Category Archives: Bitcoin
Bitcoin faces short-term price correction risks, says Bitfinex analyst – The Block – Crypto News
Bitcoin continues to face price correction risks due to sell pressure from short-term holders and the illiquid market environment during the holiday season, an analyst said.
"We expect more drawdown if short-term holders and retail leverage continues to play a dominant role in the market and cause a continued pullback on a relatively illiquid holiday season market environment," Bitfinex Head of Derivatives Jag Kooner told The Block.
According to Kooner, bitcoin is at risk of a price correction above the $44,000 mark. The analyst said that this level serves as a profit realization point for medium-term holders individuals who have maintained their bitcoin holdings between 18 and 24 months.
The Bitfinex analyst added that profit-taking by the short-term holder cohort was a major cause of the recent retracement in the bitcoin price. "Short-term holder profits got overheated, which resulted in our current slump," Kooner said.
However, according to a recent Bitfinex report, there have been 67 consistent days of bitcoin net realized profitability for all bitcoin holder cohorts. "This is the longest streak of realized profits since the period from October 2020 to February 2021, such streaks usually lead to market corrections in bull markets," said multiple Bitfinex analysts in the report.
In the report, the analysts added that based on historical market behavior, the entire cryptocurrency market could see pullbacks before climbing to a high of $3.2 trillion by the end of 2024. "Current bitcoin valuations imply that the market environment is analogous to the period around June 2019 and July 2016, which saw initial dips in price before sustained recoveries. We expected a pullback to occur post bitcoin tagging the $44,000-$45,000 zone and why we expect prices to range further at these prices or pullback instead of an immediate move upwards," they added.
The world's largest cryptocurrency by market capitalization traded flat over the past 24 hours to change hands at $42,898 at 8:00 a.m. ET, according to The Block's Price Page.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Bitcoin faces short-term price correction risks, says Bitfinex analyst - The Block - Crypto News
Is It Too Late to Buy Marathon Digital Stock? – The Motley Fool
Marathon Digital's (MARA -16.43%) stock has soared about 640% over the past 12 months. The bulls rushed back to the Bitcoin (CRYPTO: BTC) miner as the cryptocurrency's price stabilized and recovered from its steep decline in 2022. But is it too late to buy Marathon's stock after that massive rally?
Marathon was once a tiny patent holding company. But in 2020, it ordered tens of thousands of top-tier ASIC miners and rebranded itself as a pure-play Bitcoin miner.
Image source: Getty Images.
Many investors were initially skeptical of that plan, which sounded like a questionable way to profit from the market's soaring interest in Bitcoin. Nevertheless, Marathon consistently expanded over the following three years and became the world's largest Bitcoin mining company, with a fleet of about 184,400 active miners as of Dec. 1. Its closest competitor, Riot Platforms, operated a fleet of 112,944 active miners at the end of November.
Marathon produced an average of 38.4 BTC daily in November, which represented a 144% increase from a year earlier. Riot only produced 18.4 BTC daily, which represented a mere 6% increase from the previous year.
Marathon is scaling up its business at a much faster rate than Riot. Over the past year, it opened two new plants, launched a new joint venture in Abu Dhabi, and agreed to buy multiple BTC mining sites for $179 million in mid-December. Those bold moves will likely consolidate a large portion of the market and widen its lead against Riot.
Marathon generates most of its revenue from BTC mining. It also periodically sells the BTC it mines to boost its cash holdings. At the end of the third quarter of 2023, it held $101 million in cash and $287 million in BTC on its balance sheet. That marked the first time its total cash and BTC holdings exceeded its total debt.
Marathon's revenue soared from $4 million in 2020 to $150 million in 2021 as it deployed its first miners. But in 2022, its revenue declined to $118 million as BTC's price tumbled amid rising interest rates and other macro headwinds.
Looking ahead, analysts expect Marathon's revenue to more than triple to $359 million this year as BTC's price recovers and it significantly expands its mining operations. They also expect its revenue to rise another 47% in 2024 and 42% in 2025 -- but we should take those estimates with a grain of salt, because they're tightly tethered to BTC's volatile price.
Marathon's revenues are soaring, but it isn't consistently profitable on a generally accepted accounting principles (GAAP) basis, and it's taking on a lot of debt to expand its mining operations. It ended its latest quarter with a manageable debt-to-equity ratio of 0.3, but its leverage could keep rising as it brings its new miners and plants online.
