Bitcoin
Why Bitcoin ETFs Haven’t Sparked Major Adoption Yet: Bianco Research CEO Weighs InWhy Bitcoin ETFs Haven’t Sparked Major Adoption Yet: Bianco Research CEO Weighs In
Although the recent launch of Bitcoin ETFs or exchange-traded funds in the United States appears to have been met with excitement, according to Jim Bianco, CEO of Bianco Research, these financial products have not yet lived up to their anticipated role as a major catalyst for cryptocurrency adoption.
In a post shared on Elon Musk’s social media platform, X, Bianco suggested that Bitcoin ETFs would need more time to mature before they could serve as a major “instrument of adoption” rather than just a “small tourist tool.”
Bitcoin ETF Outflows And Lack of Institutional Involvement
Bianco’s comments highlighted growing skepticism about the performance of Bitcoin ETFs since their debut for trading in January.
While there was significant pre-launch hype about the potential of spot Bitcoin ETFs, Bianco pointed to several signs that the market may not yet be as strong as expected.
Key issues pointed out by the expert include recent outflows, losses by holders of these ETFs, and a general lack of major institutional investment, all of which suggest that the Bitcoin ETF market may need more time to develop fully.
One critical point Bianco raised is the substantial net outflows within the Bitcoin ETF market. Citing data from Farside Investors, Bianco showed that there has been over $1 billion in net outflows from the 11 US Bitcoin ETFs in just the last eight trading days.
This has reduced the total assets under management (AUM) for Bitcoin ETFs from a peak of $61 billion in March to around $48 billion. Bianco argued that these outflows demonstrate a need for more sustained interest and capital inflow from institutional investors.
He further pointed out that most inflows into Bitcoin ETFs were from existing cryptocurrency holders who shifted their positions back into traditional finance (Trad-Fi) accounts rather than from new investors entering the market. This indicates that the ETFs may not have attracted fresh capital as initially hoped.
Adding credibility to the skepticism, Bianco mentioned that even BlackRock confirms that roughly 80% of Bitcoin ETF purchases have likely been made through self-directed online accounts, further suggesting that institutional investors have yet to engage with the Bitcoin ETF market fully.
The expert added:
Crypto-quant analysis suggests that most Spot BTC ETF inflows were from on-chain holders moving back to tradfi accounts— so very little “new” money has entered the crypto space. So far, these instruments have NOT lived up to the hype of “here come the boomers.” Very few have come, and those that have are holding losses and may now be leaving ($1B outflows over the last 8 days).
What Does The Bitcoin ETF Market Need To Mature?
While the recent performance of Bitcoin ETFs may not have met the initial expectations, Bianco remains optimistic that they can still become a valuable instrument for cryptocurrency adoption.
He emphasized the need for “patience” and the development of more on-chain tools that could drive the market forward. Bianco says it may take “a couple of seasons, including a winter or two and development breakthroughs” before the Bitcoin ETF market truly hits its stride.
The CEO noted:
Can these tools be an instrument of adoption? Yes, maybe after the next having (2028) and after significant development of on-chain tools have occurred first. (i.e., BTC chain DeFi, NFTs, payments, etc.)
Featured image created with DALL-E, Chart from TradingView
Bitcoin
Bitcoin Analyst Sets $88,800 Target As BTC Breaks ATH 3 Days In A Row – Details
Bitcoin is on a record-breaking run, reaching new all-time highs for three consecutive days following Donald Trump’s victory in the US election and a recent 25 basis point rate cut by the Federal Reserve. This combination of political and economic shifts has fueled a renewed wave of investor interest in BTC, driving prices into uncharted territory.
Top crypto analyst and investor Daan has shared an optimistic outlook, highlighting that BTC is now in price discovery mode with the potential for significant further upside to the $88,800 mark.
As Bitcoin rallies to new highs, the current bull trend appears to be in its early stages. Analysts and investors are closely watching BTC’s price action, with many expecting strong momentum as institutional demand surges. With key macroeconomic shifts favoring alternative assets, BTC is uniquely positioned to benefit, further supported by increasing volumes and heightened demand in U.S. markets.
The next few weeks will be crucial as Bitcoin tests new price levels and traders gauge just how far this bull run can go. As BTC enters price discovery, breaking prior resistance levels, the stage is set for a potentially transformative period, fueling optimism for both seasoned investors and newcomers to the crypto space.
