The new year has brought a surge in Bitcoin’s value, with Michael Saylor making headlines for selling stock to buy more Bitcoin. In addition, one blockchain is considering buying a memecoin. These are just a few of the top stories in the world of cryptocurrency this week.
Bitcoin’s Strong Start in 2024
Bitcoin has started the new year with a bang, thanks to optimism surrounding potential ETF approvals, a higher risk appetite due to rate cuts, and the upcoming halving. On Tuesday, BTC reached a 21-month high of nearly $46000 before experiencing a slight pullback. This marks the strongest yearly performance for Bitcoin since 2020, with a gain of 156%.
Countdown to U.S. Spot Bitcoin ETFs
The SEC, U.S. investment firms, and stock exchanges have all finalized applications for spot Bitcoin ETFs, leading many to believe that regulatory approval is imminent. The SEC commissioners are expected to vote on the filings this week, with a deadline of January 10 for approval of ARK Invest and 21Shares products. However, sources have emphasized the confidentiality of ongoing discussions.
Goldman Sachs Shows Interest in Bitcoin ETFs
Following in the footsteps of J.P. Morgan and Jane Street, Goldman Sachs is now in talks to become an authorized participant for spot Bitcoin ETFs. This would allow institutions like BlackRock and Grayscale to create and redeem shares of a spot Bitcoin ETF. Currently, 14 asset managers are awaiting SEC approval for this product.
Vitalik Buterin’s Vision for Ethereum
Ethereum co-founder Vitalik Buterin has revealed the platform’s roadmap for 2024, highlighting six key areas of focus. The Merge, which integrates the proof-of-stake consensus, remains a top priority due to its simplicity and durability. Buterin also aims to bring back the original idea of the cypherpunk revolution for the blockchain, with a focus on privacy solutions.
Bankrupt Lender Shifts to Bitcoin Mining
A U.S. bankruptcy judge has approved Celsius Network’s move into Bitcoin mining, allowing the company to deviate from its previously approved bankruptcy strategy. Celsius, along with several other crypto lenders, filed for bankruptcy in 2022 and had to adjust their plans after the SEC rejected their initial proposal. The judge ruled that the previously approved bankruptcy plan from November was flexible enough to accommodate the transition to Bitcoin mining as a backup strategy.
Saylor Sells MicroStrategy Shares for Bitcoin
MicroStrategy’s co-founder, Michael Saylor, has announced plans to sell $216 million in company stock options and use the proceeds to buy more Bitcoin for his personal holdings. Saylor intends to exercise and sell 5,000 shares daily from January 2nd through April 25th in order to address personal commitments and increase his Bitcoin holdings before his stock options expire.
Avalanche Foundation Considers Memecoins
The Avalanche Foundation is exploring the idea of buying memecoins as part of its ‘Culture Catalyst’ initiative. Inspired by recent token surges on Solana, such as BONK and Dogwifhat, the goal is to support coins that go beyond utility assets and have a strong presence in internet culture. This move aligns with the Foundation’s commitment to diversifying its portfolio and fostering broader engagement in the Avalanche ecosystem through NFTs, RWAs, and various crypto assets.
Bitcoin Celebrates 15th Anniversary
Fifteen years ago, Satoshi Nakamoto mined Bitcoin’s genesis block, marking the beginning of the cryptocurrency era. This milestone is celebrated annually on January 3rd and reflects Bitcoin’s significant impact on the world of finance. After 15 years, BTC’s market cap sits at nearly $900 billion and has spawned a $1.8 trillion crypto ecosystem, reshaping digital assets and global financial markets.
That’s a wrap for this week in crypto. See you next week!
Title: ? Get Ready for Bitcoin ETFs – The Countdown Begins!
Are you ready for the next big thing in the world of cryptocurrency? Bitcoin ETFs are on the horizon, and it’s time to get prepared. In this article, we’ll cover everything you need to know about Bitcoin ETFs, from their definition and how they work to the latest updates and their potential impact on the market. So, let’s dive in and get ready for the countdown to Bitcoin ETFs.
What is a Bitcoin ETF?
