Ulrik Lykke | Nov 17, 2023 01:48PM ET
October has been the best month for crypto for all of 2023, with Bitcoin’s price jumping from $26.5K to well beyond $37K.
This renewed optimism, driven by the expectations of a spot Bitcoin ETF approval in the U.S., has injected fresh positivity into the market sentiment and into the overall crypto market.
The net change in supply of leading stablecoin entered positive territory over the past 90 days; this is the first time since Terra’s collapse in May 2022.
Spot trading volumes on centralized exchanges have broken a four-month streak of declining volumes and marked the highest level since March 2023.
Below are a few of the things that caught my eye over the last week:
1. Grayscale’s Bitcoin Trust Discount is down to 13.38%: The GBTC discount is currently at its lowest level since July 2021, marking a significant drop compared to December 2022 when it hit highs of 48%.
2. Blackrock (NYSE:BLK) Files for a Spot ETH ETF: Last week, BlackRock doubled down on its crypto ETF applications, registering the iShares Ethereum Trust as a Delaware statutory trust. ETH price surged past $2,000 on this news.
3. XRP Surges Briefly After a Fake BlackRock Filing: The XRP token surged over 12% on a false report that Blackrock had also filed a “BlackRock iShares XRP Trust”. Clearly, there are some mischievous characters out to take advantage of the ETF hype.
4. JP Morgan Skeptical on Bullish ETF Momentum: While crypto natives have their hopes high for the positive effect a Bitcoin ETF approval will bring, JPMorgan recently published a report arguing that the rally looks 'overdone.'
The next decision day on the approval of a spot ETF is happening today, however, I find it highly unlikely that there will be any approvals before earliest 10th of January 2024 when ARK’s ETF will face its final deadline.
Currently, my thesis on the market is that we will continue to tread higher in anticipation of positive ETF news, which will do for a nice continuation of the upside into December.
What happens thereafter is anyone's guess - A survey by Nasdaq last year revealed that 72% of financial advisers would likely allocate some capital to crypto if the authorities were to approve an ETF.
h2 Noteworthy Mentions /h2
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.