The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Tuesday! Here’s what you need to know today in crypto: |
| Bitcoin reaches levels not seen since late 2021. Franklin Templeton is the latest to join the Ethereum ETF race. Crypto traders are scooping up options bets at $65,000 and higher. |
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CoinDesk 20 Index: 1,873 +5.2%
Bitcoin (BTC): $50,008 +4.5%
Ether (ETC): $2,684 +8.0%
S&P 500: 5,021.84 −0.1%
Gold: $2,042 +1.2%
Nikkei 225: $2,042 +1.2% |
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Looking for the premier Bitcoin ETF? Look for Grayscale Bitcoin Trust ETF (Ticker: GBTC). GBTC is the world’s largest spot bitcoin ETF with $26.6B in AUM as of 1/11/24. It is also the world’s oldest Bitcoin fund, first created in 2013 to give investors secure and familiar access to Bitcoin. GBTC is managed by Grayscale, one of the only asset managers with a decade of experience operating a Bitcoin investment vehicle. Remember, Bitcoin investing begins with GBTC. Find ticker: GBTC in your brokerage account or ask your financial advisor today. Grayscale Bitcoin Trust (BTC) (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903 - 2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. Foreside Fund Services, LLC is the Marketing Agent for the Trust. An investment in the Trust involves risks, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. Extreme volatility of trading prices that many digital assets, including Bitcoin, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of GBTC and the shares could lose all or substantially all of their value. |
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Solana’s SOL led gains among major cryptocurrencies as bitcoin (BTC) briefly crossed the $50,000 mark late Monday, sparking renewed bullish sentiment among traders. SOL jumped 8%, while ether (ETH) rose 6.6% as bitcoin saw buying pressure after the New York market opened on Monday. Ordinals (ORDI), the project allowing the creation of non-fungible tokens (NFTs) on Bitcoin, jumped 15% on Tuesday while Avalanche’s AVAX climbed 6%. Growth in major and alternative tokens has seemingly tracked the rise of bitcoin, which touched levels not seen since late 2021. Bitcoin’s rally has been attributed mainly to ETF approvals, but some analysts also point to the record run in U.S. equities as another source for the added demand. LMAX Digital said in a morning note “While we wouldn’t rule this out, correlations between bitcoin and traditional assets have been less relevant in recent months.” LMAX said its focus is now on a retest of the record high from 2021, “Monday’s push through the January high and above $50k has set the stage for this next big run to the topside.” |
Franklin Templeton has applied for a spot Ethereum exchange-traded fund (ETF), a filing with the Securities and Exchange Commission (SEC) shows. The asset manager joins BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco and Galaxy, and Hashdex, who have all submitted applications in recent months. The filing comes roughly four weeks after Franklin, among nine other issuers, launched a spot bitcoin ETF. Asset management giant BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have seen the most demand. Franklin has had a less successful start, with only roughly $70 million in inflows since its introduction. Crypto traders are snapping cheap, out-of-the-money (OTM) bitcoin calls at levels around the cryptocurrency’s lifetime high of $69,000. Over the weekend, many call options at strikes $65,000, $70,000 and $75,000 changed hands on Deribit, the leading crypto options exchange by volumes and open interest. On Deribit, one options contract represents one BTC. Call options give investors the right to buy the underlying asset at a specific price by a stated date, while puts confer the right to sell. A call buyer is implicitly bullish on the market. The mass buying of higher strike calls reflects a bullish mood among sophisticated market participants. “We see a concentration of open interest in $50k calls and have seen flows in $50K, $60K and $75K calls in the listed options markets from April to June maturities” Kelly Greer, head of Americas sales at Galaxy, told CoinDesk in an interview. |
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Market Insight: Tether and Circle Stablecoin Purchases Dominate in Argentina |
Argentina, the nation that recently elected self-described "anarcho-capitalist" Javier Milei as president, has the largest purchases and holdings of stablecoins in Latin America over the past six months, according to a report by Mexican-founded crypto exchange Bitso. Dealing with a severe economic crisis and a plunging peso, 60% of Argentine crypto purchases on Bitso were for dollar-based stablecoins USDT and USDC and just 13% of buys were for bitcoin. This compares with Colombia, Brazil and Mexico, where stablecoin purchases ranged between 31% and 40% of total crypto buys. |
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| The latest fund manager survey from Bank of America shows investor allocation to technology stocks is now at the highest since August 2020.The survey also showed cash levels with fund managers near levels where a contrarian sell signal is triggered.A potential bearish turnaround in the technology stocks could weigh on the crypto market.Source: BofA Global Fund Manager Survey, Lisa Abramowicz: |
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Grayscale is the world’s largest crypto asset manager*. We enable investors to access the digital economy through a family of regulated and future-forward investment products. Our decade-long track record and deep expertise as a crypto-specialist means that investors, advisors, and allocators turn to us for both investment insights and innovative products. Crypto investing begins with Grayscale. *By AUM as of 1/16/24. Investing involves risk and possible loss of principal. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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