By Marcus Sotiriou, Analyst at the publicly listed digital asset broker GlobalBlock
The crypto market cap fell back below $1 trillion over the weekend, after the Jackson Hole symposium where Federal Reserve chairman Powell reaffirmed the hawkish stance of the U.S. central bank.
Meanwhile, the Securities and Exchange Commission has delayed yet another decision on VanEck’s latest bid to launch a spot Bitcoin exchange-traded fund (ETF). VanEck was previously denied a spot Bitcoin ETF in November last year. The date which the SEC will make their decision has been changed from August 27th to October 11th, which coincides with when many predict the Ethereum Merge will occur. If the application gets approved and we do actually see the Ethereum Merge come to fruition, this could lead to renewed interest in the crypto market, at a time when retail sentiment is at yearly lows.
Despite retail interest and liquidity in the crypto market being low, Bitcoin whales may have started to accumulate again. Data from Coinmetrics shows that the 30-day change in Bitcoin held by Bitcoin whales (addresses with 1k-10k Bitcoin) has turned from negative to positive in the past week or so. Bitcoin whales could be deciding that $20,000 is a great deal with a long-term outlook.
Crypto investors are now moving to the ongoing ETFSwap (ETFS) presale as Spot Bitcoin ETFs surge in popularity.
Crypto investors are now looking into ETFSwap (ETFS) amidst surging interest in Spot Bitcoin ETFs. With ETFSwap (ETFS), users can access both decentralized finance (DeFi) and the conventional exchange-traded fund (ETF) market without having to purchase any assets directly.
Investors can profit from a closer integration between these two markets by trading and using particular platform features with different tokenized ETFs. These tokenized exchange-traded funds (ETFs) replicate the performance of significant institutional cryptocurrency ETFs, such as Blackrock’s IBIT, which oversees $17.6 billion in assets.
Increasing Crypto Investor Confidence In Spot Bitcoin ETFs
The emergence of numerous cryptocurrency exchange-traded funds (ETFs) has been a notable development in the market thus far. Spot Bitcoin ETFs in particular, have now taken a majority of the market share of crypto ETFs. The ETFs went live immediately after they gained approval from the US Securities and Exchange Commission (SEC) in January and now represent 90% of the market share of daily trading activity for ETFs that provide price exposure to bitcoin.
In this regard, ETFSwap (ETFS) has distinguished itself as a top-notch DeFi platform, breaking into the ETF investing world. At the core of its model, ETFSwap (ETFS) is a DeFi platform that is revolutionizing the world of ETF investments. ETFSwap (ETFS) is built on blockchain technology, allowing it to provide a seamless ETF investing experience for both institutional and retail investors.
The ETFSwap (ETFS) platform is equipped with many tokenized ETFs of precious metals, cryptocurrencies, commodities, and ETFs tracking fixed-income investment vehicles. These tokenized ETFs can be easily bought and sold like conventional ETFs, albeit with cryptocurrencies on the ETFSwap (ETFS) platform.
Notably, ETFSwap’s (ETFS) use of blockchain technology buffed the platform’s security and transparency, making it impossible for third parties and middlemen to interfere. As a result, investors can start trading easily without having to undergo KYC registrations. Investors only need to connect their digital wallets to the platform and start trading tokenized ETFs 24/7.
Another key perk of the ETFSwap (ETFS) platform is the ability of users to trade fractionalized ETF shares with up to 10X leverage, a feature extremely appealing to retail investors.
Taking into account these impressive features and the long-term objective of ETFSwap (ETFS) within the surging popularity of Spot Bitcoin ETFs, crypto investors are now looking to position themselves on the platform. This interesting potential and bullish sentiment has allowed ETFSwap (ETFS) to easily raise $750,000 within 72 hours of its private funding round, which has also flowed into its ongoing presale.
Expectations And Investor Sentiment Toward ETFSwap
ETFSwap (ETFS) is currently in its presale round, where 4almost 0% of the total circulating supply of its utility token ETFS has already been sold to early investors. As a utility token, ETFS unlocks many utilities and benefits within the ETFSwap (ETFS) ecosystem and, consequently within the world of ETF investments.
Some of these benefits include staking rewards, lower fees, trading discounts, and an APR of up to 87%. Interestingly, presale data shows crypto investors are maneuvering to get their hands on ETFS. The demand for the ETFSwap (ETFS) token has been exceptional, with over 30 million tokens sold already.
The first presale round initial presale is still selling for $0.00854 per token, and participants can get an 18% bonus on their purchase. On the other hand, it is anticipated that the next presale stage will sell for $0.01831 per ETFS, and reaching the $1 mark is expected once it lists on major exchanges, which is an 100x increase.
Conclusion: Take Action In ETFS Presale
The crypto industry is home to different calibers of investors who are searching for potential projects to invest in and places to increase their portfolios. As a result, the recent immense popularity of Spot Bitcoin ETFs’ has placed ETFSwap (ETFS) in the limelight for investors looking to invest in ETFs. The ongoing ETFS presale is a great place to start as it offers investors a calculated way to enter the expanding cryptocurrency sector, and presale data suggests the earlier, the better. Due to the urgency created by limited availability, investors are encouraged to lock up their positions before allocations run out.
The recent approval and launch of spot Bitcoin ETFs have brought about notable changes in market dynamics. Among the most significant players affected is Grayscale, a leading institution in the crypto space.
Grayscale’s Bitcoin Holdings Experience Decline
Grayscale, known for its Bitcoin Trust (GBTC), held the highest BTC market capitalization among institutions. However, an in-depth analysis reveals a decline in its Bitcoin holdings over recent months.
