Bitcoin Spot ETF Weekly Report: Outlook After Its First Week of Trading

Audy Castañeda
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Bitcoin Spot ETF Weekly Report: Outlook After Its First Week of Trading

Weekly insights from the Spot Bitcoin ETF are discussed below, shedding light on the potential and implications of these solid investment offerings.

The Spot Bitcoin exchange-traded fund (ETF), a new product in the financial market, has just concluded its first week of operations. This event marks several key milestones in the combination of cryptocurrencies with major financial markets.

Launched amid high expectations, the Spot Bitcoin ETF is a crucial move, providing a more regulated and secure option for investors to explore Bitcoin.

Bitcoin ETF Spot Trading from Day 1

On the first day of trading of the long-awaited US-based spot bitcoin exchange-traded funds, investors actively participated in trading shares of ten SEC-sanctioned funds. Initial volume figures revealed that Grayscale Bitcoin Trust, the largest bitcoin fund valued at $28 billion, saw the largest share turnover, with trading volumes exceeding $2 billion. The accumulated trading volume for that day exceeded $4.6 billion.

Bloomberg reports indicate that approximately $2.33 billion in Grayscale fund shares were traded throughout the day, a figure that nearly equals the total volume traded in all other new ETFs combined.

The total trading volume of the 11 spot bitcoin ETFs surpassed $16.4 billion on their sixth day of trading on Friday. As of January 19, Grayscale has the top market share in Bitcoin spot, with nearly 53% ownership.

Grayscale, BlackRock and Fidelity remain the predominant players, with more than 90% of the total volume. Daily volume saw an increase, reaching $2.6 billion on January 19, up from $2.1 billion the previous day. These figures are still considerably lower than the $3 billion volume seen last Friday and the initial $4.6 billion on the first day of trading.

BTC Price Struggles Amid Growing GBTC Outflow

Amid rising trading volume for the Bitcoin Spot ETF, BTC price continues to struggle to validate a clear bullish move. Interestingly, Bitcoin fell from its $49,000 level and is currently aiming to fall below the $40,000 level. This could indicate that the emergence of the new ETFs is not causing a lack of supply for any new demand linked to the funds.

Grayscale’s departures may have freed up supply. Recent Bitcoin purchases tied to exchange-traded funds (ETFs) were somewhat balanced by ongoing withdrawals from the Grayscale Bitcoin Trust (GBTC). Approximately 10,824 BTC were sold, valued at around $445 million. Since its transformation into a spot ETF on January 11, nearly 38,000 BTC have been withdrawn from GBTC.

The massive Grayscale outflows are sending the Netflow into the negative region, creating a bearish impact on the BTC price. Another possible reason Grayscale could have been targeted by investors for fund outflows is the ETF’s 1.5 percent expense ratio, high compared to the 20-39 basis points of the other new funds. most of whom have resigned or reduced their commissions for several months. It is difficult to understand why a rational investor would pay more than three times the fee for a fund that owns the same asset.

Grayscale Investment CEO Michael Sonnenshein, in a recent interview at the World Economic Forum in Davos, stated that most of the 11 Bitcoin spot ETFs approved by the US SEC are unlikely to succeed.

These ETFs, which began trading shortly after their approval on January 10, compete by reducing fees to 0.2%-0.4%, with some offering temporary fee waivers. By contrast, Grayscale, the largest Bitcoin holder among these ETF issuers, charges up to 1.5% with no waivers.

By Audy Castaneda

Bitcoin Maximalist Nayib Bukele Has 81.9% Approval to Win El Salvador’s Reelection

Leonardo Perez
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Bitcoin Maximalist Nayib Bukele Has 81.9% Approval to Win El Salvador’s Reelection

The president of El Salvador has the preferences in two surveys, 81.9% and 70.9% for re-election. Nayib Bukele leads the opposition, which does not add more than 2.7% in the preferences of Salvadorans. Bukele is expected to “sweep” the next elections in El Salvador on February 4, where the registry is 6.2 million voters.

