The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Friday! Here’s what you need to know today in crypto: |
- Bitcoin regains $41,000 as crypto market ticks upward.
- ARK Invest sold $42.8 million of BITO and purchased $62.3 million of its own ETF in last week.
- Celo developers evaluating proposals for migration to become Ethereum layer 2.
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Looking for the premier Bitcoin ETF? Look for Grayscale Bitcoin Trust ETF (Ticker: GBTC). GBTC is the world’s largest spot bitcoin ETF with $26.6B in AUM as of 1/11/24. It is also the world’s oldest Bitcoin fund, first created in 2013 to give investors secure and familiar access to Bitcoin. GBTC is managed by Grayscale, one of the only asset managers with a decade of experience operating a Bitcoin investment vehicle. Remember, Bitcoin investing begins with GBTC. Find ticker: GBTC in your brokerage account or ask your financial advisor today. Grayscale Bitcoin Trust (BTC) (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903 - 2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. Foreside Fund Services, LLC is the Marketing Agent for the Trust. An investment in the Trust involves risks, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. Extreme volatility of trading prices that many digital assets, including Bitcoin, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of GBTC and the shares could lose all or substantially all of their value. |
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CoinDesk 20 Index: 1,594 +2.1%
Bitcoin (BTC): $41,350 +3.2%
Ether (ETC): $2,252 +1.5%
S&P 500: 4,894.16 +0.5%
Gold: $2,024 +0.3%
Nikkei 225: $2,024 +0.3% |
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Crypto prices ticked upward during the European morning following a sedate Asian session. Bitcoin reached $41,250 at around 11:45 UTC to show gains of about 2.6% in the last 24 hours, while the CoinDesk 20 Index, a liquid index that tracks the highest tokens by capitalization, was up about 1.6%. Solana's SOL and Avalanche's AVAX were among those leading the gains, showing green candles to the tune of 3.7% and 5.7% respectively. Nonetheless, the crypto market remains around 14% down on its highs immediately following the approval of spot bitcoin ETFs in the U.S. earlier this month. |
ARK Invest has sold a total of 2,226,191 shares of the ProShares Bitcoin Trust ETF since Jan. 19, worth around $42.8 million at Thursday's closing price of $19.22, from its Next Generation Internet ETF (ARKW). Meanwhile, it has bought 1,563,619 shares in the ARK 21 Shares Bitcoin ETF (ARKB), worth approximately $62.3 million. ARK held BITO as a short-term play having offloaded its shares of the Grayscale Bitcoin Trust (GBTC) late last year, in anticipation of the approval of spot bitcoin ETFs in the U.S., with plans to swap BITO for a spot bitcoin ETF once the approval came. ARKW now holds $91.4 million of ARKB, constituting a 5.98% weighting of the fund's total value. Its BITO shares now number just 366,128 at a value of $7 million, a 0.46% weighting. Developers behind the Celo blockchain have been evaluating technical proposals from teams who might provide technology as the project migrates to become a new layer-2 network atop Ethereum, a search which appears to be reaching a conclusion. In a blog post on Thursday, Tim Moreton, CEO of cLabs, the leading developer behind Celo, wrote that "as we wrap up the technical evaluations, we’re moving to evaluating the non-technical dimensions described in the framework." Some of the biggest players in the blockchain industry were vying for the mandate: Optimism, Polygon, zkSync and Arbitrum. Moreton didn't provide a specific timeline for when a final recommendation might come about, writing, "We're working as fast as we can to get a comprehensive proposal that we feel confident proposing." |
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Market Insight: Bitcoin ETF Flows Show Negative Trend For First Time Since Launch |
The recently listed spot bitcoin ETFs are seeing combined negative flows for the first time since they opened for trade on Jan. 11. Numbers compiled by CoinDesk from the issuers' websites show total bitcoin held by all of the spot ETFs (GBTC included) as of Jan. 24 of about 649,000 versus more than 660,000 a week earlier, a decline of roughly 11,000 tokens. The only fund that experienced actual negative flows over the week was GBTC, which saw its total bitcoin in trust fall to 523,516 from 592,098. Among the other nine funds, BlackRock’s IBIT and Fidelity’s FBTC are leading the way, with each now holding more than 40,000 BTC as of Jan. 24 versus 20,000-25,000 for each one week ago. However, inflows for both funds have slowed over the past several days. BlackRock, for example, added just 1,663 tokens on Jan. 24, its weakest daily addition since opening for business, and down from 8,705 on Jan. 17. |
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Grayscale is the world’s largest crypto asset manager*. We enable investors to access the digital economy through a family of regulated and future-forward investment products. Our decade-long track record and deep expertise as a crypto-specialist means that investors, advisors, and allocators turn to us for both investment insights and innovative products. Crypto investing begins with Grayscale. *By AUM as of 1/16/24. Investing involves risk and possible loss of principal. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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