From nearly 620,000 BTC in January, Grayscale’s holdings have dwindled to a little over 300,000 BTC at the time of reporting. This decline raises questions about the factors influencing institutional investment strategies in the crypto sector.
Spot Bitcoin ETFs Witness Fluctuating Flows
Following the launch of spot Bitcoin ETFs, the market has witnessed fluctuating flows across various platforms. While certain ETFs have experienced significant volume, others have recorded zero flows, indicating a mixed response from investors. BlackRock’s IBIT and Grayscale’s GBTC have been among the few to register notable flows, with both inflows and outflows observed in recent days.
Source: Coinglass
A closer look at the data reveals consecutive outflows in Bitcoin spot ETFs over the past few days, reminiscent of similar trends observed in March. On the 15th and 16th of April, outflows amounted to nearly $27 million and $58 million, respectively.
Despite these outflows, analysts point out that such fluctuations are not uncommon in the ETF market and may not necessarily indicate product failure.
Analysis Of Flow Patterns Provides Insight
Examining specific flow patterns offers valuable insights into investor behavior and market sentiment. While Grayscale’s GBTC experienced consecutive outflows, BlackRock’s IBIT saw inflows on certain days. This variance underscores the diverse strategies adopted by investors in response to the evolving crypto landscape.
Bitcoin market cap currently at $1.2 trillion. Chart: TradingView.com
It’s important to note that zero inflows on certain days are considered normal for ETFs, according to analysts. They emphasized that such occurrences are commonplace across various ETFs and should not be interpreted as a sign of product failure. Instead, they reflect the ebb and flow of investor interest in a rapidly evolving market.
Future Outlook For Bitcoin ETFs
As Bitcoin ETFs continue to gain traction, the market is poised for further evolution. While some platforms may experience fluctuations in flows, the overall trajectory of institutional investment in the crypto sector remains optimistic.
The approval and launch of spot Bitcoin ETFs have sparked shifts in market dynamics, impacting institutions like Grayscale and prompting fluctuations in ETF flows. Despite the volatility, analysts remain optimistic about the long-term prospects of Bitcoin ETFs and their role in shaping the future of finance.
Featured image from DataDrivenInvestor, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Bitcoin’s dominance within the cryptocurrency market has reached a three-year high, signaling strong demand for US spot Bitcoin ETF holding the largest digital asset and a challenging period for smaller tokens.
Bitcoin accounted for nearly 55% of the $2.4 trillion digital asset market at the end of last week, a level not seen since April 2021. On Saturday, in particular, BTC’s dominance jumped to 57% as it briefly touched the $67,000 mark.
The next largest tokens by market share include Ethereum (ETH), Tether’s USDT stablecoin, Binance exchange’s native token Binance Coin (BNB), and Solana (SOL).
BTC’s Rise Fueled By Successful US Bitcoin ETF Launches
According to Bloomberg, the recent success of the recently approved US spot Bitcoin ETFs from prominent issuers such as BlackRock and Fidelity Investments has played a significant role in Bitcoin’s rise.
These ETFs have garnered approximately $56 billion in assets, making their debut one of the most successful in fund category history.
BTC’s dominance chart shows its three-year high of 57% reached on Saturday. Source: BTC.D on TradingView.com
The inflows into these ETFs drove BTC to its current all-time high (ATH) of $73,798 in mid-March, a clear resistance level for the largest cryptocurrency on the market, as evidenced by its inability to consolidate above the $70,000 level following this achievement.
Although BTC is down about 6% since then, smaller digital assets such as Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) have seen more significant declines of nearly 30% over the past month.
This drop coincided with reduced expectations for looser US monetary policy settings, often fueling speculative gains.
Hong Kong-Listed ETFs Boosts Bitcoin And Ethereum
Institutional investors’ allocations to the US Bitcoin ETF have greatly influenced Bitcoin’s performance relative to the rest of the market. Benjamin Celermajer, director of digital-asset investment at Magnet Capital, noted that strong institutional demand is a key driver.
On Monday, Bitcoin and Ethereum, the second-largest cryptocurrency, saw notable price jumps following indications that asset managers are preparing to launch Hong Kong-listed ETFs on both tokens. Bitcoin rose 4.3% to $66,575, while ETH jumped 6.2% to $3,260.
These rallies had a positive impact on the broader crypto market, lifting other notable tokens such as Polygon (MATIC), Cardano (ADA), the dog-themed meme coin Dogecoin (DOGE), and Solana, which is now the top 5 cryptocurrency market winner, up over 8% on Monday.
Interestingly, the Bloomberg Galaxy Crypto Index, which measures the performance of the largest digital assets traded in US dollars, has more than tripled since the beginning of last year, marking a significant rebound from the bear market experienced in 2022.
Lastly, investors and traders eagerly anticipate the upcoming Bitcoin Halving, an event that will cut the new supply of the token in half, expected around April 20th.
Previous Halving events have acted as a tailwind for prices, although there are growing doubts about whether history will repeat itself given BTC’s recent all-time high achievement.
The 1-D chart shows BTC’s price consolidation above the $66,000 mark. Source: BTCUSD on TradingView.com
BTC has successfully maintained its position above the $66,000 threshold and has consolidated in this range. However, it is important to note that losses have accumulated over longer time frames.
Over the past fourteen and thirty days of trading, the cryptocurrency has experienced significant declines of over 21% and 24% respectively.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