Marathon has also gotten a bit overheated after its year-long rally. With an enterprise value of $6.1 billion, it trades at about 12 times next year's sales. Riot, which is growing at a slower rate than Marathon, trades at just 8 times next year's sales.
Another looming challenge is the imminent Bitcoin "halving," which cuts the rewards for mining BTC in half every four years. The last BTC halving occurred in 2020, so the next halving should happen in the first half of 2024. That event will likely boost BTC's market price, but it will also require Marathon to deploy more miners to mine the same amount of BTC.
Bitcoin's halving might coincide with the end of the "crypto winter" and light a fire under BTC's price again. If that happens, the soaring price of BTC should offset the higher costs of mining and significantly boost the cash value of its BTC reserves. But if BTC's price fails to take off, its mining costs will soar and its losses will widen.
Marathon Digital is still a highly speculative stock, but it could still have room to run if you believe Bitcoin's price will hit new highs over the next few years. I'd personally prefer to directly buy Bitcoin on the open market than invest in Marathon's capital-intensive business, but this mining stock could still outperform BTC over the long run as it scales up its business.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
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Is It Too Late to Buy Marathon Digital Stock? - The Motley Fool
Bitcoin Token ORDI Surges to New High, Nearing Top 50 Coins – Decrypt
The price of ORDI, by far the most valuable token minted using the Bitcoin BRC-20 standard, touched a new all-time high Friday as it inches nearer and nearer to the top 50 cryptocurrencies by market cap.
The biggest BRC-2o asset hit a new peak price of $81.96, according to CoinGecko. It has since experienced a sell-off and has dropped by over 11%. It is now trading for $73.92, a 6% jump over the past 24 hours, and sits as the 56th largest cryptocurrency via market cap.
Over the week, though, it is one of the best-performing cryptocurrencies with a total seven-day spike of 45%. Its price action reflects the interest investors still have in OrdinalsNFT-style inscriptions on the Bitcoin network.
The assets were one of the hottest crypto crazes of this year as investors snapped up images and text stored on the digital asset industry's oldest and largest blockchain. The Ordinals protocol was adapted to power fungible tokens via the BRC-20 standard, enabling a wave of tokens including meme coins.
ORDI was the first one minted. And with a market cap of $1.55 billion plus listing on major crypto exchanges, it is by far the biggest token on Bitcoin.
What's the point of ORDI? Demand is largely speculative right now, but the asset also shows how Bitcoin's network can be used for minting digital tokensjust like many other major blockchains.
But with the Ordinals and BRC-20 craze come downsides: Bitcoin transaction fees have shot up again over the past few days.
Right now, the average cost to send Bitcoin stands at $24.10, according to Bitinfocharts data. This is because with more people using the Bitcoin blockchain to make transactions related to Ordinals, the network becomes clogged and therefore more costly.
Earlier this month, the average cost to send Bitcoin reached its highest in over two and a half years, at $37.58. This has led some in the Bitcoin community to claim that Ordinals are "spam" and stop people who could benefit from using Bitcoin to send cash from doing so.
Bitcoin itself is down slightly on the day, falling about 1% to a current price of $41,985.
Edited by Andrew Hayward
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Bitcoin Token ORDI Surges to New High, Nearing Top 50 Coins - Decrypt
As bitcoin ETF saga hits possible homestretch, here’s what to watch for – Blockworks
As industry watchers eye the potential approval of spot bitcoin ETFs, one analyst says specific application updates in the coming days could be the difference between firms being able to launch such products, and not.
The US Securities and Exchange Commission is set to rule on a spot bitcoin ETF proposal by Ark Invest and 21Shares by Jan. 10. Some segment observers have said they expect the regulator to rule on other similar planned products at that time.
The regulator set a Dec. 29 deadline for fund groups to submit final updates to their bitcoin ETF filings, Reuters reported last week, citing unnamed firm executives.
Would-be issuers of these funds have met with the SEC in recent weeks and continue to update their applications. But fund groups are likely to add more details in the coming days, according to Bloomberg Intelligence analyst Eric Balchunas.
The SEC is ready to approve spot bitcoin ETFs, but only if they have clear language around cash-only creations and have a signed agreement with an authorized participant which many dont yet, Balchunas wrote in a Wednesday research note.
