Riding The Wave News Summary 212
Crypto fans got what they wanted. So why is bitcoin falling?, Charles Schwab makes strategic play for Bitcoin ETF, analysts say, & more.
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Crypto fans got what they wanted. So why is bitcoin falling?
Charles Schwab makes strategic play for Bitcoin ETF, analysts say
Bitcoin ETF ads may appear on Google starting Monday, community speculates
Crypto-Linked Stocks Rise With Bitcoin as Analyst Says 'Not The Time to Turn Bearish'
Tweets
https://twitter.com/intocryptoverse/status/1750986526257787222
https://twitter.com/thedefiedge/status/1751043575674986681
Crypto fans got what they wanted. So why is bitcoin falling?
Major cryptocurrencies were on a tear at the end of last year, driven higher by anticipation that US regulators would approve bitcoin exchange-traded funds, broadening the pool of potential investors.
Once those funds received the go-ahead, bitcoin fell. What gives?
Bitcoin topped $47,000 early this month for the first time since April 2022, as investors anticipated that the US Securities and Exchange Commission would approve the first ever exchange-traded funds tracking the spot price of bitcoin.
But the cryptocurrency declined after the favorable SEC decision duly came on January 10. And bitcoin edged below $40,000 earlier this week for the first time since December.
The price of the cryptocurrency was trading at roughly $39,519 a coin as of 4 pm ET on Wednesday.
So, why is the price of bitcoin falling, even after investors got what they wanted? Part of the reason is likely a “buy the rumor, sell the news” mentality, according to Antoni Trenchev, co-founder of crypto lender Nexo. That’s the idea that the price of an asset often rises in anticipation of an announcement and then falls as investors take profits once the news actually comes out.
Interestingly, bitcoin ETF activity actually shows net buying.
Investors have pulled about $4.4 billion from the Grayscale Bitcoin Trust since it was converted to an ETF on January 11, according to Coinshares data through Wednesday. Greyscale’s fund is the largest bitcoin ETF, holding roughly $20 billion in assets.
But those flows have been offset by about $5.3 billion poured into nine other spot bitcoin ETFs.
ETFs hold just a small portion of the bitcoin that’s traded, says Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. That means “the call is coming from inside the house. Someone who pre-owned the crypto is doing the selling,” he said.
Charles Schwab makes strategic play for Bitcoin ETF, analysts say
With a reputation for conservative and thoughtful product development, Schwab may well be waiting to unveil an ETF that not only undercuts the competition with lower fees but also stands the test of time in a tumultuous market—a counter to the more aggressive forays by competitors like Fidelity Investments.
Indeed, while Fidelity has rapidly gained ground in the ETF space and BlackRock is making its presence felt, Schwab has maintained a balanced stance by making all 11 existing ETFs available on its platforms, sidestepping the need to promote a proprietary product and dodging any conflicts of interest. However, this could be part of a calculated strategy.
In a recent post on X, crypto expert Nate Geraci expressed his belief that a forthcoming offering from Schwab is imminent. He confidently stated, “It’s a foregone conclusion,” indicating strong certainty about the timeline.
Bitcoin ETF ads may appear on Google starting Monday, community speculates
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