Bitcoin 2024 Nashville Conference Day Two Highlights

The Bitcoin 2024 Nashville Conference is in full swing, and day two was packed with exciting events and speeches. Here are the highlights from the first two days.

Michael Saylor’s Vision for Bitcoin

Michael Saylor, the CEO of MicroStrategy, gave a keynote speech that captured everyone’s attention. He talked about his ambitious vision for Bitcoin’s future. Saylor believes Bitcoin, which is currently priced around $67,000, has the potential to grow immensely in the coming decades. He even predicted that Bitcoin could reach a market cap of $280 trillion by 2045. This would mean Bitcoin could be worth $49 million per coin in the best-case scenario. Even in a more conservative estimate, Saylor thinks Bitcoin could still be valued at $3 million per coin.

Under Saylor’s leadership, MicroStrategy has bought 226,331 Bitcoin over the last four years. These Bitcoin holdings are now worth about $15 billion, which is 80% more than what the company paid. This shows how committed MicroStrategy is to Bitcoin.

Cynthia Lummis and Bitcoin Regulation

Senator Cynthia Lummis, along with Senator Tim Scott, also spoke at the conference. They discussed the current regulatory landscape and what might happen in the future. Lummis clarified that there would be no announcement about making Bitcoin a strategic reserve asset for the U.S. Instead, she criticized the SEC’s approach to regulating cryptocurrencies and emphasized the Republican Party’s efforts to protect digital asset ownership.

Lummis and Scott highlighted the importance of Bitcoin mining for the energy sector. Scott also hinted at future initiatives to use Bitcoin to help develop underserved areas.

Robert Kennedy Jr.’s Bold Promise

In a surprising move, presidential candidate Robert Kennedy Jr. promised to make Bitcoin a strategic reserve asset for the U.S. if he is elected. He plans to transfer about 200,000 BTC held by the government to the U.S. Treasury and build a reserve of 4 million coins through daily purchases.

Edward Snowden’s Caution

Edward Snowden gave a virtual address at the conference, warning the crypto community about political involvement in cryptocurrency. He advised attendees to stay independent and be cautious about political promises.

Day One Highlights

Day one of the Bitcoin 2024 Nashville Conference was also full of interesting events. Robert Mitchnick, head of digital assets at BlackRock, spoke about the rising demand for Bitcoin exchange-traded funds (ETFs). He mentioned that these funds are just starting to gain momentum and credited BlackRock CEO Larry Fink’s shift in attitude towards Bitcoin to thorough study and client demand.

Mitchnick highlighted that Bitcoin ETFs have been very successful, contributing significantly to BlackRock’s revenue. He also noted that interest in cryptocurrencies beyond Bitcoin and Ethereum is very limited among clients.

VanEck’s Big Bitcoin Prediction

Investment manager VanEck made headlines with their bold prediction that Bitcoin could reach a market capitalization of $61 trillion, or about $2.9 million per coin, by 2050. They believe Bitcoin will be used widely for trade settlement and as a reserve asset for central banks. VanEck also discussed the potential of Bitcoin Layer-2 solutions to solve scalability issues and facilitate widespread adoption.

Economic Shifts and Bitcoin’s Role

VanEck’s report pointed out that Bitcoin’s rise will be driven by economic shifts, such as a decline in major global economies and a loss of confidence in their currencies. This could increase demand for Bitcoin as a neutral medium of exchange with stable properties and predictable monetary policy.

Marathon Digital Holdings’ HODL Strategy

Marathon Digital Holdings Inc., one of the largest Bitcoin miners, announced that they had acquired $100 million worth of Bitcoin. The company plans to hold onto these Bitcoin, adopting a “HODL” strategy. Marathon’s CFO, Salman Khan, explained that this decision was made because of Bitcoin’s recent price decline and the strength of their balance sheet. This move marks a significant shift from their previous strategy of selling mined Bitcoin to cover operating expenses.

