By NewsBlogger The recent approval of spot Bitcoin ETFs in the United States has led to a surge in BTC prices, while institutional investors in Canada are increasingly gaining exposure to crypto assets through various regulated products.
At a glance
- Bitcoin’s fourth halving has reduced block rewards to 3.125 BTC, with some claiming its effects are diminishing.
- The approval of spot Bitcoin ETFs in the US led to a surge in BTC prices and attracted billions of dollars worth of BTC.
- BNY Mellon disclosed exposure to spot BTC ETFs, while Morgan Stanley considers recommending clients to purchase spot Bitcoin ETF funds.
- Hong Kong is preparing to launch spot Bitcoin and Ethereum ETFs, potentially impacting the Asian continent.
- Geopolitical tensions in the Middle East have increased demand for safe-haven assets, leading to a 6% drop in Bitcoin’s value in April.
The details
Bitcoin’s recent fourth halving has led to a reduction in block rewards to 3.125 BTC. However, there is controversy surrounding the impact of this halving, with some claiming that its effects are diminishing.
The US Securities and Exchange Commission approved nearly a dozen spot Bitcoin ETFs in mid-January.
Notably, these ETFs, led by BlackRock’s IBIT and Fidelity’s FBTC, attracted billions of dollars worth of BTC, resulting in a surge in spot BTC prices that almost doubled its USD value and reached a new all-time high.
Price Decrease and Impact of ETFs
However, following this peak, inflows into BTC started to turn negative, leading to a price decrease of approximately ten grand since March peaks.
Reports suggest that ETFs are crucial for Bitcoin to continue growing as an asset.
BNY Mellon disclosed its exposure to spot BTC ETFs trading in the US, while Morgan Stanley is contemplating allowing its brokers to recommend clients to purchase spot Bitcoin ETF funds.
Global Market Trends
In a similar vein, Hong Kong is gearing up to launch its own spot Bitcoin and Ethereum ETFs, with analysts believing that this move will significantly impact the Asian continent, potentially prompting more countries to follow suit.
On the other hand, Binance’s dominance in Bitcoin trading outside the U.S. has seen a decline over the past year, with its share of BTC trading dropping from 81.3% to 55.3%. Similarly, its proportion of smaller tokens and altcoins fell from 58% to 50.5%. Bybit and OKX have gained momentum in offshore markets, with Bybit’s portion of global Bitcoin trading outside the U.S. increasing to 9.3% from 2%, and OKX’s share rising to 7.3% from 3%.
Bitcoin’s fourth halving event recently took place, with the cryptocurrency slightly outperforming previous halvings in the first few days.
Additionally, the average network fee on the Bitcoin network surged to an all-time high of $146, while funding rates for Bitcoin perpetual contracts remained neutral, and open interest in these contracts exceeded $10 billion.
Binance has faced legal challenges, with co-founder Changpeng Zhao pleading guilty to U.S. anti-money laundering and sanctions breaches.
The exchange is now under new leadership by Richard Teng, a former Singaporean regulator, as it works to improve its image amid U.S. regulatory scrutiny.
Geopolitical tensions in the Middle East have increased demand for safe-haven assets, leading to a 6% drop in Bitcoin’s value in April, while gold and the U.S. dollar rallied.
Moreover, institutional investors in Canada have shown increased cryptocurrency exposure compared to the previous bull market cycle.
According to KPMG’s bi-annual survey, 39% of institutional investors reported having exposure to crypto assets in 2023, up from 31% in 2021. Half of the financial services respondents stated that they offered crypto asset services in 2023, an increase from 41% in 2021. One-third of institutional investors had allocated 10% or more of their portfolios to crypto assets, with firms exploring investments in alternative asset classes as hedges against debasement and reliable stores of value.
Many crypto companies have relocated to Canada due to heavy regulatory crackdowns in the United States.
Canada’s approval of spot Bitcoin and Ethereum exchange-traded funds in February 2021 has attracted local investors to the crypto asset class, with the approval of spot Bitcoin ETFs in the United States seen as a milestone moment for many market participants in Canada.
