Bitcoin (BTC)

Proshares Bitcoin Strategy ETF Debut Captures Close to $1 Billion in Volume

19/10/2021 by Idelto Editor

The first bitcoin exchange-traded fund (ETF) launched in the United States and smashed records on Tuesday, capturing close to $1 billion in total volume. Eric Balchunas, the senior ETF analyst for Bloomberg said that the Proshares Bitcoin Strategy ETF (BITO) definitely “defied expectations.”

Proshares Bitcoin ETF Commands Serious Volume

Proshares Bitcoin Strategy exchange-traded fund (BITO) did well on its first day, as it closed the day at 4:00 p.m. (EDT) at $41.94 per unit. Meanwhile, the price of bitcoin (BTC) soared on Tuesday, tapping a high of $64,367 on the crypto exchange Bitstamp fifteen minutes after the closing bell on Wall Street.

As the ETF shares swapped hands on the New York Stock Exchange (NYSE), BITO reached a daily high of over $42. Bloomberg Intelligence analyst James Seyffart tweeted at the end of the day: “Looks like the final tally is gonna be right around ~$990 million in trading for BITO on its first day trading.”

Eric Balchunas, the senior ETF analyst for Bloomberg, also tweeted about the action the Proshares Bitcoin Strategy ETF saw on Tuesday. “BITO just about $1 [billion] in total volume today (curr $993m but trades still trickling in),” Balchunas said. “Easily the biggest Day One of any ETF in terms of ‘natural’ volume. It also traded more than 99.5% of all ETFs ([including] some big [ones] like DIA, ARKK, SLV). It [definitely] defied our expectations.” The analyst added:

If we don’t exclude ETFs where their Day One volume was literally one pre-planned giant investor or BYOA (not natural), it still ranks #2 overall. Here’s that list. The reason some of these shouldn’t be included IMO is they don’t really represent grassroots interest.

While the Proshares bitcoin ETF had a decent day, bitcoin (BTC) spot markets also rampaged on October 19. BTC’s market cap swelled over $1.2 trillion on Tuesday and there’s been $42.4 billion in global trade volume throughout the day.

Balchunas stressed that the result of today’s first bitcoin ETF performance in the U.S., “makes life that much harder for the next in line ETFs to succeed.” He added: “Every day counts [because] once an ETF gets [known] as ‘the one’ and has tons of [liquidity], it’s virtually imposs to steal (see SPY, GLD).” Balchunas concluded:

What does this mean for assets? My guess is about half of this volume will end up as flows next two days. [Probably] looking at $750 [million] by end of week, something like that. Tomorrow’s volume will be interesting and how much it comes down to Earth vs [staying] high.

What do you think about the Proshares Bitcoin Strategy ETF (BITO) performance on Tuesday? Let us know what you think about this subject in the comments section below.

BTC Futures Open Interest Soars Leading up to Bitcoin ETF’s Official Launch

19/10/2021 by Idelto Editor

Prior to the launch of the Proshares Bitcoin Strategy ETF (BITO), open interest in bitcoin futures products has been surging since the start of the month, according to data from the Coinbase Institutional arm Skew Analytics. Binance and FTX command the lion’s share of bitcoin futures’ open interest with 40.67% of the market. Moreover, data from bybt.com’s bitcoin futures’ open interest metrics, shows the Chicago Mercantile Exchange (CME) commands 15.54% of all the open interest in bitcoin futures tallied this week.

Bitcoin Futures Open Interest Has Risen Significantly

On Tuesday, October 19, 2021, the first exchange-traded fund based on bitcoin futures was launched in the United States. So far, Proshares Bitcoin Strategy ETF (BITO) is trading above the ETF’s initial value when the opening bell kick-started trading.

Since the first bitcoin ETF is based on BTC derivatives markets, prior to the launch a large influx of bitcoin futures open interest was recorded by a number of analytical web portals.

On October 12, Coinbase Institutional’s Skew Analytics tweeted about the massive open interest stemming from bitcoin futures markets. “Bitcoin futures open interest have been surging since the start of the month,” the official Coinbase Institutional Skew Twitter account said.