Marathon’s Chairman and CEO, Fred Thiel, emphasized the company’s confidence in Bitcoin’s long-term value and encouraged other corporations and governments to hold Bitcoin as a reserve asset.

The Importance of Bitcoin Mining

Bitcoin mining was a significant topic at the conference. It plays a critical role in the energy sector, helping to innovate and strengthen the U.S.’s energy infrastructure. By using excess energy, Bitcoin mining can make the energy sector more efficient and sustainable.

Bitcoin ETFs and Their Impact

Bitcoin exchange-traded funds (ETFs) were another hot topic. These funds allow investors to buy and sell Bitcoin without owning the cryptocurrency directly. Robert Mitchnick from BlackRock explained that client demand is driving the growth of Bitcoin ETFs. He noted that these ETFs have been some of the most successful launches in history, contributing significantly to BlackRock’s revenue.

Mitchnick also mentioned that interest in Bitcoin ETFs is still growing among wealth advisory and institutional investors. He expects this trend to accelerate in the coming years as more financial institutions start offering these products to their clients.

Limited Interest Beyond Bitcoin and Ethereum

While Bitcoin and Ethereum are gaining traction, interest in other cryptocurrencies remains limited. According to Mitchnick, BlackRock’s clients are primarily interested in Bitcoin, with some interest in Ethereum. He does not foresee a significant increase in demand for crypto ETFs beyond these two core assets.

VanEck’s Vision for Bitcoin’s Future

VanEck’s prediction of Bitcoin reaching $2.9 million per coin by 2050 is based on several factors. They believe Bitcoin will be widely used as collateral for trade settlement and as a reserve asset for central banks. This demand, coupled with economic shifts and a loss of confidence in major global currencies, could drive Bitcoin’s value up significantly.

VanEck also discussed the potential of Bitcoin Layer-2 solutions, like the Lightning Network, to address scalability issues and facilitate widespread adoption. These solutions could be worth around $7.6 trillion, according to their report.

Economic Shifts and Bitcoin’s Role

As major global economies like the United States, the European Union, and Japan face economic challenges, Bitcoin could become an increasingly attractive alternative. VanEck’s report highlighted that the euro and Japanese yen are losing their share in international settlements, presenting an opportunity for Bitcoin to fill this gap.

The Future of Bitcoin Mining

Bitcoin mining continues to evolve, with companies like Marathon Digital Holdings leading the way. By adopting a HODL strategy, Marathon is showing confidence in Bitcoin’s long-term value. This strategy involves holding onto mined Bitcoin rather than selling it immediately, which can be beneficial during bull markets.

Marathon Digital’s Commitment to Bitcoin

Marathon Digital Holdings’ decision to acquire and hold $100 million worth of Bitcoin reflects their belief in the cryptocurrency’s future. By adopting a HODL strategy, the company aims to leverage their technological expertise to support the Bitcoin ecosystem.

Conclusion

The Bitcoin 2024 Nashville Conference has highlighted the growing importance of Bitcoin in various sectors. From Michael Saylor’s ambitious vision to Robert Kennedy Jr.’s bold promise, the conference has shown that Bitcoin is here to stay. As more companies and individuals recognize Bitcoin’s potential, its role in the global economy will likely continue to grow. With continued innovation in Bitcoin mining and the rise of Bitcoin ETFs, the future of cryptocurrency looks promising.

Michigan Pension Fund Invests $6.6 Million in Bitcoin via ARK 21Shares ETF

Introduction to Michigan’s Bitcoin Investment

Michigan’s retirement system has made a notable move by investing $6.6 million in Bitcoin through the ARK 21Shares ETF. This significant step shows how traditional pension funds are starting to embrace cryptocurrency. The State of Michigan Retirement System made this investment, which is only a small part (0.004%) of its total $143.9 billion in assets. This was revealed in a 13-F Form filed with the Securities and Exchange Commission (SEC).

Understanding the 13-F Form

The 13-F Form is a quarterly report that large institutional investment managers must file with the SEC. It is required for those who manage more than $100 million in assets. This form helps the public understand where large institutions are investing their money. Michigan’s latest filing highlights its new interest in Bitcoin, marking a significant development in the world of institutional investments.

