Crypto Self-Custody and Identities

• How to store crypto assets in a self-custodial wallet
• How do crypto whales protect their identities?

How to store crypto assets in a self-custodial wallet

Key steps to getting started and setting up Trust Wallet

https://cointelegraph.com/news/how-to-store-crypto-assets-in-a-self-custodial-wallet

How do crypto whales protect their identities?

1. Origin of crypto whales

2. Tools for tracking crypto whale activity

3. Privacy measures used by crypto whales to protect their identities

4. Anonymity vs. compliance: The regulatory conundrum for crypto whales

https://cointelegraph.com/explained/how-do-crypto-whales-protect-their-identities

How do crypto whales protect their identities?

Tokenization of real-world assets is a rapidly emerging product category

• Generation Z and millennials choose crypto over stocks — Report, April 12, 2024
• El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin, April 12, 2024
• Circle enables USDC transfers for BlackRock’s first tokenized fund, April 11, 2024

El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin

1️⃣ A first for El Salvador, a first for Bitfinex Securities, the start of a huge new industry in real world asset tokenisation.

2️⃣ a new era of capital markets on Bitcoin, which will offer the local population a new way to access financial markets.

3️⃣ a testament to the transformative power of Bitcoin-based capital markets

----------------

Investors will soon be able to own a slice of a new 4,500-square-foot Hampton by Hilton hotel in El Salvador by buying tokenized shares issued on the Bitcoin layer 2 Liquid Network.

The country’s first-ever tokenized asset raise will be facilitated by Bitfinex Securities, the first licensed and registered digital asset provider in El Salvador, while the debt issued from Inversiones Laguardia S.A. de C.V.

The hotel will be constructed at El Salvador’s international airport, with Inversiones Laguardia looking to raise $6.25 million from crowdfunders in exchange for a 10% coupon over a five-year term.

“For the first time, investors who do not usually have the opportunity to invest in such assets have the opportunity to do so, while issuers in markets which have less access to capital, are able to tap into a new asset class to raise finance.”

Investors will need to make a minimum $1,000 investment to purchase the token under the ticker HILSV on the Liquid Network. Liquid was built by Blockstream in 2018, a Bitcoin-focused infrastructure firm led by long-time cypherpunk Adam Back.

El Salvador, widely known for its Bitcoin investment and adoption strategy, decided to expand into the real-world asset tokenization space in April 2023 when it granted Bitfinex a digital asset service provider license.

Bitfinex’s expansion marks a new era of capital markets on Bitcoin in El Salvador, which will offer the local population a new way to access financial markets.

“This capital raise not only marks our first venture in El Salvador but also stands as a testament to the transformative power of Bitcoin-based capital markets,”

https://cointelegraph.com/news/el-salvador-new-hilton-hotel-tap-into-tokenized-debt-bitcoin

Generation Z and millennials choose crypto over stocks — Report

... a shift in financial assets and investment strategies from those preferred by older generations. 

All these surveys paint a picture of how younger generations are diversifying their investment portfolios beyond real estate and traditional stocks, leaning heavily into the realm of cryptocurrencies.

https://cointelegraph.com/news/generation-z-and-millennials-choose-crypto-over-stocks-report

Circle enables USDC transfers for BlackRock’s first tokenized fund

Launched by BlackRock in March 2024, BUIDL is a tokenized fund that operates on the Ethereum blockchain to offer U.S. dollar yields through tokenization.

BUIDL allows investors to purchase tokens representing shares in the fund, which invests in assets like U.S. Treasury bills. The fund is referred to as the “digital liquidity fund” because it is digitized in the form of tokens on the Ethereum blockchain and operates as an ERC-20 token called BUIDL.

The new investment tool is the first tokenized fund introduced by BlackRock, which is also the operator of the fastest-growing spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States.

... tokenization of real-world assets is a rapidly emerging product category.

BlackRock is one of the biggest players in the cryptocurrency industry, operating the iShares Bitcoin Trust (IBIT) spot Bitcoin ETF, which holds 266,580 BTC, worth $18.5 billion as of April 10. 

In 2022, Circle started investing in the Circle Reserve Fund to manage a portion of the USDC reserves in cooperation with BlackRock. The firm expected its composition to continue to be around 20% cash and 80% short duration U.S. Treasuries.