Bitcoin Enters Price Discovery
Bitcoin has entered a new bullish phase, marking the start of a price discovery period after three consecutive days of consistently breaking all-time highs. This move has set a bullish tone not just for BTC but for the entire crypto market. As BTC pushes higher, it reinforces its position as the market leader, driving optimism and interest in altcoins as well.
Top analyst Daan recently shared a technical analysis on X, suggesting that Bitcoin’s next target in its price discovery phase is $88,888. He emphasized that while Bitcoin is unlikely to reach this target in a straight line, the bigger trend remains bullish, and the market has been waiting for this breakout for eight months. Daan cautioned that the journey to these higher levels will be bumpy, with volatility expected as the market works through this new phase.
The coming months are likely to see significant volatility as Bitcoin tests new resistance levels and investors digest the implications of a broader bull market. However, the underlying sentiment is overwhelmingly positive, fueled by strong demand from institutional investors and continued macroeconomic support.
As Bitcoin breaks through key price barriers, it will continue to drive the narrative for the entire crypto market, with many analysts predicting further upside if the current momentum is maintained. The road ahead may be volatile, but the long-term outlook remains extremely bullish for Bitcoin.
BTC Testing Uncharted Territory
Bitcoin is currently consolidating at the $76,400 mark after an aggressive surge over the past week, with bulls firmly in control. The price has managed to break above previous all-time highs, pushing past the key resistance at $73,800. This level is now crucial, as it could turn into a strong demand zone following its breakout. If BTC manages to stay above $73,800 in the coming days, it will signal continued bullish momentum, potentially pushing the price higher.
However, if BTC struggles to break above the $77,000 mark, a healthy retrace to lower demand levels around $72,500 is likely. This pullback would allow the market to find support before pushing higher. A retrace would also provide a much-needed reset for the market, clearing out weak positions and allowing for more sustainable growth.
In the short term, the $73,800 level is critical for maintaining bullish sentiment. If BTC holds above this area, it is likely to continue its upward trend. But, should the price fail to maintain this support, traders will be watching for signs of a deeper correction. Overall, the market sentiment remains positive, and Bitcoin has the potential to continue its bullish trajectory if key levels hold.
Featured image from Dall-E, chart from TradingView
Bitcoin
Top 10 Crypto Promises from President-Elect Donald Trump
Donald Trump convincingly won the US Presidential election and will assume office in January. He ran as a pro-crypto candidate on the campaign trail and is now empowered to enact sweeping, friendlier policies.
Trump will focus on halting anti-crypto actions from federal regulators and the legislature and passing comprehensive new laws for the industry.
Donald Trump’s Total Blowout
In a surprising upset, Donald Trump significantly overperformed in last night’s US Presidential election, coasting to a confident victory. Polling beforehand suggested a tossup election; however, Trump made substantial gains across nearly the entire map. He made crypto advocacy a cornerstone of his campaign, and now the industry must assess the benefits of his win.
Read More: Crypto Regulation: What Are the Benefits and Drawbacks?
President Trump made a vast array of pro-crypto campaign promises, supporting Bitcoin in particular. For example, he vowed to create a Bitcoin reserve and halt attempts to sell off the US government’s holdings.
However, he also lambasted the notion of supporting an official “digital dollar” CBDC. In other words, it looks like he will focus more on existing crypto assets.
Other than this, his promises have generally included the broader industry. In August, he vowed to make the US a “crypto capital,” offering to enact a suite of friendlier regulations. A cornerstone of this new strategy is his promise at Nashville’s Bitcoin Conference to fire SEC Chair Gary Gensler. This pledge drew raucous applause, and he seems very likely to enact it.
“I didn’t know he was that unpopular! I didn’t know he was THAT unpopular. Let me say it again: on day one, I will fire Gary Gensler!” Trump claimed in July, reacting to the crowd’s outsized approval.
A New Legal Paradigm for Crypto
Once Gensler is out of office, Trump plans to enact a series of productive crypto policies. First and foremost, he promised to stop the SEC and other regulators from continuing their crackdown on exchanges and other businesses. Several crypto opponents also lost their races, which will help blunt the momentum of hostile legislation.
Read More: Who Is Gary Gensler? Everything To Know About the SEC Chairman
As a final symbol of his plan to end crypto hostility, Donald Trump also pledged to free Silk Road founder Ross Ulbricht. This non-violent offender and early Bitcoin adopter has spent ten years in prison since his arrest and has become a cause célèbre in the community. If Ulbricht is released under Trump’s authority, it will be a real milestone for government reconciliation.
