Global X Withdraws Its Bitcoin Spot ETF Application

Audy Castañeda
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Global X Withdraws Its Bitcoin Spot ETF Application

CBOE submitted an application to list and trade shares of Global X Bitcoin Trust in August 2023, but did not receive approval on January 10 with other Bitcoin spot ETF applications.

Financial company Global X filed to withdraw its Bitcoin spot ETF, proposed weeks after the United States Securities and Exchange Commission (SEC) approved a series of ETFs, becoming the first ETF applicant to do so. The decision comes amid regulatory uncertainty and market volatility for Bitcoin.

The company had about $51 billion of assets under management in its ETFs worldwide, as of December 2023, according to its website.

Following the approval of BTC spot ETFs, many speculate that the SEC will soon give the green light to spot Ether exchange-traded products (ETFs). The commission has already pushed back deadlines for bids from asset managers BlackRock and Grayscale, with final decisions expected to be made in May.

Although data showed that as of January 26 there had been approximately $5 billion in outflows from the Grayscale Bitcoin Trust following its conversion to an ETF, there were $759 million in net inflows into all spot Bitcoin ETFs approved by the SEC on the 10th. from January.

The Chicago Board Options Exchange (CBOE) filed an application to list and trade shares of Global X Bitcoin Trust in August 2023, but like other applicants, the SEC delayed a decision on the Bitcoin ETF. However, it did not receive approval on January 10 with other Bitcoin spot ETF applications.

Global X Application Withdrawn

Specifically, in a notice issued on January 30, the United States Securities and Exchange Commission (SEC) announced that CBOE BZX had withdrawn its application to list and trade shares of the Global X Bitcoin Trust. Particularly, even though the SEC had expanded the evaluation of the application twice, in September and November, it was reported that the exchange officially withdrew its proposal on January 26.

The withdrawal of an application does not necessarily mean that the possibility of a Bitcoin ETF is completely ruled out. Indeed, they may reconsider and submit new applications in the future, taking into account changes in the regulatory landscape and market conditions.

Global X’s withdrawal reflects the cautious approach adopted by some industry players, who are wary of the regulatory landscape and potential risks associated with cryptocurrency investments. However, this should not deter people from recognizing the immense potential and transformative power of blockchain technology.

Regulatory Challenges and Bitcoin ETF Launch

Global X was not the only Bitcoin ETF hopeful that failed to gain regulatory approval. Pando Asset Management and 7RCC also found themselves in a similar situation.

In fact, Pando Asset AG entered the race in December with its Bitcoin spot ETF proposal, but has so far not received approval.

On the other hand, 7RCC submitted a Bitcoin spot ETF proposal in December. However, like Pando Asset AG, its proposal has not yet been approved by regulators.

As a curious fact, after receiving regulatory approval, 11 Bitcoin ETFs were launched on the market in early January. These funds include well-known financial institutions such as Grayscale, BlackRock and Fidelity. Since their launch, these ETFs have experienced capital outflows of billions of dollars, primarily in the case of GBTC.

To sum up, all of this shows that the path to approval for Bitcoin ETFs can be challenging. However, as time progresses, adjustments may be made and clearer regulations may be established to allow the approval of these financial products.

By Audy Castaneda

Could the EU Regulate Bitcoin Mining Until Its Disappearance?

Leonardo Perez
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Could the EU Regulate Bitcoin Mining Until Its Disappearance?

The European Commission is reportedly planning to label Bitcoin as harmful to the environment and a threat to the EU’s energy security. The EC’s proposed measures include carbon taxes and authority for the ECB to create ESG rules around Bitcoin investments. ESMA has indicated that once the report is accepted in the EU, it will advocate for it to become the norm in other nations.

The European Commission doesn’t like Bitcoin and plans to crack down on mining operations. A recent report includes harsh labeling of digital assets. Additionally, EU regulators could restrict power supply to Bitcoin mining facilities on the block.

On January 31, crypto environmentalist and venture capitalist Daniel Batten shared a section of a European Commission report highlighting its plans to restrict crypto.

