100?

With the advent of Spot Bitcoin ETFs which were approved by the United States Securities and Exchange Commission (SEC) on Wednesday, crypto investors have quickly turned their attention to the next big thing which might be XRP ETFs. This is picking up steam as Steve McClurg, Chief Investment Officer (CIO) for Valkyrie, has lent his voice to the cause.

Valkyrie Exec Says XRP ETF Could Be Next

In an interview with Bloomberg, McClurg reveals that with the approval of Spot Bitcoin ETFs, the expectation is that altcoins will soon follow the same path. He explains that attention could be turned to Ethereum, which is currently the second-largest cryptocurrency in the space. McClurg figures that a lot of filings are going to be submitted for Ethereum ETFs after this.

Beyond the expected ETF filings for Ethereum, the Valkyrie CIO mentions that the likes of Ripple’s XRP could be the next in line to get approved for an ETF. “It wouldn’t surprise me if we saw Ripple or Ethereum spot ETFs out there,” McClurg said during the interview.

Although McClurg showed optimism regarding a possible XRP ETF, he revealed that there was no indication of whether Valkyrie was going to get involved in it or not. Valkyrie, who has been heavily involved in Bitcoin and Ethereum ETFs, has not shown any interest in the altcoin so far.

However, the CIO explained that crypto can be incredibly unpredictable. Given this, it is impossible to know where the market will end up swinging and what asset managers will take an interest in next.

XRP price chart from Tradingview.com (XRP ETF)

ETF Talks For Altcoins Heat Up

The discussions for a possible XRP ETF are not new, especially as the arguments for Bitcoin Spot ETFs heated up. As a result, crypto researcher, ABS, who is part of the 3T Warrior Academy gave a rundown of what the impact of a possible XRP ETF would be.

ABS explains that this could give rise to more interest from institutional investors as they could easily gain exposure to the asset with an ETF. Additionally, it would also propel XRP into the mainstream as marketing would take off. This would obviously increase interest around the world, and finally, XRP ETF would give the crypto a liquidity life-off.

The effect that an ETF would have on the price of the asset can be gauged by what happened in November when rumors emerged that BlackRock had applied for an XRP ETF. As the rumor spread, the XRP price surged rapidly, before correcting back downward once the rumors were dispelled.

Nevertheless, this performance from the altcoin showed the readiness of the market for an XRP ETF. In the case of the altcoin’s price reaching as high as $100, it is likely not happening in the next few years. However, there is no doubt that the approval of an XRP spot ETF would help propel it faster toward this goal.

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VanEck Announces Massive $72 Million Bitcoin ETF Seeding As Two Tickers Appear On DTCC Website

As the US SEC prepares to make its final decision regarding Spot Bitcoin ETF approvals, the Depository Trust and Clearing Corporation (DTCC) has officially listed the Spot ETFs tickers from investment management firm, VanEck.

VanEck’s Spot ETF Ticker Listed on DTCC

American investment management firm VanEck’s Spot Bitcoin ETF has recently appeared on the active and pre-launch list of the DTCC. VanEck’s ETF can be identified by the ticker ‘HODL’ on the DTCC’s official platform. 

This move positions VanEck as a key player in the evolving landscape of Spot ETF investments. Additionally, the listing is seen as a crucial step towards integrating Spot Bitcoin ETFs into the mainstream financial sector if the United States Securities and Exchange Commission (SEC) decides to approve Spot Bitcoin ETFs. 

Alongside VanEck, WisdomTree’s Spot Bitcoin ETF ticker, ‘BTCW’ has also been officially listed on the DTCC website. The investment management firm previously submitted its Spot BTC ETF application to the US SEC in June 2023. However, the regulator has consistently delayed approval of WisdomTree’s Spot Bitcoin ETF application. 

The US SEC has also delayed 13 Spot Bitcoin ETF applications from prominent companies such as BlackRock, ARK Invest, Grayscale, and others. The regulatory agency faces a deadline of January 10, to either accept or reject these Spot Bitcoin ETF applications. 

