Bitcoin is a volatile asset, and the cryptocurrency has been on a tear this year. The recent launch of a physically settled bitcoin ETF by Jacobi Asset Management could help to stabilize the market, but it’s unclear if other players will follow suit. Meanwhile, Square has dipped its toes into mining with their latest product offering.
The bitcoin etfs is a new type of ETF that allows investors to buy shares in companies that hold Bitcoin. Jacobi launched the first physically settled bitcoin ETF while Square Dives into mining- Weekend Roundup.
Excitement in the ETF
The expectation that a futures-based Bitcoin ETF would be authorized by the SEC in the coming days fueled a lot of enthusiasm heading into the weekend. Naturally, this resulted in a price increase, which held for the most part throughout the weekend.
It’s essential to keep in mind that the different ETFs set to debut in the United States aren’t the be-all and end-all solution. The globe is a big place with a lot of different authorities and marketplaces. Jacobi Asset Management has recently announced the approval and launch of its own Bitcoin ETF for investors outside of the United States.
The Jacobi Bitcoin ETF, which is set to debut on Cboe Europe, differs significantly from those anticipated to be authorized by the SEC. “It will offer investors with the option to engage directly in physically-settled Bitcoin,” says Jacobi Asset Management Chairman Roy McGregor. The main distinction is that they are physically settled, as opposed to futures-based ETFs that are settled in USD.
Square is thinking about getting into mining.
The revelation that Square is contemplating getting into BTC mining added to the buzz around BTC going into the weekend.
Square CEO Jack Dorsey expanded on the company’s early views, identifying the following as major roadblocks that must be overcome.
- Integration on a vertical scale
- Silicon development and research
If Square can come up with a solution that solves even a few of the problems that are presently plaguing the mining sector, the end product will undoubtedly be a success.
Square is one of the most active and invested businesses in Bitcoin, apart from the aforementioned foray into mining. Take its recent decision to build an open-source ‘assisted custody’ hardware wallet as evidence. Dorsey and his businesses are probably doing more to advance the world of digital assets than anybody else, between openly supporting Bitcoin, increasing integration of BTC inside Twitter, investing in BTC via corporate treasuries, and the creation of different products (wallets and miners).
Reaction of the Market
Markets have been pretty steady over the last several days, despite some obvious profit taking going into the weekend. BTC remained largely range-bound between $60,000 and $62,000 throughout this period.
Many who keep a close eye on the oft-referenced’stock-to-flow’ model may have observed a small deviation from the predicted trend of BTC pricing with this recent price movement. This divergence was short-lived, however, since PlanB, the project’s developer, said that everything is back on schedule, implying that $100,000 BTC would still be available by the end of the year.
The current outflow of money from key exchanges like as Binance and Coinbase has fueled expectations for a $100,000 BTC in the near future. The withdrawal of $6,319,003,600 USDC from Binance to an external wallet sticks out in particular.
Many investors keep an eye on noteworthy deposits and withdrawals at such exchanges because it provides insight into the mentality of industry ‘whales.’ The theory goes that if money are being withdrawn from an exchange, the owner has no intention of trading or selling in the near future and is withdrawing cash for safekeeping in expectation of a price increase.
- bitcoin futures price
- invest in bitcoin now
- when to buy bitcoin 2021