Displaying items by tag: bitcoin

Cboe Global Markets has listed five spot Ethereum ETFs set to begin trading in the US on July 23, 2024. Following the SEC's approval of Bitcoin ETFs earlier this year, market participants are eager for the new Ethereum ETFs.

 With Ethereum's market cap second only to Bitcoin, issuers such as Fidelity, iShares, Bitwise, VanEck, 21Shares, Invesco Galaxy, Franklin Templeton, and Grayscale have already listed Bitcoin ETFs and are now expanding to Ethereum. 

This move marks a significant milestone for institutional and retail crypto investments, reflecting growing global interest in cryptocurrency ETFs.

Finsum: Cryptos will be powered by its ability to enter more mainstream financial products over the coming decade. 

Bitcoin miners are pivoting to AI due to decreasing profitability in crypto mining. Houston-based Lancium and Denver-based Crusoe Energy Systems announced a multibillion-dollar deal to build a 200-megawatt data center near Abilene, Texas, to cater to AI companies. 

This project is the first phase of a 1.2-gigawatt build-out. At full capacity, it will be one of the largest AI data centers globally. The facility aims to utilize renewable energy and Crusoe’s technology to optimize energy usage. 

The Abilene center is expected to be operational by 2025, marking a significant shift in energy use and data center strategies.

Finsum: We are really going to see the stresses of energy on alternatives like crypto this year.

Bitcoin has experienced a decline, dropping about 9% from its recent high of over $71,000 to below $65,000. Barry Bannister, chief equity strategist at Stifel, suggests this might indicate an impending correction in the S&P 500.

Bitcoin's have been tightly related to the Nasdaq 100, which closely mirrors the S&P 500 with its top tech holdings. Bannister argues that Bitcoin's recent drop reflects uncertainty about the Federal Reserve's potential rate cuts amid ongoing inflation pressures. 

Despite Bannister's caution, many strategists remain optimistic, raising stock market targets and betting on a soft economic landing. However, concerns persist about the market's narrow rally and the potential for future volatility as AI and other high-flying stocks continue to dominate.

Finsum: Many investors are putting buy on bitcoin, so the future is uncertain to say the least. 

As one of the leading asset managers, BlackRock, shook the market his week when, through regulatory filings, it disclosed that its income funds are invested in its own Bitcoin ETFs. The two important funds were the Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX),  which acquired $3.56 million and $485,000 worth of iShares Bitcoin Trust (IBIT) respectively. 

These investments are a minor part of the $37.4 billion and $776.4 million portfolios of BSIIX and MAWIX, respectively. As of May 24, the iShares Bitcoin Trust held about $19.61 billion in Bitcoin, which trails the Grayscale Bitcoin Trust (GBTC).  

Globally, spot Bitcoin ETFs hold over 1 million Bitcoin, valued at more than $68 billion, which is nearly 5.10% of Bitcoin's circulating supply of over 19.7 million BTC. Since their launch in January, over 600 investment firms, including major institutions like Morgan Stanley, JPMorgan, and Wells Fargo, have invested in spot Bitcoin ETFs, with Millennium Management being the largest accumulator at $1.9 billion.

Finsum: While this fund cannibalism isn’t new, it’s definitely something to be aware of when looking at income funds. 

Bitcoin faced a nearly 6% downturn on Wednesday, marking its weakest monthly performance since late 2022, as investors divested from cryptocurrencies prior to the Federal Reserve's interest rate decision. The primary cryptocurrency globally witnessed a drop of nearly 16% in April, as investors cashed out gains from a scorching rally that propelled prices above $70,000.

Bitcoin saw a decline of up to 5.6%, hitting its lowest point since late February, hovering at $57,001, while ether saw more modest losses, down 3.6% at $2,857, also reaching its lowest level since February.  Despite being down 22% from March's peak, bitcoin remains up 35% this year and has doubled in value since this time last year, largely due to significant capital inflows into newly established exchange-traded funds since January. 

Crypto-related stocks, including Coinbase, Riot, and Marathon Digital, dipped in U.S. premarket trading, reflecting broader market uncertainties surrounding the Federal Open Market Committee's stance on interest rates.

Finsum: The original link between bitcoin and inflation/interest rates has deteriorated, but regulation will clear up the future for cryptocurrency.