Asset Manager VSFG, together with its partners, Value Partners, have applied for a spot-bitcoin exchange-traded fund (ETF) with Hong Kong's Securities and Futures Commission (SFC), its Head of Investment & Products Brian Chan told CoinDesk on Wednesday.
In line with the decline in Bitcoin’s price, the spot Bitcoin ETF market has appeared rather gloomy in recent days. According to data from analytics firm BitMEX Research, these BTC ETFs have recorded a negative netflow for the last four trading sessions. This situation has been marked by large levels of Grayscale’s GBTC outflows and the record low inflows for the other ETFs, mainly the market leaders BlackRock’s IBIT and Fidelity’s FBTC. However, amidst these persistent declining netflows, Ki Young Ju, a prominent analyst and Chief Executive Officer at Cryptoquant, has predicted a possible resurgence in the spot Bitcoin ETF market. Related Reading: Bitcoin Long-Term Holders & Price Top: Glassnode Reveals Pattern Analyst Pinpoints $56,000 Level As Critical To Bitcoin ETF Recovery In a post on X on March 22, Ki Young Ju shared that a rise in spot Bitcoin ETFs netflows could occur even as the BTC price decline continues. Using data from the historical netflow trends, the analyst noted that demand for Bitcoin ETFs usually kicks in when the cryptocurrency traces to certain support levels. Young Ju stated that, in particular, new BTC whales, especially ETF buyers, have shown to have a $56,000 on-chain cost basis. This suggests that the new significant holders of Bitcoin, particularly those invested in ETFs, usually purchased Bitcoin at an average price of $56,000. Following this trend, the crypto quant boss believes the spot Bitcoin ETF market could experience massive inflows if BTC reached the specified price level. #Bitcoin spot ETF netflows are slowing. Demand may rebound if the $BTC price approaches critical support levels. New whales, mainly ETF buyers, have a $56K on-chain cost basis. Corrections typically entail a max drawdown of around 30% in bull markets, with a max pain of $51K. pic.twitter.com/vZCG4F0Gh5 — Ki Young Ju (@ki_young_ju) March 22, 2024 For now, Bitcoin’s price has oscillated between $62,000 and $68,000, as seen in the last week. However, Young Ju believes that such a descent is quite feasible as price corrections usually see a maximum decline of 30%. Using BTC’s most recent high of $73,750, the analyst predicts the asset price could still trade as low as $51,000. Related Reading: Stablecoins Steal The Spotlight: $150 Billion Market Cap, $122 Billion Daily Trades BTC Price Overview At press time, Bitcoin continues to trade at $64,065.74, representing a decline of 3.73% and 7.17% in the last one and seven days. Meanwhile, the asset’s daily trading volume is down 3.53% and valued at $39.62 billion. Following historical trends of the bull cycle, it is possible that BTC may have reached its price peak leading up to the halving event in April. If that is the case, Bitcoin may likely not return to previous high price levels soon and could experience further price drops in the coming weeks. BTC trading at $64,315.00 on the hourly chart | Source: BTCUSDT chart on Tradingview Featured image from Euronews, chart from Tradingview
A crypto analyst on X is confident that Bitcoin has bottomed and is poised for major gains in the sessions ahead. Interestingly, the bullish outlook hinges on the Bitcoin market cap retesting all-time highs at press time. Will BTC Rally? Market Dynamics Changing So far, the Bitcoin price is around 2021 highs in USD terms but recently broke all-time highs, peaking at around $73,800. This fluctuation is also reflected in its market cap. It currently stands at $1.25 trillion, down 5% in the past 24 hours. Related Reading: Bitcoin Spot ETFs See 4 Consecutive Days Of Outflows, Here’s What Happened Last Time Notably, it is at the same price level as in 2021, when Bitcoin prices peaked, recording new all-time highs. While optimism abounds and the trader expects more sharp price expansions in the days ahead, it is not immediately clear whether the coin will rip higher, aligning with this forecast. Bitcoin is volatile and has remained so despite changing market dynamics. At the same time, unlike in the past, Bitcoin prices are driven not only by retail forces but by institutions. These institutions are regulated by the United States Securities and Exchange Commission (SEC), which also approved the spot Bitcoin exchange-traded fund (ETF). This Bitcoin derivative product has been the primary driving force in the past ten weeks. This is from looking at how prices have evolved since its approval in mid-January 2024. However, since BlackRock and Fidelity are regulated by the United States SEC, unlike retailers, they cannot act as they wish. Considering the millions and billions of dollars at play, their comments or assessments on the coin, now and in the future, can greatly impact sentiment. Sentiment Is Dented, BTC Facing Headwinds Sentiment has been dented when writing. Even with the United States Federal Reserve (Fed) ‘s decision to hold rates at 5.5%, the highest in 2023, lifting prices, there has been no solid follow-through in price action. The coin remains steady below $70,000. Whether prices will rally over the weekend remains to be seen. However, for now, there are some headwinds to consider. Related Reading: XRP Set For Rapid Rally, Target At $5 In The Short Term First, there has been a slowdown in inflows to spot BTC ETFs. At the same time, outflows from the Grayscale Bitcoin Trust (GBTC) have increased. Second, after rallying sharply from October 2023, a cool-off before halving might see the coin trend lower. Feature image from DALLE, chart from TradingView
Vanguard CEO Tim Buckley is resisting customer pressure to offer a spot Bitcoin ETF despite several of the firm’s competitors already offering them.