Half of the institutional investors surveyed have exposure to crypto assets through Canadian ETFs, close-ended trusts, or other regulated products, while 58% have exposure through the stock market.
Additionally, more institutional investors are gaining exposure through derivatives markets, with venture capital or hedge fund firms seeing a decline.
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Sources
Facts attribution
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| cryptopotato.com |
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| – Bitcoin’s fourth halving has occurred, reducing block rewards to 3.125 BTC – There is controversy surrounding the impact of this halving, with some claiming its effects are declining – The US Securities and Exchange Commission approved nearly a dozen spot Bitcoin ETFs in mid-January – These ETFs, led by BlackRock’s IBIT and Fidelity’s FBTC, attracted billions of dollars worth of BTC – This demand led to a price increase for spot BTC prices, nearly doubling its USD value and reaching a new all-time high – Inflows into BTC started to turn negative, causing a price decrease of about ten grand since March peaks – Reports suggest that ETFs are essential for bitcoin to continue growing as an asset – BNY Mellon disclosed exposure to spot BTC ETFs trading in the US – Morgan Stanley is considering allowing its brokers to recommend clients to purchase spot Bitcoin ETF funds – Hong Kong is preparing to launch its own spot Bitcoin and Ethereum ETFs – Analysts believe the launch of spot ETFs in Hong Kong will have a significant impact on the Asian continent, with more countries likely to follow suit |
| cryptopotato.com |
|---|
| – Binance’s dominance in Bitcoin trading outside the U.S. has decreased over the past year – Binance’s share of BTC trading dropped from 81.3% to 55.3% – Binance’s proportion of smaller tokens and altcoins fell from 58% to 50.5% – Bybit and OKX have gained momentum in offshore markets – Bybit’s portion of global Bitcoin trading outside the U.S. increased to 9.3% from 2% – OKX’s share rose to 7.3% from 3% – Bitcoin’s fourth halving event occurred recently – Bitcoin has slightly outperformed previous halvings in the first few days – Average network fee on the Bitcoin network surged to an all-time high of $146 – Funding rates for bitcoin perpetual contracts remained neutral – Open interest in bitcoin perpetual contracts exceeded $10 billion – Binance has faced legal challenges, with co-founder Changpeng Zhao pleading guilty to U.S. anti-money laundering and sanctions breaches – Binance is under new leadership by Richard Teng, a former Singaporean regulator – Binance is working to improve its image amid U.S. regulatory scrutiny – Geopolitical tensions in the Middle East have increased demand for safe-haven assets – Bitcoin’s value dropped by 6% in April, while gold and the U.S. dollar rallied – The decrease in bitcoin’s value could be attributed to the halving and increased short-term volatility. |
| cryptopotato.com |
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| – Institutional investors in Canada increased their cryptocurrency exposure last year compared to the previous bull market cycle – KPMG’s bi-annual survey received 65 responses, including 31 institutional investors managing over $500 million in assets and 34 financial services organizations – 39% of institutional investors reported having direct or indirect exposure to crypto assets in 2023, up from 31% in 2021 – Half of the financial services respondents stated that they offered crypto asset services in 2023, up from 41% in 2021 – One-third of institutional investors had allocated 10% or more of their portfolios to crypto assets, an increase from a fifth reported two years ago – Firms are exploring investments in alternative asset classes to serve as hedges against debasement and as reliable stores of value – Reasons driving institutional investors’ interest in crypto assets include a maturing market and improved custody infrastructure – Many crypto companies relocated operations to Canada due to heavy regulatory crackdowns in the United States – Canada’s approval of spot Bitcoin and Ethereum exchange-traded funds in February 2021 attracted local investors to the crypto asset class – Approval of spot Bitcoin ETFs in the United States is seen as a milestone moment for many market participants in Canada – Half of the institutional investors surveyed have exposure to crypto assets through Canadian ETFs, close-ended trusts, or other regulated products – 58% have exposure through the stock market, such as Galaxy Digital on the Toronto Stock Exchange – More institutional investors are gaining exposure through derivatives markets, which now stand at 42% compared to 14% in 2021 – The only decline observed was in venture capital or hedge fund firms, which fell to 25% from 29% in 2021 |
