Is BlackRock's Bitcoin ETF the Future of Digital Gold Investing?BlackRock's Bitcoin ETF: A New Era of Digital Gold
A Golden Opportunity
BlackRock, a titan in the world of finance, has made a significant move into the cryptocurrency market with its Bitcoin ETF. This development marks a pivotal moment in the mainstream adoption of digital assets, potentially signaling a new era of investment opportunities.
The Appeal of Bitcoin ETFs
Bitcoin ETFs offer several advantages to investors:
• Accessibility: ETFs provide a convenient way for investors to gain exposure to Bitcoin without the complexities of directly purchasing and storing the cryptocurrency.
• Regulatory Oversight: ETFs are subject to regulatory oversight, which can increase investor confidence and reduce risks associated with direct cryptocurrency investments.
• Diversification: Bitcoin ETFs can be used to diversify investment portfolios, potentially reducing overall risk.
• Liquidity: ETFs generally offer higher liquidity compared to direct cryptocurrency investments, making it easier to buy and sell shares.
BlackRock's Strategic Move
BlackRock's decision to launch a Bitcoin ETF is a strategic move that underscores the growing institutional interest in cryptocurrencies. The firm's reputation and vast resources can help legitimize Bitcoin as a viable investment asset and attract a wider range of investors.
The Impact on the Crypto Market
The launch of BlackRock's Bitcoin ETF could have a profound impact on the cryptocurrency market:
• Increased Institutional Adoption: As more institutional investors gain access to Bitcoin through ETFs, it could lead to increased price stability and reduced volatility.
• Price Appreciation: The influx of institutional capital could drive up the price of Bitcoin, potentially leading to significant gains for investors.
• Regulatory Clarity: The success of Bitcoin ETFs could pave the way for further regulatory clarity and standardization in the cryptocurrency industry.
• Innovation and Development: Increased investment in the cryptocurrency ecosystem could spur innovation and the development of new blockchain-based applications.
Challenges and Considerations
While the launch of BlackRock's Bitcoin ETF is a positive development, it is important to consider the potential challenges and risks:
• Market Volatility: The cryptocurrency market is known for its volatility, and Bitcoin prices can fluctuate significantly.
• Regulatory Risks: Changes in regulatory policies could impact the performance of Bitcoin ETFs.
• Security Concerns: Cryptocurrency exchanges and wallets are vulnerable to hacking attacks, which could lead to losses for investors.
Conclusion
BlackRock's Bitcoin ETF represents a significant milestone in the evolution of the cryptocurrency market. By providing a regulated and accessible way to invest in Bitcoin, the ETF could attract a new wave of investors and further solidify the cryptocurrency's position as a valuable asset class. However, investors should approach Bitcoin ETFs with caution and carefully consider the risks involved.
Blackrockbitcoin
Understanding Bitcoin ETFs: What They Are and Why They Matter?1. What is a Bitcoin ETF?
A Bitcoin Exchange-Traded Fund (ETF) is a financial instrument that tracks the value of Bitcoin and allows investors to gain exposure to the cryptocurrency without directly owning it. Bitcoin ETFs operate similarly to traditional ETFs, which track the value of assets like stocks, commodities, or indices. Managed by financial institutions, Bitcoin ETFs are available on traditional stock exchanges, making it easier for investors to participate in Bitcoin’s price movements through regular brokerage accounts.
There are two main types of Bitcoin ETFs:
Spot Bitcoin ETFs: Track the current market price of Bitcoin, directly reflecting its value.
Futures-based Bitcoin ETFs: Track the value of Bitcoin futures contracts, which are agreements to buy or sell Bitcoin at a predetermined price at a specified time in the future.
In the U.S., Bitcoin futures ETFs have been approved and launched on major exchanges like the New York Stock Exchange (NYSE), while spot Bitcoin ETFs are still under regulatory review by the Securities and Exchange Commission (SEC).
