Nikolaos Panigirtzoglou’s Post

Net Money flows into the bitcoin ETFs were nearly at record levels last week. If it hadn't been for massive outflows from the Grayscale Bitcoin ETF (GBTC), every record would have been smashed. As it was the net money inlflows to the bitcoin ETFs were just 1% below the record seen of $2.273 billion seen in the week ending 16th Feb. The strong inflows helped the bitcoin price move up by $6'200 on the week to an average of $68'158 on Friday. The large sales of GBTC are presumed to come from a $2.1 billion stack of 35 million GBTC shares owned by the bankruptcy trustees of Genesis Holdings. It is assumed that Judge Lane authorised the plan to sell those shares in a hearing on 27th or 28th February in line with a creditor distribtion plan. They would be selling the shares carefully as they have a duty of care to the creditors to try and maximise the price they get. There have been unusually heavy GBTC sales for 8 days starting on the 28th February, the final day of the Court Hearing to approve the plan. It is hard to know how much of the $2.1 billion holdinghas been sold. I have tried to crunch the numbers. I estimate that they have likely sold somewhere between 60% and 100% of the shares as of Friday. The most likely number is in the middle at 80%. If 80% is the correct estimate, we have another two days of sales left. On the other hand, if the low level of 60% applies we could see sales continuing for another 5 or 6 days. The best case sceanrio for bitcoin bulls would be that Genesis have completed their sales on Friday. If that is the the case it would be extremely bullish for the botcoin price if inflows to the ETFS carry on at a similar rate to that seen in the last couple of weeks. Without the GBTC sales, the number of bitcoins bought by the ETFs would have averaged at over 11'000 per day compared to just 900 new bitcoins mined daily.

Gold ETFs Experience Outflows as Bitcoin ETFs Attract Billions According to CoinDesk, since the launch of 10 spot bitcoin ETFs on January 11, gold ETFs have seen significant outflows, while bitcoin ETFs have attracted huge inflows. The two largest spot bitcoin ETFs, BlackRock's IBIT and Fidelity's FBTC, have amassed nearly $10 billion in assets under management (AUM) in just over a month. In contrast, the two largest gold ETFs, the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU), have experienced net outflows. From January 11 to February 14, investors withdrew approximately $2.6 billion from GLD and about $507 million from IAU. This trend differs from the same period last year when both gold funds saw solid inflows, with GLD attracting around $241 million and IAU $86 million. Out of 14 gold ETFs analyzed on ETF.com, 11 have experienced net outflows since the beginning of the year. Including outflows at Grayscale's GBTC, the spot bitcoin ETFs as a group have seen roughly $5 billion in net inflows. Bloomberg Intelligence senior ETF analyst Eric Balchunas commented on the situation, stating that it is a 'pretty bad scene' in the gold ETFs category. However, he does not believe that investors are necessarily migrating from gold to bitcoin ETFs. Bitcoin is often compared to gold as both are considered haven assets by investors seeking protection from inflation and government intervention. The launch of spot bitcoin ETFs has made it easier for people outside the crypto industry to invest in bitcoin, which has been around for a much shorter time than gold's 5,000-year history. Performance may also be a factor, as gold's price has decreased by over 2% in 2024, while bitcoin has increased by 23% year-to-date. Disclaimer: Includes third-party opinions. No financial advice. #crypto #cryptonews

Bitcoin (BTC) To Hit $30K As Early Signs Of Institutional Buying Appears Multiple Bitcoin exchange-traded funds (ETFs) including ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) jumped 5% in pre-market hours on Tuesday. The significant rise in Bitcoin ETFs prices generally indicates institutional buying. Institutional investors are onboarding Bitcoin ETFs in anticipation of an upcoming rally in BTC price. Early signs of Bitcoin institutional buying were recorded again after several weeks of outflows since March. The year started with institutional investors, miners, and retail investors jumping to buy BTC and other cryptocurrencies. However, the BTC price rally faded due to regulatory challenges, lawsuits, and macro factors. With President Joe Biden and Republicans reaching a two-year deal to raise the debt ceiling, Bitcoin and stock markets reacted positively as a possible financial crisis is averted. Biden and House Speaker Kevin McCarthy remain optimistic about completing the deal days before the US Treasury runs out of money. As a result, Bitcoin, tech and crypto stocks started to rise as the deal will cap some government spending and scrap a 30% tax on Bitcoin mining. During the pre-market hours on May 30, Bitcoin ProShares Bitcoin Strategy ETF (BITO) jumped 5% to $16.19 and Valkyrie Bitcoin Strategy ETF (BTF) also rises 5% to $10.87. Crypto shares are bullish, including Coinbase (COIN) up 4%, Marathon Digital at 7%, and Riot Blockchain rose 7%. Other crypto stocks are also trading higher in pre-market hours. Read more: https://lnkd.in/dhZjrQJf People Over Profits #tech #people #blockchain