The Circle Reserve Fund is a registered Rule 2a-7 government money market fund managed by BlackRock Advisors, and its portfolio consists of cash and short-dated U.S. Treasuries.

https://cointelegraph.com/news/circle-blackrock-transfers-usdc-buidl

Dollar Cost Averaging (DCA)

 #NFA #DYOR

Dollar-Cost Averaging (DCA) involves regularly purchasing a fixed dollar amount of an asset over time. 

The strategy aims to reduce volatility by spreading out buy orders. 

This approach allows for some purchases at lower prices and others at higher prices, making it attractive for assets with notable volatility, such as Bitcoin (BTC).

It's important to note that Bitcoin's volatility has been significantly higher compared to traditional assets. 

While DCA can be effective, it relies heavily on the investor's conviction in the chosen asset.

Dollar-cost averaging might be well-suited for new investors seeking to diversify their portfolios and navigate the often volatile landscape of crypto. 

This strategy helps mitigate the impact of short-term price fluctuations and volatility, allowing investors to benefit from the long-term growth potential of the asset. 

Dollar-cost averaging is a stress-free way to accumulate a position reflecting a range of short-term market conditions, including cheap and expensive, and avoiding too much risk concentration at a single moment in time.

Instead of attempting to time the market and make large lump-sum investments, which can be daunting and risky, DCA allows investors to steadily build their positions over time.

The optimal BTC investing strategy depends mainly on the risk tolerance of the investor, yet DCA might be a good way to accumulate BTC during the next bull market.

DCA into Bitcoin produces outsized returns

Investing $50 weekly, or $200 a month, in Bitcoin from July 2019 would yield substantial returns, reaching 345.9% by January 2024. Despite an initial investment totaling just over $13,000, the total value would soar to $58,193.

In contrast, investing in gold during the same period would result in a modest return of 24.9%, while the Dow Jones Industrial Average (DJI) generated less than 1% more than the most precious metal in the world.

https://cointelegraph.com/news/this-simple-bitcoin-investment-strategy-prevents-crypto-traders-from-being-liquidated

BTC Supply Shock

• New Bitcoin ETFs now hold 500,000 BTC, while GBTC outflows slow, Mar 30, 2024
• Bitcoin to attract $1T from institutions amid ‘raging bull market’ — Bitwise exec, Mar 30, 2024
• Bitcoin exchanges’ BTC balances have dropped almost $10B in 2024, Mar 30, 2024

Bitcoin exchanges’ BTC balances have dropped almost $10B in 2024

Bitcoin exchange withdrawal trends are clear as “pent up institutional demand” from the spot ETFs combines with the upcoming halving to squeeze the available BTC supply.

Data from on-chain analytics firm Glassnode shows that since Jan. 11, exchanges are down over 136,000 BTC.

As of March 28, the exchange info tracked by Glassnode held a combined 2,320,458 BTC — the lowest balance since April 2018.

The trend shows no sign of slowing. Glassnode shows that on March 27 alone, withdrawals totaled more than 22,000 BTC ($1.54 billion) — the third-largest daily tally of 2024.

ETF buying alone already represents a much larger buying force than the “new” BTC unlocked each day by miners.

After the upcoming block subsidy halving event in mid-April, that ratio will increase even more as the BTC supply expands by just 3.125 BTC per newly mined block.

"For the first time, Bitcoin will become harder than gold, with half its supply growth rate. Pent up institutional demand via the ETFs, a programmatic supply squeeze from the Halving and Bitcoin taking the title as the world's hardest asset. There's a lot to look forward to in April."

https://cointelegraph.com/news/bitcoin-exchanges-btc-balances-dropped-10b-2024

Bitcoin to attract $1T from institutions amid ‘raging bull market’ — Bitwise exec

“keep calm and take the long view.” ~ Bitwise’s Matthew Hougan

... the $12 billion flowing into ETFs since their launch is exciting and is “the most successful ETF launch of all time.” 

... once global wealth managers begin to allocate 1% of their portfolio into Bitcoin, this would mean $1 trillion in inflows into the space.