Other Pension Funds Investing in Bitcoin

Michigan is not alone in this trend. Other pension funds are also adding Bitcoin to their portfolios. For example, the State of Wisconsin Investment Board (SWIB) has invested $99 million in Bitcoin through BlackRock’s IBIT ETF. This shows a growing trend among public pension funds to diversify into digital assets.

Jersey City’s Plan to Invest in Bitcoin ETFs

Jersey City, New Jersey, is also planning to invest in Bitcoin ETFs. Mayor Steven Fulop announced that the city’s pension fund will include Bitcoin ETFs, following SEC approval. This decision is part of a broader strategy to integrate cryptocurrencies into the city’s financial plans. Fulop has been a strong supporter of cryptocurrency and blockchain technology, viewing them as major technological innovations.

The Rise of Bitcoin ETFs

Bitcoin ETFs have become quite popular since their launch. For example, BlackRock’s IBIT ETF has outperformed other major funds like Nasdaq’s QQQ in terms of year-to-date inflows. The SEC’s approval of spot Bitcoin ETFs has opened the door for more public pension funds to consider these investments. Although some large financial institutions like Wells Fargo and JPMorgan Chase have been slow to adopt Bitcoin ETFs, investing less than $1 million combined, the trend is growing.

Financial Strategies Involving Bitcoin ETFs

The inclusion of Bitcoin ETFs in pension funds reflects a broader trend of acceptance of digital assets in traditional finance. As more cities and states consider adding cryptocurrencies to their portfolios, this could lead to wider adoption of digital assets. Mayor Fulop’s decision is a strong signal that institutional acceptance of cryptocurrencies is increasing. This trend is expected to continue as more institutional investors file their 13-F forms with the SEC, revealing their Bitcoin holdings.

Blockchain Technology’s Impact

Blockchain technology, which underlies Bitcoin, is seen as a revolutionary development, comparable to the internet. Mayor Fulop highlighted this by saying that blockchain is one of the most important new technology innovations. This technology not only supports cryptocurrencies but also has potential applications in various fields such as finance, healthcare, and supply chain management.

Volatility and Risks of Cryptocurrency Investment

Despite the growing interest, there are still concerns about investing in cryptocurrencies. The Michigan government’s official website advises caution, warning about the volatility, lack of regulation, and vulnerability associated with crypto investments. These concerns are valid, as the value of cryptocurrencies can fluctuate significantly, leading to potential losses.

The Future of Institutional Crypto Investments

As more institutional investors and public pension funds start to include Bitcoin and other cryptocurrencies in their portfolios, the landscape of traditional finance is changing. This shift is driven by the potential for high returns and the increasing acceptance of digital assets. However, it is essential for these institutions to carefully consider the risks and benefits before making such investments.

Conclusion

Michigan’s $6.6 million investment in Bitcoin through the ARK 21Shares ETF marks a significant step in the adoption of cryptocurrencies by public pension funds. Other states, like Wisconsin and cities like Jersey City, are following suit, showing a growing trend of institutional acceptance of digital assets. As more 13-F forms are filed with the SEC, revealing institutional investments in Bitcoin, it is clear that the integration of cryptocurrencies into traditional finance is becoming more widespread. However, investors must remain cautious and aware of the risks associated with this volatile market.

Bitcoin Price Sees Relief but Faces Resistance

Bitcoin’s price is finally seeing some relief, as it recently climbed above $67,000. However, it faces significant resistance at the $68,000 mark. This resistance is crucial because breaking through it could trigger over $700 million worth of short liquidations. This means that many people who bet against Bitcoin’s price rising would have to buy Bitcoin to cover their losses, potentially pushing the price even higher.

Bitcoin Short-Term Holders in Profit

Three-quarters of short-term Bitcoin holders are now in profit. This could give Bitcoin’s price more upward momentum. This increase in profit is due to Bitcoin’s recent rally. According to a report by Glassnode on July 24, “This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit.” The STH-MVRV metric shows this recovery, which has now risen above the break-even level of 1.0.

