Category: ETF

Crypto Giant Grayscale Officially Files To Convert Nearly $40 Billion Bitcoin Trust Into an ETF

Crypto Giant Grayscale Officially Files To Convert Nearly $40 Billion Bitcoin Trust Into an ETF

Digital currency asset manager Grayscale Investments is announcing plans to convert its Bitcoin (BTC) trust into an exchange-traded fund (ETF).
Grayscale says it wants to transform the 2013-launched Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. The value of GBTC’s assets under management is close to $40 billion, according to Grayscale.
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Bitcoin futures ETF hits $1B AUM in a record-breaking two days

Bitcoin futures ETF hits $1B AUM in a record-breaking two days

Since the ProShares Bitcoin Strategy ETF started trading this week, it has become the fastest fund ever to reach $1 billion in assets under management (AUM).The highly anticipated launch of the first Bitcoin futures exchange-traded fund in the United States, BITO, has resulted in a number of milestone achievements.Bloomberg senior ETF analyst Eric Balchunas reported that the fund was the quickest ever to reach a ten-figure AUM after just two days of trading. BITO easily surpassed the previous record holder, a gold-based fund with the ticker GLD, which took three days to hit the billion-dollar mark in 2004.He commented that this was “poetically apropos,” presumably in reference to Bitcoin’s store of value properties and comparison to digital gold. RECORD BREAKER: $BITO assets up to $1.1b after today, making it the fastest ETF to get to $1b (2 days) breaking $GLD’s 18yr old record (3 days), which is poetically apropos. https://t.co/yGXyfwaogD— Eric Balchunas (@EricBalchunas) October 20, 2021Balchunas exclaimed “I’ve never seen anything like this. I bet ProShares is even shocked,” while retweeting a post by Bloomberg Intelligence research analyst, James Seyffart, who updated the original chart.Balchunas commented that there may not be any contracts left to buy if this volume continues, referring to a post by ETFStore President Nate Geraci stating that nearly 45% of BITO exposure is now in November futures contracts.“If $BITO keeps up this pace of inflows it won’t have any futures left to buy by the end of the month due to pos [position] limits.”The ProShares fund also broke the record for the highest-ever first day of organic volume which hit $1 billion on Oct. 19 when it launched. More than 24 million shares were traded during its debut day and since the ETF went live, it has now traded more than $2 billion in volume.Related: VanEck Bitcoin Strategy ETF will likely launch next week as crypto prices reach ATHsBalchunas has predicted that the next Bitcoin futures fund launch will be on Friday. This is likely to be the Valkyrie Bitcoin Strategy ETF which is changing its ticker back to BTF in preparation. In crypto circles, the former ticker BTFD also referred to “buy the f*cking dip,” which may not have gone down too well with the SEC.I had said this was launching tmrw it’s actually going to be on Friday. sorry about that. https://t.co/fqaGwjgscO— Eric Balchunas (@EricBalchunas) October 20, 2021

The momentum has driven Bitcoin prices to a new all-time high of $67,276 on Oct. 20 according to CoinGecko. At the time of writing, the asset had retreated slightly to change hands around the $65,230 mark.

Brazilians Have Invested Over $4,000,000,000 in Crypto This Year, According to Central Bank: Report

Brazilians Have Invested Over $4,000,000,000 in Crypto This Year, According to Central Bank: Report

Brazil’s top bank is revealing that Brazilians have purchased billions of dollars worth of cryptocurrencies this year, according to Portal do Bitcoin.
The Central Bank of Brazil says that year-to-date, Brazilians have bought crypto assets worth $4.27 billion.
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Cointelegraph Consulting: ETFs listed — What’s next for Bitcoin?

Cointelegraph Consulting: ETFs listed — What’s next for Bitcoin?