Additionally, the account noted that BTC options markets were quite different. “Bitcoin options market seems cautiously positioned ahead of ETF catalysts with skew rallying back to positive territory,” Skew remarked the following day.

Binance, FTX Command 40.67% of Bitcoin Open Interest – CME Group Captures Close to 16%

Data from bybt.com indicates that Binance rules the roost as far as bitcoin futures open interest dominance is concerned. Statistics indicate that Binance commands 23.5% of all the bitcoin open interest among all the BTC derivatives markets trading today.

Binance has around $5.54 billion recorded, while FTX Exchange captures around $4.05 billion or 17.17%. Open interest (OI) metrics from CME Group have increased as CME now holds the third-largest position in terms of OI. CME has seen a 1.35% increase in OI and metrics show CME commands 15.54% of all the bitcoin futures’ open interest.

CME is followed by bitcoin futures markets such as Bybit, Okex, Deribit, Huobi, and Bitmex. Collectively all five of the mentioned crypto derivatives exchanges command 35.56% of all the bitcoin OI tallied.

What do you think about bitcoin futures’ open interest surging before the bitcoin ETF listed today? Let us know what you think about this subject in the comments section below.

Top Ten Crypto Market Capitalizations Shifted a Great Deal Since the Last Time BTC Hit $60K

18/10/2021 by Idelto Editor

The price of bitcoin recently jumped above the $60,000 per unit mark on October 15, and the leading crypto asset has not seen prices this high since mid-April six months ago. However, as far as the top digital assets are concerned, in terms of market capitalization, things are a whole lot different. For instance, ether tokens are worth a lot more than they were six months ago and binance coin values were higher back then than they are today.

Six Months Later as Bitcoin Returns to $60K, Some Crypto Coins Trade for More Value, While Others Trade for Less

On April 11, 2021, statistics from coinmarketcap.com’s historical snapshot data show that on that day, bitcoin (BTC) exchanged hands for $60,204 per unit. BTC also reached an all-time high three days later on Apr 14, 2021, at $64,804 per coin that week. The data from the historical snapshot indicates that ethereum (ETH) was swapping for $2,157 per coin on April 11 and today, a single ether is trading for $3,761 per unit.

The stats six months ago show binance coin (BNB) held the third position six months ago and at the time each BNB traded for $525. Prices are a bit lower than they were back then and BNB lost the third position to cardano (ADA) for a few months. Today, metrics show that BNB is swapping for $480 per coin which is 9.375% lower than the price six months ago. At that time, XRP held the fourth position in terms of market cap but today, XRP has slid to the sixth position.

The stablecoin tether (USDT) held the fifth spot back then, today it is sitting at number four. Like ethereum (ETH), cardano (ADA) is another coin that was trading for lower prices on April 11. At the time, ADA exchanged hands for $1.27 per coin and on October 18, ADA trades for $2.12 per unit. Polkadot (DOT) held the seventh position trading for $41.42 per DOT six months ago, today DOT trades for a touch lower at $40.76 and sits in the eighth largest position.

Litecoin, Uniswap, Chainlink Bumped Out of the Top 10 — Theta, Filecoin, Tron, Vechain Slip Out of the Top 20

Litecoin (LTC), uniswap (UNI), and chainlink (LINK) held the last three positions in the top ten respectively. But none of these coins are in the top ten positions anymore and UNI is the closest today. Positioned at 14 today, UNI is trading for $25.39 but on April 11, the token changed hands for $29.98. LTC was holding the eighth largest market valuation six months ago, but today it has slid to the 16th largest. LTC exchanged hands for $253.63 and today its much lower at $185.22.

Chainlink (LINK) was swapping hands for $33.92 per LINK back then, but on October 18, the price is around $25.59. LINK at that time held the tenth-largest spot and it now holds the 18th position. Missing from the top 20 coins that were seen on the list back then include tokens like theta (THETA) filecoin (FIL), tron (TRON) and vechain (VET). One notable gainer is solana (SOL) which moved from the 20th top position to the crypto economy’s seventh-largest spot in terms of valuation.