The Impact of Bitcoin’s Price Rally

Bitcoin’s price rally offers significant relief for short-term holders. This group saw over 90% of its supply in the red during late July. Short-term holders are often used as a measure to gauge Bitcoin demand and recent buying patterns. Their profitability can be a strong indicator of market sentiment.

Key Support and Resistance Levels

Bitcoin’s price managed to settle above a key support level, despite a $3.9 billion BTC futures expiry that threatened to drop it to $63,000. Following the rally, Bitcoin needs to stay above the $65,000 mark, which acts as a key support. Popular crypto analyst Rekt Capital noted in a July 26 post, “The retest was successful. Bitcoin has confirmed $65,000 as support. Price will now continue to occupy the $65000-$71500 region (red).”

Resistance at $68,000

Despite the bullish price recovery, Bitcoin faces significant resistance at the $68,000 mark. Nearly $700 million worth of leveraged short positions are at risk of liquidation if Bitcoin rises above this level, according to CoinGlass data. Short liquidations would exceed $1 billion if Bitcoin surpasses $68,500, but reaching that level depends on inflows from US spot Bitcoin exchange-traded funds (ETFs).

US Spot Bitcoin ETFs and Their Impact

Inflows into US spot Bitcoin ETFs have been slowing down since July 23. By July 25, these inflows reached $31.1 million, according to Farside Investors data. The pace of these inflows can significantly impact Bitcoin’s price movement.

Bitcoin Futures Expiry and Its Effects

Bitcoin futures expiry is a major event that can influence the price. The recent $3.9 billion BTC futures expiry threatened to push Bitcoin down to $63,000. However, Bitcoin managed to hold its ground and even rally. Futures expiry events are important to watch as they can create volatility in the market.

Glassnode Report on Bitcoin’s Recent Rally

The Glassnode report from July 24 highlights the importance of the recent Bitcoin rally. The report states, “This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit.” This shows that short-term holders are now seeing profits, which can boost market confidence and encourage more buying.

Bitcoin Short-Term Holders’ Profitability

The profitability of short-term Bitcoin holders is a key metric to watch. When a large percentage of these holders are in profit, it suggests strong demand and positive market sentiment. This can lead to further price increases as more investors gain confidence in Bitcoin’s upward potential.

Key Support Level at $65,000

Bitcoin needs to maintain its position above the $65,000 support level to continue its upward trend. This level has been confirmed as support by crypto analyst Rekt Capital, who stated, “The retest was successful. Bitcoin has confirmed $65,000 as support.” Staying above this level is crucial for Bitcoin to reach higher price targets.

The Role of Leveraged Short Positions

Leveraged short positions are bets that Bitcoin’s price will fall. If Bitcoin’s price rises, these positions can be forced to liquidate, which means buying Bitcoin to cover losses. This buying pressure can drive the price up even further. Currently, nearly $700 million worth of these positions could be liquidated if Bitcoin breaks above $68,000.

Psychological Resistance at $68,000

The $68,000 mark is a psychological resistance level for Bitcoin. Breaking through this level could lead to significant price movements. Many investors watch these key levels closely, and breaking through can lead to increased buying activity.

Short Liquidations and Their Impact

If Bitcoin’s price rises above $68,000, it could trigger nearly $700 million in short liquidations. If the price goes above $68,500, these liquidations could exceed $1 billion. This would create substantial buying pressure, potentially driving the price even higher.

Bitcoin Demand and Buying Patterns

Short-term holders are often used to gauge Bitcoin demand and recent buying patterns. Their profitability can indicate strong market demand. When short-term holders are in profit, it suggests that recent buyers are willing to hold their positions, expecting further price increases.

Bitcoin’s Price Recovery

Bitcoin’s recent price recovery is a positive sign for the market. It shows that despite threats like futures expiries and resistance levels, Bitcoin can still find support and rally. This recovery boosts investor confidence and can attract more buyers to the market.