Is the EU Planning to Ban Bitcoin?

According to a published section of the report, it paves the way for a de facto EU ban on Bitcoin mining in 2025:

“While we were sleeping, the European Commission has been creating a report in which they plan to label Bitcoin as harmful to the environment, a threat to the EU’s energy security and a haven for financial criminals.”

According to the report (for which no sources have been provided), the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA) are leading the offensive. The EC’s current position on Bitcoin mining is that it is an “Environmentally damaging, energy-wasting and obsolete consensus mechanism.”

The report proposes additional measures to restrict mining activities. These include carbon taxes and the possibility of EU members cutting off electricity to BTC miners for “energy security” reasons. Additionally, it will formally label BTC as harmful to the environment.

The Commission will also empower the ECB to develop ESG rules around institutional investment in Bitcoin. The central bank will economically discourage or “prohibit investment in Bitcoin” and related products. In other words, the European Central Bank will be able to use its power to effectively ban Bitcoin for EU members.

Batten stated that the founders of the Open Dialogue Foundation, Lyuda Kozlovska and Bota Jardemalie, have done the hard work. They have been reading all the EC documents and “fighting this for 18 months,” he added.

He warned that this could set a precedent for other nations. ESMA, which works closely with the ECB, has noted that once the report is accepted in the EU, “they will push for it to become the norm in other nations.”

“Like other wars, this war starts in the EU, but it may not end there.”

He added that the EU Central Bank has the resources, knowledge of the legal process and track record of “peer-reviewed disinformation” about Bitcoin’s environmental impact.

In December 2023, Batten suggested that the EC proposal should be responded by sending letters to human rights defenders Bota Jardemalie and Lyudmyla Kozlovska. Batten recommended exposing the way in which Bitcoin mining can help meet the sustainability objectives of the European Union, carrying out the process with the use of renewable energy.

Environmental Impact of Bitcoin Mining in the EU

Earlier this week, it was reported that a UN study on Bitcoin mining was scrutinized for its reliance on outdated sources and selective bias.

Furthermore, the FUD of Bitcoin’s environmental impact has been debunked many times in recent months. Furthermore, the percentage of renewable energy used in global BTC mining operations continues to increase.

However, central bankers will continue to wave the red flag at decentralized cryptoassets as they continue to push CBDC plans.

By Leonardo Perez

US Bitcoin ETFs Attract $255 Million in Investments

Audy Castañeda
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US Bitcoin ETFs Attract $255 Million in Investments

According to BitMEX Research, the research arm of the cryptocurrency exchange, all Bitcoin spot ETFs recorded a total net inflow of $255 million between January 11, 2024 and January 29, 2024, 12 days after the SEC’s approval.

While Grayscale’s GBTC saw million-dollar outflows on Monday, companies like BlackRock and Fidelity received a combined net inflow of $406 million on the same day.

Investors have poured millions of dollars into the Bitcoin spot exchange-traded funds (ETFs) recently introduced to the US market earlier this month.

Reduced Selling Pressure

The influx has become a focal point in evolving market dynamics, signaling a possible turnaround following Grayscale’s Bitcoin Trust (GBTC) sell-offs. Following the approval of the spot ETF on January 11, the asset manager witnessed significant outflows from its Bitcoin Trust, GBTC, last week, worth $3.9 billion, according to Bloomberg analyst James Seyffart.

This week, investors continued to withdraw their funds from the company, selling a total of 120,500 Bitcoin (BTC), a sum that amounted to approximately $5.508 billion. On Monday, data from SoSoValue revealed that the company saw a net outflow of $191 million in a single day compared to the $515 million it posted on Jan. 24, indicating a notable slowdown in the pace of sales.

That same day, BitMEX Research said the company experienced an outflow of $192 million. However, these numbers are relatively small compared to last week’s massive sales. Grayscale’s GBTC maintains a strong asset under management (AUM) position of around $21,431 million.

