updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131On-chain data shows that money from GBTC has been flowing into the newly launched spot Bitcoin ETFs amid very low fee structures.
In an exclusive interview with Bloomberg Television from Davos on Wednesday, January 17, Grayscale Investments Chief Executive Officer Michael Sonnenshein defended the 1.5% management fee charged for the Grayscale Bitcoin Trust (GBTC). This fee is currently the highest among spot Bitcoin ETFs in the market. Sonnenshein justified the fee, citing the company’s significant size, high liquidity, and proven track record.
“As an investor, when you are choosing amongst these products, fees are a consideration, the asset manager, the issuer behind it are a consideration, but so should be size, liquidity and that track record,” stated Sonnenshein during the interview.
The cryptocurrency market has recently witnessed the launch of nine rival exchange-traded funds, some of which are attracting investors with incentives such as zero fees. However, Grayscale’s Bitcoin Trust has experienced approximately $1.2 billion in outflows since its conversion to an ETF following regulatory approval last week, according to data compiled by Bloomberg Intelligence. In contrast, excluding Grayscale’s Bitcoin Trust, all other spot Bitcoin ETFs have recorded around $1.9 billion in net inflows.
VanEck’s recently launched spot Bitcoin ETF boasts a management fee that stands as the second-highest among the latest ETF offerings. However, it is substantially more cost-effective in comparison to GBTC, with a fee set at 0.25%. On the other hand, BlackRock’s iShares spot Bitcoin ETF, witnessing the highest inflows among all Bitcoin ETFs since its recent market debut, features an initial fee of 0.12%. This introductory fee is likely to increase to 0.25% after 12 months for accounts holding less than $5 billion in assets.
The Grayscale Bitcoin Trust (GBTC) has witnessed notable outflows in the wake of the recent launch of spot Bitcoin ETFs. These ETFs present a more regulated and secure means of holding Bitcoins. Market analysts suggest that the majority of the outflows from GBTC have resulted in substantial inflows into the ETFs.
Bloomberg strategist James Seyffart has observed a significant transfer of funds from Grayscale Bitcoin Trust ($GBTC) to rival ETFs, underscoring the potential significance of this trend. Seyffart estimates a substantial outflow of around $594 million from $GBTC, totaling $1.173 billion in outflows.
Assuming the data is correct it backs up something i wrote about yesterday. A lot of these $GBTC outflows are likely finding a home in competing ETFs https://t.co/Bj8HZAOkXa pic.twitter.com/qcVBnbdnX5
— James Seyffart (@JSeyff) January 17, 2024
One day after the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission, Grayscale Investments filed for a covered call ETF. According to the N-1A form submitted last Thursday, the company aims to offer current income and enable participation in the price return of Grayscale Bitcoin Trust.
The submission of the covered call indicates a potential decrease in volatility within the crypto markets in the future. However, Sonnenshein clarified that the primary driving force behind the covered call filing was investor interest, not volatility. Sonnenshein said:
“Being able to offer a covered call strategy allows investors to have passive long GBTC exposure but also earn some additional income. I don’t think it’s for us so much a measure of volatility but instead that we’ve heard from investors that they want to be passively long of that asset class.”
Read other market news on Coinspeaker.
Cathie Wood stated that NVDA stock is priced ahead of the curve and trading at 25X expected revenue for this year.
Ark Invest‘s Cathie Wood, known for taking bold bets on new-age tech companies, has justified their exit from Nvidia (NASDAQ: NVDA) earlier this year. Last Wednesday, May 24, NVDA stock jumped by more than 20% in a single day moving closer to the $400 level. In her tweets on Monday, May 29, the ARK Innovation ETF (ticker ARKK) manager justified the exit from the stock. Wood added that the world’s most valuable chipmaker has been priced “ahead of the curve”.
Earlier this year in January 2023, the ARKK fund exited from Nvidia, after which, the stock has more than doubled and is close to hitting a $1 trillion valuation. However, Wood noted that NVDA stock is trading 25 times the estimated sales for the current financial year as investor enthusiasm spikes over Nvidia’s push in the AI industry. In comparison, this is six times its peers on the Philadelphia Semiconductor Index as well as 12 times that of Microsoft Corp.
However, we see, NVDA stock has been trading at a premium since the pandemic. But after the strong price surge this year, the gap looks more pronounced. On the other hand, some analysts also believe that the outlook for chips isn’t quite picking up yet amid the tepid demand for consumer electronics.
“Recent results at Nvidia have heightened expectations for AI servers,” SMBC Nikko Securities Inc analysts including Takeru Hanaya wrote in a note. Still, there is a “contrast between AI expectations and overall market weakness,” demonstrated by inventory adjustments and ongoing price cuts in the chip industry.
Jensen Huang, who co-founded Nvidia in 1993 is still running the company. Over the years, Nvidia has made a name for itself for being the leading chip manufacturer while catering to different industrial requirements of gaming, cloud computing, etc.
At the Computex trade show on Monday, May 29, Huang unveiled a number of AI products across new robotics design, gaming capabilities, advertising services, and networking technology. Furthermore, Huang also unveiled Nvidia’s AI supercomputer platform called DGX GH200 which will help tech companies to create successors to the popular platform ChatGPT. In a note to investors, independent analyst William Keating wrote:
“We basically feel that Nvidia’s stock is in bubble territory, regardless of the future potential growth. In other words, we think the train has left the station and we see little point in chasing it down the tunnel at this stage.”
Based on how much cash Nvidia generates, the company is far more expensive than its peers. Nvidia’s cash flow valuation is over 140 times, surpassing its peers Advanced Micro Devices Inc. and Monolithic Power Systems Inc., which have cash flow valuations less than half of Nvidia’s.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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Dogecoin has had a long-standing loyal user base, vouching for it at any time regardless of varied criticism floating in the market. The coin continues to remain among the top coins. Moreover, even though it’s growth was interrupted in the recent past, new developments have transpired.
Yesterday, was a rather fruitful day for DOGE as it marked the highest single-day rise of the month.
Even though most in the market including Bitcoin did not mark significant growth this week, DOGE climbed up the price charts by 16.16%.
Dogecoin price action | Source: TradingView – AMBCrypto
A potential cause behind this rise could be Elon Musk’s proclamation of his team at Tesla and SpaceX owning DOGE. He said that these people aren’t necessarily financial experts but still hold DOGE. This is also why he called it “the people’s crypto.”
According to a survey of 41,645 people from 22 countries, DOGE was one of the most in-demand tokens, and over 30.6% of all crypto owners in the United States owned DOGE. This is almost as many people as those who own Ethereum and way more than those who own Cardano and Binance Coin.
The average global crypto adoption rate of Dogecoin was merely 19.2% and that in the USA was 1.6 times more than that.
Dogecoin adoption survey | Source: Finder
Following the evergreen trend of acting during the hype, DOGE investors became active yesterday and volumes soared up to an almost 2 months high of $2.5 billion. Further, in a single day, cumulatively, over 6.1 billion DOGE worth around $1.22 billion was bought and sold.
Dogecoin volume | Source: Coinalyze – AMBCrypto
This month saw mostly bigger wallets playing well in the market conducting transactions worth $5-$7 billion on a daily basis. But retail investors haven’t seen a clear-cut profit scenario yet.
Dogecoin large transactions | Source: Intotheblock – AMBCrypto
And this one incident from yesterday cannot be considered as a trigger for a bigger rally, since today DOGE dropped by 3.17% confirming its status as “people’s coin,” the value of which rises and falls exactly as people desire.