Shares of crypto miners and bitcoin-tracking firms rose as bitcoin reached a near 19-month high. The rally is driven by optimism that the potential approval of a spot exchange-traded fund (ETF) will attract more capital investments in the digital asset sector. Bitcoin miners, including Riot Blockchain, Marathon Digital, and TeraWulf, saw their shares rise between 1.7% and 4%. Coinbase's shares also increased by about 2.5%. However, the crypto industry still faces legal challenges and new regulations that may result in volatility for stocks. Despite recent concerns, the ETF approval bets have helped counter the negative impact of the founder of the world's largest crypto exchange stepping down and pleading guilty to breaking US anti-money laundering laws. Other gainers include MicroStrategy, a software developer and bitcoin investor, and ProShares Bitcoin Strategy ETF.
Coinbase's stock (NASDAQ:COIN) has surged to $115.75 per share, reaching levels last seen over a year ago. The rally coincides with a broader surge in the cryptocurrency market, with major cryptocurrencies like Bitcoin and Ethereum experiencing renewed investor interest. Coinbase's stock performance is in line with Bitcoin's recent surge to an 18-month high, where its value reached $38,000 per coin after a period of stagnation in the cryptocurrency market. The increase in Bitcoin's value can be attributed to an influx of funds from institutional investors. Ethereum also reached an 18-month high before experiencing a slight decline. Solana's growth slowed down, while Dogecoin experienced a modest increase.
Coinbase has formed partnerships with BlackRock and Fidelity to provide custody services for their anticipated Bitcoin exchange-traded funds (ETFs), which are currently under review by the U.S. Securities and Exchange Commission (SEC). These partnerships have bolstered investor confidence and contributed to the uptick in COIN's stock price. Analysts have revised their earnings projections upwards for Coinbase, indicating a positive outlook. However, the company is not expected to be profitable this year, and the stock is trading at a high Price/Book multiple of 4.67. The outcome of the SEC's review of the proposed Bitcoin ETFs will be closely watched and could impact Coinbase's stock performance and the wider cryptocurrency market.
Bitcoin has entered the world's largest stock market with the launch of 11 U.S. exchange-traded funds (ETFs) tracking its spot price. These ETFs have already accumulated over 644,860 bitcoin worth more than $27 billion. The increased liquidity is expected to tame bitcoin's volatility over time and could lead to the launch of derivative products. However, it remains to be seen whether these new bitcoin investment products will retain investor interest in the long run. Whales, who control a major chunk of bitcoin supply, have been booking profits as the cryptocurrency's price surged following the ETF approval.
BlackRock, the $9 trillion asset manager, is attracting new and mainstream investors into Bitcoin ETF through its iShares Bitcoin Trust. BlackRock launched an advertising campaign showcasing the benefits of BTC ETF to mainstream and younger investors. The company has classified Bitcoin ETF as an investment class and not a speculative asset, equating it to commodities, currency, stocks, and bonds. Bloomberg's ETF Analyst, Eric Balchunas, praised BlackRock's ad campaign as effective in targeting younger investors. The U.S. Securities and Exchange Commission (SEC) approved the Bitcoin ETF in mid-January, leading to an influx of funds and a new high of $52,000 for Bitcoin in February. However, attracting younger investors is challenging due to the high price of BTC ETF. BlackRock's Spot BTC currently holds over $1 billion worth of Bitcoin.
Grayscale, an American crypto asset investment company, has filed an application for a new virtual currency-related index ETF called the Grayscale Privacy ETF. The ETF is designed to track the performance of companies within the data privacy sector and will include companies involved in data security, cybersecurity products and services, blockchain-based privacy solutions, network and communications security providers, and privacy protection protocols. To be included in the index, companies must derive at least 50% of their revenue from these subthemes. The Grayscale Privacy ETF will also hold Grayscale's own mutual fund called ZCSH, which invests in the anonymous stock Zcash. The Zcash investment will account for about 10% of the portfolio. Following the news of the filing, Zcash's price rose by 15% at one point. Major exchanges such as OKX and Upbit have delisted anonymous stocks like Zcash and Monero due to unclear regulations, but Coinbase still offers the ability to buy and sell Zcash.