The president of El Salvador, Nayib Bukele, who is on six-month leave to run for re-election for the presidency, has an 81.9% lead and is positioned as the favorite for the next elections. The elections are on February 4 and Bukele would once again become president of El Salvador.

Data from the Jesuit Central American University (UCA) revealed that the voting intention for the next president of El Salvador is in favor of Nayib Bukele. The UCA would have obtained the results in a simulation carried out on a “voting ballot.”

Nayib Bukele the Favorite in Polls for Presidency of El Salvador

The test carried out by the UCA showed a margin of error of 2.7%. The remaining percentage of preferences is divided between several contenders: Manuel Flores and Joel Sánchez, with 4.2% and 3.4%, respectively. Even three other contenders have a combined 2.5%.

UCA’s Vice Chancellor, Omar Serrano, explained to AFP that “The country is facing the most asymmetric elections. A kind of procedure to make them functional for those in power” and will mark “a change in the party system.”

Months ago, Nayib Bukele made his candidacy official to run for re-election for a new term. The elections will be on February 4, 2024 and the president will run for the New Ideas party.

In November, Bukele presented the necessary documentation before the Supreme Electoral Tribunal of El Salvador (TSE). Vice President Félix Ulloa also presented the documentation to, if he wins, repeat the position.

On January 18, media outlet Noticiero Hechos posted the following on X:

“The electoral preferences of the population, according to the latest UCA survey, reflect these results for the presidential elections:

81.9% New Ideas Nayib Bukele

4.2% FMLN

3.4% SAND

2.5% Our Time

1.1% Solidarity Force

1% SPF”

Bukele, who implemented the Bitcoin Law in 2021, responsible for the adoption of Bitcoin as legal tender in El Salvador, is the favorite to obtain the maximum vote for president. The Francisco Gavidia University places Bukele with 70.9% of the preferences, and his opponents have between 1% and 2.9% of voting intention.

Bitcoin Boosted Nayib Bukele’s Popularity as Head of El Salvador

Bukele is expected to “sweep” the next elections in El Salvador on February 4. In the country, the registry is 6.2 million voters. Congress will be renewed, where the Nuevas Ideas party (which nominates Bukele) would obtain 57 deputies, while the Arena and Christian Democrat parties would only have three seats.

Weeks after announcing its intention to run for the presidential elections, the government of El Salvador presented the results of Bitcoin purchases and adoption under the slogan: “Why don’t we sell our Bitcoin?” On that campaign, Bukele clarified that the country would recover 100% of its profits if it decided to sell its BTC.

It was reported that the video presented a summary, highlighting the benefit derived from Bitcoin mining in the country. He also acknowledged that although the world of cryptocurrencies is not free from volatility. BTC has shown to have a broad upward trend over time, citing the example of pizzas.

By Leonardo Perez

Innovations in Crypto: Emerging Technologies for 2024

Audy Castañeda
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Innovations in Crypto: Emerging Technologies for 2024

The crypto sector is changing everything in its path, while its ramifications are interconnected with all of today’s innovations.

Innovations have been the main driver of the technological world since the industrial revolution and the crypto sector has a huge role to play now. Almost all advances in the technology sector are bound to take something that develops within the world of cryptocurrencies. Even the all-powerful artificial intelligence would be incomplete without incorporating blockchain solutions.

The integration of cryptocurrencies into traditional and future technologies seems a necessary stop to the momentum. Both old, centralized banks and fintech practices are completely pivoting to blockchain.

In this way, technologies such as the Metaverse and maritime trade data organization have the same inclination towards crypto technology. 2024 is shaping up to be a year of great challenges. In it, the creativity of companies will be tested when it comes to providing practical solutions to communities. In that sense, it can be considered that this year could be the starting point of an era of greater integration between technologies that now seem isolated.

