Finally...the Spot ETF. Circle Trying to go Public

Welcome back to the Interaxis podcast with your hosts, Adam and Ron. In today's episode, we dove into the recent launch of Bitcoin spot ETFs.

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Bitcoin Spot ETFs Launch

Yesterday marked a historic day in the financial world with the launch of Bitcoin spot ETFs from around 10 to 11 different companies. This event has been highly anticipated, especially by financial advisors looking to easily include Bitcoin exposure in their clients' portfolios, such as IRAs, without the need for self-directed accounts.

Fee Wars and ETF Performance

We discussed the fee structures of these new ETFs and the ongoing fee war, highlighting VanEck's aggressive move to drop their fees to zero through August, followed by a low 19 basis points thereafter. This competitive landscape is something to watch closely.

Inflows and Market Reaction

The inflows into these ETFs were significant, with Bitwise seeing $237.9 million and Fidelity's FBTC attracting $720 million in new money. Despite these impressive numbers, the market's reaction to the ETFs was somewhat muted, with Bitcoin's price not surging as much as expected. We speculated on the reasons behind this, including potential disappointment in the inflow amounts and profit-taking after the initial excitement.

Bitcoin's Price Volatility

We also touched on the price volatility of Bitcoin, noting that it reached around $49,000 before settling back down. The ETFs should move in tandem with Bitcoin's price, but as financial advisors, it's crucial to remember that Bitcoin trades 24/7, which can lead to price discrepancies with the ETFs that follow traditional market hours.

Coinbase and Circle IPO

The conversation shifted to Coinbase's puzzling stock performance, which doesn't seem to reflect the company's potential for fee generation from these ETFs. We also discussed Circle's renewed attempt at an IPO and the implications for USDC in the DeFi space and the regulatory landscape.

Looking Ahead

As we look forward to next week, we'll continue to monitor the ETFs' impact on Bitcoin and vice versa. We also anticipate the market's behavior over the upcoming three-day weekend, which could introduce more volatility.

Remember to stay informed, engage with your clients, and leverage our resources like the newsletter, live sessions, and courses to stay on top of the crypto market.

That's all for today's episode. Have a great weekend, and stay safe in the crypto space!