BTSE Weekly Digital Asset Industry Report – January 12th

Welcome to our latest Market Roundup. This week has been a historic one in the world of cryptocurrency, especially with major developments surrounding Bitcoin exchange-traded funds (ETFs).

Although it’s undeniably a watershed moment for the crypto industry, credit-rating agency Moody’s Analytics’ analysts argue that it might not be a game-changer in the wider investment scheme, due to Bitcoin’s relatively small size in most investors’ portfolios. CF Benchmarks CEO Sui Chunghas, however, stated differently; predicting that the iShares Bitcoin Trust (IBIT) by BlackRock might conclude its first trading day with a record $3 billion in inflows, the highest of any ETF, ever.

In other news, Ethereum (ETH) saw a remarkable 17% increase over the week, outpacing Bitcoin’s rise in response to the ETF news. Altcoins such as XRP and Cardano (ADA) also saw significant gains, with increases of 8% and 18% respectively. This week’s events signify a major leap for the crypto industry, opening up regulated avenues for crypto investments and potentially attracting a new wave of institutional investors. The long-term effects remain to be seen, but the market’s current response is overwhelmingly positive.

Web3 News

Cathie Wood’s Bitcoin Price Forecast: ARK Investment Management LLC CEO Cathie Wood predicted that the price of Bitcoin could soar to $1.5 million by 2030, a 50% increase from her previous forecast of $1 million. This revised prediction follows the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs.

CBDC Unlikely in US’ Near Future: Bank of Americarica reports that while multiple foreign significant central banks are actively exploring Central Bank Digital Currencies (CBDCs), a digital dollar is not imminent in the US as the Federal Reserve has not committed to issuing one without support from the executive branch and Congress.

Record-Breaking Bitcoin ETF Volumes: On their first trading day, new spot Bitcoin ETFs achieved a remarkable $4.5 billion in total volume. BlackRock, Grayscale, and Fidelity led the market, with BlackRock‘s iShares Bitcoin Trust (IBIT) processing over $1 billion.

Circle Files for IPO: Circle Internet Financial, the issuer of the USDC stablecoin, has filed to sell shares to the public. This move to become a publicly listed company follows the recent approval of spot Bitcoin ETFs by the SEC.

MicroStrategy’s Bitcoin Valuation Surpasses Company Value: MicroStrategy ‘s holdings in Bitcoin are now valued at over $1 billion more than the company itself. Despite a 20% drop in its stock price this month, MicroStrategy’s Bitcoin assets stand at $8.7 billion, outstripping the company’s market value.

Vanguard Bans Bitcoin ETFs: Vanguard has announced a ban on all Bitcoin ETFs on its platform, reflecting a cautious stance towards these products. Despite the SEC’s recent approval of Bitcoin ETFs, Vanguard has restricted purchases, including the popular Grayscale InvestmentsBitcoin ETF (GBTC).