“*A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment*,” he added.

https://cointelegraph.com/news/bitcoin-1-trillion-bull-market-bitwise-chief

New Bitcoin ETFs now hold 500,000 BTC, while GBTC outflows slow

Nine of the 10 new spot Bitcoin (BTC) exchange-traded funds (ETFs) have accumulated over 500,000 BTC since launching in January, with their holdings now accounting for 2.54% of the current circulating supply.

This brings the amount of BTC held by the nine ETFs to a current worth of $35 billion over just 54 trading days.

In total, all United States spot Bitcoin funds, including Grayscale, hold 835,000 BTC, which is almost 4% of the entire supply.

https://cointelegraph.com/news/new-bitcoin-etfs-hold-500000-btc-gbtc-outflows-slow

Bullish Bitcoin

• BlackRock CEO ’very bullish’ on Bitcoin as its ETF crosses $17B, MAR 28, 2024
• Not just the halving: Why analysts are bullish on Bitcoin in 2024, MAR 28, 2024
• Bitcoin currently in ‘middle of the bull run’ — Grayscale report, MAR 28, 2024
• Bitcoin price reclaims $70K as Coinbase BTC supply hits 9-year low, MAR 25, 2024

BlackRock CEO ’very bullish’ on Bitcoin as its ETF crosses $17B

“IBIT is the fastest growing ETF in the history of ETFs. Nothing has gained assets as fast as IBIT in the history of ETFs,” ~ Larry Fink (https://www.foxbusiness.com/video/6349827399112)

IBIT has a strong start to trading, tallying $13.5 billion in flows in the first 11 weeks, with an $849 million daily high on March 12. 

IBIT averages a little over $260 million in inflows per trading day.

“We’re creating now a market that has more liquidity, more transparency and I'm pleasantly surprised. I would never have predicted it before we filed it that we were going to see this type of retail demand,”

“I’m very bullish on the long-term viability of Bitcoin,” the BlackRock CEO added.

IBIT currently holds $17.1 billion in Bitcoin, and took only two months to reach the $10 billion mark — a milestone that took the first gold ETF two years to reach.

https://cointelegraph.com/news/blackrock-bitcoin-etf-fastest-growing-etf-larry-fink

Not just the halving: Why analysts are bullish on Bitcoin in 2024

Next month, the Bitcoin halving will reduce daily BTC production by about 450 BTC from the current average daily amount of 900 BTC.

...the amount of supply cut pales compared to daily fiat flows in and out of crypto exchanges and Bitcoin exchange-traded funds (ETFs).

...overall demand for Bitcoin is a “bigger factor than tightening supply.”

“I am bullish for the next two years due to a combination of the halving, expectations for improved global liquidity, and the fact that so many coins have rotated to strong hands in the bear market, and so a relatively minor increase in demand can move the price quite a bit.” ~ investment researcher Lyn Alden

"...every attempt to push down prices has been met with relentless buying," ~ 10x Research CEO and head analyst Markus Thielen

...each time Bitcoin made new price breakouts in February 2013, February 2017, and November 2020, the price could grow s much as 189% after 180 days. Eventually, Bitcoin would top after nine to 11 months following the breakouts historically...

The current Bitcoin rally is the first time Bitcoin has posted a parabolic rise and hit a new all-time high before the block reward halving, eToro crypto analyst Simon Peters emphasized.

...the ongoing cycle is going to be “more institutional,” 

"...it’s important to note that whilst the ETFs have been a major contributor to the rally so far, they are not the only participants in the space. Other entities such as MicroStrategy and Bitcoin whales continue to accumulate too.”

Bitcoin Halving

Programmed to occur once per 210,000 blocks or roughly every four years, Bitcoin halvings are designed to maintain Bitcoin’s deficit and counteract inflation.

Since its launch in 2009, Bitcoin has come through three halving events in 2012, 2016 and 2020, cutting its miner incentive from the initial 50 BTC to the current 6.5 BTC. 

The soon-to-come Bitcoin halving in 2024 will further decrease the mining reward from 6.5 BTC to 3.125 BTC.

https://cointelegraph.com/news/bitcoin-halving-analysts-bullish-btc-price-2024

Bitcoin currently in ‘middle of the bull run’ — Grayscale report

spot Bitcoin ETF inflows, positive stablecoin inflows and decreasing BTC balance on exchanges.

