The price of one whole Bitcoin (BTC) can deter potential investors who are hesitant to buy only a fraction of the cryptocurrency due to unit bias psychology, which favors owning complete units, according to VanEck adviser Gabor Gurbacs. He suggests that Bitcoin exchange-traded funds (ETF) are a solution to this challenge.

In a series of posts on X (formerly Twitter), Gurbacs stated that many people are still unaware they can own a part of a Bitcoin and suggested there are even more individuals who prefer to own only complete assets:

Furthermore, he reiterates that it seems more appealing to investors to own a whole asset than a fraction.

Owning a full share feels better than owning 0.001 Bitcoin. Seems like a small thing but its a big thing, he stated.

Although Gurbacs recognizes that this debate is not new, he argues that biases represent one of the most valuable tools for understanding markets.

Simplistic but unit bias psychology matters a lot. I think about this a lot, he further added.

Related: BlackRock to slash 3% of workforce ahead of Bitcoin ETF deadline: Report

Meanwhile, the crypto industry is filled with high expectations that the United States Securities and Exchange Commission (SEC) will greenlight a spot Bitcoin ETF in the upcoming week.

However, the broader financial services industry is more skeptical of the chance it will happen.

In a recent survey by Bitwisewith responses from 437 financial advisers, just 39% of U.S. financial advisers anticipate the approval of a Bitcoin ETF in 2024.

Cointelegraph recently reported that the final steps for a spot Bitcoin ETF debut on Wall Street are in progress, with final revisions from asset managers expected by the morning of Jan. 8.

The revisions must be submitted through S-1 filings before the start of business, and applicants are expected to reveal the remaining fees and tickers.

BlackRock has not yet disclosed the fees associated with its ETF.

Magazine: 10 best long reads about crypto in 2023

View post:

Bitcoin ETFs will solve unit bias psychology, says VanEck adviser - Cointelegraph

The first Bitcoin exchange-traded funds could launch as soon as next week, but the fee wars between the likes of Fidelity Investments and Invesco have already begun.

Those companies for the first time are detailing in federal filings their planned fees for some of the most anticipated funds in history. The filings show that while the launch of ETFs could end up bolstering the coins, they arent likely to be a bonanza for the companies offering them, at least in the near term.

Fidelity, for example, in a filing on Friday said its Wise Origin Bitcoin Fund will charge merely 0.39% annually in expense fees. Invesco and crypto firm Galaxy, which seek to launch the Invesco Galaxy Bitcoin ETF, said their fund plans to charge 0.59%, though the fee will be waived for six months on the first $5 billion in assets. Other would-be contenders, including Bitwise Asset Management and BlackRock havent yet said in their filings what their funds will charge, and the proposed fees could change before launch in any case.

A BlackRock spokeswoman and a Bitwise spokeswoman each declined to comment.

The Securities and Exchange Commission is expected to soon give the green light to launch funds that hold spot Bitcoin. Funds that hold Bitcoin futures, like ProShares Bitcoin Strategy, have existed since 2021. The agency for years denied such spot Bitcoin applications, but an appellate court last year said the SECs rejection of one such bid was arbitrary and capricious.

Advertisement - Scroll to Continue

Though the SEC could come up with another reason for rejecting the funds, agency staff have asked potential sponsors for filing updates and other information that would seem to indicate approvals are imminent.

The SEC declined to comment.

Some analysts estimate that the launch of the funds could bring tens of billions of dollars into Bitcoin, as some financial advisors get an easy way to access the cryptocurrency for the first time. On Tuesday, Bitcoins price broke through $45,000 powered in part by anticipation of the ETFs.

Advertisement - Scroll to Continue

But even if that ends up being the case, it isnt looking like the funds will be an immediate windfall for their sponsors.

Right now, the largest Bitcoin fund is the Grayscale Bitcoin Trust, operated by Grayscale Investments with $26 billion under management. The trust trades like a closed-end fund with price that can deviate from the value of the coins it holds. While the discount had been as steep as 50% in 2022, on Friday it was merely 8%.

The Grayscale funds annual fee right now is 2% of its assets, or about $520 million at current prices.

Advertisement - Scroll to Continue

Grayscale hasnt said what the fund will charge if it converts. A spokeswoman said only that the company is committed to lowering the fee upon approval.

Out of the starting gate, the Grayscales fund will likely have better liquidity than other contenders, meaning tighter bid/ask spreads for rapid traders who care less about annual expense ratios.

Still, given Fidelity and Invescos disclosures, it is already safe to conclude that the Bitcoin funds wont be a cash cow. At Fidelitys expense ratio, for example, Grayscales $26 billion fund would only yield $101 million in fees, before taking into account the expenses of running the fund.