Critically, however, Trump has vowed to make positive impacts on the industry, not just reverse negative ones. Policy advisors are creating a comprehensive list of executive actions he could take once in office, as well as a strategy for a comprehensive new regulation for the space. Trump has also explored more novel use cases, such as crypto’s role in alleviating national debt.
Overall, Trump campaigned on a certifiable bonanza of possible benefits to the space. If even half of these promises get fulfilled, it could permanently alter the industry’s mercurial relationship with the federal government.
“The GOP’s commitment to clear crypto regulations and making Bitcoin a strategic reserve asset is set to be a game-changer for industry growth. Just like with the space race or recent Bitcoin mining developments, we’ve always believed that when America steps up in crypto adoption, it’ll do so with gusto—and ultimately take the lead globally. Now, we’re about to see this shift happen, making widespread U.S. crypto adoption feel more like a sure thing than ever before,” Jean-Marie Mognetti, CEO of CoinShares, told BeInCrypto.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
Bitcoin Surpasses Meta, Now World’s 9th Largest Asset
Bitcoin has reached a milestone, surpassing Meta to secure the 9th position in global market capitalization rankings.
The rally, driven by investor optimism following Donald Trump’s win in the 2024 US presidential election, has propelled Bitcoin to a market cap of $1.48 trillion, once again edging out Meta’s $1.44 trillion.
Bitcoin is Now the 9th Largest Asset Worldwide
With each Bitcoin now valued at approximately $74,900, the cryptocurrency has surpassed Meta’s market cap with notable resilience.
This marks the second time Bitcoin has overtaken Meta, following a rally in March when it briefly surged above $73,000. The milestone highlights Bitcoin’s increasing relevance and competitive positioning alongside other major tech giants.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
The list is topped by gold, which has a market cap of $17.95 trillion. Chip maker NVIDIA is next at $3.57 trillion, followed by Apple at $3.36 trillion.
Other companies in this ranking include Microsoft, Amazon, and Alphabet (Google). Bitcoin’s latest valuation places it just behind silver in 9th place. This development demonstrates Bitcoin’s evolution from a niche digital asset to a globally significant store of value.
Can Bitcoin Overtake Silver?
As Bitcoin climbs the global market cap rankings, many are now wondering if it could soon surpass silver. Silver currently holds a market cap of approximately $1.75 trillion, placing it just above Bitcoin’s $1.48 trillion.
In March 2024, Bitcoin briefly overtook silver as Bitcoin became the 8th-ranking global asset.
“I could potentially see Bitcoin to become the 21st century digital gold. Let’s not forget that gold was also volatile historically. But it is important to keep in mind that Bitcoin is risky: it is too volatile to be a reliable store of value today. And I expect it to remain ultra-volatile in the foreseeable future,” said Marion Laboure, analyst at Deutsche Bank Research.
At that time, its valuation surged to $1.42 trillion, surpassing silver at $1.387 trillion, with a 4% increase to an all-time high beyond $72,000. With Bitcoin’s recent momentum and continued interest from institutional investors, this event is likely to repeat.
Surpassing silver would further solidify Bitcoin’s position as a digital gold and strengthen its reputation as a valuable asset in the broader financial arena. If Bitcoin continues on this trajectory, overtaking silver could be the next milestone in its journey.
Mainstream Bitcoin Adoption
Bitcoin’s ascent into the world’s top assets is accompanied by growing interest, as shown by investment flows into various exchange-traded funds (ETFs).
For instance on November 6, the majority of Bitcoin products showed positive inflows. Fidelity’s FBTC led with a substantial $308.8 million inflow, suggesting strong investor interest. Bitwise’s BITB and Ark’s ARKB also gained, receiving $100.9 million and $127 million, respectively.
Grayscale’s GBTC, despite previous outflows, managed a modest change of $30.9 million. This day’s inflows highlight a general uptick in interest across various ETFs, contrasting with recent periods of volatility and outflows in other funds. Total inflows reached $621.9 million, reflecting a demand for Bitcoin products.
Read more: What Is a Bitcoin ETF?
As Bitcoin continues to solidify its position among the world’s largest assets, these investment patterns suggest that mainstream adoption is on the horizon. With institutional support growing and infrastructure maturing to facilitate broader access, Bitcoin is positioned as a viable asset in traditional finance.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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