blackrock

NIKOLAUS: Retail Keeps Selling Bitcoin to ETFs, Don't Sell Your BTC To Whales

Published

3 hours ago

October 1, 2024

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What We’re Reading: HODL15Capital

For the past few weeks I have been keeping up with HODL15Capital on X, who has done a tremendous job at posting some of the quickest incoming market data regarding the U.S. spot Bitcoin ETFs. Recently, there have been two charts in particular he has posted that have caught my eye.

Nine months ago, the SEC approved spot Bitcoin ETFs for trading, and since then, the ETFs have seen huge inflows during eight out of those nine months. Since their inception, these ETFs have seen inflows of 312,488 BTC while miners have only created 169,942 new bitcoin.

Number of Bitcoin purchased by 🇺🇸 #Bitcoin ETFs each month👇$IBIT $FBTC $GBTC $ARKB $BITB $HODL $BRRR $EZBC $BTCW pic.twitter.com/mpeurOCUcR
— HODL15Capital 🇺🇸 (@HODL15Capital) October 1, 2024

These ETFs have been the fastest growing ETFs in history, like BlackRock CEO Larry Fink stated, with no real signs of slowing down, especially as we head into a period of time that has been historically bullish for Bitcoin.

These ETFs are gobbling up all the available BTC leaving many thinking: Who could possibly be selling right now? And according to HODL15Capital, it appears to be smaller BTC holders, selling directly into the hands of the ETFs and institutions.

🚨 Small Bitcoin holders continue to sell to ETFs and $MSTR 🤷‍♂️ pic.twitter.com/hV42fDVlps
— HODL15Capital 🇺🇸 (@HODL15Capital) September 26, 2024

We’re seeing state pension funds, large institutions, wealthy investors and other major players buy and hold shares of these ETFs. Even ETF issuers like BlackRock are buying shares of its own Bitcoin ETF for their other funds. Long story short, I’m seeing smart money pouring into this asset class and, while that is great for the price of BTC, it pains me to watch smaller holders sell their bitcoin directly to the institutions.

Holding Bitcoin over the long term has been proven to be one of the best ways to build wealth. This is a real chance for those interested in investing for their future, who may not currently have proper savings, to start building up wealth in a sovereign way by accumulating BTC and holding the keys to their coins. Instead, these coins are being mostly “locked up” in these ETFs, where those who buy them can only redeem their shares for US dollars and don’t experience the benefits of the attributes that make bitcoin so unique (e.g, freedom to transact globally without permission from a third party).

Based on this data, I fear many of these smaller bitcoin holders are letting a great opportunity to build wealth via holding BTC slip through their fingers. Also, buy not buying bitcoin directly and holding it in self-custody, as opposed to purchasing shares of the ETFs, investors are missing out on what it truly means to own censorship resistant sovereign money. Such a feeling often has the effect of making investors hold bitcoin for the long-term as opposed selling in the short-term based on fear.

The smart money knows exactly what opportunity is here, and they don’t care too much about the freedom aspects of Bitcoin. They’re just filling their BTC bags in a vehicle that suits them better.

Cheap BTC does not last forever. Major players will continue scooping up huge swaths of shares of the ETFs as we hit a new all time highs and beyond. If there’s one thing I leave you with today: Don’t sell your BTC to the corporations, and hold the keys to your coins.

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Bitcoin ETF

SEC OKs options trading for BlackRock iShares Bitcoin Trust

Published

1 week ago

September 21, 2024

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The U.S. Securities and Exchange Commission granted approval for Nasdaq to list and trade options on BlackRock’s iShares Bitcoin Trust.

Per the details shared in the official filing on Sept. 20, the SEC’s approval comes after a lengthy review process that started on Jan. 9, 2024. That was when Nasdaq initially filed the proposal to trade options on exchange-traded products.

Nasdaq consistently followed up on its proposal with multiple amendments, which began on Jan 11. Over the following months, the exchange submitted additional amendments and information regarding IBIT and other Bitcoin-based (BTC) ETPs.

SEC’s approval involved multiple stages of review

After almost eight months of review, the SEC finally gave the greenlight for Nasdaq’s proposal. The commission stated that the exchange even proposed to modify its rules to list and trade options on IBIT.

According to the official filing, options on IBIT will be physically settled with American-style exercise. Nasdaq also highlighted that IBIT options will be under the exchange’s continued listing standards.

“Options on IBIT will be subject to the Exchange rules that currently apply to the listing and trading of all ETF options on the Exchange,” the filing reads.