Authorized participants are entities allowed to create and redeem shares of an ETF. Such organizations can either exchange ETF shares for a corresponding basket of securities that reflects the ETFs holdings, or exchange them for cash.
Read more: The SEC continues meeting with bitcoin ETF hopefuls. Heres what theyre discussing
Though Grayscale Investments appeared to argue in meetings with the SEC that in-kind transactions are more efficient, it noted in a Tuesday filing that its proposed spot bitcoin ETF would only be able to accept cash orders.
However, and in common with other spot bitcoin exchange-traded products, the trust is not at this time able to create and redeem shares via in-kind transactions with authorized participants, and there has yet to be definitive regulatory guidance on whether and how registered broker-dealers can hold and deal in bitcoin in compliance with the federal securities laws, the document states.
BlackRocks proposed spot bitcoin ETF would also feature cash creations and redemptions a change the SEC seems to have pushed for based on various proposal amendments.
While some firms have agreed to bend the knee to the SEC on the cash transactions issue, Balchunas said, securing an agreement with an authorized participant could be trickier.
A lot will unfold in the next 48 hours; you hope they all can get it done and have the AP named in the S-1 as of Friday, he told Blockworks.
When I see a prospectus with the AP namedIm basically assuming that is a horse at the starting gate ready for approval, but that is up in the air, Balchunas added. Making it to the starting gate is half the battle at this point, so theres a race before the race.
Balchunas said in the Wednesday research note that Bitwise and BlackRock have authorized participant agreements in place, though they have not revealed them in filings. Spokespeople for the two companies did not immediately return a request for comment.
Grayscale was reportedly set to work with authorized participants Jane Street and Virtu Financial if its Grayscale Bitcoin Trust (GBTC) was allowed to convert to an ETF a report a Grayscale spokesperson confirmed at the time.
The firm did not name these companies as authorized participants in its latest S-3 filing, and a Grayscale representative did not comment further.
Even with all the crucial boxes checked, its possible the SEC still holds [Grayscale] back from the starting gate in the name of keeping a level playing field, Balchunas wrote.
GBTC launched in 2013, and eligible shares of the trust are quoted on the OTC Markets Group. It has roughly $26 billion in assets under management and regularly sees roughly $150 million in daily volume, the Bloomberg Intelligence analyst said in his latest note.
Thats a huge advantage for GBTC and makes it a clear favorite, even with the likes of BlackRock and Fidelity in the race, Balchunas added. This puts the SEC in a conundrum and risks it becoming a kingmaker.
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As bitcoin ETF saga hits possible homestretch, here's what to watch for - Blockworks
Ark Invest exits GBTC ahead of potential bitcoin ETF – Blockworks
Cathie Woods Ark Invest is buying up shares of the ProShares bitcoin strategy ETF (BITO).
ARKs Next Generation Internet ETF, which previously held a large amount of Grayscale bitcoin trust, also exited out of its position according to its holdings.
Bloomberg Intelligence analyst Eric Balchunas said that the move is likely because its using the money from GBTC as a [liquid] transition tool to keep beta to [bitcoin] while it legs into ARKW or ARKB.
Balchunas noted that this move wasnt a surprise, and in his opinion was smart.
Better to give your own ETF a nice [assets under management] boost, he said.
The move was addressed by Cathie Wood, CEO of Ark Invest, in an interview with Bloomberg TV where she said that the move to exit GBTC and enter BITO was made out of an abundance of caution.
BITOis already approved, theres no regulatory uncertainty having to do with it, so we chose to maintain our exposure through BITO for the time being, Wood said.
There are some tax and regulatory uncertainties still, as part of this processwe dont know exactly whos going to be approved and whether theyve met all of the criteria that the SEC has put before us. We know that we have, but we dont know if others including GBTC have. We just dont know, she continued.
As Balchunas said, and Blockworks previously reported, analysts believed that Ark would choose to sell its current GBTC position to move assets over to its bitcoin ETF. According to filings, the ETF if it gets approved would trade under the ticker ARKB as the Ark 21Shares Bitcoin ETF.
Read more: As bitcoin ETF saga hits possible homestretch, heres what to watch for
The SEC has a deadline of Jan. 10 to rule on the bitcoin ETF. Bloombergs James Seyffart believes that multiple decisions could be handed down if the SEC is keen on giving the firms a green light the week of Jan. 10.
As far as possible SEC approvals go, we think the probabilities have gone up, Wood said in the interview.
