Category: Bitcoin Analysis

Bitcoin ETFs aren’t giving crypto a big boost just yet. Here’s where the new funds stand

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The newly launched bitcoin ETFs are showing early signs of success, but they have so far fallen short of being the massive boost for crypto some bulls predicted. The funds began trading on Jan. 11 after receiving approval from the Securities and Exchange Commission, and ETFs from iShares ( IBIT ) and Fidelity Wise Origin ( FBTC ) have already raked in more than $1 billion of cash from investors in fewer than 10 trading days. Despite those quick milestones, reviews of the launches have been somewhat tepid. Citi analyst…

Bitcoin Price Takes Hit, Can Bulls Protect The Main Support at $40K?

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Bitcoin price extended its decline below the $41,450 support zone. BTC is showing bearish signs and might struggle to stay above the $40,000 support zone. Bitcoin price is gaining bearish momentum below the $42,500 zone. The price is trading below $42,000 and the 100 hourly Simple moving average. There is a key bearish trend line forming with resistance near $42,100 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is now at risk of more downsides toward the $40,000 support zone. Bitcoin Price Gains Bearish…

Investors may miss out on this key tax loophole if they actively trade a spot bitcoin ETF

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Spot bitcoin ETFs are barely a week old, but tax attorneys and accountants are already warning investors who actively trade the funds the same way they do cryptocurrency itself that they may miss out on a tax saving strategy. Right now, investors who regularly trade cryptocurrency can take advantage of a quirk in the tax code : They can sell losing positions in bitcoin and ether, harvest this realized loss to offset taxable capital gains elsewhere in their portfolio, and then immediately buy back the crypto position on the cheap…

The early winner in the bitcoin ETF race has raked in $1 billion

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An old-school asset management giant is flexing its muscle in the race to establish a foothold in bitcoin exchange-traded funds with a stellar first week. As Bernstein analyst Gautam Chhugani highlighted in a note to clients Thursday, BlackRock’s iShares Bitcoin Trust (IBIT) has been an early winner among the spot bitcoin ETFs that were approved last week. The fund has amassed $1 billion in net inflows, and while trading volume has cooled somewhat after a massive first day, the fund already has cumulative volume of more than $2 billion. “We…

Wolfe says it’s time to take some profit in bitcoin, sees further consolidation on the horizon

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Bitcoin has been struggling since the launch of bitcoin ETFs and may continue to for some time, according to Wolfe Research. The cryptocurrency has fallen 9% since the Securities and Exchange Commission gave bitcoin ETFs the green light to begin trading in the U.S. on Jan. 10. This is just the beginning of what may be a disappointing first quarter of the year, Wolfe’s Rob Ginsberg said in a note Wednesday. “Bitcoin now faces resistance on multiple fronts,” he said. “Is it going to tank? Probably not. But much like…

Buy dip in these bitcoin mining stocks over next two months

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Bitcoin miners have tumbled since last Thursday, following the launch of spot bitcoin exchange-traded funds . However, for some mining stocks, any weakness in the coming weeks is an opportunity, according to Bernstein. The declines are in part due to the pullback in the bitcoin price, which is down roughly 6% in the same period. In a Monday note to investors, Bernstein also pointed to lower investor appetite for mining stocks as a bitcoin proxy now that ETFs have entered the market. However, Gautam Chhugani, lead crypto analyst at Bernstein,…

Bitcoin tumbled after ETFs launched. What it means for crypto miners

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Investors in bitcoin mining stocks are closely watching the price of the cryptocurrency after the Securities and Exchange Commission’s move to allow spot bitcoin ETFs became a sell-the-news event. After the ETFs received regulatory approval last week, the flagship currency briefly touched $49,000. As the week went on, however, bitcoin wiped out its earlier gains and notched a modest weekly loss of 0.01%. Crypto mining companies are now feeling the squeeze in this latest bitcoin sell-off – and that’s evident in the big week-to-date declines for Marathon Digital and Riot…

A trade that wins if bitcoin retreats now that an ETF is finally here

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Asset managers, as well as investors, have been hoping for a spot bitcoin ETF for more than a decade. They finally got their wish this week, but it may be time to fade that news with an options trade that wins if bitcoin and related stocks decline. The reluctant approval from the SEC follows many years of rejections and delays of various attempts to launch a spot bitcoin ETF for public investing. This good news also comes just a few months after the agency was handed a definitive loss in…

Bitcoin ETFs have a key difference from their stock fund counterparts

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The Securities and Exchange Commission pushed for bitcoin ETFs to have a key difference from major stock funds, and that decision’s impact on how the funds trade will only become clear over time. The bitcoin funds that launched on Thursday are using a share redemption process that turns the underlying crypto into cash. Most ETFs primarily use an in-kind redemption process, where the underlying asset does not have to be actually sold. While the rules around share redemption do not directly impact the smaller trades that retail investors do in…

One place you won’t find a bitcoin ETF: Jack Bogle’s Vanguard

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Pavlo Gonchar | Lightrocket | Getty Images More than a dozen financial firms are involved in new bitcoin exchange-traded funds that began trading Thursday, but one of the biggest fund issuers and money managers in the world still won’t touch cryptocurrency. A Vanguard spokeswoman told CNBC that the asset management giant has no plans to create a bitcoin ETF of its own, or to even offer funds from other issuers on its trading platform. “While we continuously evaluate our brokerage offer and evaluate new product entries to the market, spot…