FameEX Morning Crypto News Recap | January 18, 2024

NYSE's Strategic Decision — Introduction of Bitcoin ETF Options Aimed at Elevating Market Dynamics

In a notable development, NYSE Arca Inc. has proposed a rule amendment to permit options trading for commodity-based trust shares, specifically targeting bitcoin-based ETFs. This move, detailed in a 19b-4 filing with the SEC, marks a considerable expansion in the variety of financial products available to those investing in cryptocurrencies.

Grayscale Witnesses Over $477 Million Bitcoin Outflow as Blackrock and Fidelity ETFs Expand Holdings

Recent figures from Grayscale indicate a notable reduction in its assets, with more than 11,189 bitcoins, valued at about $477 million, being withdrawn from GBTC. This drop aligns with the emergence of spot bitcoin ETFs from companies such as Blackrock and Fidelity, which have experienced an increase in their bitcoin holdings.

US Stocks, Bitcoin, and Gold Fall as Federal Reserve Holds Back on Rate Decisions — Investors Left in a State of Uncertainty

Wednesday afternoon witnessed a decline in key U.S. stock indices, namely the Dow Jones, Nasdaq Composite, and S&P 500. This downturn coincided with a significant rise in 10-year Treasury yields, which increased by 0.98% to 4.102%. In tandem, gold experienced a 1% drop in value, and bitcoin also decreased, falling 1.02% in comparison to the U.S. dollar.

Bitcoin's Hash Rate Declines by 34% Amidst Texas' Severe Cold Spell

With temperatures in Texas hitting below-freezing levels, a first since the massive ice storm in February 2023, the Bitcoin network saw a notable decrease in its hash rate. According to YCharts, there was a 34% reduction in the hash rate, descending from more than 629 exahashes per second (EH/s) on January 11 to approximately 415 EH/s by January 15.

Traders Overemphasize the Impact of GBTC Sales on Bitcoin and ETF Market

On January 12, the debut of the spot Bitcoin ETF encountered a chaotic initial trading session, with investors unclear about inflow volumes and market makers struggling with different liquidation schedules. Nonetheless, this launch led to a historic achievement for Bitcoin spot-based ETFs, recording an unprecedented trading volume of $4.66 billion in the traditional finance industry.

Trading Volumes of Spot Bitcoin ETFs Exceed 'Remarkable' $10 Billion Amid Slowing GBTC Sales

Data from Bloomberg Intelligence's James Seyffart, posted on X (previously known as Twitter), reveals that by January 16, trading volumes for spot Bitcoin ETFs surpassed the $10 billion mark. Analysts concur that, in spite of recent BTC price fluctuations, the robust ETF trading volumes signal a promising direction for Bitcoin's trading future.

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