Advertisement - Scroll to Continue

Even if the assets under management of the total Bitcoin ETF space were to be double the size of the Grayscale fund, a 0.39% fee would represent only about 1% of the $17.8 billion in revenues that analysts estimate BlackRock earned in 2023. And thats at the starting gate, before fund companies start undercutting one another.

The potential saving grace for fund companies and Bitcoin investors is that some analysts predict the ETF launches could drive prices much higher.

Analysts for Bernstein Research in a note on Tuesday said the coins market cap could more than triple to $3 trillion by mid-2025.

Our only message from the outlook report is BUY THE DIP. And every dip the market offers in 2024, wrote the analysts, led by Gautam Chhugani.

Write to Joe Light at joe.light@barrons.com

Read more from the original source:

Bitcoin ETFs Are Almost Here. The Fee War Is Already Heating Up. - Barron's

Crypto-related stocks such as Coinbase Global have gained on the potential approval of exchange-traded funds tied to the spot price of Bitcoin but Mizuho Securities Dan Dolev is warning the company might not receive the hoped-for benefits.

Coinbase shares were down 1% in early trading at $150.94, reversing earlier gains. The cryptocurrency exchanges stock has tumbled from highs of more than $180 a share in recent days but it has still more than quadrupled over the past 12 months.That has prompted caution that the stock might be getting ahead of itself, including from Barrons.

Mizuhos Dolev, a longtime skeptic on the stock, sounded another warning on Thursday. He warned that while the rally has been based on excitement over the expected approval of spot Bitcoin ETFs, the reality might disappoint.

With the hype around Bitcoin ETFs likely to reach a climax in the coming weeks, COIN bulls could experience a rough awakening when they realize how minimal the revenue impact is, wrote Dolev.

Dolev reiterated an Underperform rating on Coinbase. His target for the stock price is $54, a bit more than one-third of its current level.

Advertisement - Scroll to Continue

The analysts calculations are based on the assumption that around $81 billion of new investment might flow into Bitcoin ETFs if they are approved. That would represent close to 10% of the current market capitalization of the digital currency.

Dolev estimates that Coinbase might end up serving as custodian of around half of that money.That would imply roughly $25 million-$30 million of custody-fee revenue earned by Coinbase on the Bitcoin ETFs, according to the Mizuho analyst.

A bigger boost could come from increased trading of Bitcoin on exchanges such as Coinbase. Assuming annual trading volume increased by around $83 billion, and applying Coinbases historical market share and fees, that implies around $200 million-$210 million of additional revenue, according to Dolev.

Advertisement - Scroll to Continue

This represents just mid-to-high single-digit percentage upside vs. current 2024 consensus, Dolev wrote. The potential upside to COIN revenue from Bitcoin ETF [approval] may be far less than what the stock indicates.

Coinbase didnt immediately respond to a request for comment from Barrons on Thursday.

It is worth noting that the calculations are sensitive to the assumptions made about what the approval of Bitcoin ETFs might mean for the sector. Analysts at Bernstein Research have estimated that the approval might help bring an additional $600 billion in funds into the crypto sector, considerably more than Dolevs estimate.

However, Dolev is hardly alone in his skepticism toward Coinbase stock. The average target for the stock price among Wall Street analysts tracked by FactSet

Advertisement - Scroll to Continue

Write to Adam Clark at adam.clark@barrons.com

Go here to read the rest:

Coinbase Stock Wobbles as Analyst Warns Gains From Bitcoin ETFs Might Disappoint - Barron's

Source: Upbit

Ben Zhou, the co-founder and CEO of Bybit has expressed optimism over the approval of spot Bitcoin ETF but he also believes that this is not a make or break scenario for the leading cryptocurrency.

In his view, its the institutions that need the ETF, not Bitcoin. Pointing to Bitcoins resilience over the past two years amid challenges such as bankruptcies, regulatory hurdles, and banking crises, Zhou underlined that Bitcoins fundamentals drive its growth. Zhou told CryptoNews:

The Bitcoin ETF has been a long time coming. But now, with BlackRock and other TradFi juggernauts in the mix, the odds of approval are higher than ever. If approved, the effects will permeate the entire crypto market, bringing not only new money but also a new sense of confidence.

Despite the positive outlook, Zhou acknowledged that there are still unresolved questions surrounding the potential a spot Bitcoin ETF approval. However, he expressed confidence in Bitcoins ability to outperform other assets, irrespective of regulatory developments. He added:

There are still a lot of questions to be resolved, but we know this much: crypto isnt too volatile or unregulated to warrant an ETF. The persistence of BlackRock and others indicate Bitcoins maturation as an asset class.

As reported earlier, Ark Invest CEO Cathie Wood also expressed optimism regarding the approval of the much anticipated ETF by the U.S. SEC. Wood highlighted the encouraging signs for approval in January 2024 and stressed the importance of a spot Bitcoin ETF in stimulating institutional interest in the crypto space.