Key Metrics to Watch

Several key metrics are important to watch in the Bitcoin market. These include the STH-MVRV metric, which shows short-term holders’ profitability, and the levels of leveraged short positions. Watching these metrics can provide insights into market trends and potential price movements.

Bitcoin’s Price Movement and Future Outlook

Bitcoin’s price movement depends on several factors, including support and resistance levels, futures expiries, and inflows into US spot Bitcoin ETFs. Staying above key support levels like $65,000 is crucial for maintaining upward momentum. Breaking through resistance at $68,000 could trigger significant buying activity and further price increases.

Conclusion

Bitcoin’s recent price rally has brought significant relief to short-term holders, with over 75% now in profit. However, the price faces resistance at the $68,000 mark, which is crucial for future movements. Key support levels, futures expiries, and inflows into US spot Bitcoin ETFs are all factors to watch. The profitability of short-term holders and the potential for short liquidations are important metrics that can influence Bitcoin’s price in the near future. By keeping an eye on these factors, investors can better understand market trends and make informed decisions.

BTC Outperforms Broader Crypto Market

Introduction

Bitcoin (BTC) outperformed the wider crypto market as measured by the CoinDesk 20 Index during the Friday Asia trading session. The performance of Ether (ETH) exchange-traded funds (ETFs) mirrors that of the Bitcoin ETFs after their launch in January.

Bitcoin’s Strong Performance

During the Asia trading day, Bitcoin added 4.4% to test $67,000, while the CoinDesk 20 Index (CD20) rose 3.3%. Solana’s SOL jumped over 5% to lead gains among major tokens, with Ether (ETH), BNB Chain’s BNB, and Cardano’s ADA adding 3%. Dogecoin (DOGE) rose 4%, and Solana-based memecoin popcat (POPCAT) jumped more than 8% to lead gains in that category.

Ether and Crypto Futures

For the third day, Ether products led liquidations across crypto futures, with over $70 million in longs liquidated compared with $55 million on BTC-tracked futures. Open interest, or the number of unsettled futures bets, dropped by $1 billion over the past 24 hours, indicating money leaving the market.

Bitcoin Outflows

Bitcoin exchange-traded funds (ETFs) added a net $31.16 million, bringing the cumulative net flow since their introduction in January to just under $17.5 billion. Total net assets of the ETFs amount to $59.14 billion, or about 4.6% of the entire market cap of the largest cryptocurrency.

Ether ETF Performance

Ether, the second-largest cryptocurrency, rose 2.8% to top $3,200. The Ether ETFs experienced a net daily outflow of $152 million. The current cumulative flow for the ETFs since they started trading this week is negative $178.68 million, mainly due to withdrawals from Grayscale Ethereum Trust (ETHE), which converted to an ETF.

Comparison with Bitcoin ETFs

CoinShares analysts noted that this situation is very similar to the Bitcoin ETF product launches at the beginning of the year. Outflows from the Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund at the time, which converted from a closed-end structure into an ETF, weighed on Bitcoin’s price over the first weeks. Later, inflows to rival funds overcame the negative trend, propelling BTC to an all-time high in March.

Grayscale Ethereum Trust

The Grayscale Ethereum Trust is following the same path but faster, making the decline a “prime buying opportunity,” according to Mads Eberhardt, a crypto analyst at Steno Research. If this trend continues, the outflow from the Grayscale Ethereum ETF could end much quicker than it did for Bitcoin in January, perhaps as early as mid-next week. After this, strong net inflow is expected due to the inflow into other ETFs observed over the last few days.

Different Opinions on Ether’s Future

Rachel Lin, CEO and co-founder of SynFutures, disagreed, saying she expects short-term pain for ETH traders. She noted that Grayscale’s ETH ETF fund is becoming a net seller on the market, with over $810 million in outflow since the ETF launch. Grayscale currently holds over $8 billion worth of Ether, and nearly 10% of it was sold in just the past two days. If the trend continues, Grayscale might reach the 50% mark far sooner than with Bitcoin. However, that would also mean more downside for Ethereum.