Bitcoin Breaks 50-Day SMA

While Grayscale’s GBTC saw million-dollar outflows on Monday, companies like BlackRock and Fidelity Investments received a combined net inflow of $406 million on the same day. Separate data from Farside Investors showed that Fidelity’s FBTC recorded an inflow of $208 million on January 29, 2024.

On January 25, JPMorgan analysts highlighted that GBTC outflows had contributed to a drop in the price of Bitcoin. Despite this, they were optimistic and suggested that the impact of these departures is expected to diminish shortly.

As the market responds to these changes, analysts have noted a notable slowdown in selling pressure, leaving a significant mark on the price of BTC. In the last seven days, the leading crypto asset has achieved an impressive 11.19% recovery and is now trading above $43,000, according to data from CoinMarketCap.

Market experts believe that the current level, above the 50-day SMA, is crucial in determining the strengthening of bullish or bearish momentum, emphasizing the importance of BTC’s move above the 50-day average,

Alex Kuptsikevich, senior market analyst at FXPro, told CoinDesk in an emailed statement that BTC’s move above the 50-day average is important, but it is not a criterion for a solid uptrend.

Earlier this year, VanEck advisor Gabor Gurbacs noted that one of the most crucial benefits of a bitcoin spot ETF comes from its ability to legitimize and destigmatize bitcoin in the eyes of institutional investors and nation-states.

Bitcoin Will Reach $170,000 After April Crash

Bitcoin’s move comes ahead of the long-awaited halving, scheduled for April. Historically, the Bitcoin halving event is known to be accompanied by a meteoric rise in the value of crypto assets.

As the industry eagerly anticipates BTC’s move after the halving, Anthony Scaramucci, founder of SkyBridge Capital, an alternative financial investment company, recently predicted that the crypto asset could reach as much as $170,000 after the event.

Scaramucci, who also serves as managing partner of the company, believes that BTC can achieve the intended result within 18 months of the next halving event.

By Audy Castaneda

Analysts and AI Predict Bitcoin Price for February 2024

Leonardo Perez
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Analysts and AI Predict Bitcoin Price for February 2024

Bitcoin started the year trading at $42,343 and went through various ups and downs throughout the month of January. The Bitcoin price has experienced very positive returns during the months of February in previous years. Various analysts and AI shared their Bitcoin price predictions for February 2024: Bullish or bearish trend?

After a positive December for Bitcoin (BTC), the leading cryptocurrency price experienced major obstacles during January, with a sharp drop after the approval of the first Bitcoin spot ETFs in the United States: What will happen to the BTC price in February 2024?

Bitcoin started the year trading at $42,343 and reached a monthly high of $48,494 on January 11. Since then, its trajectory has been downward, even falling below $39,000. Currently, the price of BTC stands at $43,328, according to data from CoinGecko.

What Can Happen to Bitcoin in February?

When evaluating the data shared by Coinglass, since 2013, the price of Bitcoin has experienced extremely positive returns during the months of February.

In eleven years of records, the price of Bitcoin has only experienced two bearish February months. The first of them was in 2014, when it plummeted 31%. On the other hand, in 2020 it registered a drop of 8.6% just weeks before the start of the COVID-19 pandemic.

What Analysts Predict about the Bitcoin Price for February 2024

2024 has generated great expectations among cryptocurrency enthusiasts. Firstly, on January 10, the SEC approved the first Bitcoin spot ETFs in the United States, which have surpassed the milestone of 20 billion in trading volume.

Various cryptocurrency analysts have taken to the social network X (formerly Twitter) to share their Bitcoin price predictions for the month of February 2024.

Analyst Michaël van de Poppe told his 679.6 thousand followers that the range is still “relatively clear” for Bitcoin. In a subsequent message, the analyst mentioned the new rise in the price of Bitcoin above $43,000, noting that “there are chances that the correction is over and the markets are ready for another push.”

TradingHubb expressed that the downward movement experienced by Bitcoin is a bit confusing. Later, he added that “$BTC – managed move up to regain range […] Targets around 44-45k.”