In addition to an increase in intent to buy, evidenced by increased stablecoin supply, a lack of intent to sell supported by decreasing supply on exchanges is also an important factor backing Bitcoin’s rally.

Bull markets are particularly driven by euphoria, fear of missing out (FOMO) and speculative trading from retail investors. One of the ways to determine this is by analyzing retail market sentiment.

https://cointelegraph.com/news/bitcoin-currently-in-middle-of-the-bull-run-grayscale-report

Bitcoin price reclaims $70K as Coinbase BTC supply hits 9-year low

On the supply side, Bitcoin reserves on Coinbase reached a nine-year low of 344,856 BTC on March 18, showing that investors have resumed accumulating BTC off exchanges.

The last time BTC reserves on Coinbase were at similar lows was in 2015

The total Bitcoin balance in accumulation addresses has also rebounded to over 3.2 million BTC, nearing a record high, according to Glassnode’s chart.

In this case, accumulation addresses are those with over 10 BTC and no outgoing transactions or ties to centralized exchanges and mining firms.

Further showcasing the growing accumulation pattern, Bitcoin inflows to accumulation addresses hit a new all-time high of 25,300 BTC on March 22.

This suggests that big investors are likely betting on more upside after the recent 15%–20% drawdown from the all-time high of around $74,000.

In total, Bitcoin reserves on all exchanges hit a three-year low of 1.92 million BTC on March 25.

https://cointelegraph.com/news/btc-accumulation-restarted-coinbase-btc-supply-9-year-low

Anything That Can Be Tokenize Will Be Tokenized

• Over $1B in US Treasurys have now been tokenized on-chain，MAR 28, 2024
• BlackRock begins asset tokenization with launch of digital liquidity fund，MAR 19, 2024
• Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency，MAR 19, 2024

BlackRock begins asset tokenization with launch of digital liquidity fund

... “the next step forward” toward a single ledger, instantaneous settlement and ending illicit activities ...

BlackRock, the world’s largest asset manager, has filed a United States Securities and Exchange Commission Form D for the BlackRock USD Institutional Digital Liquidity Fund. 

This marks the launch of BlackRock’s first tokenized asset fund.

According to the filing, BlackRock created the fund in 2023 but has yet to launch it. 

Form D is used to obtain various exemptions. 

BlackRock indicated that it is seeking an exemption under the Investment Company Act Section 3(c), which exempts it from certain SEC regulations. 

The fund was created under the jurisdiction of the British Virgin Islands.

The fund will have a $100,000 minimum investment and be offered by Securitize, a U.S. digital assets securities firm, which will also conduct the sale of the tokens. 

The form shows $525,000 in sales commissions and indicates the size of the fund as “indefinite.” 

The form was signed on March 14.

The fund will be tokenized on the Ethereum blockchain with an ERC-20 token called BUIDL, which currently has one holder and a $0 on-chain market capitalization, according to Etherscan. 

That website also indicated that the fund received a transfer of $100 million on March 4.

“We believe the next step going forward will be the tokenization of financial assets, and that means every stock, every bond […] will be on one general ledger. Every investor, you and I, will have our own number, our own identification. We could rid ourselves of all issues around illicit activities about bonds and stocks and digital by having a tokenization. ” ~ BlackRock CEO, Larry Fink

About Securitize

Securitize is registered as a stock transfer agent and alternative trading system with the SEC. 

It has tokenized assets for asset manager KKR and Spanish real estate investment trust Mancipi, as well as formed a partnership with SBI Digital Markets in Singapore and bought cryptocurrency fund manager Onramp Invest, which had over $40 billion in assets under management.

https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund

Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency

Swiss-based global digital asset banking group Sygnum will invest $50 million in the Fidelity Institutional Liquidity Fund on behalf of its client Matter Labs. 

Those funds will be tokenized as the first step in Matter Labs’ long-term strategy to move all of its treasury reserves on-chain with institutional custodians.

The funds will be tokenized onto the Ethereum-based zkSync layer-2 blockchain, which Matter Labs curates. 

The tokenized funds will represent part of Matter Labs’ holdings in the Fidelity Institutional Liquidity Fund, an open-ended $6.3-billion umbrella for money-market funds that is domiciled in Ireland.

