Bitcoin

Insights from 2023 and expectations for 2024

Published

7 months ago

21 June, 2024

Insights from 2023 and expectations for 2024

2024 was an active year for crypto investments. Connor Farley of Truvius analyzes institutional investment trends, interests and perceptions and how they have evolved in recent years.

I would like to welcome a new collaborator, Marissa Kim from Abra Capital Management, which provides insights in the Ask an Expert section on how to support a client’s investment interest in cryptocurrencies.

Since 2019, the crypto-focused subset of Fidelity’s institutional business has published research called the “Digital Asset Study for Institutional Investors,” measuring trends in crypto investment sentiment and adoption among institutional investors around the world.

General, the 2023 survey portrays a generally robust but still mixed institutional outlook towards crypto after a turbulent 2022.

Trends that reflect positive feelings

Trends that reflect negative sentiment

It is important to note that the latest survey only covers May 30, 2023 to October 6, 2023, missing a critical year-end period during which bitcoin rose from approximately $28,000 to $42,300, driven largely by anticipation of SEC approval of spot bitcoin ETFs. which occurred later in January 2024. Perceptions have likely evolved significantly since early 2024, following the crypto market cap rising above $2.5 trillion, Bitcoin rising to nearly $74,000, and the approval of the SEC of Bitcoin and, soon, of Ether spot ETFs.

Arguably, the biggest market moments in the history of digital assets occurred after this survey was conducted, namely actions that reduce regulatory uncertainty, which can, in turn, reduce price volatility and improve investment options for investors.

Will the SEC’s Surprise Approval for Spot Ether ETFs Ease Regulatory Concerns Among Institutions?

The digital asset market has begun the transition from early adoption to mass adoption. A radical shift in industry leadership, product development, and fiat commitment swept crypto in 2023 and early 2024, enabling a new set of increasingly institutional-grade on-ramps into the asset class. This shift may take some time to infiltrate institutional allocations more fundamentally, but the rapid adoption of spot bitcoin ETFs following SEC approval (aggregate ETF AUM doubled from roughly $30 billion in January to nearly $ 60 billion in mid-June) may provide early indications of increased institutional interest in crypto.

Will concerns about price volatility persist?

Digital asset class volatility remains high compared to other asset classes, but has been declining over time and may continue to decline as regulatory conditions improve and institution-friendly product offerings improve. potentially stabilize markets. Investors should also consider not only crypto volatility, but the risk-adjusted return profile of various blockchain assets.

Will institutional investments flow primarily into spot BTC and ETH ETFs, or will they be distributed across investment structures (SMAs, private funds, VC) offering diversified exposure to blockchain assets beyond the two mega caps?

Backed by major advances in industry infrastructure in 2023, spanning custody, trading and asset management, investors now have a better – but still nascent – range of product options and investment platforms to not only help avoid the pitfalls early adopter risk, but also to exploit early adopter rewards. These options, in addition to ETFs, include the increasingly prevalent direct index vehicle SMA.

With the combined rise of blockchain data providers and the growing presence of systematic digital asset managers, will institutions become more familiar with the fundamentals of cryptography and digital asset valuation methods?

About 37% of 2023 respondents cited a “lack of fundamentals for assessing appropriate value” as a barrier to investment. This large number reflects the emerging nature of the asset class and the learning curve associated with measuring blockchain value. However, this number is down from 44% in 2021. It may continue to fall as investors become increasingly familiar with blockchain technology and the unique ways of analyzing a protocol’s value to users.

Q: What else should I think about other than buying and holding Bitcoin?

A: If clients want exposure to digital assets, it is advisable to diversify that exposure, as you would with traditional assets. Bitcoin should be the core of every portfolio. Still, ETH and SOL are increasingly considered, as Ethereum is becoming the preferred chain for institutional applications and Solana is for consumer payment applications. Financial advisors should not leave their clients’ assets on exchanges, but use secure custody solutions to retain ownership and access to their clients’ assets.

Q: Should I get exposure through ETFs?

A: While ETFs are convenient for retail investors, they lack the flexibility and opportunities available from holding real digital assets. Digital assets trade 24/7, unlike ETFs, which only trade during market hours. Furthermore, ETFs do not allow for income generation, which can be an attractive income stream and cannot be used as collateral for loans. For customers with large BTC portfolios, borrowing against their digital assets may be preferable to selling and incurring capital gains tax.

Q. Which customer demographics are digital assets best suited for?

A: Understanding the suitability of digital assets requires assessing clients’ risk tolerance and wealth management goals. For low-risk clients, digital assets can serve as a store of value, with opportunities to generate attractive returns through staking. Instead, high-risk clients may want access to venture capital investments in early-stage blockchain projects or higher-yield DeFi investment strategies. Tailoring these approaches to individual needs helps integrate digital assets into a comprehensive wealth management plan.

Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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SatoshiTimes Staff

We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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