After dipping below $30,000 in June, Bitcoin (BTC) went on a nearly four-month rally, appreciating by more than 100%. On Friday, it was able to recapture the $60,000 level after closing the day with a 7.56% spike. The ensuing rally was attributed to the excitement around the SEC giving the green light on the ProShares Bitcoin Futures exchange-traded fund (ETF). Bitcoin has since successfully defended its current price level and managed to inch closer and closer to its all-time high valuation of $64,899.The listing of ProShares Bitcoin Strategy ETF on Tuesday is believed to provide an additional thrust for Bitcoin and cryptocurrencies to mainstream legitimacy. However, a key fact about the new Bitcoin ETF is that it doesn’t invest in Bitcoin directly but instead allocates a portion of its assets to BTC futures contracts.“BITO”Listed as “BITO” on the New York Stock Exchange, ProShares Bitcoin Strategy ETF is the first of its kind, which some argue is 10 years in the making since several Bitcoin ETFs were either held up or blocked entirely by the United States Securities and Exchange Commission, or SEC. Some of the high-profile applications that are still in limbo are the Bitcoin ETFs of WisdomTree and VanEck. ProShares got the green light because of a particular distinction: ProShares Bitcoin ETF is a futures-based ETF, and it is also filed under mutual fund rules. The SEC prefers this structure since it lacks jurisdiction over cryptocurrency trading venues that aren’t registered as exchanges in the United States.Fund breakdownAs stated on the ETF’s prospectus filed with the SEC, the fund will allocate 25%–30% of its assets to Bitcoin futures contracts. It also notes that it plans to invest in the securities of ETFs organized and listed for trading in Canada as well as other pooled investment vehicles. These positions are intended to manage inflows and outflows in response to unusual market conditions, increases in margin requirements, or if it becomes too impractical for the fund to obtain exposure to BTC futures. The bigger chunk of the fund’s assets will go to money market instruments, which are then subdivided into U.S. Treasury bills, repurchase agreements and reverse repurchase agreements.Boosting mainstream acceptance As mentioned, a Bitcoin ETF helps the entire market to gain access, much like the Coinbase listing of a stock exchange earlier this year. This is because investors who may not have direct access to cryptocurrencies but own brokerage accounts will have the opportunity to gain exposure to Bitcoin.ProShares CEO Michael Sapir said in a statement that BITO provides exposure to investors who buy stocks and ETFs but may not necessarily want to go through the hassles of buying Bitcoin from an exchange or setting up a wallet.BITO could also be the precursor for other investment product offerings. For one, the largest digital currency asset manager, Grayscale Investments, already plans to convert its flagship GBTC into an ETF “as soon there’s a clear, formal indication from the SEC,” Grayscale communications director Jennifer Rosenthal confirmed. Grayscale CEO Michael Sonnenshein also said that an Ether-based ETF could likely follow suit after BITO’s successful listing.Aside from these, another futures-based Bitcoin ETF is also set to debut this week. SEC filings show that it accepted the registration request for Valkyrie’s Bitcoin Strategy ETF shares to be listed on the Nasdaq. Melanion Capital, a France-based investment firm, is also set to launch its own Bitcoin-linked ETF on Friday after getting the nod from French financial regulator AMF. The fund called Melanion BTC Equities Universe UCITS ETF invests in a diversified basket of equities correlated to the daily price movements of Bitcoin, and it will be listed on Euronext Paris.Download the 33rd issue of the Cointelegraph Consulting Bi-weekly Newsletter in full, complete with charts and market signals, as well as news and overviews of fundraising events.Open interest risingBitcoin’s positive trading activity has also caused the open interest on BTC futures to rise. Data from cryptocurrency exchange Bybit shows that open interest for BTC futures reached $23.1 billion on Oct. 18. The figure neared its peak in April when total open interest across several exchanges totaled $27.38 billion. So far, leading the exchanges with the highest dollar value of contracts is Binance with $5.3 billion. The Chicago Mercantile Exchange Group (CME) is in the third spot with $3.5 billion despite its futures open interest recently reaching an eight-month high. Open interest refers to the number of futures contracts that have yet to be settled. It is often used for determining the strength of a trend or market sentiment.Bitcoin’s resurgence has caused plenty of investors to feel confident that BTC’s price could see a further spike — even if plenty believed that the newly listed Bitcoin ETF was priced weeks before. Thus, the bullish narrative is springing back, echoing what investors had been betting on at the start of the year. The futures contract with a settlement date in December began the year with prices stretching to as high as $74,000. This has whittled down amid a cooling-off period in the market but has aligned again with the rising spot price.Wagers for a Bitcoin price tag of $100,000 are so in fashion that centralized financial organizations, such as Standard Chartered, offered the same price target for this year or early 2022. One measure to assess whether higher prices have some viability in the future is the growth of wallet addresses. Adoption has a prominent role in this, and while Brazil is not ready to join El Salvador in making Bitcoin legal tender, such moves will likely increase the number of new wallets.Data shows that since October 2020, the number of wallet addresses has exhibited steady growth. There are now about 77 million addresses. Moreover, there is also data showing “hodlers,” or addresses that have kept their BTC holdings for at least a year, are also growing in number.So, as new investment products tied to Bitcoin could likely get a similar green light in the near future, more institutional participation could be on the horizon. Even with just BITO, a whole new class of investors opens up, including the heavyweights in the form of (401k) pension funds and retirement accounts. But regardless of whether Bitcoin reaches $100,000 or not, the new Bitcoin ETF at least shows Bitcoin as a respectable investment.Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. The newsletter dives into the latest data on social media sentiment, on-chain metrics, and derivatives.We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.

