Record breakers 🏋️♀️
Record breakers 🏋️♀️
Spot Bitcoin ETFs break records. BTC surges, eyes $50k. Bitcoin-related stocks shoot up. Coinbase feels ETFs pressure. Real-world asset crypto market in decline.
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Spot Bitcoin ETFs are on a sprint.
BlackRock's IBIT and Fidelity's FBTC spot Bitcoin ETFs have set a new record.
Each gathers around $3 billion in assets within their first 17 trading days.
Why is this special? 5,535 ETFs launched in the US over the last 30 years. None achieved this milestone in their debut month.
Previous Record: Record for debut month assets was held by BlackRock’s iShares Climate Conscious & Transition MSCI USA ETF with $2.2 billion.
Other Bitcoin ETFs? ARK 21Shares’s ARKB and Bitwise’s BITB also ranked in the top 25 of debut month assets.
Bitcoin Nears $47K
Bitcoin has breached the $46,000 mark, reaching its highest price since the launch of spot ETFs on January 11.
Up by4% in last 24 hours - $46,700 (at the time of writing).
Open interest in Bitcoin? Increased by nearly $1 billion in under 24 hours.
Why the sudden change of mood? A reduction in miner selling pressure.
After a period of heightened selling in November and December 2023, daily sales by miners have decreased significantly in early 2024, from over 800 bitcoins daily to below 300.
Data from CryptoQuant indicates that major US bitcoin mining companies, such as Marathon Digital, are accumulating more bitcoin, signaling confidence in the cryptocurrency's value.
Another reason? Bitcoin "whales".
CryptoQuant's Julio Moreno highlighted increased buying by "whales", with their total holdings reaching 3.9 million BTC, the highest since November 2022.
What's coming up?
LMAX Digital foresees bitcoin climbing higher, with a potential breakout towards $50,000, citing a technical range breakout.
Also, Bitcoin is anticipated to reach $48,000 soon, leveraging the historical uptrend during the Chinese New Year festivities starting February 10.
A close above $45k could signal further gains.
Those who sold Bitcoin during the US spot ETF launch might be looking for reentry points.
The JP Morgan Survey📈
78% of institutional traders have no plans to trade cryptocurrencies within the next five years.
The other findings?
9% currently trade crypto, a slight increase from 8% in 2023.
Blockchain's influence perceived by participants:
25% in 2022.
12% in 2023.
7% in 2024.
61% predict AI and machine learning will be the most influential technologies for trading in the next three years.
Macro Factors Affecting Markets
27% of traders view inflation as a top catalyst for market movement this year.
20% are focused on the US election.
18% see recession risk as a significant factor.
Despite JPMorgan's activities in digital assets, CEO Jamie Dimon criticises crypto, especially bitcoin, comparing it to a "pet rock."
Where’s ETF?🚨
GBTC outflows go up a notch👇
Who wins the race? 🎯
Bitcoin surpassed $46,000.
Bitcoin-adjacent stocks, including MicroStrategy and Coinbase, experienced significant gains.
Shares of MicroStrategy, holding 190,000 BTC, rose by 15% to $587.
Coinbase saw a 8.5% increase to $132.
Mining companies like CleanSpark and Marathon Digital also posting substantial gains.
Bitcoin Proxies vs. Spot ETFs: Despite the introduction of Bitcoin spot ETFs, companies closely linked to Bitcoin still demonstrate strong market performance. Which means they can compete effectively.
But ETFs holds more now.
Newly launched spot Bitcoin ETFs, excluding Grayscale's GBTC, now hold a combined 192,255 BTC, exceeding MicroStrategy's 190,000 BTC.
Coinbase shadows Bitcoin💰
Despite diversifying its revenue sources, Coinbase remains closely tied to Bitcoin.
Again, thanks to SEC's recent approval of spot Bitcoin ETFs.
But, Fee Structure Under Pressure
As Bitcoin ETFs emerge with lower fees, Coinbase's transaction-based revenue model faces significant challenges. The exchange's fees range between 1.5% to 4%, higher compared to ETF fees of 0.2-1.5%.
Revenue Composition Change: Transaction fees, once over 80% of Coinbase's quarterly revenues in 2020 and 2021, now constitute about half, with Bitcoin fees making up 38% of this in Q3.
Despite bullish crypto markets, Coinbase reported a 16% drop in monthly transacting users and a 54% decline in trading volume year-to-date. Bitcoin remains a key asset for the company, contributing to 37% of transaction revenue.
Although Coinbase serves as a custodian for several new Bitcoin ETFs, the custodian fees it earns (0.1-0.15%) are much lower than transaction fees from direct crypto trades.
Coinbase COO Emilie Choi stated the company has no plans to reduce transaction fees.
RWA market shrinks 🌐
The market for real-world assets in crypto has declined in the last three months.
Dropped to $2.65 billion from a peak of $6.3 billion.
Experts predict that interest in real-world assets may not revive until the next crypto bear market.
The demand for real-world assets is characterised as a bear market trend, requiring low crypto volatility and compressed rates in traditional systems.
Adaptation to Market Conditions: Protocols previously engaged in real-world investments are transitioning towards crypto lending to stay competitive.
MakerDAO's Strategy Shift: MakerDAO has shifted its focus from real-world assets, which previously backed a significant portion of its DAI stablecoin, to DeFi-native loans offering higher returns.
The Surfer 🏄
The US has banned the use of AI-generated voices in scam robocalls after a deepfake of President Joe Biden was used in a recent incident.
Community Gaming, has partnered with Worldcoin contributor Tools for Humanity to integrate World ID into its infrastructure.
UK has blocked 43 web domains connected to fraudulent activities.
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