2. How Does a Bitcoin ETF Differ from Buying Bitcoin Directly?
While both Bitcoin ETFs and direct Bitcoin purchases provide exposure to Bitcoin’s value, they differ in several key ways:
Ownership and Custody
Bitcoin ETFs: Investors own shares in the ETF, but not the actual Bitcoin itself. The ETF provider holds the underlying Bitcoin or Bitcoin futures contracts, taking on the responsibility of secure custody.
Direct Bitcoin Purchase: Investors who buy Bitcoin directly through cryptocurrency exchanges or wallets own the Bitcoin and have full control over it, including the responsibility for secure storage.
Access and Regulatory Oversight
Bitcoin ETFs: Are traded on traditional stock exchanges and are regulated by financial authorities. This oversight ensures investor protections that are not typically present in cryptocurrency markets.
Direct Bitcoin Purchase: Involves buying from cryptocurrency exchanges, many of which are less regulated and may lack certain protections offered by traditional financial products.
Trading Hours
Bitcoin ETFs: Trade during standard market hours, typically from 9:30 AM to 4:00 PM EST. Investors can buy or sell shares only within these hours.
Direct Bitcoin Purchase: Bitcoin can be traded 24/7, giving investors the flexibility to enter or exit positions at any time.
Taxation and Fees
Bitcoin ETFs: Investors are subject to capital gains taxes and may also incur management fees for ETF administration.
Direct Bitcoin Purchase: Direct Bitcoin investors are also subject to capital gains taxes. However, they may face lower or no management fees, depending on how they store their Bitcoin.
Use of Leverage and Derivatives
Bitcoin Futures ETFs: These funds allow investors to speculate on Bitcoin’s future price movements without holding actual Bitcoin. However, futures-based ETFs can be more complex, as they rely on futures contracts rather than spot prices, which can introduce tracking errors.
Direct Bitcoin Purchase: Investors buy Bitcoin directly, holding actual units of the asset without derivatives or leverage, providing a more straightforward exposure to its current market price.
3. Why is a Bitcoin ETF Important for the Cryptocurrency Market?
The approval of a Bitcoin ETF is a significant milestone for the cryptocurrency market for several reasons:
1. Broader Accessibility
Traditional Investors: A Bitcoin ETF opens the door to traditional investors, especially those who may not be comfortable using cryptocurrency exchanges. Investors can access Bitcoin exposure through familiar brokerage accounts without needing to learn about wallets or private keys.
Institutional Interest: A Bitcoin ETF creates an easier path for institutional investors to participate in the Bitcoin market, bringing in large amounts of capital. As institutions enter the market, Bitcoin's market liquidity and price stability may improve.
2. Increased Legitimacy
The introduction of a Bitcoin ETF legitimizes Bitcoin as an asset class in the eyes of regulators, investors, and financial institutions. It signals recognition from regulatory bodies and increases trust in Bitcoin among mainstream investors.
3. Boost to Market Liquidity
Bitcoin ETFs can increase liquidity in the market, as they provide a regulated and accessible means for both retail and institutional investors to gain Bitcoin exposure. Greater liquidity can reduce volatility, making the market more stable over time.
4. Potential for Price Appreciation
With increased demand and accessibility, a Bitcoin ETF could lead to upward price pressure on Bitcoin. This is especially relevant for spot ETFs, which would require the fund to hold actual Bitcoin, thus increasing demand for the underlying asset.
5. Step Toward Broader Cryptocurrency ETF Adoption
Approval of a Bitcoin ETF could pave the way for ETFs focused on other cryptocurrencies like Ethereum or Solana, expanding the options for crypto exposure within traditional markets. This could accelerate the overall growth of the cryptocurrency sector.
4. Pros and Cons of Bitcoin ETFs
While Bitcoin ETFs offer numerous benefits, they also come with certain drawbacks.
Advantages of Bitcoin ETFs
Ease of Access: ETFs are easily accessible through traditional brokerage accounts, removing the need for new accounts on cryptocurrency exchanges.
Regulatory Protections: ETFs are regulated by financial authorities, providing investors with protections that may be absent on cryptocurrency exchanges.
Enhanced Liquidity: Increased market liquidity through ETF participation can reduce volatility and provide a more stable trading environment for Bitcoin.