Bitwise Asset Management has filed forms with the SEC to list a spot Ethereum ETF, reflecting the growing interest in cryptocurrency ETFs. The firm's Bitwise Bitcoin ETF has gained over $2 billion in assets under management, making it the fifth largest in the 'Cointucky Derby' ranking. Matt Hougan, the chief investment officer at Bitwise, notes that a wide range of investors have shown interest in the ETFs, including retail investors, independent financial advisors, hedge funds, venture capital funds, family offices, and corporations. The demand for these ETFs has far exceeded previous records for ETF growth. Despite initial skepticism, Hougan believes that the positive reception from investors and industry leaders like BlackRock has helped alleviate concerns. Bitwise is also looking into launching an Ethereum spot ETF, and Hougan believes that the Ethereum market has significant potential. He remains optimistic about the future of cryptocurrencies and the potential for continued growth in the market.
Options on leveraged products that track the spot price of bitcoin via derivative swaps began trading on Thursday. Investors can now buy options on the T-Rex 2x Long Daily Target ETF and the T-Rex 2x Inverse Bitcoin Daily Target ETF, which were launched on Wednesday by Rex Shares and Tuttle. The SEC has yet to approve options on the nine new ETFs launched in January that track the spot price of bitcoin directly. The underlying leveraged ETFs are designed for daily traders interested in getting twice the return or betting on a decline in the underlying asset, which in this case is BlackRock's iShares Bitcoin Trust. Rex Shares and Tuttle encourage traders to approach this offering with diligence and be well-informed about the unique characteristics and risks associated with trading options for these specialized ETFs.
Thailand's largest cryptocurrency exchange Bitkub plans to list in the Stock Exchange of Thailand (SET) as early as 2025. Bitkub's owner is hiring financial advisers to facilitate its planned IPO. The CEO expects the IPO to attract new capital and elevate Bitkub's market presence. Despite a reduction in workforce, Bitkub plans to increase its employee count to 1,000 by 2025. The decision to pursue an IPO was first hinted at in a shareholder letter in 2023. Bitkub is currently based in Bangkok and holds a 77% market share in Thailand. The move towards an IPO comes after regulatory actions against the exchange and the cancellation of a deal with Siam Commercial Bank.
Blockchain technology is being utilized in stock options companies to improve transparency and efficiency in trading. However, these companies have recently experienced losses. The specific date of the losses is not provided in the article. The use of blockchain in stock options companies is seen as a positive development, but it also comes with risks. The author emphasizes the need for diligence and awareness of the unique characteristics and risks associated with trading options for these companies. The article is published on Google News and written by an unknown author.
Bitcoin is experiencing a 20% recovery as 32,000 options contracts worth $1.943 billion expire today. The market has been volatile, with Bitcoin and Ethereum showing strength. The Bank of Japan may take a more accommodating stance if market volatility worsens. Implied volatility has dropped but remains higher than pre-crash levels. Grayscale Research suggests that token valuations have the potential to recover, and Bitcoin may reach new all-time highs by year's end. Today also marks the expiration of 206,000 Ethereum options. The price of Ethereum has seen a significant recovery, increasing by 10.70%. Despite the market crash, Ethereum ETFs have experienced outflows. Cathie Wood has dumped Ethereum futures ETFs, raising questions about investor confidence. Morgan Stanley's Bitcoin move is seen as a 'death wish' by an ex-SEC official. Charles Hoskinson suggests that Bitcoin's US reserve asset status could elevate prices but trigger centralization. Solana ETF's US approval hinges on a regulatory soft fork. Shiba Inu faces a critical bearish outlook. Shytoshi Kusama issues an urgent alert about imposters targeting the SHIB community. [79d4d680]