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Nearly 500 billion yen inflows into spot ETFs
On the 16th, Coinbase, a major U.S. crypto asset (virtual currency) exchange, discussed the impact of Bitcoin (BTC) spot ETFs on the market in its weekly report. The impact of Genesis' sale of GBTC was also discussed.
Coinbase points out that Bitcoin ETFs launched in the U.S. saw a total of $3.3 billion in inflows in the first month of launch.
In a survey of institutional investors before the ETF was approved, the median expected inflow amount was approximately $1 billion (approximately 150 billion yen), but this was significantly higher. Coinbase continues:
We think Bitcoin in particular (and cryptocurrencies in general) will be well supported over the next 3-6 months.
This is because more institutional investors are expected to adapt to the post-ETF approval situation and the ongoing global currency reflation context.
In general, reflation is a state in which the money supply increases and the economy is out of deflation, but has not yet reached inflation.
Figure 1 here Source: The Block
According to The Block, daily inflows into Bitcoin spot ETFs have remained positive for over two weeks. On the 14th, BlackRock's iShares Bitcoin Trust (IBIT) saw the largest inflow ever at $493.12 million (approximately 74.1 billion yen).
connection:
BlackRock's Bitcoin spot ETF holds over 100,000 BTC (770 billion yen)
What is Bitcoin ETF?
An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor's investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.
Virtual currency glossary
connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
Regarding the sale of GBTC by Genesis
Coinbase also discussed the factors behind the technical selling pressure. The bankrupt virtual currency lending company Genesis has received permission from the court to sell investment trusts such as GBTC.
According to Coinbase, approximately 35.9 million shares of Grayscale Bitcoin Trust (GBTC) (equivalent to a market value of 250 billion yen), 8.7 million shares (equivalent to a market value of 31.4 billion yen) of Grayscale Ethereum Trust (ETHE) and The sale of 3 million shares of Scale Ethereum Classic Trust (ETCG) (equivalent to a market value of 5.7 billion yen) was approved.
Genesis now allows these shares to be converted into the underlying assets Bitcoin, Ethereum (ETH), Ethereum Classic (ETC) or cash on behalf of creditors.
Coinbase speculates that the majority of these funds will remain within the crypto ecosystem, with a neutral impact on the market.
A hearing on Genesis' bankruptcy plan is scheduled for Feb. 26, and there's still a chance the court could reject or postpone the debt repayment plan.
The court has stated that the sale of GBTC and other assets must be carried out in stages over time, and appears to be taking into consideration mitigating the impact on the market.
connection:
Genesis to sell approximately 200 billion yen worth of Bitcoin ETF, plans for gradual liquidation
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— CoinPost (virtual currency media) (@coin_post) December 21, 2023
The post Coinbase predicts Bitcoin market will be supported for several months due to inflows from physical ETFs appeared first on Our Bitcoin News.
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