Professional Custody: ETF providers manage Bitcoin custody and security, making it easier for investors who do not want to worry about wallet security or private key management.
Diversification Opportunities: Bitcoin ETFs can be included in retirement accounts or blended into traditional investment portfolios, broadening their appeal as a tool for diversification.
Disadvantages of Bitcoin ETFs
Limited Trading Hours: ETFs can only be traded during standard market hours, unlike Bitcoin, which is available 24/7 on cryptocurrency exchanges.
Management Fees: Most Bitcoin ETFs come with annual management fees, which can reduce overall returns for investors.
Potential for Tracking Errors: In futures-based ETFs, tracking errors may occur, meaning the ETF's performance may not accurately match Bitcoin’s actual price movements.
No Direct Ownership of Bitcoin: ETF investors do not own Bitcoin itself, which means they miss out on the ability to use or transfer the asset directly.
Market Dependency on Regulators: The introduction and ongoing success of Bitcoin ETFs depend on regulators’ willingness to approve and support crypto-based financial products, which may limit the ETF market’s expansion.
5. Outlook and Future of Bitcoin ETFs
The potential approval of a spot Bitcoin ETF in the U.S. could be a game-changer. With increased institutional and retail access, the Bitcoin ETF market could drive greater adoption and legitimacy for cryptocurrencies overall. However, regulatory challenges remain, as the SEC has thus far resisted approving spot Bitcoin ETFs due to concerns about market manipulation and lack of robust investor protections.
As regulatory clarity improves, we may see a broader array of crypto-based ETFs emerge, possibly including multi-asset ETFs that combine Bitcoin with other cryptocurrencies or assets, such as stocks or commodities. Furthermore, as institutional adoption grows, the role of ETFs in the financial ecosystem could increase, potentially influencing Bitcoin’s price dynamics and volatility as well.
Conclusion
Bitcoin ETFs represent a bridge between the traditional financial world and the emerging cryptocurrency market. While they offer unique advantages, such as regulatory protections and ease of access, they also come with limitations like management fees, limited trading hours, and the lack of direct ownership. For those who want exposure to Bitcoin within the security of a regulated investment product, Bitcoin ETFs provide a promising option.
The success and potential of Bitcoin ETFs lie in their ability to draw both individual and institutional investors into the cryptocurrency market, making it a potentially transformative development for the financial world. As more countries consider ETF approval, and as the cryptocurrency industry matures, Bitcoin ETFs could play a pivotal role in the mainstream adoption and integration of digital assets.
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$IBIT Gaps To Fill Before Heading Higher AgainI've been watching the 4-Hour chart on the Blackrock BTC ETF or NASDAQ:IBIT since the start.
And recently noticed that until now, all of the gaps have filled much like we see on the !CME.
Except for ONE large gap that has yet to fill, which I outline in the video.
Let me know what you think, and we'll see how this plays out!
Blackrock's aim for the Crown of Digital Currency ETFsSince it's inception at the start of January 2024 the iBIT ETF has gone up 31.35%.
As of writing this July 22, 2024 the iShares Bitcoin ETF has seen an astounding $523 Million Inflows and a $912 Million trading volume over the last 24 hours.
BlackRock is buying up Bitcoin at a pace unlike any seen before from institutional investors.
This means that they can soon start borrowing and leverage their Bitcoin positions thanks to the sheer size their Spot ETF has so far.
With the news of the Ethereum ETF being launched we can expect to see the price of iBIT rise up to $60.45 in the near future.
Technical Analysis shows that the previous downtrend had been broken and that a reclaim of the range is now giving us a bullish indication for future price movement.
Read our full report on our website to get a more in-depth look.
Has the Bitcoin Market Become More Manipulated After ETFs? The long-awaited approval of a Bitcoin exchange-traded fund (ETF) in late 2023 undoubtedly marked a turning point for the cryptocurrency. However, with this institutional influx, concerns regarding increased market manipulation have also surfaced. Let's delve into whether these concerns hold water and what the future might hold for Bitcoin's volatility.