BeInCrypto analyst and global head of news Ali Martínez noted that “Here’s a new perspective: the increase in new $BTC addresses indicates a rising wave of investor interest. It seems many have been buying the #BTC dip.”

Benjamín Isaza, trader and analyst at BeInCrypto, also shared some interesting findings. First of all, it notes that Bitcoin bounced off the 20-period moving average on the weekly time frame, reaching the $42,200 barrier again.

Isaza explains that, if this barrier is recovered, in the short term he projects bullish continuity with a target of $44,600. However, otherwise a fall to $32,000 is not ruled out. He also added that, in the weekly time frame, a bearish divergence is beginning to appear.

What AI Predicts about the Bitcoin Price for February 2024

Bard, Google’s AI chatbot, points out that the price of Bitcoin for the month of February could fluctuate in three possible scenarios:

Optimistic predictions: Bitcoin could reach $50,000 or even $100,000.

Neutral Predictions: BTC price will trade between $30,000 and $50,000.

Pessimistic predictions: BTC could plummet to $20,000 or even $10,000.

However, it is widely recognized and highlighted by Bard, that the cryptocurrency market is very volatile and that no prediction is 100% accurate.

By Leonardo Perez

Ethereum ETF Could Reach Approval in May, Option2Trade (O2T), 100x Token of 2024

Audy Castañeda
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Ethereum ETF Could Reach Approval in May, Option2Trade (O2T), 100x Token of 2024

Option2Trade (O2T) is a cutting-edge trading platform that uses Web3 technology and artificial intelligence to empower traders around the world.

The possible approval of Ethereum (ETH) ETFs in May could boost institutional participation in the cryptocurrency market.

Option2Trade (O2T) is a platform that capitalizes on this interest with innovative features such as social trading, governance, staking, and an NFT marketplace.

Option2Trade (O2T): The 100x Token of 2024

Amid the excitement surrounding the possible approval of Ethereum (ETH) ETFs, one platform that stands out is Opción2Trade (O2T). Positioned as the 100x token of 2024, Option2Trade (O2T) aims to revolutionize the trading and investing landscape by introducing Web3 social trading and AI trading algorithms.

With a licensed global trading platform, Option2Trade (O2T) offers traders the opportunity to participate in various asset markets including Forex, Indices, Stocks, Commodities and now with the introduction of cryptocurrencies, the platform aligns perfectly with the possible approval of Ethereum (ETH) ETFs.

Features of Option2Trade (O2T)

Option2Trade (O2T) offers a comprehensive ecosystem that meets various needs including social trading, governance, copy trading incentives, staking, trading signals, and liquidity pools. The platform also has the “Copy Trader” functionality, which allows users to replicate trades from experienced traders and investors.

The platform acts as a licensed global asset exchange platform and offers access to a wide range of markets including cryptocurrencies, Forex, indices, stocks and commodities. It also offers 500:1 leverage and CFD trading, and an algorithmic trading robot with a proven track record of returning profits to over 450 traders worldwide.

Possible Approval of Ethereum ETFs in May

The anticipation surrounding the possible approval of Ethereum (ETH) ETFs in May is palpable. This development would allow investors to gain exposure to Ethereum (ETH), the second-largest cryptocurrency by market cap, through a traditional exchange-traded fund (ETF) structure.

The Securities and Exchange Commission (SEC) is currently reviewing several Ethereum ETF applications, and the decision is expected to be announced in the coming months.

If approved, Ethereum (ETH) ETFs would provide a regulated and accessible avenue for investors to invest in Ethereum (ETH) without directly owning the cryptocurrency. This could appeal to a broader range of investors who may be hesitant to tackle the complexities of buying and storing cryptocurrencies.

Additionally, the introduction of Ethereum (ETH) ETFs could potentially increase liquidity and stability in the Ethereum (ETH) market as both institutional and retail investors gain exposure to the asset through a familiar investment vehicle.

Impact on the Market

The approval of Ethereum (ETH) ETFs could have a significant impact on the cryptocurrency market, potentially increasing demand and market capitalization. This could also spread to other cryptocurrencies as investors diversify their portfolios.