Bitcoin price eyes $65K breakout as BTC exchanges reserves fall to 2018-lows

Bitcoin price eyes $65K breakout as BTC exchanges reserves fall to 2018-lows

Bitcoin’s (BTC) ongoing price rally above $64,000 has coincided with a substantial drop in its reserves across all exchanges.According to data provided by CryptoQuant — a South Korea-based blockchain analytics service — the amount of Bitcoin held in exchanges’ wallets dropped to as low as 2.379 million BTC earlier this week, the lowest in more than three years. Currently, the reserves are around 2.38 million BTC.Bitcoin’s all exchange reserve. Source: CryptoQuantCryptoQuant noted that the declining Bitcoin reserves showed the availability of fewer BTC tokens “for selling, altcoins purchasing, and margin trading.” Additionally, that also reflected traders’ intention to ‘HODL’ the cryptocurrency.Demand for Bitcoin grows among whales and fishesOn the other hand, the cryptocurrency’s demand appears to have been increasing across retail and institutional traders, with the number of wallets holding more than $100 and $10 million worth of BTC reaching their record high of 16.67 million and 10,510, respectively.Bitcoin addresses with balance greater than $100 and $10 million. Source: Messari, CoinMetricsOn-chain analyst Willy Woo published a report in August 2021 that discussed Bitcoin’s “supply shock” against its rising demand, concluding that the cryptocurrency’s per token worth should be at least $55,000. The “conservative” target remained lower than pseudonymous analyst PlanB’s $135,000 price projection by the end of 2021, based on its stock-to-flow model.$63K✅ https://t.co/tj6SSwSzKR— PlanB (@100trillionUSD) October 19, 2021Meanwhile, PlanB’s Bitcoin price prediction for November 2021 sits around $98,000, above $70,000, the most preferred strike target for the options expiring on the 26th of the same month, as shown in the chart below.BTC Options OI by strike price (expiry Nov 26, 2021). Source: ByBt.comBTC price macro fundamentalsBitcoin’s bullish on-chain fundamentals are likely to see further strength from Wall Street adoption. On Tuesday, ProShares became the first ETP firm to launch a Bitcoin Futures-based exchange-traded fund (ETF) on the New York Stock Exchange. In a milestone for Bitcoin investing opportunities, the listing opened a new road for institutional investors to gain exposure to BTC.For instance, Fundstrat Global Advisors Co-Founder Tom Lee said he anticipated the Bitcoin ETFs to attract at least $50 billion in the coming twelve months, reasserting his team’s year-end $100,000 price target for BTC.Technically, Bitcoin appeared to be heading towards its record high near $65,000, now acting as a resistance level.BTC/USD daily price chart featuring Fibonacci retracement levels. Source: TradingViewOn the flip side, Bitcoin’s relative strength index (RSI), a momentum indicator that analyzes an asset’s overbought/oversold signals, reported the cryptocurrency price as excessively high on the daily candle chart suggesting that a pullback is on the table. Related: Bitcoin sees its highest ever daily close as BTC/Euro pair hits all-time highsShould a correction happen, Bitcoin’s next support target could be near $57,500, which serves as the 78.6% Fib level of the Fibonacci retracement graph, drawn between the $65,000-swing high and the $30,000-swing low. The level also coincides with Bitcoin’s 20-day exponential moving average (the green wave in the chart above). The said level has earlier acted as strong support during Bitcoin’s uptrend. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin Futures ETF Becomes Second-Biggest Launch of All Time With Nearly $1,000,000,000 Worth of Volume on First Day

Bitcoin Futures ETF Becomes Second-Biggest Launch of All Time With Nearly $1,000,000,000 Worth of Volume on First Day

ProShares’ Bitcoin futures exchange-traded fund (ETF) is exploding onto the market with the second-biggest ETF launch of all time.
Eric Balchunas, a senior ETF analyst at Bloomberg, says on Twitter that the ProShares Bitcoin Strategy ETF (BITO) had more than $993 million in total trading volume on its first day of availability.
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SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF

SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF

SEC Chair Gary Gensler and Proshares CEO Simeon Hyman discussed the launch of the first Bitcoin-linked ETF in a CNBC breaking news segment on Tuesday.Proshares Bitcoin Strategy ETF, also known as BITO, is based on CME Bitcoin futures contracts. CNBC commentator Bob Pisano shared concerns from some investors that BTC futures could deviate from the BTC spot price:“The futures market is a better place for price discovery,” said Hyman. “The CME futures market trades more volume than the largest US crypto exchange. We launched a similar mutual fund on 7/28 and since we launched on Friday, the Bitcoin Reference Rate is up 52 percent, our BTC mutual fund is up 52 percent and the BTC Greyscale Trust is up 37 percent.”The debut of BITO follows announcements that other BTC-linked funds, including Valkyrie’s Bitcoin Strategy ETF, are set to start trading on the Nasdaq. A new blockchain-industry-based fund, called the Volt Crypto Industry Revolution and Tech ETF, intends to begin trading soon as well.Pisano asked SEC Chair Gary Gensler about earlier comments where he said he did not have the same concerns with issuing BTC futures-linked funds versus a fully-linked BTC fund. Gensler confirmed:“What we are trying to do is bring new projects into the investor-protected perimeter. BTC futures have been overseen by the SEC’s sister agency, The Commodities Futures Trading Commission, for the past four years. You have something that’s been overseen for the past four years by a federal regulator and it’s also been wrapped up in the SEC’s jurisdiction through the Investment Company Act of 1940.” Hyman expressed his confidence in the new fund noting the history of BTC’s price action, US securities laws, and the opportunity for a new opportunity for investors:“There’s a lot of history here. We believe it will trade quite well. We think regulated futures traded in a 40-act ETF will open the opportunity to get BTC exposure to a lot of folks who may have been waiting on the sidelines.”

Fintech panel forecasts $80K BTC price top this year — Finder poll

Fintech panel forecasts $80K BTC price top this year — Finder poll

A favorable macro environment, strong on-chain fundamentals and the approval of new futures-based exchange-traded funds (ETFs) in the United States are set to launch Bitcoin (BTC) to new all-time highs this quarter, according to a survey of fintech industry specialists commissioned by Finder.The 50-person industry panel expects Bitcoin to peak just above $80,000 this quarter before ending the year at around $71,400. The flagship digital currency is trading at $62,600 on Tuesday, according to Cointelegraph Markets Pro. An $80,000 target represents 28% more upside for BTC in the coming months. Finder’s panel includes Cypherpunk Holdings chief operating officer Daniel Cawrey, Bitcoin Reserve CEO Nik Oraevskiy, Kraken director Jonathon Miller, Arcane research analyst Vetle Lunde and Ki Young Ju, the CEO of CryptoQuant. Seven university professors from across Asia, Europe and Australia also gave their insights.Although the consensus target puts Bitcoin on track for a bullish quarter, it’s well below the coveted six-figure price level many analysts believe is not only possible but likely. Forecasts from Standard Chartered and Bloomberg suggest $100,000 Bitcoin could become reality this year due to a combination of technical, fundamental and adoption-based factors. Related: Buy the rumor… buy the news? BTC price passes $63K as US Bitcoin ETF launchesAside from the psychological milestone, a $100,000 BTC price target isn’t nearly as important as determining when the current market cycle will peak, assuming it hasn’t already. Institutional involvement in Bitcoin has accelerated over the past five weeks, offering a compelling sign that the bull market has resumed following the summer drawdown. According to on-chain analyst Willy Woo, the next phase of the Bitcoin market will be “more volatile” than the previous bull periods, which implies a longer time horizon for the current cycle.