Pre-ETF Era: A Wild West of Wash Trading
Market manipulation in Bitcoin wasn't exactly a new phenomenon before ETFs. Wash trading, a tactic where investors buy and sell the same asset repeatedly to inflate its trading volume, was a prevalent concern. This created an illusion of high demand, enticing others to invest and driving prices up artificially. Mark Cuban, a prominent crypto investor, even predicted wash trading as the "next possible implosion" for the industry in early 2023 .
The Double-Edged Sword of Institutional Investors
The arrival of big players with the ETF has undeniably brought more regulation and scrutiny to the market. This, in theory, should deter blatant manipulation tactics. However, the sheer volume these institutions trade with can also influence prices significantly. The question isn't whether they manipulate, but rather how their trading strategies might unintentionally impact market behavior.
A Glimpse into the Recent Controversy
A recent Wall Street Journal report alleging that Binance, a major cryptocurrency exchange, fired an investigator uncovering market manipulation by a VIP client reignited concerns . This incident highlights the potential conflicts that can arise when profit margins clash with regulatory compliance.
So, Has Manipulation Increased?
The answer is complex. While blatant wash trading might be less prevalent, the impact of institutional trading volume and potential conflicts within exchanges are new considerations. It's likely that the nature of manipulation has evolved, becoming more subtle and potentially harder to detect.
A Future of Stability or Stagnation?
The influx of institutional investors could indeed lead to a more stable Bitcoin market, mirroring traditional stock indices. This would be a far cry from the explosive, volatile growth Bitcoin has seen in the past. However, this stability might also come at the cost of reduced returns for investors hoping for another Bitcoin boom.
The Long Hodler's Perspective
As a large language model, I can't claim to be a "hodler" (long-term Bitcoin holder). However, historical data suggests that Bitcoin has weathered similar periods of regulation and scrutiny before. The key takeaway is that despite potential manipulation, Bitcoin's underlying technology and its core value proposition as a decentralized currency still hold significant appeal.
The Road Ahead
The future of Bitcoin manipulation hinges on two key factors:
1. Regulatory Strength: Stronger regulations with clear guidelines and robust enforcement mechanisms are crucial to deter future manipulation attempts.
2. Transparency on Exchanges: Exchanges need to be more transparent about their trading practices and address potential conflicts of interest.
Conclusion
Whether Bitcoin morphs into a stable, institutionalized asset or maintains its volatile character remains to be seen. However, the fight against manipulation, regardless of its form, will be critical in ensuring a fair and healthy Bitcoin market for all participants.
Ibit bullish supply zoneI think here ibit its very bullish from here but also its too much risky anyway this with Hong Kong etf maybe can force the market price to go up
Quick Bitcoin and Alt Coin UpdateHello Traders,
Checkout the quick update on Bitcoin and Alt Coins. Also checkout our last last posted on 18th March where we show the levels to enter in Bitcoin
Black Rock push Bitcoin price to new highs, But Bitcoin is aboutAs the United States continues to approve Bitcoin spot ETFs, more and more funds are entering the market. Undoubtedly, these institutions have made a lot of profits.
However, the bull market for Bitcoin cannot last forever:
The overall economic performance in the United States is struggling, and the issue of inflation has not been fundamentally resolved. The Federal Reserve is likely to postpone interest rate cuts. Continued interest rate hikes could lead to a sharp decline in Bitcoin prices.
The current attitude of the United States towards Bitcoin remains delicate, and approving a few ETFs is not a particularly significant positive. Nevertheless, it remains a key factor driving the rise in Bitcoin prices, and I believe the market's imagination is overly optimistic. For any country, it is not yet time to compete for the pricing power of Bitcoin. Therefore, when the delicate attitude shifts, the market may panic, causing a decline in Bitcoin prices.
The news of Bitcoin's halving has fueled a continuous rise in its price. However, the problem is that this information has been known for a long time and has already driven the market higher. It should not be a reason to continue pushing prices. When Bitcoin's halving actually occurs, the price of Bitcoin may decline.
