Bitcoin ETF has been approved and this is what happens
Exciting News for this New Year! 🌟 We've revamped our news delivery strategy to bring you the latest updates faster and better. Introducing our Private Telegram Channel for real-time live updates. Join now for a more immersive and timely news experience! 🚀 #StayInformedJoin our Private Telegram Channel Follow us on social media to stay informed on the industry.Find us on LinkedIn to share ideas with the community of professionals in Web3The Big Idea
We Need More of the Same
The recent approval of Bitcoin-related exchange-traded funds (ETFs) energized the crypto sector, if only for BTC to execute a classic switcheroo and give up its recent gains. The sell-the-news scenario has materialized, which prompted Dispatch to seek inspiration in other long-term endeavors. Like the EU's battle with inflation. Thankfully, the European Central Bank (ECB) has come out with the first major economic update for 2024. And since at Nexo we’re all about great rates, the central bank’s base one coupled with a pivotal speech from President Christine Lagarde is the big (idea) news.
Economic Outlook:
The ECB expects average inflation to be around 2.7% in 2024, down to 2.1% in 2025, and eventually settling at 1.9% in 2026. Surveys from purchasing managers (PMI) show signs of a recovering economy – counterintuitively, declines in PMI readings are seen as positive, as they signal economic cooling. Lagarde pointed out that there might be a bit of a hiccup in the short term, suggesting a further slowdown in economic activity by the end of this year.
Inflation and Monetary Policy:
Central borrow rates remain at a record-high 4.50% with more progress on disinflation needed before any rate cuts are considered. Geopolitical tensions and energy prices worldwide are seen as an upside risk to inflation.
Labour Market Dynamics:
The labor market within the EU showcases a slight reduction in vacancies. Simultaneously, the wage tracker stabilizes, with hopes that wage increases will be absorbed by profits.In simple words, we are stuck with the higher rates for now.Ideally, the bets on the ECB committing to reduce rates, starting mid-2024, will materialize just as those predicting BTC’s sell-the-news price performance. This could potentially turn appetite for risk-on assets in the Old Continent up again. Until that becomes clear though, we’re HODLing.The Latest In…
The SEC Ends the Rumour
Rumors of a spot ETF sequel, this time featuring Ethereum, have appeared following application sightings. Alas, this time, or for now at least, the crypto world will have to wait. SEC Chairman Gary Gensler left no one in two minds , citing the need “to designate a longer period within which to take action on the proposed rule change”. The filings raise several questions for the public to consider, one of which explores the potential similarity between a spot Ethereum ETF and a spot Bitcoin ETF. Bloomberg analyst James Seyffart reckons a decision could loom in May.The ETF Saga: Asia Wants inHong Kong crypto exchange OSL anticipates the launch of the city's first spot crypto exchange-traded funds (ETFs) by mid-2024. Gary Tiu, OSL's executive director, revealed a potential debut of five companies by mid-yearInvestors in Spot Bitcoin exchange-traded funds (ETFs) are flocking to lower fees, resulting in $21M in net outflows this week, according to CoinShares' report. Despite outflows, trading activity surged to $11.8B, seven times the usual weekly volume in 2023.Regionally, the US saw inflows of $263M, while Canada and Europe together experienced outflows totaling $297M, indicating a slight shift of assets to the US, where fees are currently more competitive.
Tether Makes the Money
Tether had a solid Q4 2023, clocking a noteworthy $2.9B net profit, a record high. Thanks to strategic investments in U.S. Treasuries and the rising values of Bitcoin and gold reserves, Tether's excess reserves grew to $5.4B. Notably, they ensured full coverage for their $4.8B in outstanding loans. This positive financial dance contributed to an impressive $6.2B net profit for the year.Our Most Interesting Data Story
The Crypto Cap: Here Is Where We Are
The crypto market cap map serves as an excellent reference for the sector’s historical dynamics. Bitcoin has shown increasing dominance over the past few years, growing from 39% to nearly 50% since November 2022. In contrast, Ethereum's market cap dominance has remained stable, while altcoins and stablecoins have dipped, from 28% to around 24% as well as 14% to 8%, respectively.
What to Watch for Next Weeks March
What are the new trends in Bitcoin mining?
What solutions does ETH's Dencun upgrade bring?
Is DeFi ready for a comeback in 2024?
Rimo Cash-Out services