Solana and Other Major Tokens

While Bitcoin and Ether faced mixed performances, Solana’s SOL saw significant gains, jumping over 5%. This made SOL the leading gainer among major tokens. Other cryptocurrencies like BNB Chain’s BNB, Cardano’s ADA, and Dogecoin (DOGE) also saw positive movements, adding around 3% to their values. In the memecoin category, popcat (POPCAT) from the Solana network stood out with an 8% jump.

Market Reactions and Predictions

Analysts have varying opinions on the market’s direction. While some see the current situation as a buying opportunity, others predict more short-term pain. The market is reacting to the launch and performance of ETFs, with significant inflows and outflows affecting prices. The comparison between Bitcoin and Ether ETFs highlights how similar market events can lead to different outcomes based on the timing and speed of investor reactions.

Long-Term Outlook

The long-term outlook for both Bitcoin and Ether remains positive, according to some analysts. Despite the short-term volatility, the introduction of ETFs and the resulting market dynamics are seen as steps toward greater acceptance and integration of cryptocurrencies into mainstream financial systems. The cumulative net flows, despite some negative periods, suggest a growing interest and investment in these digital assets.

Conclusion

Bitcoin’s recent performance has shown its ability to outperform the broader crypto market, even amid significant market events like ETF launches. Ether, while facing challenges, mirrors Bitcoin’s previous ETF journey and may soon see a reversal in outflows. The crypto market remains dynamic, with various factors influencing the prices and performance of different tokens. As always, investors should stay informed and cautious, keeping an eye on both short-term trends and long-term potentials.

Introduction

Franklin Templeton and SBI Holdings are teaming up to bring bitcoin ETFs to Japan. This new joint venture is preparing for Japan’s approval of cryptocurrency funds. The partnership aims to establish a digital asset management company. The goal is to be ready as soon as Japan gives the green light for cryptocurrency exchange-traded funds (ETFs).

Partnership Details

SBI Holdings, a Japanese financial services group, will partner with Franklin Templeton, a U.S. investment firm. SBI will hold a 51% stake in the new company, while Franklin Templeton will own the rest. Franklin Templeton is the seventh-largest asset manager in the world, managing around $1.6 trillion in assets. This new company will focus on preparing for the launch of crypto ETFs in Japan.

Franklin Templeton’s Move into Digital Assets

Franklin Templeton has traditionally focused on assets like stocks and bonds. However, in recent years, they have started investing in digital assets. They were one of the first to launch spot bitcoin ETFs after approval from the U.S. Securities and Exchange Commission in January. These spot bitcoin ETFs have seen total inflows exceeding $16 billion in just six months, according to market researcher EPFR.

Global Approval of Bitcoin ETFs

Bitcoin ETFs have already been approved for trading in the U.S., Canada, Brazil, Hong Kong, and Australia. While Japan hasn’t approved them yet, the new company by Franklin Templeton and SBI will be ready once approval is granted. This shows the growing acceptance of bitcoin ETFs worldwide.

Benefits for Retail Investors

Bitcoin ETFs can be traded through regular securities accounts. This means retail investors don’t need to use specialized crypto exchanges. They also don’t need to manage complex password-like private keys. This makes trading bitcoin ETFs much easier for everyday investors.

Ethereum ETF Trading

In addition to bitcoin ETFs, there are also Ethereum ETFs. Trading of an Ethereum ETF began in the U.S. recently. This is another step in the growing market of cryptocurrency ETFs.

Digital Asset Securities

The new joint venture will not only focus on bitcoin ETFs but also on digital asset securities. Franklin Templeton has been an early mover in this area. Digital asset securities involve tokenization. Tokenization uses blockchain to create tradable ownership tokens of assets like real estate and government bonds. According to a forecast by Boston Consulting Group and ADDX, asset tokenization is expected to grow to $16.1 trillion by 2030.