Although there is a possibility for the SEC to decline Spot BTC ETFs several experts, including Bloomberg analysts, James Seyffart and Eric Balchunas have revealed a 90% chance of the regulator approving Spot BTC ETFs in January. 

Bitcoin price chart from Tradingview.com

VanEck Reveals $72 Million Bitcoin ETF Seed Fund

On Monday, January 8, VanEck submitted an amended Spot Bitcoin ETF S-1 filing to the SEC. In its filing, VanEck disclosed that the financial company had purchased 1,640.92489329 BTC worth $72.5 million on January 5, to support its Spot ETF.

The substantial seeding will provide a solid foundation for VanEck’s Spot Bitcoin ETF, potentially paving the way for increased participation by institutional investors. 

In addition to VanEck’s Seed Creation Baskets, major asset management companies in the Spot Bitcoin ETF race like BlackRock, Bitwise, and Fidelity have announced their various seed funds.

Bitwise revealed a $200 million seed fund made by Pantera Capital to support its Spot BTC ETF. The asset management company has also put forward $500,000 to fund its proposed Spot BTC ETF. 

Meanwhile, BlackRock and Fidelity have announced plans to seed their Spot Bitcoin ETFs with $10 million and $20 million respectively. BlackRock previously submitted an amended S-1 filing to the SEC in December, revealing a 227.9 BTC purchase to seed its Spot ETF by January 3. 

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Global Mega Bank Standard Chartered Releases Bullish Forecast For Spot Bitcoin ETFs

Standard Chartered Bank is the latest to give its predictions on the impact Spot Bitcoin ETFs could have on Bitcoin’s price in the long term. The bank took a bullish stance as they predicted that BTC could rise to unprecedented heights by the end of 2025. 

Bitcoin Could Hit $200,000 By End Of 2024

According to a report by Standard Chartered shared on the X (formerly Twitter) platform, BTC’s price could reach $200,000 by end-2025. There is the potential for Bitcoin to hit this price level with $50 to $100 billion flowing into the Spot Bitcoin ETFs, says the bank’s Head of Digital Assets Research Geoff Kendrick and Precious Metal Analyst Suki Cooper.

Their projections stem from the fact that an approval of these Spot Bitcoin ETFs could happen as soon as this week. If that happens, Kendrick and Cooper state that will be a key driver of Bitcoin’s price to the upside, something similar to what happened with Gold ETPs. Interestingly, Standard Chartered predicts that BTC could hit $100,000 before this year runs out. 

Elaborating on BTC enjoying similar gains to Gold (when Gold ETPs were approved), the bank expects that such gains will materialize over a shorter period for the flagship crypto token. This is based on their view that the Spot BTC ETF market will develop quicker than the Gold ETPs did. 

The amount of inflows that these Spot Bitcoin ETFs could witness has continued to be up for debate. Crypto research firm Galaxy Digital took a more conservative stance as they project that only about $14 billion will flow into these funds in the first year. Meanwhile, VanEck’s advisor, Gabor Gurbacs, is only choosing to look at the long term.

Bitcoin price chart from Tradingview.com

“Trillions, Not Billions” In The Long Term

Commenting on Standard Chartered’s report, Gurbacs mentioned that he prefers to look at how much could flow into these funds in the longer term rather than now. With that in mind, he projects that trillions of dollars will flow into Spot Bitcoin ETFs in the long term. Specifically, he makes a case for $2.5 trillion flowing into these BTC assets. 

He explained that this could easily happen, considering that there are roughly $500 trillion in assets globally. As such, $2.5 trillion, representing just 0.5% of the global allocation, flowing into the Bitcoin ecosystem shouldn’t be a problem. He also bases his projection on the fact that Bitcoin won’t stop rising in value as fiat currencies continue to weaken. BTC has no top because fiat has no bottom, he says.

Gurbacs also expects that Bitcoin will enjoy more acceptance once these Spot Bitcoin ETFs are approved. He says that banks, financial service firms, and regulators will turn from “enemies of Bitcoin to allies of Bitcoin.” This is “immeasurably valuable” as BTC adoption can level, he remarked.