The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Thursday! Here’s what you need to know today in crypto: |
- Bitcoin is attempting to push $45,000, gaining almost 5% on the day.
- Spot trading volumes on centralized exchanges rose for the fourth month in January.
- BlackRock and Fidelity’s spot bitcoin ETFs have an advantage over Grayscale, said JPMorgan.
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CoinDesk 20 Index: 1,716 +4.1%
Bitcoin (BTC): $44,861 +4.5%
Ether (ETC): $2,425 +2.8%
S&P 500: 4,995.06 +0.8%
Gold: $2,050 +0.7%
Nikkei 225: $2,050 +0.7% |
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GBTC is now an ETF. Grayscale Bitcoin Trust ETF was first created in 2013 as the original Bitcoin fund helping investors gain secure and familiar access to Bitcoin. Today, GBTC is the world’s largest Bitcoin ETF with $26.6B in AUM as of 1/11/24, offering even more investors with convenient exposure to the world’s most popular cryptocurrency. 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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Bitcoin rallied to a four-week high approaching $45,000 on Thursday amid record highs in U.S. equity indexes. Bitcoin, which fell as low as $42,700 on Wednesday, climbed almost 5% to $44,800, the highest since Jan. 11, according to CoinDesk data. “Technically speaking, bitcoin has broken out of a range and could be looking for a push to a fresh yearly high through $50,000,” said LMAX Digital in a morning note. According to Laurent Kssis, a crypto ETP specialist at CEC Capital: “This pump is driven by leverage, i.e the open interest on BTC contracts has increased by $982 million in less than 24 hours.” Kssis said he remains cautious, and the $40,000 level could be tested over the weekend. “But overall liquidation indicates a further small appreciation for BTC which will break the key 45k support barrier.” Ether also gained, adding 3% to a two-week high after asset managers Ark Invest and 21Shares amended their joint spot ETH exchange-traded fund (ETF) filing. The CoinDesk 20 rose 4%. |
Spot trading volume across centralized crypto exchanges rose for the fourth consecutive month in January, climbing to a level last seen in June 2022 as the approval of bitcoin ETFs sparked renewed interest in digital assets. Volume increased 4.45% from December to $1.40 trillion, according to CCData. The price of bitcoin (BTC) surged going into the Jan. 10 ETF approval but mostly fell after that. “The price action following the highly anticipated approval suggests that the sell-off marked the end of an uptrend that had persisted for months,” said CCData. Binance remains the largest cryptocurrency exchange by trading volume, with volume rising 2.73% in January to $473 billion. It holds a market share of 31.3% but did see its spot share gradually decline over 2023 as the company faced an array of charges from regulators that eventually forced founder and CEO Changpeng "CZ" Zhao to step down.
There is evidence the Blackrock (BLK) and Fidelity spot bitcoin (BTC) exchange-traded funds (ETFs) already have an advantage over Grayscale when it comes to certain liquidity metrics linked to market breadth, JPMorgan (JPM) said in a research report Wednesday. Even though outflows from Grayscale’s GBTC slowed in the fourth week following approval by the U.S. Securities and Exchange Commission (SEC), the fund is expected to lose out to the newly created ETFs, and in particular to the Blackrock and Fidelity products, if it doesn't make a meaningful cut to its fees, the report said. Grayscale charges the most among spot bitcoin ETF issuers. It dropped its 2% management fee to 1.5% as part of its conversion to a spot bitcoin ETF, but is still much more expensive than rival offerings.
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Market Insight: CME Volume Reached Highest in 3 Years |
Derivatives giant Chicago Mercantile Exchange (CME) witnessed a surge in trading volume in January as the U.S. saw spot bitcoin exchange-traded funds (ETFs) win Securities and Exchange Commission (SEC) approval. The total derivatives trading volume on CME rose 35% in January to $94.9 billion, according to data provided by CCData. This is the highest recorded trading volume for the exchange since October 2021. January saw the much-anticipated approval of spot bitcoin ETFs in the U.S, an important milestone for institutional investors as the products offer them exposure to the world’s largest cryptocurrency by market value. CME is a Chicago-based firm whose business covers a wide span of financial, commodity and agricultural futures and options. Large institutions use CME to trade bitcoin futures. Futures are a type of derivatives contract that requires buyers to purchase bitcoin at a predetermined price at a later date. They’re essentially a hedge against a future price movement. |
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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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