The funds are intended to provide transparency for Matter Labs’ proof of reserves.

"Moving USD 50m of our treasury reserves onto the zkSync blockchain showcases its institutional-grade security as well as our commitment to transparency.” ~ Matter Labs senior vice president of business and operations Marco Cora 

This is the first time Sygnum has tokenized traditional securities.

The zkSync blockchain was founded in 2018 to provide scalability to Ethereum DApps. Its public mainnet was launched in April 2023 after receiving $200 million in Series C funding in November 2022. It reached a high of $870 million in total value locked (TVL) on March 10 and had $715 million TVL on March 19, according to L2BEAT.

Sygnum claimed to be the first bank to tokenize its own assets in 2020. It began offering its clients access to cryptocurrency staking the same year, beginning with Internet Computer and Tezos, adding Ether the following year and Cardano in 2022.

The Sygnum Singapore subsidiary of the bank received a Major Payment Institution license in October 2023, allowing it to offer crypto brokerage services to accredited investors and institutions. Sygnum does not accept United States clients.

https://cointelegraph.com/news/sygnum-bank-tokenize-50-m-matter-labs-reserves-transparency

Over $1B in US Treasurys have now been tokenized on-chain

More than $1 billion worth of United States Treasurys now exist across Ethereum, Polygon, Solana, and other blockchains, helped in part by the recent launch of the BlackRock USD Institutional Digital Liquidity Fund.

BlackRock’s product, tickered “BUIDL,” was launched on Ethereum on March 20 and now boasts a market cap of $244.8 million. 

According to Etherscan, four transactions to the fund totaling $95 million over the week added a boost to the fund, making it the second largest tokenized government securities fund. 

BUIDL now only trails Franklin Templeton’s 11-month-old Franklin OnChain U.S. Government Money Fund (FOBXX), which has $360.2 million in U.S. Treasurys

The dashboard shows that $1.08 billion in U.S. Treasurys have now been tokenized across 17 products.

The most recent $79.3 million deposit to BlackRock’s fund was made by real-world asset tokenization firm Ondo Finance, which will allow instant settlements for its own U.S. Treasury-backed token, OUSG. The firm made a total of $95 million in deposits across four transactions, according to Etherscan.

BUIDL’s price is pegged 1:1 with the United States dollar and pays daily accrued dividends directly to investors each month. 

It was launched on Ethereum via the Securitize protocol.

BlackRock CEO Larry Fink recently voiced that capital markets could be made more efficient by blockchain tokenization, which Boston Consulting Group estimates will become a *$16 trillion market by 2030*.

Ethereum also accounts for $700 million of all real-world assets (RWA) tokenized on-chain.

WisdomTree another large asset management firm tokenizing RWAs, while *Ondo Finance, Backed Finance, Matrixdock, Maple Finance and Swarm are among the blockchain-native firms operating in the space*.

https://cointelegraph.com/news/us-treasurys-tokenized-on-chain-hit-1-billion

Long Term Value Investing & DCA

Volatility is good for traders.

Long term value investors keep calm.

 

1 Day

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In A View

Bitcoin is up 1,800% 4 years after the 2020 COVID-19 BTC price crash

From bottom buys to stimulus checks, Bitcoin has richly rewarded those who used the events during the COVID-19 pandemic to increase BTC exposure.

Bitcoin (BTC) is up nearly 2,000% versus its COVID-19 lows on the fourth anniversary of its crash to $3,600.

On March 12, 2018, BTC price action began a plunge to levels never seen again as risk assets dived worldwide.

Beginning March 12 at $7,960, BTC/USD finished at $4,830, going on to bottom at $3,860 the following day.

Its comeback was arguably just as impressive — just one-and-a-half months later, $10,000 had reappeared.

“Everyone who bought the dip is up 1,700% since,” 

Those who decided to go all in on that day are not the only COVID-19 success stories when it comes to diversifying into BTC.

United States citizens who used their first stimulus check, worth $1,200 and delivered in April 2020, to buy Bitcoin are now sitting on $12,930, per data from monitoring resource BitcoinStimulus.

A 100% stimulus deployment, originally worth $3,200, is now worth 400% more.