The SEC’s approval could set a precedent for future approvals of similar investment products, allowing for greater institutional participation in the cryptocurrency market. This increased institutional participation could further validate cryptocurrencies as an asset class and attract more investors.

In short, the possible approval of Ethereum (ETH) ETFs by May could significantly reshape the market and offer investors a new way to capitalize on the cryptocurrency boom. Option2Trade (O2T), the 100x token of 2024, is among the platforms poised to capitalize on this trend.

It is worth considering that before making major investment decisions, it is best to conduct one’s own research. As it has been reiterated, the crypto world is extremely volatile and unpredictable.

By Audy Castaneda

Why Stablecoins Regain Popularity and Grow 7.8% in 4 Months

Leonardo Perez
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Why Stablecoins Regain Popularity and Grow 7.8% in 4 Months

Whales hoarded more than 50% of the total stablecoin supply. The stablecoin exchange reserve was recently the highest since May 2020.

Stablecoins aim for 1:1 parity with the target asset and can be paired with all types of assets: gold, dollars, euros, reais (BRZ, the most used stablecoin in Brazil and the most used stablecoin that is not paired to the dollar), Argentine pesos, and there are even stablecoins that are matched to the Bitcoin price.

The most used are those collateralized by assets and, therefore, enjoy greater acceptance and trust by the market – USDT, USDC and BUSD, in order of use and popularity). Saying they are collateralized means that they are backed by assets that match the number of tokens issued, which are held as collateral.

Although less used or known, those backed by cryptocurrencies are no less reliable for this reason. Many, among them DAI, from MakerDAO, and CUSD, from Fundación Celo, are serious projects that do not have large banks and financial conglomerates behind them.

The so-called “Algorithmics” have this name because they work entirely on the basis of the algorithm created on top of the coin. Two examples are Nirvana, made with Solana, and UST, made by Terra. Both projects were victims of attacks, which clearly indicates that this type of technology is far from being developed enough to trust its operation.

The stablecoin sector witnessed significant expansion over the past four months, one of many bullish signs for the broader crypto market.

Demand for Stablecoins Soars

According to on-chain analytics firm Santiment, the global stablecoin market capitalization increased by $9.42 billion in the October-January period, representing an impressive 7.8% growth.

Additionally, whale wallets with over $5 million in holdings account for over 50% of the total stablecoin supply at the time of writing.

The sharp rise in stablecoin holdings coincided with that of Bitcoin. [BTC] price drop, suggesting whales were buying the dip. Indeed, an increase in the supply of stablecoins indicates an increase in capital inflows into the cryptocurrency market. This is because most traders in traditional markets would use stablecoins to enter and exit trades on crypto exchanges.

Recent research by a CryptoQuant analyst also drew attention to a strong correlation between Tether, the world’s largest stablecoin. [USDT] circulating supply and price of Bitcoin.

“Since the end of 2022, the circulating supply of USDT has increased by around 30 billion. Each increase in supply has traditionally positively influenced the development of the btc price.”

Stablecoins Return to Exchanges

The market capitalization of stablecoins entered a downward spiral after the dramatic collapse of Terra USD. [UST] in 2022. As sentiment in the broader market turned bearish, trading activity declined, as did demand for stablecoins.

However, the bullish vigor injected in the last four months has once again put the focus on these cryptocurrency derivatives. According to AMBCrypto analysis of CryptoQuant data, around 27% of all stablecoins in circulation were present on exchanges, as compared to 24% at the beginning of the year. The current stablecoin exchange reserve was the highest since May 2020.

Main Assets Lead the Way

The growth in the stablecoin market was also reflected in the upward trajectory of leading assets such as USDT and USDC.

According to AMBCrypto analysis of Glassnode data, the USDT market capitalization has increased by 5.4% since the beginning of 2023.

On the other hand, even USDC, which faced challenges in 2023, saw an 8% jump year-to-date (YTD).

By Leonardo Perez

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