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₿itcoin reached $64,383. +0.63%

♢Ethereum reached $3,141.  +0.67%

What we will talk about today...

🤔 Bitcoin’s Bull Market and US Liquidity

🚀 Doubts on May Approval for Ether ETFs

📊 Unprecedented GBTC Outflows Set ETF Record

Bitcoin’s Bull Market and US Liquidity

Arthur Hayes’ Prediction:

• The former BitMEX CEO foresees a possible boost in Bitcoin’s market due to upcoming US economic changes.

Economic Shifts:

• Interest Rates: Less focus on the Fed’s interest rate decisions.

• Janet Yellen’s Role: Watch the Treasury Secretary’s liquidity management actions.

April 29 Treasury Report:

• Liquidity Management: Plans to manage funds in the TGA and RRPs.

  

  TGA vs. RRP liquidity chart. Source: Arthur Hayes/X

• Impact on Bitcoin: Draining these funds could positively affect Bitcoin and other cryptocurrencies.

Liquidity Scenarios:

• Funds Release: Up to $1.4 trillion could be injected into the economy.

• Election Influence: Potential for increased dollar printing around the Presidential Election.

Bitcoin ETFs:

• Recent Slowdown: After a strong start, Bitcoin ETFs have seen a dip in activity.

• Market Position: Still, Bitcoin ETFs like IBIT are performing well in year-to-date flows.

Industry Optimism:

• Growth Potential: Experts anticipate a growing trend in Bitcoin ETF allocations.

  

  U.S. spot Bitcoin ETF AUM chart. Source: Eric Balchunas/X

Despite a recent slowdown, Bitcoin’s market is expected to grow, driven by US economic liquidity measures and industry optimism.

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Doubts on May Approval for Ether ETFs

Standard Chartered’s Stance:

• The bank has become less optimistic about the SEC approving spot ether ETFs in May, but still sees a bright future ahead.

Report Highlights:

• Geoffrey Kendrick’s Insight: The bank’s previous May 23 approval expectation has dimmed due to a lack of dialogue with the SEC, which was anticipated based on past BTC ETF approvals.

• Long-Term View: Kendrick remains hopeful, citing improving global ETF conditions and the likelihood of eventual U.S. approval.

Industry Perspective:

• Analysts’ Opinions: Similar cautious views are held by Vaneck’s CEO and a JPMorgan analyst, both foreseeing eventual approval despite current legal complexities.

Regulatory Uncertainty:

• Ether’s Classification: The SEC’s unclear position on ether, contrasted with bitcoin’s non-security status, and calls for clarity from U.S. lawmakers add to the uncertainty.

While immediate approval for ether ETFs in May is doubtful, the long-term outlook remains positive amidst regulatory challenges and global market developments.

Unprecedented GBTC Outflows Set ETF Record

The U.S. Department of Justice (DOJ) has charged Samourai Wallet founders, Keonne Rodriguez and William Lonergan Hill, for allegedly running an unlicensed money-transmitting business and laundering over $100 million.

GBTC’s Outflow Record:

• Grayscale’s Bitcoin Trust (GBTC) has set a record with 72 days of continuous outflows, surpassing all ETFs.

IBIT’s Inflow Pause:

• Blackrock’s IBIT ended its 71-day inflow streak, still holding a substantial amount of Bitcoin.

Grayscale’s Reduction:

• Since January 11, 2024, GBTC reduced its Bitcoin holdings by 314,416.04 BTC, valued at $20.30 billion.

Market Responses:

• The outflow streak has elicited diverse reactions, highlighting its significance in the ETF landscape.

ETF Market Dynamics:

• The cryptocurrency market shows fluidity with $120.6 million in combined ETF outflows on Wednesday.

GBTC’s historic outflow streak and the halt in IBIT’s inflows reflect the changing investor sentiment in the cryptocurrency ETF market.

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