Crypto ETFs: The Benefits You Love and the Risks You Didn’t See!
With ETFs now hoarding nearly as much Bitcoin as the enigmatic Satoshi Nakamoto, we’ve stepped into a thrilling new chapter of the crypto saga. The establishment’s growing acquisition of the original token opens the door to a world of risks but also tantalizing opportunities.
In fact, US-based Bitcoin ETFs have skyrocketed in popularity, now commanding over 1 million tokens—accounting for nearly 5% of the total Bitcoin supply. That’s a staggering amount, rivaling the legendary stash long held in Satoshi’s wallet.
But hold on—there’s more! Rumors swirl that a prominent Trump ally in the Senate is pushing a bold initiative to sell a portion of the Federal Reserve’s gold to amass a whopping 1 million Bitcoin for the US government’s very own crypto reserve.
Meanwhile, the tech giant MicroStrategy, led by the visionary Michael Saylor, boasts a Bitcoin treasure trove worth over $38 billion, continually leveraging capital markets to expand its holdings.
Remember the early days when Bitcoin was just a whisper among young, libertarian tech enthusiasts? They dreamt of a decentralized financial system—one free from the clutches of Wall Street and government oversight.
Bitwise Files For 10 Crypto Index ETFs, Gets Investment From Ripple For XRP ETF
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But let’s fast forward to the present, where these long-standing institutions are gradually taking the reins of the Bitcoin market.
Mark Connors, founder and chief investment strategist at Risk Dimensions, suggests that if the US were to establish a national Bitcoin stockpile, it could trigger a global rush for the cryptocurrency.
With such concentration risk, it’s essential to address the potential pitfalls.
On one hand, there’s a growing optimism that Bitcoin’s price will continue its upward trajectory, fueled by insatiable demand.
Unlike traditional stock ownership, the Bitcoin blockchain’s architecture prevents any single investor from exerting control over its operations, making it a unique asset in the financial landscape.
In recent weeks, Bitcoin and Ethereum ETFs in the US have experienced record-breaking net inflows. In November alone, these ETFs saw over $7.54 billion in monthly net inflows, eclipsing the previous high set back in February.
Ethereum ETFs, which launched in July 2024, are also making waves, raking in net inflows of $467 million between November 25 and November 29—largely thanks to BlackRock’s ETHA, which accounted for $300 million.
Interestingly, Ethereum is closing in on Bitcoin in the ETF game, as its spot ETFs recorded daily net inflows of $332 million, outpacing Bitcoin’s $320 million during the same timeframe.
Despite Ethereum’s rising star, Bitcoin ETFs still stand tall, with BlackRock’s iShares Bitcoin Trust (IBIT) accumulating a staggering $48 billion since its inception, followed by Grayscale’s GBTC and Fidelity’s FBTC.
Crypto’s Victory Lap Lacks Bitcoin’s Six-Figure Mark
Despite a $1.2T surge in the crypto market following Trump’s win, Bitcoin struggles to surpass the $100K milestone.
As Bitcoin hovers around $96,000, the excitement builds around the psychological $100,000 threshold.
“While inflows into ETH ETFs are starting to slow, Bitcoin ETFs continue receiving robust inflows as the crypto approaches that critical $100K mark,” noted BRN analyst Valentin Fournier.
However, inflows into ETH ETFs appear to be slowing after a recent surge, and the token’s failure to break above $3,700 may signal a potential pullback. BTC ETFs, on the other hand, continue to attract inflows as the crypto edges closer to the critical $100K mark.
— BRN (@thebrn_co) December 3, 2024
Elsewhere in the Crypto World
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Blockcast: Insights from the Crypto Frontlines
In this captivating episode, Takatoshi Shibayama chats with Jason Choi, a general partner at the crypto prop shop Tangent. They dive deep into the intricacies of crypto markets, meme coin supercycles, and the evolution of project evaluation from mere hype to substantial real-world utility.
Catch previous episodes of Blockcast on Podpage, featuring insights from heavyweights like Peter Hui (Moongate), Luca Prosperi (M^0), Charles Hoskinson (Cardano), Aneirin Flynn (Failsafe), and Yat Siu (Animoca Brands).
Blockcast 49 | Navigating Cycles, Macro Trends, and Real Utility with Tangent’s Jason Choi
Join Jason Choi of Tangent as he unpacks crypto supercycles, macro trends, and the transition from hype to real-world application. Discover how a seasoned trader and VC perceives the future of blockchain.
Upcoming Events
BRN on Money FM (Singapore, December 4, 5:10 PM)
BRN analyst Valentin Fournier will be LIVE on Money FM Singapore’s “The Wealth Tracker,” diving into Bitcoin’s future. Don’t miss it—tune in here at 5:10 PM on December 4!
Consensus (Hong Kong, February 18-20)
Consensus is making its way to Hong Kong, uniting the industry’s most influential voices from both East and West. This event promises dynamic discussions and invaluable networking opportunities.
Join global leaders in tech and finance as they tackle critical issues, unveil groundbreaking developments, and share their visionary insights for the future.
Use promo code BLOCKDESK20 at checkout for a 20% discount on tickets here.
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