Cetera Financial Group, a leading financial advisor Wealth Hub, has officially announced its endorsement of four spot Bitcoin Exchange-Traded Funds (ETFs). This approval paves the way for its network of financial professionals to incorporate these cryptocurrency funds into their clients’ portfolios. The Institutional Bitcoin Wave Is Rolling In Cetera, which manages assets exceeding $191 billion, […]
The Thailand regulator has made the changes necessary to allow certain investors to gain exposure to the United States-listed spot Bitcoin ETFs.
Satoshi Action Fund’s CEO Dennis Porter said even adding a small amount of Bitcoin ETF exposure could “DRAMATICALLY” de-risk an asset portfolio.
Grayscale’s ETF bleeding has slowed again while other funds have seen another strong day of inflows lifting them to a fortnightly high.
BlackRock’s IBIT made up more than 50% of the daily trading volume and even smashed its own daily record by more than 30%.
The rise in positive sentiment was skewed heavily by those aged 55 and above, where Bitcoin sentiment increased by 100%.
Bitcoin ETFs have attracted over $2.2 billion in new inflows over the last four days alone.
Ether strength is one of the three current key themes in the crypto industry alongside DeFi growth and selling pressure on Bitcoin miners, Coinbase analysts say.
Physically backed Bitcoin ETFs, like Bitwise Bitcoin ETF, are safer than any other ETFs due to their unique accounting system, Core Scientific founder Darin Feinstein believes.
BlackRock and ProShares daily spot Bitcoin volumes surpass Grayscale’s GBTC.
The spot Bitcoin ETF issuer said it will still use Coinbase’s custodian services as part of a move to diversify custodians.
On Jan. 16, spot Bitcoin ETFs generated $1.8 billion in volume — more than three times the combined trading volume that same day of all 500 ETFs launched in 2023.
While other spot Bitcoin ETF issuers use pop-culture references and flashy imagery, BlackRock has seemingly taken a more “adult” approach.
Some suggest the SEC could use the recent “unauthorized” post as an excuse to delay an ETF approval, but most see it only as a remote possibility.
The bank made the forecast based on its expectation that spot Bitcoin ETFs could attract inflows of $50-100 billion in 2024.
Former SEC chair Jay Clayton says there’s no doubt whether the SEC will approve a spot Bitcoin ETF.
The proposed ETFs would “magnify the performance” of a reference spot Bitcoin ETF — which is yet to receive a decision from the SEC.
Newly compiled data from BitMEX Research estimates there are 150 crypto ETPs available today, with $50.3 billion in assets under management.
The statement from the SFC and HKMA comes as expectations mount the U.S. SEC is on the verge of approving a spot bitcoin ETF.
What to watch for in 2024, according to market analysts.
In a Dec. 19 podcast, Coinbase researchers warned there are at least two potential problems that could arise with the launch of spot Bitcoin ETFs.
K33 analysts, however, warn that institutional traders may look to take profits following the forecasted approval.
The MicroStrategy co-founder said Bitcoin ETFs could be the biggest thing to happen to traditional finance since the introduction of the S&P 500 index fund.
A large increase in demand coupled with lower supply should set the stage for higher prices in 2024, he told Bloomberg.
The SEC filing for the 7RCC spot Bitcoin ETF highlighted that it will include 80% Bitcoin and 20% Carbon Credits Futures.
The SEC has pushed back its decision on a roster of Ethereum ETFs, with the final date for a potential approval arriving in late May.