I believe the current market is overly irrational, with a significant influx of funds leading to a continuous rise in Bitcoin prices. However, I think we are not far from a sharp decline in prices. The current market risks are substantial, and there are ample reasons for a downturn.
BlackRock's Ambitious Move: Navigating the Ethereum ETF BlackRock ( NYSE:BLK ), one of the world's largest asset managers, is eyeing a bold move to follow its successful Bitcoin ETF debut with an Ethereum ETF. However, the journey to market and successfully promote an Ethereum-backed product might not be as straightforward as it seems.
The Bitcoin ETF Success Story:
BlackRock's ( NYSE:BLK ) entry into the cryptocurrency space began with the launch of its Bitcoin ETF, gaining widespread attention and positive reception. CEO Larry Fink initiated a marketing drive for a second spot ETF, this time with Ethereum as the underlying cryptocurrency. Fink emphasized the transformative utility of Ethereum's blockchain, highlighting its potential value.
Challenges in Marketing an Ethereum ETF:
The challenge lies in convincing investors who have already diversified their portfolios with a Bitcoin ETF to consider adding an Ethereum-based product. Sui Chung, CEO of CF Benchmarks, a partner firm on BlackRock's Bitcoin ETF, pointed out that investors may question the necessity of another crypto diversification tool after investing in Bitcoin.
Bitcoin as a Diversification Tool:
Chung emphasized the role of Bitcoin in portfolio diversification, citing its behavior and price history as potent diversifiers in traditional investment portfolios. The addition of a small allocation of Bitcoin has been shown to boost the overall risk-adjusted return, making it a compelling investment choice.
Educational Foray into Ethereum:
BlackRock CEO Larry Fink has begun delving into the complexities of Ethereum by mentioning tokenization, a concept gaining traction in traditional finance. However, Chung suggests that an educational approach should also cover smart contracts, decentralized finance (DeFi), and the intricacies of blockchain staking, all of which form integral parts of the Ethereum ecosystem.
ESG Concerns and Marketing Strategy:
While Ethereum's move to a greener validator model differentiates it from Bitcoin's energy-intensive proof-of-work system, concerns about environmental, social, and governance (ESG) issues may not be the ideal marketing angle. Chung suggests caution in navigating the ESG controversy surrounding investing today.
Conclusion:
As BlackRock ( NYSE:BLK ) explores the possibility of launching an Ethereum ETF, it faces the challenge of convincing investors about the unique value proposition of Ethereum in addition to Bitcoin. Navigating the complexities of Ethereum's ecosystem, explaining concepts like smart contracts and DeFi, and addressing ESG concerns will be crucial in developing a compelling marketing strategy for BlackRock's potential Ethereum ETF. The success of this endeavor could reshape the landscape of cryptocurrency investments and further solidify BlackRock's position as a key player in the financial industry's embrace of digital assets.
Bitcoin ETFs coming soon: what could happen?Hello, folks! If this is your first time reading one of my ideas, welcome, hope you enjoy it. If you are a regular visitor of my ideas, thank you!
Let's discuss the fuss around Bitcoin Exchange-Traded Funds (ETFs). With 8 Bitcoin ETFs awaiting regulatory approval, decisions are anticipated between January and March 2024, let's consider how this could shake up Bitcoin's price, the wider crypto market, investor confidence, and the overall financial scene.
🧙🏽♂️ Spot ETFs: A Direct Link to Bitcoin's Supply
SPOT ETFs are unique because they require the actual holding of Bitcoin by the fund. In an environment where Bitcoin's availability on exchanges is at an all-time low, these ETFs could significantly influence the market's supply-demand dynamics.
The approval of SPOT ETFs is likely to ramp up demand significantly. Given Bitcoin's capped supply, this increased demand could lead to substantial price surges, potentially setting new all-time highs.
🧙🏽♂️ Investor Sentiment: A Confidence Boost
For investors, SPOT ETFs represent a more secure, regulated path to Bitcoin investment. This could draw in a fresh wave of investment, both from retail and (more importantly) institutional sectors, think pension funds for example. This could potentially result in elevating Bitcoin's price and market stability in a way never seen before.