While Zhou and Wood share optimism about the potential impact of the ETF, both leaders caution that Bitcoins fundamentals, rather than ETF approval, remain the key driver of its sustained growth. Investors and market participants are expecting the US SEC to decide this week.

Enter your email for our Free Daily Newsletter

A quick 3min read about today's crypto news!

Original post:

Institutions Need the ETF, Not Bitcoin, Says Bybit CEO - Cryptonews

Even with a regulatory crackdown on cryptocurrency exchanges in the past year, the price of bitcoin rose steadily through most of 2023, and now sits at around $43,610 a nearly $18,000 increase in value since September.

Bitcoin hit a peak value of around $68,000 in November 2021. But by November 2022, it had lost more than 75% of that value following the collapse of FTX, the largest cryptocurrency exchange at the time. And now, it's bounced back up again.

Other popular cryptocurrencies have followed a similar trajectory in what has been a remarkable turnaround for an industry battered by scandal. But why now?

Investors have been buying cryptocurrencies ahead of the much-anticipated approval of the first U.S. spot bitcoin exchange-traded fund, which is expected later in January.

Pending approval, a slew of investment firms are expected to offer ETFs, most notably Blackrock, the largest asset management firm in the world.

An ETFis an investment fund that tracks the price of an underlying asset or index in this case, bitcoin.

The advantage of a bitcoin or crypto ETF is that it would offer a way for investors to benefit from the price movements of bitcoin without owning the cryptocurrency directly.

If approved, cryptocurrency ETFs are expected to be traded on traditional SEC-regulated exchanges like the New York Stock Exchange or Nasdaq, according to CoinDesk.

That would open up the cryptocurrency market to a wider array of buyers who don't use cryptocurrency exchanges already. In anticipation of ETF approval, investors have been piling back into the market, which has driven up the price of bitcoin.

"It really opens the door for all kinds of demands. And if demand goes up, price goes up," says Douglas Boneparth, president of Bone Fide Wealth and a member of CNBC's Financial Advisor Council. Boneparth holds investments in bitcoin and other cryptocurrencies.

There are other factors at play, too. The Federal Reserve has signaled that its interest rate hike cycle is over, an encouraging sign for the economy as inflation continues to fall. This has made riskier assets like crypto more attractive to investors.

Another factor is bitcoin's "halving," which is expected in April. Halving is a built-in mechanism related to bitcoin mining that periodically reduces token supply. Decreasing the supply of bitcoin is expected to further stoke demand.

To break it down, the factors behind the recent surge in bitcoin prices are "60% bitcoin ETF, 20% halving and 20% economic conditions," says Boneparth.

However, "be mindful about the relentless upward [price] movement over the past few months," says Owen Lau, executive director at financial services company Oppenheimer & Co. "A lot of the good news appears to have been priced in."

Cryptocurrency is widely seen as a speculative asset that doesn't derive its value from an underlying entity. It's also extremely volatile, sometimes with price fluctuations of 5% to 10% in a single day. There are no guarantees that it will retain any of its current value, either.

As such, financial planners typically advise against investing more than you're willing to lose.

"Bitcoin is the best performing asset class in the last 10 years," says Boneparth. "But owning that performance comes with a large amount of risk."

DON'T MISS: Want to be smarter and more successful with your money, work & life?Sign up for our new newsletter!

Get CNBC's free Warren Buffett Guide to Investing, which distills the billionaire's No. 1 best piece of advice for regular investors, do's and don'ts, and three key investing principles into a clear and simple guidebook.

Go here to see the original:

Bitcoin has surged 67% in value since Septemberhere's why - CNBC

Access to this page has been denied because we believe you are using automation tools to browse the website.

This may happen as a result of the following:

Please make sure that Javascript and cookies are enabled on your browser and that you are not blocking them from loading.

Reference ID: #cd01124b-adf8-11ee-816b-5bde2325b2bf

Read more from the original source:

Bitcoin ETFs Are Coming Fast. Crypto Investing Will Never Be The Same. - Investor's Business Daily

Our website is a comprehensive guide to digital currency investing & trading.Here are a few suggestions to get started, and get the most from us:

Begin with Bitcoin for Beginners.

Get the edge with our exclusive Bitcoin and cryptoguides.

Check out our Crypto YouTube channel, that includes beginners and advanced tutorial videos and market updates. Dont forget to subscribe!

See original here:

This is the Most Interested US State in Spot Bitcoin ETF - CryptoPotato

Our website is a comprehensive guide to digital currency investing & trading.Here are a few suggestions to get started, and get the most from us:

Begin with Bitcoin for Beginners.