What do you think about the top ten crypto coin shift and some of the crypto assets that were bumped out of the top ten and twenty market positions during the last six months?

Local Businesses in New York Urge Governor to Impose Statewide Bitcoin Mining Moratorium

18/10/2021 by Idelto Editor

The governor of New York state, Kathy Hochul, has been urged by a group of local companies to deny business permits to bitcoin miners. The letter specifically asks for the “denial of permits for the Greenidge Generating Station and the Fortistar North Tonawanda Facility.” The letter also calls for the New York government to assess “proof-of-work” (PoW) digital currency mining in the state as the local businesses believe PoW mining “drastically undermines New York’s climate goals.”

Local Businesses From New York Urge Governor Kathy Hochul to Impose a Statewide Bitcoin Mining Moratorium

Climate change is a big deal to a number of local businesses in the state of New York as a large coalition of companies has urged governor Kathy Hochul to deny bitcoin mining permits. The coalition’s letter is backed by businesses and organizations such as Seatuck Environmental Association, Ravines Wine Cellars, Peconic Baykeeper, Nassau Hiking & Outdoor Club, NYPAN Environmental Committee, Mothers Out Front New York, and New Yorkers for Clean Power.

“We, the undersigned organizations, businesses, and labor groups, write today to urge your administration to issue a statewide moratorium on proof-of-work (PoW) cryptocurrency mining until a thorough statewide Generic Environmental Impact Statement (GEIS) is conducted, and to deny the permits for the Greenidge Generating Station and the Fortistar North Tonawanda Facility,” the letter states. The letter, published to earthjustice.org on October 13, adds:

“These ‘mining’ activities, particularly proof-of-work cryptocurrency mining use enormous amounts of energy to power the computers needed to conduct business – should this activity expand in New York, it could drastically undermine New York’s climate goals established under the Climate Leadership and Community Protection Act.”

New York’s Bumpy Relationship With Bitcoin Mining

The state of New York (NY) is no stranger to such controversies over bitcoin mining as debate over the subject has raged on for a few years now. In 2018, a number of counties in NY, like the Plattsburgh Common Council, passed new guidelines for miners that aimed to control noise and fire safety regulations. Despite the stricter rules in specific areas, bitcoin miners have been flocking to NY over the last two years. Meanwhile, as miners entered the New York market, operations started getting complaints from local neighbors and NY politicians.

In December 2020, an environmental organization called Sierra Club, a committee aimed at preserving the Finger Lakes region, filed a lawsuit against the NY town of Torrey for allowing the Greenidge Generation power plant to expand its mining operations. Sierra Club asked the town of Torrey and the Torrey Planning Board to block the construction with an injunction. Senator Kevin Parker (D) believes bitcoin miners should halt operations over climate change concerns as well.

In May 2021, senator Parker introduced legislation to address these concerns as he explained that bitcoin mining “threatens not only New York’s climate goals, under the CLCPA, but also global energy policy, such as the Paris Agreement.”

Parker’s bill aimed to impose a moratorium on the operation of cryptocurrency mining centers until the NY government could complete an assessment of the environmental impact. If the moratorium was imposed, bitcoin mining operations that could prove the business does not “adversely affect the state greenhouse gas emission targets in the climate leadership and community protection act of 2019,” could operate legally under NY law.

Letter Stresses ‘Climate Crisis in New York Is Here Now’

The recent letter to NY governor Kathy Hochul says that bitcoin mining facilities are threatening the state’s advances toward addressing climate change.

“In New York, data mining operations using warehouses full of computers have set up shop in upstate areas siphoning electricity from New York’s grid, ‘re-powering’ defunct fossil-fueled power plants, thus seriously jeopardizing the state’s progress on and meeting mandates for reducing greenhouse gas (GHG) emissions,” the letter emphasizes.