🧙🏽♂️ The Financial Landscape: Embracing Digital Currencies
On a larger scale, SPOT ETFs indicate a significant stride in incorporating cryptocurrencies into mainstream finance. This move could spark further innovation and adoption of digital currencies in diverse financial services. While some banks are now known to block transactions related to crypto, or even entire accounts, it's not unimaginable that they will start offering crypto services themselves. An approval of several ETFs would incorporate crypto into Wall Street.
🧙🏽♂️ The First-Mover Scenario: A Case for Simultaneous Approval
In the realm of these ETF applications, the potential for a first-mover advantage looms large. Here's a breakdown of the key players and their decision dates:
Ark/21 Shares Bitcoin Trust: 1/10/24
Bitwise Bitcoin ETF Trust: 3/15/24
BlackRock Bitcoin ETF Trust: 3/16/24
VanEck Bitcoin Trust: 3/16/24
WisdomTree Bitcoin Trust: 3/16/24
Valkyrie Bitcoin Fund: 3/16/24
Invesco Galaxy Bitcoin ETF: 3/16/24
Fidelity Wise Origin Bitcoin Trust: 3/16/24
If one of these ETFs gets approval ahead of the others, it could dominate investor interest. To avoid this and foster a healthier, more competitive market, regulators might consider approving multiple ETFs simultaneously, ensuring no single fund unfairly corners the market. This means that we might see approval of several ETFs in January 2024, less than 2 months from now!
🧙🏽♂️ Conclusion: A Turning Point for Crypto?
The potential approval of Bitcoin SPOT ETFs marks a pivotal moment in the crypto narrative. It's a validation of Bitcoin's growing influence and a beacon for a more inclusive crypto market. For the crypto community, it's a period of pride and anticipation; for cautious investors, a new pathway into the crypto realm; and for the financial world, a step toward embracing the digital currency era.
Let's eagerly watch together how this story unfolds. Here's to the dynamic and ever-evolving world of cryptocurrencies! 🥂🚀🌕
❓ Questions for you:
What do you think will happen?
Do you expect one or more ETFs to be approved in January?
What do you think will be the effect on price of that happening?
How will you trade/invest based on your expectations?
Leave your answers to these questions in the comments below.
Oh, and if you enjoyed reading this, like/boost, follow and shares are highly appreciated!
FTT: Forgive The Trickery - When SEC Overlooks Mischiefs 🎭🔍In a world where market dynamics often border on the theatrical, FTT token finds itself in the spotlight. 🌟 Let's dive into the nuances of this intriguing crypto token, against a backdrop of regulatory oversight and market maneuvers.
📉 A Closer Look at the Charts:
Shorting Opportunity at $7.8: Our analysis indicates a ripe shorting opportunity at around $7.8. This level is not just a number; it's a reflection of market sentiment and technical strength (or lack thereof).
Breakout Point - "Biden Revives the Zombie": In contrast, there's a breakout level which, if crossed, could lead to a significant surge in FTT's value. We're watching this space closely!
🌐 Contextual Insights:
The Binance and FTX Saga: Recent developments have seen traders shifting away from tokens like BNB and FTT. The reasons? Regulatory pressures and market uncertainty. This article sheds more light on the trend.
Regulatory Glare: The SEC's recent actions, especially the fine against Binance, have stirred the pot in the crypto world. Adding to this is the continuing saga of FTX and Sam Bankman-Fried, as detailed here.
🚦 Regulatory Oversight or Oversight?
The dance between the SEC and crypto entities like FTX is intricate. Are we witnessing a case of "forgive the trickery" as the SEC navigates through a maze of regulatory challenges and market realities?
How FTT maneuvers through these turbulent waters, amidst the SEC's gaze, could be a tell-tale sign of its future trajectory.
As the crypto market continues its unpredictable journey, FTT stands as a symbol of the complexities and intrigues that define this space. Whether it's regulatory challenges or market dynamics, FTT's path is one to watch. 📈
One Love,
The FXPROFESSOR ♡
ps. I would like to go SHORT on this one and post it as a Bearish idea but with Blackrock ready to enter and their need for an American exchange i do not dare... will trade it in due time, no worries!