Get the edge with our exclusive Bitcoin and cryptoguides.

Check out our Crypto YouTube channel, that includes beginners and advanced tutorial videos and market updates. Dont forget to subscribe!

Here is the original post:

Mysterious Bitcoin Transaction: Satoshi Nakamotos Wallet Resurfaces in a $1.17 Million Move - CryptoPotato

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions.

Advisory warning: FOREXLIVE is not an investment advisor, FOREXLIVE provides references and links to selected news, blogs and other sources of economic and market information for informational purposes and as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE specifically hereby acknowledges clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided on an "as-is" basis as a general market commentary and does not constitute investment or trading advice, and we do not purport to present the entire relevant or available public information with respect to a specific market or security. FOREXLIVE expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information, or with respect to any of the content presented within its website, nor its editorial choices.

Disclaimer: FOREXLIVE may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Finance Magnates CY Limited

See more here:

Y'all set to spend another week muttering about imminent spot bitcoin ETF approval? - ForexLive

This is the third version of this headline I've published in this newsletter. And the answer may finally be yes: A spot bitcoin exchange-traded fund (ETF) may begin trading in the U.S. in the coming weeks.

Youre reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions.

Excitement over a spot bitcoin ETF a regulated financial product that would give institutional and retail investors easier exposure to bitcoin's price without requiring them to invest directly in the asset continues to grow.

The U.S. Securities and Exchange Commission (SEC) faces a Jan. 10 deadline for approving an application from Ark 21 Shares. It's widely seen as the final date by which the SEC may approve or reject the more than a dozen outstanding applications.

A number of signs point to an approval in the near future like continued meetings between SEC staff, exchanges and would-be issuers, as well as a flurry of filings.

SEC staff met with representatives from the markets that want to list the products the New York Stock Exchange, Nasdaq and Cboe Global Markets on Wednesday afternoon, an individual told CoinDesk.

Fox Business first reported that the meetings were taking place, saying SEC attorneys from the Division of Trading and Markets met with representatives from the exchanges.

Over the past few weeks, SEC staff have also met with issuers to address various aspects of their S-1 filings, including having all issuers use a cash creation and redemption model instead of in-kind.

Cash creation means what it sounds like: Authorized participants will purchase shares of the ETFs from the issuers using cash, rather than directly acquiring the underlying asset.

Companies like BlackRock and Grayscale have argued before the SEC that the regulator should be comfortable with and allow in-kind creation. Georgetown University Associate Professor James Angel similarly argued in a letter to the regulator that only allowing cash creation would end up adding fees and other frictions to the various parties.

An individual familiar with an issuer's efforts told CoinDesk last month that issuers had been meeting with the SEC to pitch the regulator on allowing both cash and in-kind creations.

"If you offer cash and in-kind, you have more market participants, tighter spreads on the ETF, closer tracking to the underlying assets and greater investor protections," the individual said.

However, the individual also noted that there may be a few reasons why the SEC may not want to allow in-kind creations at this moment simply due to how existing rules are structured.

The SEC may need to update its rules for how broker-dealers handle custody transactions before it can allow in-kind, the person suggested as one possible reason for the reticence.

"I think many of the issuers believe that they don't want the introduction of a bitcoin ETF to be the thing that forces the SEC to update the rules and regulations for how broker-dealers handle bitcoin," they said. This isn't an insurmountable problem the SEC could allow other intermediary businesses handle trading for in-kind creations and redemptions, for example.

Also on Wednesday, Fidelity filed a form 8-A, which allows exchanges to list shares. While this form doesn't in and of itself mean the product has been approved, it is a procedural step that must be taken if approval does arrive. An individual at another would-be issuer said their company would also have to file a form 8-A.

James Seyffart, an analyst with Bloomberg Intelligence, said the filing is a registration that's needed for the shares to begin trading.

"What will actually dictate SEC approvals is 19b-4 and S-1 approvals," he said.

"There are two primary things that I'm watching and that others should be watching if they're interested," Seyffart said. "These ETFs need a 19b-4 approval order and they need a completed and effective prospectus, aka an S-1. Without both of those things, the ETFs cannot begin trading."

In the meantime, we have seen a number of amended filings addressing the cash creation model and naming authorized participants.

And seemingly riding on the wave of excitement, the T-REX Group (yes, really) filed for a number of inverse and long spot bitcoin ETFs, presumably in anticipation of a spot trust product approval. None of these actions are smoking guns, but they all hint at a likely approval.

If youve got thoughts or questions on what I should discuss next week or any other feedback youd like to share, feel free to email me at nik@coindesk.com or find me on Twitter @nikhileshde.

You can also join the group conversation on Telegram.

Link:

Will 2024 Be the Year of the Bitcoin ETF? - CoinDesk