Crypto Sector, Starting Point for Innovations

Considering the current state of new technologies, it can be said that innovations and the crypto sector are a perfect marriage. For example, a real shakeup is taking place in the financial markets sector thanks to these digital assets. But this also extends to the environmental sector and even health.

Other areas are much more obvious, such as video games. However, it can be said with complete certainty that there are few technologies that can do without the power of the blockchain. This is not due to any kind of magic, but because virtual currencies rely on a wide range of solutions.

In this way, crypto technology is capable of integrating elements that would otherwise appear antagonistic. Basically, the ability to revolutionize the environment inside and outside of finance is one of the most attractive elements in the nature of the sector. Although tokens have problems finding their place in traditional finance, their technology has been integrated into them for years.

Economy and Cross-Border Payments

This is one of the obvious fields for the good development of solutions supported by cryptocurrencies. It doesn’t take an expert to notice that current payment systems are expensive, deficient and extremely complex. Likewise, the security they have, although it works, tends to consume a large number of resources and time.

The authors of the IMF, an organization not very friendly to digital currencies, recognize that the arrival of this technology is a reality. From payment systems, bond trading, stock markets, tokenization of real assets and many others are in an advanced state of adaptation.

Even the central banks of some of the main economies are carrying out work with their own digital currencies. The latter will provide the opportunity to effectively control liquidity and automate transactions. In addition, they will allow greater control over circulation to avoid crimes such as the financing of terrorism and others.

Likewise, the tools of this technology can be used to track and verify large volumes of data. With this, for example, the stability and solidity of financial markets could be maintained with low costs, greater precision, security and speed.

All in all, the progress that the cryptocurrency sector is capable of bringing may not know limits. This 2024 could become a pivotal year for dozens of innovations in all areas thanks to digital assets.

By Audy Castaneda

Binance Recovers: Over $4 Billion Revenue Recorded After Deal

Leonardo Perez
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Binance Recovers: Over $4 Billion Revenue Recorded After Deal

Despite the obstacles Binance faced last year, the exchange has continued to make its presence known.

Binance, the world’s leading digital asset exchange, has shown resilience and growth following its recent settlement with US regulators. The deal, which addressed allegations of money laundering and sanctions evasion, marked a pivotal moment for Binance.

As it may be recalled, billionaire Changpeng Zhao and leading cryptocurrency exchange Binance pleaded guilty to federal charges last November. As part of a coordinated settlement with the US government, Binance agreed to pay more than $4 billion in fines and other sanctions. Zhao, one of the most powerful figures in the crypto space, resigned from his position as CEO of the exchange he founded and agreed to pay $200 million in fines.

Since November 21, when the deal was reached, Binance has seen an increase in net inflows, amounting to approximately $4.6 billion. This data, revealed in a Satoshi Club post on X, shows the platform’s resilience amid these challenges:

“Despite recent legal challenges and leadership changes, Binance has seen net inflows of $4.6 billion since its November settlement with US agencies. In January alone, it attracted $3.5 billion, marking its strongest month since November 2022.”

Binance Inflow Resurgence After Deal

January 2023 emerged as a particularly prosperous month for Binance, with net inflows of $3.5 billion. This figure surpasses any full monthly inflow since November 2022 and marks a substantial rebound from the myriad challenges the exchange faced towards the end of last year.

These challenges were significant as these included notable fines imposed by a US court on Binance and its CEO, Changpeng Zhao (CZ), on charges related to alleged money laundering operations initiated by the US Commodity Futures Trading Commission (CFTC).

After former CEO Changpeng Zhao resigned and the exchange agreed to a substantial $4 billion fine with US regulators, the exchange experienced an exit. significant amount of more than a billion dollars in a single day.

Weekly inflows subsequently struggled to surpass $800 million, culminating in a net outflow of -$1.63 billion in November, according to DeFillama data.

However, in December a change began and the stock market’s weekly inflows consistently exceeded $1 billion per week, totaling more than $3 billion per month. This upward trend has continued throughout the current month, with inflows approaching $4 billion, indicating a strong recovery for the leading crypto exchange.