Melanion Capital Bitcoin ETF to launch on Euronext Paris on Oct. 22

Melanion Capital Bitcoin ETF to launch on Euronext Paris on Oct. 22

Concurrent to the United States finally launching its first Bitcoin (BTC) futures-based exchange-traded fund (ETF) Tuesday, France inches closer to a major Bitcoin-related ETF launch.Paris-based alternative investment firm Melanion Capital is preparing to launch its Bitcoin-linked ETF product already this Friday, the firm’s CEO Jad Comair announced to Cointelegraph on Monday.Called “Melanion BTC Equities Universe UCITS ETF,” the Bitcoin ETF will start trading on France’s primary stock exchange, Euronext Paris, at 7 am UTC.The product will be listed under the ticker symbol BTC FP, providing investors with Bitcoin exposure through a diversified basket of equities correlated to the daily price movements of Bitcoin.”It is traded on the Paris stock exchange, therefore eligible to all investors, and we’re in the process of listing it all over Europe,” Comair said, adding that there is a strong demand for Bitcoin-related products in the region. “We have embarked on a plan to bring more institutional-grade crypto products to the market,” he added.According to Comair, the idea of BTC FP is similar to a Bitcoin-linked ETF by Volt Equity, which was approved by the United States Securities and Exchange Commission (SEC) in early October. Instead of tracking Bitcoin directly, both Melanion Capital and Volt Equity’s Bitcoin ETFs are tied to companies correlated with Bitcoin.“They both share the same idea: structuring a Bitcoin ETF by investing in equities holding Bitcoin, instead of going through the difficult and burdensome route of directly holding Bitcoin,” the Melanion Capital CEO noted.This ETF will track the Melanion Bitcoin Exposure Index, which consists of several industry firms, including Michael Saylor’s software firm MicroStrategy, crypto mining firm Argo Blockchain, Mike Novogratz’s digital asset merchant bank Galaxy Digital and others.“Our ETF is the first thematic Bitcoin product to be approved in Europe. ETF is a big deal, as it’s the most widely used and the one eligible for various pension plans,” Comair said.The executive also noted that its ETF would bridge the gap between the crypto and institutional worlds. “The investment pockets of institutional investors have a lot of constraints to protect their customers, and an ETF is one of the most eligible wrappers that matches these constraints,” Comair noted.Related: Guernsey regulator approves Jacobi Asset Management’s Bitcoin ETF launchIn August, French financial regulator the Autorité des marchés financiers officially approved Melanion Capital’s Bitcoin-linked ETF.The news comes as American ETF provider ProShares prepares to launch its Bitcoin futures-based ETF on the New York Stock Exchange on Tuesday. According to Bloomberg analyst Eric Balchunas, Valkyrie’s Bitcoin futures-based ETF is likely to launch this week.

'All bears will die' — Bitcoin metric prepares to flip green for the first time in 6 months

'All bears will die' — Bitcoin metric prepares to flip green for the first time in 6 months

A “favorite” Bitcoin (BTC) price signal could be about to turn bullish — and upside has always resulted, data shows.As noted by podcast host Preston Pysh on Oct. 18, the Long-Term & Short-Term Holder Realized Price Ratio (LTHSTH-RPR) looks primed to print a bull flag.Chart hints at return of the bullsIt may sound wordy, but LTHSTH-RPR is one of the most accurate Bitcoin price indicators. Its creator, Bitcoin 2021 conference organizer Dylan LeClair, confirmed his own bullishness based on its readings in late September.“TLDR: The lower the Short-Term:Long-Term Realized Price Ratio goes the more bullish I will become,” he wrote in an explanatory Twitter thread. “In the end, all bears will die.”Bitcoin LTHSTH-RPR chart. Source: Preston Pysh/ TwitterNow, with the indicator trending down for several months, it is high time for a rebirth — and BTC/USD has always benefited as a result.Under the hood, LTHSTH-RPR shows the cost basis of long-term holders and short-term holders. A long-term holder is defined by on-chain analytics firm Glassnode as an address holdings coins which have not moved in at least 155 days.“When the STH:LTH Realized Price Ratio is increasing, this means that STH cost basis is increasing relative to LTH cost basis, and vis versa,” LeClair added.“BTC rises when the marginal seller is exhausted. This is why you see the cost basis of LTHs stay stagnant during explosive bull runs, while the cost basis of STHs (many of whom are new market participants) explode – there are simply not enough coins to go around.”So far, LTH cost basis has not been eclipsed by STH cost basis — when this happens, the current downtrend should end.”Up only” remains the narrativeAs Cointelegraph reported, LTHSTH-RPR is just one of a number of BTC price metrics to have buoyed the bulls in recent weeks.Related: All-time high weekly close — 5 things to watch in Bitcoin this weekEverything from on-chain metrics to network fundamentals and even pure math suggests that further upside is imminent for Bitcoin — widely expected from Q4 of the year after a halving event.Nonetheless, analysts are already monitoring the market for an exit. The impact of this week’s exchange-traded fund (ETF) launches is also not anticipated to be a market mover in the short term.

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