All articles tagged with #spot etfs
BlackRock ramped up its crypto exposure, adding about $1.04B to Bitcoin via the iShares Bitcoin Trust and roughly $219M to Ethereum via the iShares Ethereum Trust from Jan 12–16, pushing weekly crypto ETF inflows to around $1.25B and helping Bitcoin hover near $95,000 while Ethereum stays above $3,000.
JPMorgan has stated that bitcoin remains overbought despite a recent correction, with spot ETFs experiencing significant outflows in the past week. The bank anticipates that profit-taking in bitcoin could persist into the upcoming halving event, as the cryptocurrency market suffered a sharp correction before rebounding. JPMorgan's analysts highlighted a slowdown in net inflows into spot bitcoin ETFs and suggested that profit-taking is likely to continue, especially given the overbought positioning in the market.
Bitcoin has surged past $47,000 for the first time since the approval of 11 spot ETFs by the US Securities Exchange Commission last month. The rally is being driven by increased investor interest following the ETF approvals, with Bitcoin approaching the $50,000 mark. Flows in spot Bitcoin ETFs have also seen significant movement, with the Grayscale Bitcoin Trust losing over $6 billion in flows while competitors like iBIT and Fidelity have gained substantial inflows.
The trading volume of the ProShares Bitcoin Strategy ETF (BITO) has plummeted by 75% since the launch of spot ETFs directly investing in cryptocurrency in the U.S. on Jan. 11. Meanwhile, spot ETFs have seen a cumulative trading volume of $14 billion in the first week, surpassing all other ETFs launched in 2023. The shift in focus to spot ETFs is attributed to their ability to provide exposure to bitcoin without the complexities of storing the asset, unlike futures-based ETFs like BITO. Despite the decline in BITO's volume, it is expected to remain an integral part of the bitcoin ETF space as some authorized participants may continue to rely on regulated means of hedging themselves, such as long CME futures or long BITO when creating shares.
JPMorgan analysts have expressed skepticism about the recent crypto rally, stating that it is "rather overdone." They believe that the launch of bitcoin spot ETFs in the US is unlikely to attract fresh capital and that the upcoming bitcoin halving event is already priced in. The analysts also noted that the approval of spot ETFs by the SEC does not indicate a significant regulatory shift towards the crypto industry. They argue that existing bitcoin products and mining companies would likely benefit from spot ETFs, while new investors have shown limited interest in similar funds in other countries.
The number of Bitcoin transactions involving at least $100,000 worth of BTC reached a year-to-date high of 23,400 last week, indicating increased activity by whales and institutions. The rise in institutional activity, along with the anticipation of spot-based exchange-traded funds (ETFs) being approved by the U.S. Securities and Exchange Commission (SEC) in early 2022, has boosted Bitcoin's market value. Additionally, retail investors have become more active, with small entities' onchain activity index reaching a new year-to-date high. This increased participation from both large and small investors suggests growing interest and potential for a sustained bull market in cryptocurrencies.