BNB Global Expansion and Resilience

Despite the obstacles Binance faced last year, the exchange has continued to make its presence known. The exchange has recently expanded its global presence with the launch of Gulf Binance in Thailand, a joint venture with Gulf Innova. This move aims to serve the Thai market by offering a platform to trade digital assets with local currency pairs.

The exchange’s native token, BNB, has also shown resilience. After a drop below $230 in November, BNB has risen steadily, trading above $300 at the time of writing. This upward trajectory of BNB, with trading volume exceeding $1 billion, reflects the exchange’s recovery and growth trajectory.

Additionally, Binance continues to lead the cryptocurrency exchange market, as evidenced by data from Coinmarketcap. With 24-hour trading volume exceeding $14 billion, Binance comfortably surpasses rivals such as Coinbase and Kraken, which recorded $2.7 billion and $999 million in trading volume in the past day.

According to CryptoPredictions, the BNB price for today (01/20/2024) is forecast to be in the price range of $262,337 – $385,789. BNB price is expected to end at $308,631 today.

By Leonardo Perez

Top Bitcoin (BTC) Price Latest Predictions

Audy Castañeda
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Top Bitcoin (BTC) Price Latest Predictions

Robert Kiyosaki, Tom Lee of Fundstrat and “PlanB” presented optimistic predictions for the future price of Bitcoin. Contrasting opinions come from analysts such as Philakone and Crypto Rover, who foresee a possible short-term correction, and Peter Schiff, who anticipates regulatory challenges that will affect the value of BTC.

There was a significant rally in the price of Bitcoin in the early days of 2024, with a peak of around $49,000 reached a day after the US SEC approved multiple BTC spot ETFs (including BlackRock’s application). However, since then, the asset has been in a downtrend and eventually stopped at its current level of $41,300 (according to data from CoinGecko).

It would be interesting to follow BTC’s price performance throughout 2024 (which has yet to offer many other major events), so some forecasts will be examined below.

Kiyosaki’s Forecast

Robert Kiyosaki – a well-known investor and author of the bestseller “Rich Dad, Poor Dad” – recently predicted that the leading cryptocurrency is heading towards the $150,000 mark. He also plans to buy BTC, gold, and silver with “fake fiat US dollars.”

Before that, Kiyosaki urged people to pay close attention to the upcoming Bitcoin Halving (scheduled for April 2024). The event occurs every four years and halves miners’ rewards. It causes reduced supply growth that could trigger a rally in BTC prices (assuming demand stays the same or increases). Historically, halvings have been followed by unprecedented bull runs.

The Ultimate Bulls

Tom Lee of Fundstrat and popular X (Twitter) user “PlanB” have made even more optimistic bets. The first imagined that BTC could rise to $100,000-$150,000 in 2024 and skyrocket to $500,000 within five years. PlanB stated that the stock-to-flow model predicts a price of $532,000 after the halving.

“In 2019, when BTC was $4000, I wrote the S2F article, asking for $55K BTC. People said he was crazy. Today, BTC costs $40,000 and the S2F model predicts $532,000 after the halving in 2024. People say it’s impossible,” the analyst said.

The most shocking forecast came from Samson Mow (CEO of development studio Pixelmatic), who believes that sooner or later, the price of Bitcoin would reach a staggering $1 million per coin.

Enter Bears

On the other hand, X user @Philakone thinks BTC could experience a correction in the coming months, setting a target between $37,000 and $34,000 “sometime between March and June.” However, the trader remains bullish in the long term, expecting “a strong accumulation phase” that will lead to a bull market from Q3 2024 to Q4 2025.

Crypto Rover suggested there is a huge amount of “untapped liquidity,” which might result in BTC’s plunge below $40,000. Similar to Philakone, he believes the asset would thrive in the long run.

