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 Tuesday! Here’s what you need to know today in crypto: |
| Ether reaches levels not seen in almost two years. Starknet’s STRK begins trading at $5 after its huge airdrop. Demand for bitcoin ETFs accelerated again last week, raking in a record $2.4 billion. |
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CoinDesk 20 Index: 1,978 +0.1%
Bitcoin (BTC): $52,353 −0.1%
Ether (ETC): $2,950 +1.3%
S&P 500: 5,005.57 −0.5%
Gold: $2,039 +1.2%
Nikkei 225: $2,039 +1.2% |
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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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Ether, the second-largest cryptocurrency by market value, reached levels not seen for almost two years on Monday as investors anticipated approval of spot ether exchange-traded-funds (ETFs) in the U.S. Ether (ETH) climbed to $2,984 yesterday, the highest level since April 26, 2022, according to data from TradingView. Ether is now hovering around $2,933. In the short term, analysts expect ETH to move higher, possibly reaching $3,600. “We are very close in this move to levels around $3,150-$3,300,” said Kenny Hearn, SwissOne Capital’s chief investment officer. “The next level after that would be $3,600 and we think this is quite easily attainable in the next month or so as the alts continue to play catch up.” Bitcoin, the largest cryptocurrency by market capitalization, was little changed on Tuesday. Altcoins gaining included Filecoin’s FIL, which climbed 17%, and Hedera’s HBAR, which added 8%. |
Ethereum rollup Starknet initiated the distribution of 728 million tokens to around 1.3 million addresses in what is being dubbed the largest airdrop of the year. Starknet token’s STRK pre-launch perpetual futures were trading at $1.80 on decentralized futures platform Aevo. The token traded as high as $5 on Kucoin minutes after it was released and has since slumped to $3.50 in a volatile opening. With an initial total supply of 10 billion tokens, the fully diluted value (FDV), the theoretical market capitalization if the entirety of its supply were in circulation stands at $35 billion. The actual market cap, which is the current circulating supply multiplied by the current price, is at $2.32 billion. Demand for bitcoin (BTC) exchange-traded funds accelerated again last week as they raked in a record $2.4 billion of the $2.45 billion that flowed into digital asset investment products, crypto asset management firm CoinShares said Monday. Allocations to the newly approved U.S.-based spot bitcoin ETFs overwhelmed the $623 million outflows from Grayscale's Bitcoin Trust (GBTC), the incumbent fund that converted into an ETF structure. BlackRock's IBIT and Fidelity's FBTC attracted $1.6 billion and $648 million over the past week, respectively. "This represents a significant acceleration of net inflows, distributed widely among various providers, indicating an increasing interest in spot-based ETFs," said James Butterfill, CoinShares' head of research. |
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Market Insight: BTC Order Books Are Most Liquid Since October |
As predicted in December, the U.S.-based spot bitcoin (BTC) exchange-traded funds (ETFs) approved in January are impacting not only the cryptocurrency's price, but also order book liquidity, or the ability to trade at stable prices. These effects are increasingly evident a month after the nearly a dozen ETFs began trading. Early Tuesday, bitcoin's 2% market depth across 33 centralized exchanges, or the combined value of buy and sell orders within 2% of the market price, rose to $539 million. That's the highest since October and a roughly 30% increase since the spot ETFs hit the market on Jan. 11, according to data tracked by Paris-based Kaiko. |
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| The chart shows notional open interest or the dollar value of the number of active ether futures contracts on the CME. Open interest is fast closing on the $1 billion mark for the first time since late 2021, indicating renewed investor interest in trading ether.Source: Velo Data |
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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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