beehiiv-import

⚡Former BitMEX CEO Warns about Bitcoin🌡️

Croxroad

06 Jan 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

✂️ Bitcoin Volatility Alert

Some analysts, including those anticipating a more substantial correction in Bitcoin's price, maintain their concerns even with the potential introduction of Exchange-Traded Funds (ETFs). This outlook, suggesting a possible downturn, implies a percentage-based expectation, perhaps driven by factors like market volatility or regulatory uncertainties, with a projected correction of up to 40% or more.

On the flip side, John Bollinger, the creator of the Bollinger Bands indicator, offers a more optimistic stance. In his analysis shared on X (formerly Twitter), he predicts a positive reaction for Bitcoin, with the Bollinger Bands signalling a potential upward break in the BTC/USD pair. While specific percentages are not mentioned, his optimistic view contrasts with the bearish predictions, possibly suggesting a favourable price movement or even a percentage increase.

In the dynamic cryptocurrency landscape, these numerical perspectives—whether it be the projected 40% correction or the optimistic outlook based on indicator readings—underscore the ongoing uncertainty and divergent opinions surrounding Bitcoin's future trajectory. Investors navigate this complex landscape, considering both the potential risks and positive indicators as they make decisions in the ever-changing crypto market.

🧀 Bitcoin ETF Fee Showdown

In the race for spot Bitcoin Exchange-Traded Funds (ETFs), only half of the thirteen applicants have disclosed their management fees, a crucial factor as all these funds will hold the same asset—Bitcoin. With approvals anticipated as early as next week, prospective investors are honing in on these fees. The uniformity in the underlying asset makes cost details a pivotal differentiator in this scenario. Bloomberg Intelligence’s ETF analyst, James Seyffart, emphasises the significance of fees, noting that while issuers don't necessarily need the absolute lowest fee, being overly expensive could jeopardise competitiveness.

According to Morningstar's research, the average fee for mutual funds and ETFs in 2022 was 0.37%, significantly lower than two decades ago. Notable players like Invesco and Galaxy are making waves by initially waiving fees for the first six months and the first $5 billion in assets, followed by a 0.59% charge. Fidelity stands out with the lowest fee at 0.39%, while others like Ark, 21Shares, and Valkyrie plan to charge 0.80%. The president of The ETF Store, Nate Geraci, underscores the critical role of expense ratios in this category, highlighting Fidelity's potential advantage due to its vertical integration and in-house custodian, positioning it to offer the lowest fees. As the world's largest asset manager, BlackRock's fee announcement is eagerly awaited, with predictions ranging from 0.39% to 0.80%. Seyffart suggests a fee around Fidelity's number, acknowledging Fidelity's advantageous position with its in-house custodian and direct access to investors and advisers.

🗝️ Bitcoin Futures ETF History

This article explains Bitcoin Futures Exchange-Traded Funds (ETFs), detailing their definition, operation, and history. Published on October 12, 2023, and reviewed by Erika Rasure with fact-checking by Amanda Jackson, it discusses how these ETFs aim to mimic Bitcoin's price movements and use futures contracts traded on the Chicago Mercantile Exchange as underlying assets. The piece explores the creation process, highlighting that fund managers purchase futures contracts, bundle them into a fund, and offer it on traditional exchanges.

Bitcoin futures ETFs emerged as an alternative when the SEC blocked ETFs directly holding Bitcoin. The article traces back to 2013 with applications submitted by the Winklevoss brothers. It also touches on expectations for a true Bitcoin ETF and mentions the Proshares Bitcoin Strategy ETF (BITO), approved by the SEC in October 2021, as the first official Bitcoin-linked ETF listed on the New York Stock Exchange.