One person who foresees only a drop in the value of Bitcoin is Peter Schiff. The economist, who is among the harshest critics of cryptocurrency, recently claimed that Gary Gensler (chairman of the US SEC) approved spot ETFs after being ” backed into a corner.”

As such, Schiff believes that the regulator’s head could soon implement “new onerous crypto regulations” that could increase the cost of BTC transactions and negatively impact the price of the asset.

Meanwhile, numerous X users opposed the theory, recalling that Gensler had already given Bitcoin commodity status, removing it from the SEC’s jurisdiction.

By Audy Castaneda

Bitcoin Battles: Samson Mow Clashes with JPMorgan CEO over BTC Future

Leonardo Perez
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Bitcoin Battles: Samson Mow Clashes with JPMorgan CEO over BTC Future

Mow emphasized BTC’s potential as an opportunity for banks to secure their future, rather than a threat.

Samson Mow, CEO of Jan3 and a strong Bitcoin advocate, has become a vocal challenger to JP Morgan CEO Jamie Dimon’s skeptical stance on BTC.

Mow, known for his ambitious prediction that Bitcoin will reach “$1 million per BTC,” criticized Dimon’s opinion, advocating for a more adaptive approach to cryptocurrencies by the banking sector.

Samson Mow’s Counterargument: Embracing Bitcoin as a Banking Future

Mow’s criticism comes in response to Dimon recently expressing strong reservations about BTC in an interview. He characterized cryptocurrencies as predominantly a means for fraudulent activities and money laundering and advocated not getting involved in the asset. Dimon noted the following:

“I defend your right to make bitcoin… that’s okay. I don’t want to tell you what to do. My personal advice is not to get involved.”

As a result of these comments from Dimon, Mow argued that banks, including JPMorgan, could significantly benefit from offering BTC-related services. It suggests that banks could “flourish” in the new financial era by transitioning to “Bitcoin banks,” thereby staying relevant amid the changing landscape of currency and finance.

Mow posted on X that “Dimon is stupid. Bitcoin doesn’t need to be disruptive – banks can embrace and offer Bitcoin services. Bitcoin is only damaging to banks that cling to the fiat system. Also, the fiat system seeks to destroy the banks! Just think for a second, with CBDCs do you still need a bank?”

James Lavish, Managing Partner of the Bitcoin Opportunity Fund, replied to Mow stating that “for those who think Jamie Dimon is stupid, ignorant, or uninformed, he is none of these things. He is an extremely intelligent banker who knows exactly how disruptive (damaging) Bitcoin can (and will) be to his business. And he is doing everything in his power to discredit it.”

Mow’s response to the above comment was “So if Dimon actually had any sense, he would transition JPM to be a Bitcoin bank and stop talking nonsense about the only thing keeping CBDCs in check and preventing them from utterly eradicating his business.”

Contrary to Dimon’s claim that BTC primarily facilitates fraudulent activities, Mow emphasized the potential of BTC. He sees it as an opportunity for banks to secure their future, rather than a threat. This perspective challenges the traditional banking model and highlights the inevitability of changes such as money and financial services. Mow’s argument implies that denying BTC’s emerging role as a legitimate form of money amounts to refusing to acknowledge the current evolution of the financial ecosystem.

Industry Voices Challenge Dimon’s Criticism

Mow’s position was echoed by Edward Snowden, the famous American whistleblower. Snowden expressed surprise at Dimon’s intensified criticism of BTC, especially after the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs).

Furthermore, during the interview, Dimon also referred to BTC as a “pet stone”, to which Michael Saylor, director of MicroStrategy, responded sarcastically and highlighted the intrinsic value of BTC as a decentralized asset that provides security against “degradation.” and theft.

Amid the ongoing debate and Dimon’s skepticism, the BTC market trajectory shows signs of volatility. At the time of writing, the price of BTC had decreased by almost 1% in the last 24 hours and saw a more significant drop of almost 10% over the past week.

By Leonardo Perez

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