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🔥 Bitcoin Spot ETF Hype Reaches Fever Pitch
The Defiant Daily
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All eyes are on the potential approval of the first-ever spot Bitcoin ETF. A fee war broke out among ETF applicants who pushed their fund costs near rock-bottom, while SEC chair Gary Gensler tweeted about how investors should be mindful of risks when buying crypto -- all of which served to further fuel speculation the ETF's approval is imminent. Analysts expect the U.S. securities regulator will issue a decision by tomorrow, Jan. 10.
Bitcoin is rallying ahead of the expected ETF approval, jumping past $47,000 for the first time since April 2022. With ETH underperforming BTC, the ETHBTC ratio is now at is lowest level in over two years.
✍️ In today’s newsletter:
- Spot Bitcoin ETF fee war breaks out
- ETHBTC ratio slumps to lowest since 2021
- BTC becomes unit of account in Honduran city
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📈 Markets in last 24 hrs:
| Ticker | Value | 24h |
|---|---|---|
| BTC | $42,822 | ↙ -4.83% |
| ETH | $2,211 | ↙ -6.34% |
| S&P 500 | $4,689 | ↙ -0.34% |
| GOLD | $2,042 | ↗ 0.4% |
| Arch WEB3 | 1.28pts | ↗ +2.99% |
| ↳ FINANCE | 1.21pts | ↗ 2.57% |
| ↳ INFRA | 1.41pts | ↗ 3.1% |
| ↳ CONSUMER | 1.46pts | ↗ 4.02% |
Learn more about Arch Indices here.
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Bitcoin ETF
Spot Bitcoin ETF Expectation is at Fever Pitch With Fee War and Gensler Tweet
TLDR A fee war broke out as BTC ETF applicants filed their amended S-1 forms. BlackRock, Bitwise, Ark Invest/21Shares, VanEck, WisdomTree, Invesco Galaxy, Fidelity and Valkyrie announced reduced fees for their spot Bitcoin ETF instruments. Meanwhile, Gary Gensler's tweets further fueled speculation an approval is around the corner.
SO WHAT Judging from Bitcoin's price action, investors are betting the SEC will approve a spot Bitcoin ETF. The instrument is expected to open the flood gates to institutional capital and continue to push demand for digital assets. ETF providers placing their fees near rock bottom, between 0.3% and 0.2% is a sign asset managers expect the funds will attract sizeable AUMs.
READ MORE: Spot Bitcoin ETF Expectation is at Fever Pitch With Fee War and Gensler Tweet
Ethereum
ETHBTC Ratio Slumps to Lowest Since 2021 on Spot Bitcoin ETF Expectation
TLDR The ETHBTC ratio is slumping to the lowest in over two years as Ethereum's native currency continues to underperform Bitcoin on expectations the spot BTC ETF is about to be approved. ETHBTC dropped to 0.048 on Tuesday, the lowest since May 2021.
SO WHAT Bitcoin is overperforming Ether as traders rush to buy the world's largest cryptocurrency by market capitalization on speculation the digital asset will further rally if an ETF linked to its spot price us approved in the U.S. While all eyes are on the Bitcoin spot ETF, Ethereum also has potential drivers including its own spot ETF approval coming up in May.
READ MORE: ETHBTC Ratio Slumps to Lowest Since 2021 on Spot Bitcoin ETF Expectation
LatAm
Special Economic Zone in Honduras Recognizes Bitcoin As Unit of Account
TLDR Próspera, a private city on the island of Roatán, Honduras, has become the world’s first jurisdiction to recognize bitcoin as a unit of account.
SO WHAT Próspera now appends itself to the larger group of Latin American localities that have embraced Bitcoin. El Salvador became the first country in the world to make Bitcoin legal tender in Sep. 2022, with Mexican senator Indira Khempis pushing forward pro-Bitcoin legislation.
READ MORE: Special Economic Zone in Honduras Recognizes Bitcoin As Unit of Account