SBI Holdings’ Expansion into Alternative Assets

SBI Holdings has been partnering with overseas companies to expand its offerings in alternative asset investment products. For example, they established companies with U.K.-based Man Group in July 2023 and with U.S. private equity firm KKR in September 2023. These alternative assets have a low correlation with traditional assets like stocks and bonds, making them attractive for investors looking to diversify their portfolios.

SBI Securities’ Wealth Management Office

SBI Securities, Japan’s largest online brokerage, set up a wealth management office in July 2023. This move aims to expand their customer base upmarket, providing more options for wealthy clients. This shows SBI’s commitment to growing its presence in the financial market.

Preparing for Japan’s Approval

The new joint venture between Franklin Templeton and SBI Holdings is strategically positioned to launch bitcoin ETFs as soon as Japan’s Financial Services Agency (FSA) gives its approval. This proactive approach shows the company’s commitment to being at the forefront of the cryptocurrency market in Japan.

The Future of Digital Asset Management

With Franklin Templeton’s expertise in asset management and SBI’s strong presence in Japan, the new company is well-equipped to handle the complexities of digital asset management. They are preparing to meet the growing demand for cryptocurrency funds and digital asset securities.

Summary of Key Points

• Franklin Templeton and SBI Holdings are teaming up to bring bitcoin ETFs to Japan.
• SBI Holdings will hold a 51% stake in the new company.
• Franklin Templeton is the seventh-largest asset manager globally.
• They have moved into digital assets and were early movers in spot bitcoin ETFs.
• Bitcoin ETFs have seen significant inflows globally.
• The new company will also focus on digital asset securities and tokenization.
• SBI Holdings is expanding into alternative asset investments.
• SBI Securities set up a wealth management office to attract wealthy clients.
• The joint venture is preparing for Japan’s Financial Services Agency approval.

Conclusion

Franklin Templeton and SBI Holdings’ partnership marks a significant step in bringing bitcoin ETFs to Japan. This move reflects the growing global acceptance of cryptocurrency funds and digital assets. With the combined expertise of both companies, they are well-prepared to meet the demand for these innovative investment products. As Japan moves closer to approving cryptocurrency ETFs, this new joint venture is poised to play a crucial role in the future of digital asset management.

Blackrock’s View on Crypto ETFs Beyond Bitcoin and Ethereum

Blackrock, a major asset manager, believes there is “very little interest” in cryptocurrencies beyond Bitcoin (BTC) and Ethereum (ETH). Robert Mitchnick, Blackrock’s head of digital assets, shared this insight at the Bitcoin2024 conference on July 25 in Nashville, Tennessee.

Limited Interest in Crypto ETFs Beyond BTC and ETH

Robert Mitchnick emphasized that most of Blackrock’s clients are primarily interested in Bitcoin, with some interest in Ethereum. He stated, “Our client base today is overwhelmingly interested in Bitcoin first, and then somewhat in ETH. There’s very little interest today beyond those two.” He spoke during a panel titled “From Strategy to Innovation: Blackrock’s Bitcoin Journey.”

Mitchnick doesn’t foresee a wide range of crypto exchange-traded funds (ETFs) being developed beyond Bitcoin and Ethereum. Blackrock launched its first crypto ETFs, iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust ETF (ETHA), in January and July, respectively.

Differing Opinions Among Asset Managers

Not all asset managers share Blackrock’s cautious view. Franklin Templeton, another asset manager that also issues BTC and ETH ETFs, is optimistic about the future of cryptocurrency ETFs, including plans for a Solana product. In a post on X (formerly Twitter) on July 23, Franklin Templeton expressed, “Besides Bitcoin and Ethereum, there are other exciting and major developments that we believe will drive the crypto space forward.”

Complementary Roles of BTC and ETH

Mitchnick explained that most of Blackrock’s clients view Bitcoin and Ethereum as complementary assets in their crypto portfolios, not as competitors. “When clients buy ETH ETFs, they usually add to an existing crypto portfolio allocation, rather than swap out of BTC,” he said. However, he noted that data on investor flows into ETH ETFs, which only started trading on July 23, is limited.

