ETFs

The Bitcoin ETF Fee War

ETF Fee Frenzy: Issuers of potential Spot Bitcoin ETFs await SEC approval. These companies have filed final S-1 form amendments with significantly lowered sponsor fees, igniting a fee war among competitors.

Competitive Adjustments: Companies like Valkyrie, WisdomTree, and notable giants like BlackRock and ARK Invest have entered the fray, proposing fees as low as 0.24%, with some offering no fees for initial periods or until reaching a certain asset threshold.

Analyst Insights: Market analysts highlight the intense competition and the "breathtaking" drop in fees, indicating a significant shift in the ETF landscape and a possible precursor to broader fee reductions across Bitcoin exchanges.

Market Anticipation: With final amendments in place, all eyes are on the SEC as the decision on these spot Bitcoin ETFs approaches, promising to reshape investment strategies and potentially set a new standard for Bitcoin accessibility in US and global markets.

🎥 "Embracing change with Bitcoin!" Hashdex's recent video ad draws parallels between the initial resistance to credit cards and the current skepticism surrounding Bitcoin. Their ad suggests a future where Bitcoin, like credit cards as we know them today, will become a universally accepted payment method.

🚨 SEC Chair Gensler warns against crypto investments. He advises caution when investing in crypto assets, highlighting the lack of compliance with federal securities laws, the volatility and risk of insolvency, and the prevalence of fraud such as bogus offerings and theft in the industry.

📊 Bitcoin Perception launches a media sentiment dashboard. Developed by Fernando Nikolic, this tool offers real-time analysis of Bitcoin's media coverage, aiming to demystify public sentiment and enhance informed discussions.

⚖️ Celsius Network gains U.S. court approval to pivot to Bitcoin mining. This shift promises more cryptocurrency returns and equity shares in the new mining venture for customers.

🚀 To resist FOMO, or to not miss out in the first place? The SEC has released guidance on Twitter against FOMO (fear of missing out). Say “NO GO to FOMO” (fear of missing out). Just because others might buy a particular investment, doesn’t mean it’s the right opportunity for you. Learn more about finding out what’s right for you and your investing goals.

🔮 ETF approval may significantly influence Bitcoin. In this op-ed, the author argues that Bitcoin ETF approval signals government acceptance, yet invites intervention as well. The future remains uncertain, with various possible outcomes and government actions impacting Bitcoin's trajectory and individual freedoms.

BlackRock Sets Itself Up for Big Moves

ETF Expectations: BlackRock, the globe's largest asset manager, anticipates SEC approval for its spot Bitcoin ETF. The decision deadline is this Wednesday, as reported by Fox Business, potentially marking a watershed moment in cryptocurrency investment.

Market Movements: The approval of direct bitcoin trading ETFs is eagerly awaited by enthusiasts, anticipating a surge of billions in new investment into Bitcoin. Bitcoin's recent price surge reflects market optimism for these exchange-traded products.

Filing Frenzy: Alongside BlackRock, firms like Grayscale, Valkyrie, and ARK 21Shares have submitted filings for their spot bitcoin ETFs. The wave of applications suggests a growing confidence in the possibility of SEC approval.

Debate and Downsizing: While approval could revolutionize crypto funding, skeptics warn of significant risks due to Bitcoin's volatility. Concurrently, BlackRock plans to reduce its workforce by 3%, affecting around 600 jobs.

Do you think mainstream media will ever praise Michael Saylor's financial decisions?

👍 Yes: 65%

👎 No: 35%

💰 In 2023, Bitcoin miners earned 23,431 BTC from increased block space demand, largely driven by BRC-20, NFTs and Bitcoin fungible tokens. @mononaut's analysis highlights the significant revenue from diverse transaction types and the evolving landscape of data-embedding transactions.

🎥 From April 19th until the 21st the Bitcoin FilmFest 2024 will be taking place in Warsaw, Poland. This monumental event will coincide with the upcoming Bitcoin Halving. This gathering at the intersection of Bitcoin, film, and art celebrates the halving and builds on the success of previous editions and global mini-events.

📊 Clarifying misconceptions: Spot ETFs are mandated to invest directly in Bitcoin, ensuring authenticity and transparency. Providers prepare with cash for immediate action based on inflows/outflows, and market makers work to keep ETF prices aligned with actual Bitcoin value, promoting market efficiency and fidelity. Under-performing ETFs face quick closure.

🏦 Goldman Sachs is poised to become an "authorized participant" for BlackRock and Grayscale's Bitcoin ETFs, a key role if approved by the SEC. This move signifies major U.S. financial institutions' growing involvement in cryptocurrency, potentially revolutionizing the Bitcoin ETF landscape with their participation.

70.3% - The amount of Bitcoin that has not moved in over 1 year. Despite the Bitcoin price at ~$45,000, more than 70% of all bitcoins have not been moved in over 1 year. Bitcoin investors are holding and not tempted to sell at these prices.

.24% to 1.5% - The range of fees that Bitcoin ETFs are charging customers. Rather than charge fees when customers purchase, US Bitcoin ETFs will charge per year.

92.86% - The percent through the current halving epoch. Bitcoin is 92.86% through this 210,000 block period. The halving happens every 210,000 blocks.

99 - The estimated number of days left until the 2024 Bitcoin halving.

Today’s newsletter was written and edited by Jordan.