Blackrock (NYSE: BLK) Spurring The ETF AdoptionIt’s been reported that BlackRock has engaged in preliminary discussions with Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading, with regards to their potential involvement as market makers for a spot Bitcoin ETF.
Amid the crypto crackdown, a BTC ETF, if approved, would open a new pathway for U.S.-based firms to get a piece of the crypto action – in a way that plays to their conventional strengths.
Some of the world's largest market-making firms are in the mix to potentially provide liquidity for BlackRock's eagerly awaited bitcoin ETF if regulators approve the product, according to a person with knowledge of the matter.
Trading giants Jane Street, Virtu Financial, Jump Trading and Hudson River Trading have held talks with BlackRock about a market-making role, according to a BlackRock slide deck reviewed by the person familiar with the matter.
Assuming the U.S. Securities and Exchange Commission approves some or all of the dozen or so applications for bitcoin ETFs (including the one from BlackRock, the world's largest asset manager), that would open a new pathway for U.S.-based firms to get a piece of the action in crypto – in a way that plays to their conventional strengths. Being a market-maker for ETFs, which trade on exchanges just like stocks, requires a level of sophistication and automation that only a relatively few companies can achieve.
Market makers are vital to ETFs. They are responsible for creating and redeeming new shares of an ETF, a role designed to keep its price tethered to the price implied by the value of the ETF's holdings.
One of the best examples of why such a create-and-redeem structure is important actually comes from crypto. Grayscale Investments offers a product called the Grayscale Bitcoin Trust (GBTC) whose price has over the past few years wandered dramatically far away from the billions of dollars worth of bitcoin (BTC) that it owns.
Price Momentum
BLK is trading near the bottom of its 52-week range and below its 200-day simple moving average.
BITCOIN BACK TO 19999 SUPPORT?We don't know when the ETF from BlackRock will be approved so this is the worst possibility of COINBASE:BTCUSD if this ETF is not approved as soon as possible BINANCE:BTCUSD will return to 19999.19 usd support!
or if it is not strong enough to hold the support at 19999 it will return to 16778, I hope next month it will be approved by the SEC.
Blackrock Filed for a BITCOIN Trust not ETF! SPX at 52 Week HighBitcoin enthusiasts have reason to be slightly bullish given recent developments in the market. While BlackRock's decision to file for a bitcoin trust instead of an ETF might initially disappoint some, it's important to recognize that the trust and the ETF have similarities, as many people rightly point out.
Although there are technical differences, particularly regarding regulatory approvals, the ultimate outcome for investors remains similar. Consider GBTC, a trust that currently exists—while you can't redeem directly from the fund, it appears that BlackRock's trust may offer redemption options. This potential advancement could be a significant win for investors, providing them with greater flexibility and opportunities to capitalize on their investments.
However, the real game-changer would be the introduction and approval of a true Bitcoin Spot ETF by the SEC. Such an ETF would bring about unprecedented possibilities for investors, opening up avenues for seamless and widespread participation in the bitcoin market. The approval of a Bitcoin Spot ETF would not only enhance accessibility but also contribute to the overall mainstream adoption of cryptocurrencies, solidifying Bitcoin's position as a legitimate asset class.
Therefore, while the current filing by BlackRock may not be the long-awaited ETF, it still represents a step forward in the right direction. The possibility of a Bitcoin Spot ETF being put forward and approved by the SEC remains an exciting prospect that could fuel further growth and market interest in Bitcoin.
Given the information provided, including the filing by BlackRock and the recent 52-week high reached by the SPX (S&P 500 index), there are potential factors that could contribute to a technical rebound in Bitcoin's falling wedge pattern. The positive market sentiment surrounding the SPX reaching a new high suggests a general bullish trend, which may spill over into other asset classes, including cryptocurrencies.
A falling wedge pattern typically indicates a period of consolidation and potential reversal, making it a favorable setup for a rebound.
The $23,000 price target remains unchanged.
Looking forward to read your opinion about it!