First things first, let’s start with the basics. A Bitcoin ETF (Exchange-Traded Fund) is a type of investment tool that tracks the price of Bitcoin. It operates similarly to a traditional stock ETF, where investors can buy or sell shares of the fund representing a basket of assets. In the case of Bitcoin ETFs, the fund’s basket will consist of Bitcoins, making it an easy and convenient way for investors to gain exposure to the highly volatile cryptocurrency market.
How do Bitcoin ETFs work?
To understand how Bitcoin ETFs work, we need to break it down into two parts: the fund and the underlying asset.
The fund is typically managed by a financial institution, and it works as the intermediary between the investors and the underlying asset. Its primary function is to track the performance of the Bitcoin market and provide investors with returns proportionate to the price change of the cryptocurrency.
On the other hand, the underlying asset is the Bitcoin itself. For every share of the ETF that an investor buys, the fund will hold a certain amount of Bitcoins as per its net asset value (NAV). This allows investors to own Bitcoins indirectly, without the hassle of owning and storing the cryptocurrency physically.
Why are Bitcoin ETFs important?
The launch of Bitcoin ETFs will bring many benefits to the cryptocurrency market, including:
– Accessibility: ETFs will make it more manageable for investors to gain exposure to the highly volatile Bitcoin market without the technicalities of owning and trading the cryptocurrency.
– Legitimacy: With ETFs being a regulated investment tool, it adds a level of legitimacy to the cryptocurrency market, attracting more traditional and institutional investors.
– Liquidity: ETFs will provide a liquid market for trading Bitcoins, making it easier to buy and sell compared to traditional exchanges.
- Price stability: The buying and selling of Bitcoins through ETFs will add more stability to the price of the cryptocurrency, reducing the risk of extreme price fluctuations.
What’s the latest update on Bitcoin ETFs?
Bitcoin ETFs have been a topic of discussion for a few years now, with multiple applications being submitted to the US Securities and Exchange Commission (SEC) for approval. However, all proposals have been rejected due to concerns over market manipulation and lack of regulation.
But the tides seem to be turning in favor of Bitcoin ETFs. In 2021, the Canadian Securities Administrators (CSA) recently approved two Bitcoin ETFs, making Canada the first country to have a regulated Bitcoin ETF market. This move has sparked excitement and hope for the launch of Bitcoin ETFs in other countries, particularly the United States.
The countdown to Bitcoin ETFs in the US
In the US, there are currently four Bitcoin ETF proposals under review by the SEC. The most prominent one is the NYDIG Bitcoin ETF, which is backed by the partnership of investment firms Morgan Stanley and Goldman Sachs. The SEC’s decision on this application has been continuously delayed, with the latest deadline set for August 2021.
Some experts believe this delay could be a positive sign and that the SEC is thoroughly considering the proposal. Others suggest that the SEC is still hesitant due to the lack of regulation in the cryptocurrency market. Whichever the case may be, the countdown to Bitcoin ETFs in the US has begun, and the launch of the first ETF could have a significant impact on the cryptocurrency market.
Potential Impact on the Market
The launch of Bitcoin ETFs is expected to have a positive impact on the cryptocurrency market. It’s believed that it will attract a wider range of investors, from retail to institutional, as it offers a safer and more regulated way to invest in Bitcoins. This increase in demand could potentially drive up the price of Bitcoin, as well as other cryptocurrencies.
Additionally, with more significant players such as investment banks and hedge funds joining the market, it could bring more stability and maturity to the volatile cryptocurrency space. It could also lead to more mainstream adoption of cryptocurrencies, as ETFs will make it easier for traditional investors and institutions to get involved.
In conclusion, the countdown to Bitcoin ETFs has begun, and it’s undoubtedly an exciting time for the cryptocurrency market. This investment tool has the potential to bridge the gap between the traditional and digital financial world, making it more accessible and mainstream. However, as with any investment, it’s essential to do your research and evaluate the risks before jumping in.
So, are you ready for Bitcoin ETFs? Get your portfolio ready and stay tuned for the latest updates on the launch of the first Bitcoin ETF in the US. And remember, investing in Bitcoin ETFs or any other investment comes with risks, so always consult with a financial advisor before making any decisions.