Bitcoin began “paradigm shift” in March 2020

“That day, the paradigm shift from tech stock to freedom money began in earnest.”

https://cointelegraph.com/news/bitcoin-up-1-800-after-2020-covid-19-btc-price-crash

Bitcoin's Rally Q1 2024

• Bitcoin’s ‘up only’ rally creating around 1.5K crypto millionaires daily — Data
• Top Bitcoin traders enter leveraged longs near all-time high — $80,000 ahead?
• Will the Bitcoin halving bring more institutional investors into crypto?
• Bitcoin price nails new $73.6K all-time high as ETFs eat away at supply
• Is Bitcoin due for a correction with 5 weeks till the halving?

Bitcoin’s ‘up only’ rally creating around 1.5K crypto millionaires daily — Data

STOP selling your Bitcoin to the ETFs!

... the daily inflows into spot Bitcoin ETFs hit a record $1 billion of net inflows on March 12

BTC’s latest rally, backed by U.S. spot Bitcoin ETFs, is creating about 1,500 millionaire wallets on a daily basis. 

This highlights the growing wealth accumulation in the cryptocurrency sector.

However, this is a significantly lower number than those created during the 2021 bull run, when “more than four thousand wallets were reaching the million-dollar mark daily, and more than two thousand wallets were reaching $10M.

This time around, whales could be taking a more cautious approach, waiting to see if the gains have legs before investing.

 ... steady growth in the overall number of Bitcoin addresses holding significant wealth, underscoring increasing adoption and acceptance of Bitcoin as a store of value and investment asset.

BTC Price Targets

According to Standard Chartered, BTC price might surpass $100,000 by the end of 2024.

Hedge fund SkyBridge predicts a price of $170,000 by April 2025.

Fundstrat projects BTC to range between $116,000 and $137,000 by the end of the year. 

Investment management firm VanEck maintains its medium-term target at $350,000.

Independent analyst Ted Talks Macro noted that funds were flowing into the Bitcoin market “like never before,” saying that the pioneer cryptocurrency was on its way to $100,000.

---------------------------------------

Fund inflows like we have never seen before.

It makes 2020 look small... price will continue to catch up over the coming months.

The steady grind to 100k is underway #BTC 

Historically, when these flows peak, theres 2-3 months to GTFO of the market.

---------------------------------------

* GTFO - Get The Fuck Out

https://cointelegraph.com/news/bitcoin-up-only-rally-creating-around-1500-crypto-millionaires-daily-data

Fund inflows like we have never seen before.

It makes 2020 look small... price will continue to catch up over the coming months.

The steady grind to 100k is underway #BTC

Historically, when these flows peak, theres 2-3 months to GTFO of the market. pic.twitter.com/I3a6binvEH

— ted (@tedtalksmacro) March 13, 2024

Top Bitcoin traders enter leveraged longs near all-time high — $80,000 ahead?

Bitcoin hit an all-time high of $73,650 on March 13, marking a 44% gain in 16 days.

The surge reflects the increasing demand for spot Bitcoin exchange-traded funds (ETFs) listed in the United States, which saw a record $1 billion in net inflows on March 12. 

... whether Bitcoin’s current bull run has the potential to surpass $80,000 hinges on the adoption of spot ETF instruments as a “store of value” and a potential shift in Bitcoin’s risk assessment. 

Before 2024, Bitcoin was not easily accessible to the majority of mutual funds and wealth managers. Additionally, regulatory uncertainty and its classification as a commodity were major concerns, but this changed after the approval of the U.S. spot Bitcoin ETF on Jan. 11.

While there's no guarantee Bitcoin will surpass $80,000 in the near term, BTC derivatives metrics indicate confidence, as traders are pricing similar risks for unexpected upward and downward moves.

https://cointelegraph.com/news/bitcoin-top-traders-enter-leverage-longs-near-all-time-high-80k-ahead

Will the Bitcoin halving bring more institutional investors into crypto?

“Institutions are still learning about this asset class, but understanding the monetary policy of Bitcoin will only drive more interest,” Dante Cook, Swan Bitcoin’s head of business.

