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BlackRock's Bitcoin ETF experienced a record outflow of $72.7 million on December 20, marking the largest since its launch in January. This followed a significant outflow of $208.5 million from Fidelity's Bitcoin fund the previous day, raising concerns among investors about the future of Bitcoin ETFs amid declining trading volumes. Despite recent challenges, analysts suggest that outflows may not persist, as Bitcoin's price has shown signs of recovery after a dip.
Ethereum's price has dropped over 12% recently, influenced by the US Federal Reserve's rate cut and declining interest in spot Ethereum exchange-traded funds (ETFs). After an 18-day streak of positive inflows, US-based ETH ETFs experienced significant net outflows totaling $135 million over two days, with BlackRock's Ethereum Fund leading the losses. As of now, Ethereum is priced at approximately $3,342, reflecting a 2.4% decline in the last 24 hours, highlighting the need for a return to positive ETF inflows to stabilize its value.
The cryptocurrency market underwent a significant transformation in 2024, with Bitcoin rebounding to new heights following the launch of spot ETFs and substantial investments from Wall Street firms. Major banks now dominate trading, while regulatory changes have led to a cleaner, more professional market, integrating crypto into traditional finance.New projects and improved technology have made crypto more accessible, with gaming and NFT applications finding real-world use cases. As the market matures, institutional investment continues to grow, signaling a bright future for the crypto landscape.
Bitcoin exchange-traded funds (ETFs) experienced their largest net outflows since launch, totaling $671.9 million on December 19th, coinciding with a price drop below $100,000. Fidelity’s FBTC led the outflows with $208.5 million, while BlackRock’s IBIT remained stable. This marked the end of a 15-day inflow streak for Bitcoin ETFs and an 18-day streak for Ethereum ETFs.
The US Securities and Exchange Commission (SEC) has approved the first hybrid Bitcoin and Ethereum index exchange-traded funds (ETFs) from Franklin Templeton and Hashdex, set to launch in January 2025. These ETFs will hold spot BTC and ETH in an 80:20 ratio, with potential for future inclusion of other cryptocurrencies pending regulatory approval. The approval reflects the SEC's alignment with the Exchange Act's criteria, emphasizing investor safeguards against fraud and manipulation.
At the Harmony Meetup VI, industry leaders emphasized the critical role of regulation in driving blockchain adoption and scalability. Speakers highlighted how regulatory clarity, such as the introduction of Bitcoin ETFs, fosters trust and liquidity, enabling broader participation from both retail and institutional investors. Collaboration between regulators and the tech community was deemed essential for developing innovative use cases and ensuring a secure framework for Web3 technologies.
The U.S. Securities and Exchange Commission (SEC) has approved the first dual Bitcoin-Ethereum exchange-traded funds (ETFs), allowing Nasdaq and Cboe BZX to list the Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF, expected to launch early next year. These funds will hold approximately 80% Bitcoin and 20% Ethereum, enhancing market integrity through surveillance-sharing agreements. This approval signals a more receptive environment for innovative crypto products, potentially paving the way for additional multi-asset ETFs in the future.
Economist Henrik Zeberg remains optimistic about Bitcoin's potential for a Christmas rally, predicting it could surpass its all-time high of $108,200 despite a recent decline. However, he warns that this surge may be short-lived, with a potential drop to around $16,000 following the peak. Additionally, Zeberg anticipates a significant altcoin rally as Bitcoin dominance decreases, signaling a shift in market sentiment. Meanwhile, Bitcoin ETFs faced their largest single-day outflows, totaling $671.9 million, reflecting investor volatility.
The US Ethereum spot ETF experienced a significant outflow of $75.1 million, marking the second consecutive day of net withdrawals. BlackRock's ETHA led the trend with $103.7 million withdrawn, while Fidelity's FETH saw a $13 million inflow, and Grayscale's ETHE and ETH recorded inflows of $7.5 million and $8.1 million, respectively.
Ethereum spot ETFs experienced a net outflow of $75.1159 million on December 20, with a net asset ratio of 2.93%. Grayscale's Ethereum Trust ETF saw a net inflow of $7.5055 million, while Fidelity's ETF FETH led with $12.9513 million in inflows. The total net asset value of Ethereum spot ETFs stands at $12.155 billion, with cumulative inflows reaching $2.328 billion.
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