FameEX Morning Crypto News Recap | January 18, 2024

NYSE's Tactical Shift — Launch of Bitcoin ETF Options Set to Enhance Market Activity

NYSE Arca Inc. has made a significant step by proposing a rule change to allow options trading on commodity-based trust shares, focusing particularly on bitcoin-based ETFs. This development, outlined in their 19b-4 filing with the SEC, represents a major progression in the range of financial products accessible to cryptocurrency investors.

Grayscale Experiences More Than $477 Million Withdrawal in Bitcoin Amid Blackrock and Fidelity ETFs Increasing Their Assets

Grayscale's latest data shows a substantial decrease in its holdings, with over 11,189 bitcoin, worth around $477 million, withdrawn from GBTC's reserves in recent days. This decline coincides with the launch of spot bitcoin ETFs by firms like Blackrock and Fidelity, which have seen a corresponding rise in their bitcoin assets.

US Equities, Bitcoin, and Gold Decline as Fed Remains Noncommittal on Rates — Investors Face Uncertainty

On Wednesday afternoon, major U.S. stock indices, including the Dow Jones Industrial Average, Nasdaq Composite, and the S&P 500, faced a downturn. This drop occurred alongside a surge in 10-year Treasury yields to 4.102%, an increase of 0.98%. Simultaneously, gold's value fell by one percentage point, and bitcoin also saw a decline, dropping 1.02% against the U.S. dollar.

Bitcoin Hash Rate Falls 34% Due to Cold Weather Conditions in Texas

As temperatures in Texas plunged below freezing for the first time since February 2023's major ice storm, the Bitcoin network's total hash rate experienced a significant decline. Data from YCharts indicates that the hash rate dropped by 34%, falling from over 629 exahashes per second (EH/s) on January 11 to around 415 EH/s by January 15.

Bitcoin and ETF Traders Exaggerate the Effects of GBTC Selling

The launch of the spot Bitcoin exchange-traded fund (ETF) on January 12 saw a tumultuous first trading session, marked by investor uncertainty about the actual inflows and market makers grappling with varying liquidation timelines. Despite these challenges, the Bitcoin spot-based ETFs achieved a record-breaking volume of $4.66 billion, setting a new high in the traditional finance sector.

Spot Bitcoin ETF Trading Surpasses 'Astonishing' $10 Billion as GBTC Sales Decelerate

According to Bloomberg Intelligence analyst James Seyffart's data shared on X (formerly Twitter), spot Bitcoin ETF trading volumes had exceeded $10 billion by January 16. Despite recent challenges in BTC prices, analysts agree that these high ETF volumes clearly indicate a positive trajectory for the future of Bitcoin trading.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.