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Weekly Update: 5th of June

Hodl Team
Hodl Team
5 June 2024
Welcome to our weekly update, where we provide insights into the latest developments in the digital assets market.

What happened between the 29th of May and the 5th of June?

  • BlackRock has added its IBIT Bitcoin ETF to its income and bond funds, furthermore, IBIT has surpassed Grayscale’s GBTC as the largest spot Bitcoin ETF by assets. Read more

  • Australia's first bitcoin ETF started trading on the fourth of June as Monochrome Asset Management launched its spot ETF. Read more

  • BlackRock filed an amended S-1 form for its spot ether ETF, signaling that the Securities and Exchange Commission (SEC) is working towards the ETF launch. Read more

  • The New York Stock Exchange announced it would consider offering cryptocurrency trading if the regulatory status becomes clearer. Read more

BlackRock’s IBIT is officially the biggest Bitcoin spot ETF

On May 29th, BlackRock’s Bitcoin ETF “IBIT” officially surpassed Grayscale’s GBTC as the largest Bitcoin spot ETF. Since the launch of both instruments, they have demonstrated strong trend movements. IBIT has seen substantial growth, rising from nearly zero Bitcoin to over 290,000 Bitcoin. In contrast, Grayscale, which converted its Bitcoin holdings from an illiquid trust to a liquid ETF, has lost over 330,000 Bitcoin, with the downtrend still ongoing.

Additionally, BlackRock has incorporated its IBIT ETF into an income opportunity fund and a global bond fund during the first quarter. The firm’s Strategic Income Opportunities Fund (BSIIX) holds over $3.5 million worth of IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000.

Australia welcomes its first Bitcoin ETF

Following the example set by the U.S., Australia welcomed its first Bitcoin ETF on June 4th. Launched by Monochrome Asset Management, this ETF is now available on Cboe Australia. The traditional exchange already had two exchange-traded products providing exposure to other spot crypto assets, but neither held Bitcoin directly. Although the launch did not attract significant attention from market participants, it marks a notable development as more traditional exchanges gradually allow these products. By the end of the trading day, the Monochrome Bitcoin ETF (IBTC) had traded a total of 20,761 shares, each valued at 10.32 AUD, amounting to approximately USD 142,000.

The reality of an Ether spot ETF grows by the day

After the surprise announcement of the SEC approving the listing of eight Ether spot ETFs, the market has turned its full attention to the development of this financial instrument. With various asset managers, including BlackRock, filing their updated S-1 forms, market analysts foresee a legitimate possibility of an Ether spot ETF trading around mid-June. These S-1 filings are one of the final hurdles for the ETF issuers to obtain approval and also provide insight into the inner workings of the funds. It was revealed that BlackRock has a seed investment of $10 million.

The New York Stock Exchange sees the potential of crypto trading

At the cryptocurrency event Consensus 2024, Lynn Martin, President of the New York Stock Exchange, said “If there was clear regulatory guidance, it would be an opportunity to look at crypto trading" during a panel discussion. She further stated that the interest in the Bitcoin ETFs and the $58 billion they have amassed, signals the demand for regulated crypto products. Earlier this month, the NYSE’s rival, the Chicago Mercantile Exchange (CME), announced its plan to launch crypto spot trading, so competition between exchanges is increasing as well.

Furthermore, we anticipate this regulation sooner rather than later, as we have observed U.S. politics shifting towards a more favorable framework as part of the presidential election campaigns by both parties. The previously mentioned surprise announcement of the spot Ether ETFs can be seen in light of this trend.

In other digital assets news

  • Stablecoin issuer Tether invests $150M in crypto mining firm Bitdeer.

  • Ark Invest ends its partnership with 21 Shares regarding its application for the Ether ETF, this doesn’t affect any ongoing collaborations between the two firms such as with its Bitcoin spot ETF.

 

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