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BlackRock's Bitcoin ETF Interest: What It Means for Investors
Staying informed on the latest movements in the Cryptocurrency market.
Jesse Prince-Fraser
October 29, 2023
Sunday is upon us.
Welcome to another exciting edition of The Merge.
It's that time of the week when we bring you the freshest insights and the latest tools to equip you for the crypto world.
This Week’s Roundup:
Grayscale and BlackRock Eye Bitcoin ETF
SBF’s Latest Trial Updates
Google’s new AI and Copyright Law
BlockFi emerges from the Ashes of Bankruptcy
Read Time: 9 Minutes
Latest Developments
Image from: beincrypto.com
Background:
Grayscale Investments, a leading digital asset management firm, has long been known for its Bitcoin Trust, providing institutional investors with exposure to cryptocurrency.
BlackRock, the world's largest asset manager, has been exploring the crypto space recently, as well as the likes of Cathie Wood’s ARK and Fidelity - all of whom are in the race to get the first BTC ETF approval from the SEC.
When It's Happening:
Discussions about a potential Bitcoin ETF are ongoing.
While there's no official release date, the mere contemplation of such a product reflects the growing institutional interest in cryptocurrencies and talks of the SEC's obligation to approve one or all before this upcoming BTC halving in April.
Why It's Important to Investors:
A Bitcoin ETF would be a game-changer. It would offer traditional investors a regulated and easily accessible way to invest in Bitcoin.
This development can boost the adoption of cryptocurrencies and potentially lead to significant price increases, making it a hot topic for investors.
Image from: newshubpro.com
Background:
Sam Bankman-Fried is the CEO of FTX, a cryptocurrency exchange known for its huge rise and fall, late last year causing the crypto market to plummet. The trial updates revolve around legal matters he's facing after losing over $6 billion in customer funds.
When It's Happening:
The trial updates are ongoing, and the outcome could have a lasting impact on the crypto industry. It's a developing story, with no set resolution date.
Why It's Important to Investors:
Regulatory issues can significantly influence market dynamics. Investors must monitor this case closely to understand the potential legal and regulatory risks associated with crypto investments, especially when a major industry figure is involved.
Image from: theindianwire.com
Background:
Google's artificial intelligence technology has been generating art that raises questions about copyright and intellectual property rights, especially in the NFT and blockchain art world.
When It's Happening:
Discussions about AI-generated art and copyright law are ongoing. As AI art gains prominence, it's important for investors to stay up to date with potential legal developments that could affect their involvement in the NFT market.
Why It's Important to Investors:
This development highlights the evolving legal landscape surrounding digital assets and intellectual property, impacting NFTs and blockchain art.
Investors should be aware of these dynamics to make informed decisions regarding their digital art investments.
Image from: Watcher.guru
Background:
BlockFi is a prominent crypto lending platform that recently faced bankruptcy proceedings due to regulatory concerns. It has ‘successfully’ navigated this challenging situation.
When It's Happening:
BlockFi's recovery has already occurred, assuring users and investors that their funds are secure.
Why It's Important to Investors:
The BlockFi case underscores the importance of risk management in the crypto space. It's a reminder for investors to carefully choose platforms and services, considering the potential risks associated with lending and borrowing in the crypto world.
Latest Tools to Use
📈 TradingView: The go-to platform for advanced chart analysis and market insights (link)
🦙 DefiLlama: Analytics dashboard which shows the Total Value Locked (TVL) across all of the major DeFI protocols (link)
🦎 CoinGecko: Keep up to date with prices, trading volumes, and crucial crypto data (link)
💰 Staking Calculator: Calculate current rewards and future run scenarios to estimate future returns of different tokens (link)
🪙 Token Terminal: A platform that aggregates financial and alternative data on blockchains and decentralised applications that run on blockchains (link)
🧾 CryptoTaxCalculator: Simplify tax reporting and stay compliant with this useful tool (link)
Keep your finger on the pulse of these developments and explore the latest tools to make your crypto journey more productive.
Key Indicators
MVRV
The MVRV Z-Score uses blockchain analysis to identify periods where bitcoin is significantly over or undervalued relative to its ‘fair value’.
It can be a good sign to an investor/trader of when to buy or sell. You can read more in detail about how it can be used here.
Current MVRV Score: 0.53
As of 22:00 on 28/10/23
TOP SIGNAL: MVRV>1 (3.5+) A higher number of larger unrealised profitability of BTC holders and subsequent selling might occur. | BOTTOM SIGNAL: MVRV<1 A lower number with fewer holders that are in a position of unrealised losses. |
Fear and Greed
Investors need to be cautious of their own nature as their emotions could cloud their rational decision-making and judgement.
This Index is a collection of sources to track the general sentiment of the crypto market.
Current Fear & Greed Index: 65
As of 22:00 on 28/10/23
Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
When Investors are getting too greedy, that means the market is due for a correction.
Quote of the Week:
Whatever the outcome, we will heed a prime rule of investing: You don’t have to make it back the way you lost it.
Free Alpha
That’s all from us this week, before we let you go here are some of our favourite Twitter pages for great content and deep dives on specific Crypto projects.
Shout us out if you find them valuable (we’re sure you will):
Just remember if you’re reading this, we’re so early in this journey of technology.
Zoom out, stick to your intuition and have patience - all great things come with time.
Wrapping Up
As always, we'll be back next week with more insights and updates from the crypto universe.
If you have any questions or topics you'd like us to cover in future newsletters, feel free to reach out.
Stay connected with The Merge:
Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
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