Bitcoin

Grayscale Bitcoin Trust

James

The crypto market is buzzing with anticipation of <a href="https://news.todayq.com/sec-chair-drops-hints-over-spot-bitcoin-etf-decision/" target="_blank" rel="noopener noreferrer nofollow">approval of spot Bitcoin</a> (BTC) Exchange-Traded Fund (ETF). As positive sentiments continue to grow among the crypto community, BTC is moving towards attaining a new year high. Bitcoin went on to touch $44,600 price level by gaining 61% in the last 90 days. BlackRock to make heavy Bitcoin accumulation? 
According to James van Straten, lead analyst at CryptoSlate asserts that a mere 1.8 million to 2 million Bitcoins remain on exchanges. However, van Straten speculates that BlackRock, a financial giant, might be eyeing an acquisition of 1 million BTC for an ETF. It is expected that this potential move will reshape the crypto landscape as it will amplify institutional involvement in the market.
He added that after BlackRock there are 12 other ETFs waiting for approval, along with public companies which are now incentivized by the Financial Accounting Standards Board (FASB). They will be adopting fair value accounting. This shift in accounting practices aligns with the growing acceptance of Bitcoin as more than just a speculative asset.&nbsp;
According to Financial Times reports, Bitcoin is increasingly being deemed an “ESG asset,” reflecting its environmental, social, and governance considerations. This report supports the expert’s narrative as several nations are looking to be involved in Bitcoin mining through renewable energy sources.&nbsp;
On the other hand, there is a growing trend of nations considering Bitcoin as a treasury asset.&nbsp; Such developments replicate a broader acceptance of Bitcoin on a global scale. New filing for BTC ETF 
Amidst these macro-level shifts, the financial services firm First Trust has thrown its hat into the ring by filing for a Bitcoin ETF. It is important to note that it is not a conventional spot ETF. The First Trust Bitcoin Buffer ETF, as outlined in the submitted Form N1-A filing with the US SEC aims to introduce a unique approach to Bitcoin investment.
Unlike spot ETFs directly tied to Bitcoin’s price movements, the Buffer ETF leverages options to pursue a defined investment outcome. Specifically, it aims to participate in the positive price returns of the Grayscale Bitcoin Trust or another Exchange-Traded Product (ETP) that provides exposure to Bitcoin’s performance. This innovative strategy is designed to protect investors from potential market drop losses by implementing a buffer or limit on a stock’s growth over a specified period.
Bloomberg ETF analyst James Seyffart has weighed in on this development, noting that Buffer ETFs offer protection against a predetermined percentage of downside loss while capping potential upside gains. Seyffart predicts a wave of new entrants in the space, each with unique and differentiated strategies to offer Bitcoin exposure in the coming weeks.
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Crypto expert suggest BlackRock to add 1M Bitcoin for ETF as market awaits approval

Todayq News

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