The SEC has been highly engaged, she added.
However, its not a done deal yet.
This is the SEC and we never know what might happen along the way, she continued.
Additionally, ARKW sold more Coinbase, continuing a selling spree thats been happening for a number of weeks. So far this month, Ark sold nearly 3.7 million shares of both Coinbase and GBTC. Roughly 1.5 million of those shares are Coinbase, while the asset manager sold over 2 million of GBTC, which helped to fully exit its position.
Both Ark Invest and Grayscale are aiming to launch bitcoin ETFs, though both have different approaches. Grayscale is trying to convert GBTC to a bitcoin ETF.
Earlier this year, a court sided with Grayscale, giving the firm a win over the Securities and Exchange Commission. The win meant that the SEC had to re-evaluate Grayscales proposed GBTC conversion into an ETF after the regulatory agency denied the initial application.
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Ark Invest exits GBTC ahead of potential bitcoin ETF - Blockworks
Bitcoin ETF Race Could Get Tighter After This Deadline – Decrypt
Bitcoin ETF contenders have until today to file last-minute changes to their applications and clear what may be the final hurdle for approval: authorized participant agreements.
The authorized participant for an exchange-traded fund (ETF) is the organization that works with the issuer of the investment vehicle to create and redeem shares of a fund so that an investor can cash out.
And after months of back and forth meetings between asset fund managers and the SEC, this now appears to be the final part of the application process.
The SEC last week set a deadline of December 29 for Bitcoin ETF contenders to file any changes to their applications, according to Reuters. Among the various amendments filed in recent weeks from top contenders like BlackRock and Cathie Woods ARK Invest, two key details have emerged: the SEC appears to be requiring that Bitcoin ETFs follow a cash model, meaning new funds are created with cash and not Bitcoin, and that they have authorized participant agreements in place.
Any applicant that fails to file an amendment by today that includes both of these provisions may be excluded from the Bitcoin ETF race, according to Bloomberg Senior ETF analyst Eric Balchunas.
In a Friday post on X (formerly Twitter), Balchunas said he expects some authorized participants to be named todaybut added that it was more likely to take place just days before the launch of a Bitcoin ETF. Notably, ARK Invest and 21 Shares filed an amendment yesterday to include mention of authorized participant agreements but did not name the AP.
Experts expect a spot Bitcoin ETF to get approval in the new year. Bloomberg Intelligence analysts have said that by January 10, there is a 90% chance one will start trading.
An ETF is an investment vehicle that tracks the value of an underlying asset, like gold, foreign currencies, or Bitcoin. A spot Bitcoin ETF is an investment fund that allows people to get exposure to the digital coin by buying shares that track the price of Bitcoin.
Investment firms have been applying for a Bitcoin ETF since 2013, only to face rejection from the U.S. Securities and Exchange Commission. The SEC has cited concerns about market manipulation as reasons for not allowing such a product to exist in the States.
But major Wall Street playersincluding the worlds biggest asset manager BlackRockthis year applied to the top regulator to release their own product. The SEC now has a long-list of applications from the likes of VanEck, Grayscale, and WisdomTree to review.
The flurry of high-profile applicants has led market analysts to predict that the SEC will soon give the green light to such a product, which would allow traditional investors to get exposure to cryptocurrencies in a safe and regulated way.
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Bitcoin ETF Race Could Get Tighter After This Deadline - Decrypt
VanEck launches media campaign after claiming it ‘would rather buy and hold Bitcoin’ – Cointelegraph
Asset manager VanEck, which has a pending application for a spot Bitcoin (BTC) exchange-traded fund with the United States Securities and Exchange Commission, has launched a pro-crypto ad spot.
In a Dec. 29 post on X (formerly Twitter), VanEck released its Born to Bitcoin video, which did not explicitly endorse a BTC exchange-traded product. The ad spot came roughly two weeks after the asset manager said it would rather buy and hold BTC as the advertisement cost was high.
Multiple asset managers with pending spot BTC or Ether (ETH) exchange-traded product applications with the SEC have released similar ad spots ahead of potential approvals. Bitwise hired actor Jonathan Goldsmith to revive his Most Interesting Man in the World character to promote Bitcoin in a December media campaign. Hashdex launched an ad spot suggesting use cases for innovative technology like crypto.