The letter stresses that the group of local businesses want governor Hochul to act now. The letter concludes:

“As you have witnessed in your early weeks on the job, the climate crisis in New York is here now. New York City recently saw unprecedented flooding that led to the loss of lives – strong climate action is needed now more than ever. We urge you to lead the way and set a national precedent on the issue of proof-of-work cryptocurrency by issuing a statewide moratorium and denying the permits for Greenidge and Fortistar. Thank you for your time and consideration of our comments.”

What do you think about the letter to NY governor Kathy Hochul that wants a statewide moratorium placed on bitcoin mining operations in New York? Let us know what you think about this subject in the comments section below.

Salvadoran President Nayib Bukele Taunts Economist Steve Hanke After Bitcoin’s Price Skyrockets

17/10/2021 by Idelto Editor

On October 15, the day bitcoin’s price surpassed the $60K per unit handle, Salvadoran president Nayib Bukele taunted the professor of applied economics at Johns Hopkins University, Steve Hanke, over his recent statements. At the time, the well known economist warned that El Salvador faces “financial ruin” with “Bukele at the helm,” after El Salvador’s president bought the bitcoin dip when the price was down.

3 Weeks Ago Steve Hanke Said ‘With Bukele at the Helm’ His Country Faces ‘Financial Ruin,’ Bukele Responds After Bitcoin Spikes and Says: ‘You Were Saying?’

When El Salvador adopted bitcoin (BTC) during the first week of September, the first day the law was enacted, BTC’s fiat value dropped a great deal. At that time, Salvadoran president Nayib Bukele told his Twitter followers that El Salvador was “buying the dip” as the country added 150 BTC to its stash. Meanwhile, the professor of applied economics at Johns Hopkins University, Steve Hanke, has criticized the Salvadoran president and tagged him in a Twitter post on September 23.

“Nayib Bukele is playing fast and [loose] with El Salvador’s tax dollars again,” Hanke said. “After bitcoin prices tumbled to a 6wk low, Bukele bought 150 more coins [and] proudly said that ‘We just bought the dip.’ With Bukele at the helm, ELSL faces financial ruin.”

Meanwhile, the leading crypto asset bitcoin (BTC) did fall into a slump in September, but as the month transitioned into October, BTC’s price skyrocketed. On October 15, Bukele decided to retweet Hanke’s September 23 statement and added a remark of his own. “You were saying?” Bukele tauntingly asked the well known economist. BTC has since been hovering above the $60K price range during the last 24 hours.

The following day, Hanke responded and said: “Yes, I was saying ‘financial ruin.’ Have you checked the price plunge of El Salvador’s dollar-denominated bonds since September 7th?” Hanke asked Bukele. “As the traders say, El Salvador’s bonds due in 2023, 2025, & 2029 are ‘distressed,’” Hanke added.

Hanke Says ‘Private, Digital Money Is Nothing New,’ and Claims ‘the Case for Crypto as a Driver of Innovation Is Thin’

Furthermore, the founder of Shapeshift, Erik Voorhees, also responded to Hanke’s tweet on Saturday with an animated GIF that shows goalposts moving. Another individual stated: “Hanke sounds like [the] people who were afraid of electricity in the 19th century.” Hanke has clearly stated that he’s not fond of bitcoin (BTC) many times, and he’s warned about El Salvador’s bitcoin adoption in June.

At that time, Hanke said he didn’t think it’s a good idea for the Latin American country to use bitcoin as legal tender and he further added that the decision could “completely collapse the economy.” Despite his angst toward bitcoin, the economist has said in the past that central banks fuel wealth loss and the world could use less of them. However, Hanke is a fan of the creation of currency boards, which essentially leverages monetary authority to maintain a fixed exchange rate with foreign currencies.

In more recent times, Hanke has said that “private, digital money is nothing new. Most money has been produced privately and in a digital form for decades,” Hanke claims. In an opinion editorial published via the National Review, Hanke stressed that “the case for crypto as a driver of innovation is thin.”

What do you think about Salvadoran president Nayib Bukele provoking Steve Hanke to respond? Do you agree with Nayib Bukele or do you agree with the economist Steve Hanke? Let us know what you think about this subject in the comments section below.