The halving is an important demonstration that “Bitcoin security can continue despite a lower ‘security budget,’” Ethan Vera, chief operating officer at Luxor Technology Corporation

Investors have clearly embraced the spot market Bitcoin ETFs — as seen by the net inflows — and further regulatory clarity will help to drive industry adoption and investor base

A continued road to adoption

“What is different today from historical halvings are the ETFs, which have dramatically changed the Bitcoin ecosystem,” Clark Swanson, entrepreneur and former CEO of Bitcoin mining firm Blockcap

MicroStrategy recently rebranded itself as a Bitcoin development company, while the new ETFs “are capital-inefficient in the sense that the BTC just sits there. 

Investors may prefer Michael Saylor’s more active management strategy versus the ETFs.

Many miners see the writing on the wall — lower and lower block rewards — and are looking more at supplemental revenue opportunities. 

“Transaction fees on the Bitcoin network are crucial for miners long term,” said Vera, “and we are seeing many start investing time and capital into developing the ecosystem of applications being built on Bitcoin.”

“It is the finite supply and the halving of Bitcoin, which are characteristics that help make Bitcoin the hardest money ever created.” ~ Clark Swanson

https://cointelegraph.com/news/bitcoin-halving-institutional-investors-crypto-adoption

 

Bitcoin price nails new $73.6K all-time high as ETFs eat away at supply

The steady grind to 100k is underway.

The ETFs themselves fetched a record $1 billion of net inflows on March 12, final data confirms, with BlackRock’s product, the iShares Bitcoin Trust, enjoying the lion’s share.

“A record 14,706 BTC inflow on 12 March 2024,”

That amount alone represents a considerable portion of the newly-mined supply in 2024, totaling approximately 65,500 BTC.

The two largest ETFs from BlackRock and Fidelity Investments held in excess of 330,000 BTC as of March 13 — five times what miners added.

https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat

Is Bitcoin due for a correction with 5 weeks till the halving?

“We estimated $10Bn inflows for 2024 and another $60Bn for 2025. In the last 40 trading days since ETF launch on Jan 10, Bitcoin ETF inflows have crossed $9.5Bn already.”

“At this run rate, Bitcoin ETFs would surpass our 2025 inflow estimates within 166 trading days for [the] rest of 2024,”

https://cointelegraph.com/news/bitcoin-price-correction-5-weeks-halving

BTC Supply Shock (ETF & ETN)

• London Stock Exchange to launch crypto ETNs on May 28, MAR 25, 2024
• Bitcoin has 6 months until ETF ‘liquidity crisis’ — New analysis, MAR 12, 2024

Bitcoin has 6 months until ETF ‘liquidity crisis’ — New analysis

Bitcoin ETF - Most Successful ETF Launch in History

Now holding nearly $30 billion, United States-based spot Bitcoin exchange-traded funds (ETFs) have become the most successful ETF launch in history.

“Bears can’t win this game until spot Bitcoin ETF inflow stops.”

ETFs alone put away more than 30,000 BTC last week, and with 3 million BTC in exchange and miner wallets, the odds of a supply-induced price shock become clear.

Limited Sell-side Liquidity and Thin Orderbook

“Last week, spot ETFs saw netflows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by US entities.” 

“At this rate, we’ll see a sell-side liquidity crisis within 6 months.”

When the tipping point from ETF demand comes, Ki forecasts the BTC price impact may be beyond market expectations.

“Once a sell-side liquidity crisis happens, its next cyclical top may exceed our expectations due to limited sell-side liquidity and thin orderbook,” 

Accumulation Addresses

an ongoing broad uptrend in BTC held by so-called “accumulation addresses” — wallets with only inbound transactions — with this still needing to double before the “crisis” sets in.

Full article: https://cointelegraph.com/news/bitcoin-6-months-etf-liquidity-crisis-analysis

London Stock Exchange to launch crypto ETNs on May 28

To be approved, crypto ETNs must be 

physically backed, non-leveraged, have a reliable value of the underlying market price, and can only be denominated in Bitcoin or Ether. 

The underlying assets must be held in cold storage by an Anti-Money Laundering licensed custodian in the United Kingdom, European Union or United States.

Issuers can submit up to three different currency lines for the ETNs. 

https://cointelegraph.com/news/london-stock-exchange-launch-crypto-etns-may-28

AI Designer and Bitcoin Bull

 An interesting finding and nice output.