Related: Bitcoin wont be beaten as digital store of value: VanEck CEO
Many online criticized VanEck for the seemingly cheap quality of the ad spot, given that the firm had more than $76 billion in assets under management as of September. The campaign featured a copy of the Buy Bitcoin sign a fan held behind Janet Yellen in 2017 but was largely a silhouetted figure walking in front of a city skyline.
The SEC has not approved a spot BTC or ETH exchange-traded fund for listing on any U.S. exchange at the time of publication. However, the commission began allowing investment vehicles tied to crypto futures in 2021. Some experts have speculated the SEC could approve multiple spot crypto ETFs starting in January 2024.
Magazine: BlackRock revises BTC ETF filing, El Salvadors crypto citizenship trending, and more: Hodlers Digest, Dec. 1016
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VanEck launches media campaign after claiming it 'would rather buy and hold Bitcoin' - Cointelegraph
Bitcoin Reversed Its Fortunes in 2023. Why Crypto Could Climb Higher in 2024. – Barron’s
Crypto assets have enjoyed a stellar 2023 and the new year could bring even more joy through the approval of the first batch of spot Bitcoin exchange-traded funds (ETFs). Two filings Tuesday from one potential issuer Grayscale Bitcoin Trust appear to move that closer to a reality.
Grayscale filed an amendment to its ETF application, a concession that should improve its chances of approval. Chairman Barry Silbert will also step down from Jan. 1, along with fellow board member Mark Murphy. The Securities and Exchange Commission (SEC) set a deadline of Dec. 29 for issuers to amend their applications and the flurry of activity ahead of that date is being welcomed by crypto investors.
Its been quite the year for crypto. Bitcoin prices plumbed a multiyear trough and broker Coinbase Global s stock hit a record low in early January 2023, in the depths of a brutal bear market. Bitcoin has since soared more than 150% higher, returning to levels not seen since before the worst of the 2022 selloff, and Coinbase shares have almost quintupled.
The rally really began over the summer, when BlackRock and other financial stalwarts filed for spot Bitcoin ETFs, and legal momentum built behind hopes that the SEC would approve them.
These ETFs are expected to usher in a fresh wave of investor interest. Add into the mix the so-called halvinga change to Bitcoins programmatic monetary policy that should cut token issuance next yearand gains could be supercharged.
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That traders now expect the Federal Reserve to cut interest rates multiple times in 2024 hasnt hurt, either. Cryptos still tend to trade like stocks and other risk-sensitive assets, and rate cuts would be another tailwind.
The SEC could approve the first spot Bitcoin ETF in early January. The halving is anticipated to come around April. While some analysts are doubtful Bitcoin can keep climbingthis is all priced in, they saythere is no doubt the first half of 2024 will be full of crypto catalysts.
Jack Denton and Callum Keown
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Apples hopes that a recent ruling banning it from selling several models of the Apple Watch in the U.S. could be overturned were dashed by the Biden Administration Tuesday. The issue was centered on a patent-infringement issue.
Whats Next: Apple said it is pursuing a range of legal and technical options to resume sales of Apple Watch Series 9 and Apple Watch Ultra 2, and has submitted a proposed redesign for both models for U.S. regulatory approval.
Eric J. Savitz
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U.S. home prices rose at a 4.8% annual rate in October, the fastest such gain since December 2022, the S&P CoreLogic Case-Shiller Home Price Indices reported. Home prices in 20 major cities and the broader national index are at all-time highs.
Whats Next: With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, CoreLogic chief economist Selma Hepp said. She expects most markets will reach new home-price highs in 2024, MarketWatch reported.
Janet H. Cho
Biotech M&A is back in a big way. Bristol Myers Squibb will acquire radiopharmaceutical therapeutics company RayzeBio
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Whats Next: High interest rates are probably what caused the slow start to the year. Its not a coincidence that the turnaround in the sector has come just as conditions began to turn right for the Federal Reserve to consider rate cuts instead of hikes. Many biotech stocks, particularly small ones, are reliant on borrowed capital to conduct research as they look for the next big blockbuster drug.
Ben Levisohn, Joe Woelfel, and Angela Palumbo
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Americans spent 3.1% more this holiday season than they did last year, excluding car sales, according to preliminary data from Mastercard SpendingPulse. Healthy job creation and easing inflation pressures empowered consumers to shell out between Nov. 1 and Dec. 24.