Crypto analysts say decision is bullish

Reacting to the SEC’s decision, several key crypto traders and analysts took to X to share their opinion. Crypto trader Ash Crypto tweeted that this is ultra bullish.

Senior ETF analyst Eric Balchunas also shared details of the approval on X. Balchunas tweeted his assumption that others will be approved in short order.

See below.

Balchunas also pinpointed this as a huge win for the Bitcoin ETFs, stating that this will attract more liquidity. However, he highlighted the fact that this is “just one stage of approval.”

The proposal still needs approval from the OCC and CFTC before the official listing.

I’m assuming others will be approved in short order. Huge win for the the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish). This is nice surprise re timing but not a shocker as @JSeyff and I gave 70% odds of approval by end of May. pic.twitter.com/a8mUGLOcKG
— Eric Balchunas (@EricBalchunas) September 20, 2024

“I’m assuming others will be approved in short order,” Balchunas added, calling it a “huge win” for Bitcoin ETFs “as it will attract more liquidity which will in turn attract more big fish.”

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blackrock

SEC Approves Options Trading on BlackRock’s Spot Bitcoin ETF IBIT

Published

2 weeks ago

September 21, 2024

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The U.S. Securities and Exchange Commission (SEC) has just granted approval for the listing and trading of options on BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT).

The approved options on the iShares Bitcoin Trust will be physically settled, meaning that when the option is exercised, Bitcoin will be delivered to fulfill the contract. These American-style options can be exercised at any time before the expiration date, providing flexibility for traders. According to the SEC, the listing will follow the same rules as options on other exchange-traded funds (ETFs), including position limits and margin requirements.

“I’m assuming others will be approved in short order,” said Bloomberg Senior ETF Analyst Eric Balchunas. “Huge win for the the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish). This is nice surprise re timing but not a shocker as James Seyffart and I gave 70% odds of approval by end of May.”

The SEC highlighted that this approval would allow investors to hedge their positions on Bitcoin, using the options market to mitigate the inherent volatility of BTC. The iShares Bitcoin Trust has been the most liquid spot Bitcoin ETF, which helped meet the requirements for trading options. The SEC also emphasized that extensive surveillance mechanisms would be in place to monitor potential market manipulation and ensure orderly trading.

“IBIT is the most liquid spot Bitcoin ETF and the 11th most liquid ETF in the U.S. by average volume (34,825,921 shares) and 18th largest by average notional ($1,246,060,738),” stated the SEC. “As of May 22, 2023, IBIT had approximately 193,956 shareholders.”

This approval by the SEC continues the trend of expanding regulated financial products based on Bitcoin, pushing it closer to full integration within the global financial system. The ability to trade options on a spot Bitcoin ETF provides new opportunities for institutional investors who wish to engage with the Bitcoin market while maintaining a higher level of risk management.

“Important note: This is just one stage of approval, the OCC and CFTC has to approve as well before they officially list,” Balchunas continued. “The other two don’t have a ‘clock’ so not sure when they’ll be approved. A big step tho nonetheless that the SEC came around.”

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Bitcoin

BlackRock Says Bitcoin a ‘Unique Diversifier’ Amid Geopolitical, Fiscal and Political Risks

Published

2 weeks ago

September 20, 2024

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Finance giant BlackRock is saying that Bitcoin (BTC) is a unique investment opportunity offering investors something much different than traditional assets.

BlackRock, a firm with over $10 trillion in assets under management, says in a new report that Bitcoin could act as a hedge against the United States’ mounting debt and other macroeconomic concerns.

“While Bitcoin has shown instances of short-term co-movements with equities and other ‘risk assets,’ over the longer term its fundamental drivers are starkly different, and in many cases inverted versus most traditional investment assets. As the global investment community grapples with rising geopolitical tensions, concerns over the state of US debt and deficits and increased political instability around the world, Bitcoin may be seen as an increasingly unique diversifier against some of these fiscal, monetary and geopolitical risk factors investors may face elsewhere in their portfolio.”

The report says the appeal of alternative reserve assets is growing amid concerns over the potential impact of US federal deficits and debt on the dollar.

“This dynamic appears to be also taking hold in other countries where debt accumulation has been significant. In our experience with clients to date, this explains a substantial portion of the recent broadening institutional interest in Bitcoin.”

BlackRock’s iShares Bitcoin Trust (IBIT) launched earlier this year, among other Bitcoin exchange-traded funds (ETFs). Bitcoin ETFs grant traders exposure to the top crypto asset without them having to actually purchase it.

Bitcoin is trading for $62,098 at time of writing, up nearly 4% in the last 24 hours.

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