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Bloomberg analyst Eric Balchunas predicts a significant increase in digital asset ETFs in 2025, starting with Bitcoin and Ethereum combo ETFs, followed by Litecoin and Hedera. He notes that Litecoin and HBAR have a better chance of approval than Solana and XRP, which face regulatory scrutiny from the SEC. The approval timeline may hinge on the new SEC administration and the resolution of complex legal issues surrounding these tokens.
BlackRock is leading a financial revolution with its Bitcoin (IBIT) and Ethereum (ETHA) ETFs, which have amassed over $54 billion and nearly $4 billion in assets, respectively. Jay Jacobs highlights that current demand is just "the tip of the iceberg," indicating significant growth potential as institutional adoption of these products evolves. This strategic move reflects a shift in investment strategies, with a focus on regulated access to major cryptocurrencies while avoiding more volatile altcoins, paving the way for a more structured integration of crypto into traditional finance.
BlackRock's head of ETFs, Jay Jacobs, emphasizes that demand for Bitcoin and Ethereum ETFs is just beginning, with only a small fraction of clients currently invested. The iShares Bitcoin Trust ETF (IBIT) has $54.38 billion in net assets, while the iShares Ethereum Trust ETF (ETHA) holds about $3.84 billion. As interest grows, Bitcoin is increasingly linked to various options strategies, indicating a trend towards more complex investment products.
MicroStrategy (MSTR) will become the first bitcoin-focused company listed on the Nasdaq-100, significantly increasing the index's bitcoin exposure with its $42 billion in holdings. This inclusion could attract billions in passive investments, although analysts warn that a potential reclassification as a financial firm may jeopardize its long-term membership. The move may also prompt changes in other major indices, further integrating bitcoin into mainstream financial markets.
MicroStrategy, Palantir Technologies, and Axon Enterprise will join the Nasdaq-100 on December 23, replacing Illumina, Super Micro Computer, and Moderna. MicroStrategy's inclusion is expected to attract around $2.1 billion from ETFs tracking the index, potentially driving its stock price up to $600, as it serves as a proxy for Bitcoin investments. Following the announcement, Bitcoin saw a slight increase, trading above $102,000 million.
BlackRock recommends a 1-2% bitcoin allocation for multi-asset portfolios, emphasizing its unique risk profile compared to traditional assets. Meanwhile, Step Finance plans to launch tokenized stock trading on Solana by Q1 2025, targeting the $14 billion real-world asset market. Avalanche has raised $250 million for its upcoming upgrade, aiming to significantly reduce blockchain deployment costs.
Bitcoin and Ethereum ETFs have experienced significant inflows, with Bitcoin ETFs seeing $4.29 billion over 10 days and Ethereum ETFs accumulating $1.95 billion over 13 days. Fidelity and Blackrock led the inflows for Bitcoin and Ethereum, respectively, reflecting growing institutional interest in digital assets. The total net assets for Bitcoin and Ethereum ETFs reached $113.72 billion and $13.18 billion, representing 5.67% and 2.86% of their market capitalizations.
MicroStrategy (MSTR) is set to join the Nasdaq 100 on December 23, with an announcement expected soon. This inclusion will position the software company, which has invested $25 billion in Bitcoin since 2020, among the top 100 stocks by market capitalization, potentially attracting significant institutional capital.The company currently holds nearly 425,000 BTC valued at over $42 billion, resulting in substantial unrealized profits. Analysts predict that MSTR could also be added to the S&P 500 by 2025, further enhancing its market presence.
MicroStrategy is set to join the Nasdaq 100 Index on December 23, with an announcement expected on December 13. This inclusion could lead to $2.1 billion in ETF share buying, giving the company a 0.47% weight in the index, making it the 40th largest holding. While joining the S&P 500 may be more difficult due to profitability issues, changes in Bitcoin accounting rules could make it eligible by 2025. Recently, MicroStrategy purchased 21,550 BTC for $2.1 billion, raising its total holdings to 423,650 BTC, valued at approximately $42 billion.
US spot Bitcoin ETFs have surpassed Satoshi Nakamoto, accumulating approximately 1,104,000 BTC, making them the largest Bitcoin holder globally. This milestone highlights significant investor interest in regulated Bitcoin investment vehicles, with recent net inflows of $766 million over six days. Analysts predict these ETFs may soon outsize gold ETFs.
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