BlackRock’s Bitcoin Spot ETF Surpasses 200,000 BTC Milestone
The iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF managed by BlackRock’s subsidiary iShares, has quickly become a notable player in the cryptocurrency investment space since its debut on the Nasdaq on January 11th. In just two months, IBIT has amassed over $14.5 billion in assets under management (AUM), making it the second largest Bitcoin ETF globally by AUM, trailing only behind Grayscale’s GBTC. However, it stands out as the leader in daily trading volumes, a significant achievement considering its short time on the market.
IBIT’s shares are entirely backed by Bitcoin, ensuring that its AUM reflects the direct holding of the cryptocurrency. This structure has attracted significant interest from investors, evidenced by its trading volume surpassing $1 billion on its first day. The ETF’s daily trading volumes have continued to impress, exceeding $3 billion on multiple occasions and recently setting a new record with almost $4 billion in a single day.
Comparatively, BlackRock’s iShares Gold Trust (IAU), a spot ETF for gold that has been around for nearly 20 years and holds an AUM of almost $27 billion, sees daily trading volumes that are significantly lower, rarely exceeding $300 million. In fact, IBIT has already beaten the highest daily trading volume record of IAU six times, showcasing the substantial investor interest in Bitcoin as an asset class through the convenience and security of an ETF structure.
Source: Cryptonomist
Coinbase Targets $1 Billion Fundraising through New Bond Sale
Coinbase is launching a strategic initiative to raise $1 billion through a bond offering, aiming to leverage the burgeoning cryptocurrency market and enhance its financial flexibility. This move, detailed in a March 12 announcement, involves the issuance of unsecured, convertible bonds due in 2030. This offering also includes an option for an additional purchase of up to $150 million in notes, responding to potential high demand.
The convertible nature of these bonds allows investors to opt for conversion into Coinbase shares or cash, a feature that underscores the company’s commitment to facilitating investor participation in its growth. To mitigate the impact on shareholder equity, Coinbase plans to engage in capped call transactions, a measure reflecting its careful consideration of shareholder interests alongside its expansion goals.
Source: Coinpaprika
Ether Hits $4,000: A Temporary Surge or Sustainable Growth?
The Ethereum network has seen significant activity and growth, fueling momentum in Ether’s price, which has surged 58% in the last 30 days, outpacing the broader cryptocurrency market by 14%. This rally brought Ether to its highest price point in over two years, narrowing its valuation gap with Bitcoin. However, there are concerns about the sustainability of this growth, particularly due to the high leverage observed in ETH futures markets, which could introduce volatility and risk.
A key point of speculation around Ether’s recent price rally is the anticipation of a decision on the approval of a spot Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), expected by May 23. With Bloomberg analysts estimating the approval odds at 35%, some traders believe the market may be overly optimistic, potentially setting up a “sell the news” scenario should the ETF get approved and the anticipation already be factored into the price.
Beyond the ETF speculation, other fundamental developments are contributing to Ether’s positive price movement. Notably, the Ethereum network is set for the Dencun network upgrade on March 13, aimed at significantly reducing transaction fees for Ethereum’s scaling solutions. This is a critical improvement, considering the network has been struggling with high transaction costs, with the 7-day average fee remaining at $4 or higher since November 2023. This mix of speculative optimism and fundamental enhancements presents a complex backdrop for Ether’s current market dynamics.
Source: Cointelegraph