Bitcoin ETFs Rapid Accumulation Surpasses MicroStrategy, JPMorgan Downgrades Coinbase
Summary:
Nine Bitcoin exchange-traded funds (ETFs) purchased 100,000 Bitcoins within a week, while MicroStrategy needed nearly 300 days to achieve this. Hester Peirce believes Ethereum ETFs will gain approval without legal action, contrasting with JPMorgan's prediction of a potential downfall for Coinbase stock this year. Despite Bitcoin's price falling below $40,000, Bitcoin ETFs have witnessed more than $1.1 billion in net inflows.
In a single week, nine Bitcoin exchange-traded funds (ETFs) bought 100,000 Bitcoins, a milestone that took MicroStrategy nearly 300 days to achieve. It has been suggested by Hester Peirce that Ethereum ETFs won't require legal action to get permission. In contrast, JPMorgan experts predict a potential downfall for the Coinbase stock during this year.
Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Trust (FBTC), have been quick to buy, amassing 102,613 Bitcoins in their first week following the commencement of trading on January 11.
These nine ETF's rapid accumulation of Bitcoins, covering just seven days of trading, forms 53% of the total Bitcoin holdings collected by major player MicroStrategy over the last three years. MicroStrategy’s most recent Bitcoin acquisition report shows that as of December 26, 2023, they held a total of 189,150 BTC.
Commissioner Hester Peirce, also known as "Crypto Mom," has commented that a lawsuit won't be necessary to gain approval for spot Ether (ETH) ETF applications by the U.S. Securities and Exchange Commission. She mentioned this in an interview with Coinage Media on January 24, referring to the previous court defeat to Grayscale, which ushered in Bitcoin ETFs.
Peirce suggests the SEC will likely use the same approach taken in the decision against Grayscale. Despite each ETF application having unique characteristics that must be considered, the SEC needs to make a decision on VanEck’s Ethereum ETF application by May 23. Analysts expect other bids, including BlackRock, ARK 21Shares, Grayscale, Hashdex, Fidelity, and Invesco Galaxy, will likely receive approval around the same time.
Meanwhile, JPMorgan has less faith in the Coinbase stock, downgrading it due to Bitcoin’s lackluster performance following the approval of the nine spot ETFs. The bank’s analysts believe there's limited potential for growth in Coinbase’s stock and revalued it as “neutral." They are holding to their $80 year-end price prediction for COIN, which is currently trading at about $124, indicating a potential drop of over 35%.
Despite witnessing Bitcoin's price sliding below $40,000 due to additional selling pressure from Grayscale’s Bitcoin Trust (GBTC), Bloomberg analyst, James Seyffart, reports that Bitcoin ETFs have received more than $1.1 billion in net inflows.
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Published At
1/24/2024 3:50:39 PM
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