Was Bitcoin's ETF Approval Priced In? The recent approval of the Bitcoin ETF sparked a surge in Bitcoin's value, reaching a high of $48K, only to later dip below $43K. This fluctuation raises a question: was the Bitcoin ETF already priced in? Leading up to the approval, the market sentiment heavily leaned towards a positive outcome for the ETFs. The approval was anticipated to attract a broader investor base to Bitcoin, elevating its price. A look at the betting odds from June 2023 to mid-October 2023 reveals a gradual increase, mirroring Bitcoin's price trajectory during this period. This correlation suggests that the market had been progressively factoring in the ETF approval over the preceding six months (Source: [Manifold Markets](https://lnkd.in/g8fjJGTU)). The post-approval price dip can be attributed to two primary factors: 1. Profit-taking: The Grayscale Bitcoin Trust (GBTC) was notably undervalued relative to its Bitcoin holdings. The ETF's launch enabled a more accurate reflection of these holdings' value, prompting investors who had been awaiting this event to cash out, leading to withdrawals exceeding half a billion dollars. 2. The classic 'buy the rumor, sell the news' phenomenon: With the ETF approval transitioning from speculation to reality, market narratives shifted. Developments such as Vanguard's decision not to list Bitcoin ETFs began to dominate investor sentiment, steering the market in new directions. Looking Ahead: While the ETF's approval and the anticipation of initial demand were incrementally priced in, the actual inflows for Bitcoin ETF holdings will determine future direction. The market is likely to exhibit significant volatility in the short term as it assimilates various indicators of future demand. Note that the ETF's favorable odds were noted in October at a Bitcoin price of $30K. Should the expected ETF inflows fall short, we could see prices retreating to those levels. Conversely, if demand surpasses expectations, an upward price trajectory is likely. Since most investors don't understand the value proposition of Bitcoin, they tend to regard Bitcoin as a fad, which biases thinking against future demand. Thus, I would expect greater inflows than what is priced in by the market. This is bullish for the price. Of course, monetary policy remains the largest driver of investor activity and will remain the largest short-term driver of Bitcoin prices.

#bitcoinetfs are a big deal for investors and for the mainstream acceptance of #bitcoin itself.   Purpose Investments launched the world’s first Bitcoin ETF in Canada. Others followed quickly. Bitcoin ETF Assets in Canada have grown to about CA$4B since 2021.   11 Bitcoin ETFs were approved in the US on Wednesday. Thursday was the first trading day for these ETFs. Day 1 flows into the funds were a healthy US$4.6B, led by funds from BlackRock, Grayscale Investments and Fidelity Investments.   Why putting Bitcoin into an ETF is a big deal?   Improve ease of adoption: Opens access to more traditional investors who were prohibited from direct investment; can be added to existing Investment accounts where Bitcoin could not previously be held Stability: Day 1 flows flocked into ETFs offered by reputable investment players. Market manipulation will be monitored by Nasdaq, Cboe Global Markets and Coinbase. Cheaper: Buying Bitcoin ETF is cheaper than buying Bitcoin itself through a crypto exchange   What this means in Canada? Price pressure: Putting aside significant differences in fee sensitivity on each side of the border, lower fee US Bitcoin ETFs should apply some pressure on more expensive Canadian versions. For one, Fidelity Canada has already reduced fees on their Bitcoin ETF Mainstream exposure: Leap in exposure means providers must prepare to respond to more questions and conversations about Bitcoin and Bitcoin ETFs, over face-to-face and digital channels Validation: For asset managers and regulators, like the Ontario Securities Commission, who were ahead of their time launching this innovative product while protecting Canadians