Whats Next: Retailers have seen an uptick in return fraud, comprising $101 billion in overall losses, including wardrobing, or returning used, non-defective merchandise; returning goods bought with fraudulent or stolen tender; and returned items from organized retail crime groups, the NRF said.
Janet H. Cho
Newsletter edited by Zoe Szathmary, Patrick ODonnell, Rupert Steiner
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Bitcoin Reversed Its Fortunes in 2023. Why Crypto Could Climb Higher in 2024. - Barron's
Bitcoin Rises as the Countdown to ETF Approval Is On – Barron’s
Bitcoin and other cryptocurrencies were largely gaining on Thursday. Enthusiasm continues to build ahead of the expected approval of exchange-traded funds which will hold Bitcoin directly.
Bitcoin has risen 0.8% at $43,014 over the last 24 hours. The largest cryptocurrency has mostly traded in a range of between $41,000 and $44,000 since early December but has more than doubled in 2023.
The...
Bitcoin and other cryptocurrencies were largely gaining on Thursday. Enthusiasm continues to build ahead of the expected approval of exchange-traded funds which will hold Bitcoin directly.
Bitcoin has risen 0.8% at $43,014 over the last 24 hours. The largest cryptocurrency has mostly traded in a range of between $41,000 and $44,000 since early December but has more than doubled in 2023.
The key driver continues to be the expected approval of Bitcoin exchange-traded funds as soon as early January, as the Securities and Exchange Commission finalizes its discussions with potential ETF issuers.
The SEC has indicated to firms hoping to launch Bitcoin ETFs that it will give the green light for them to go ahead by Jan. 10, according to Fox Business, citing people close to the firms.
Ethereum rose 6.2% to $2,388. Among smaller cryptocurrencies, Cardano rose 8%, but Solana fell 7.1%. Dogecoin was up 1.4%.
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Write to Adam Clark at adam.clark@barrons.com
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Bitcoin Rises as the Countdown to ETF Approval Is On - Barron's
Cathie Wood dumps Grayscale and buys bitcoin-futures ETF. Here’s why. – MarketWatch
One of Cathie Woods exchange-traded funds has sold all its holdings of Grayscale Bitcoin Trust over uncertainty around whether the trusts conversion to an ETF would be approved.
Woods ARK Next Generation Internet ETF ARKW sold its remaining 2.25 million shares of the Grayscale Bitcoin Trust GBTC on Wednesday and bought 4.32 million shares of ProShares Bitcoin Strategy ETF BITO, which is based on bitcoin futures, according to the funds daily updates.
The move happens ahead of a Jan. 10 deadline for the U.S. Securities and Exchange Commission to make a decision on the spot bitcoin ETF application filed by Woods ARK Investment Management and 21 Shares.
Several other bitcoin ETF applications filed by BlackRock BLK, -0.32%, Fidelity , Invesco IVZ, -1.27%, VanEck and others are also pending the SECs approval.
Many market participants expect the SEC to approve ARKs bitcoin ETF and other similar products by the deadline.
Still, Wood said ARKW sold its Grayscale holdings out of an abundance of caution, as they are not sure if the conversion would be approved in early January. Its just a moment of uncertainty between now and January 8th to 10th, Wood told Bloomberg TV in an interview.
In August, a federal appeals court ordered the SEC to vacate its rejection ofGrayscales conversion into a bitcoin ETF.
Wood said ARKW chose to maintain its exposure to bitcoin through BITO for now, as there are tax and regulatory uncertainties facing spot bitcoin ETF applications.We dont know exactly whos going to be approved and whether theyve met all the criteria that the SEC has put before us, Wood said.
Grayscales Barry Silbert on Tuesday resigned as chair, the company saidinregulatory filing without disclosing reasons.
However, Wood said bitcoins rally this year and the reduction of the gap between GBTCs price with its net asset value meant double good news for ARK. GBTCs discount to its net asset value, or the price of its bitcoin holdings, narrowed to around 6.9% on Wednesday from over 40% in June.
Bitcoin has surged over 160% so far this year, while still down almost 40% from its peak in 2021, according to CoinDesk data.
As traders position for a spot bitcoin ETF approval, MicroStrategy on Wednesday acquired an additional 14,620 bitcoin for about $615.7 million, pushing its total bitcoin holdings to about 189,150, according to the companys chief executive, Michael Saylor.
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Cathie Wood dumps Grayscale and buys bitcoin-futures ETF. Here's why. - MarketWatch