Bitcoin is often seen as a “store of value” within the crypto space, a role it holds quite definitively. On the other hand, Ethereum is involved in various applications that Bitcoin does not typically engage in. “ETH is trying to do a bunch of different applications that for the most part, Bitcoin is not trying to do,” Mitchnick said. “So, really, they’re more complements than they are competitors or substitutes.”

Mitchnick expects that eventually, investors will allocate around 20% of their crypto holdings to Ethereum, with the remainder going to Bitcoin.

Popularity of Blackrock’s Crypto ETFs

Blackrock’s crypto ETFs are among the most popular in the industry. The iShares Bitcoin Trust (IBIT) commands approximately $22 billion in assets under management (AUM), while the iShares Ethereum Trust ETF (ETHA) has approached $270 million after only a few days of trading.

Blackrock’s Strategic Insights

Mitchnick’s insights reflect Blackrock’s strategic approach to the crypto market. By focusing on Bitcoin and Ethereum, Blackrock aims to meet the primary interests of its clients. This strategy seems to be paying off, given the substantial AUM figures for their crypto ETFs.

Franklin Templeton’s Different Approach

In contrast, Franklin Templeton’s approach indicates a broader interest in the crypto market. Their optimism about future cryptocurrency ETFs, including products beyond Bitcoin and Ethereum, suggests a belief in the potential for other digital assets to play significant roles in the market.

Future of Crypto ETFs

The future of crypto ETFs remains a topic of interest and debate among asset managers. While Blackrock remains cautious and focused on Bitcoin and Ethereum, other firms like Franklin Templeton are exploring a wider range of cryptocurrency products. This divergence in strategies highlights the evolving nature of the crypto market and the differing opinions on what will drive its growth.

Key Takeaways

1. Client Interest: Blackrock’s clients are primarily interested in Bitcoin and Ethereum, with little interest in other cryptocurrencies.
2. Complementary Assets: BTC and ETH are seen as complementary, not competing, assets in crypto portfolios.
3. Strategic Focus: Blackrock focuses on BTC and ETH to align with client interests and achieve substantial AUM.
4. Diverse Strategies: Other asset managers, like Franklin Templeton, are more optimistic about a broader range of cryptocurrency ETFs.
5. Market Dynamics: The future of crypto ETFs will be shaped by differing strategies and evolving client interests.

Conclusion

Blackrock’s cautious approach to crypto ETFs, focusing on Bitcoin and Ethereum, contrasts with the more expansive strategies of other asset managers like Franklin Templeton. As the crypto market continues to evolve, these differing perspectives will play a crucial role in shaping the landscape of cryptocurrency investment products. The popularity of Blackrock’s ETFs highlights the strong client interest in BTC and ETH, while the optimism of firms like Franklin Templeton suggests that there may be more room for growth and innovation in the cryptocurrency ETF space.

MARA Buys $100 Million in Bitcoin, Holdings Surpass 20,000 BTC

Introduction

Bitcoin miner MARA, also known as Marathon Digital, has made a significant move by purchasing $100 million worth of bitcoin. This big purchase takes MARA’s total bitcoin holdings to over 20,000 BTC. MARA plans to adopt a full “HODL” strategy, meaning they will keep all the bitcoin they mine and will continue to make additional purchases when the time is right.

MARA’s Big Bitcoin Purchase

MARA recently announced that it has bought an extra $100 million worth of bitcoin. This acquisition brings their total bitcoin holdings on the balance sheet to more than 20,000 BTC, which is valued at about $1.3 billion. This amount represents nearly 0.1% of bitcoin’s total supply of 21 million.

MARA didn’t provide specific details on when they made these purchases or the average price per bitcoin. However, Salman Khan, MARA’s CFO, mentioned that they took advantage of favorable market conditions to make these strategic purchases. Based on the dollar amount and their holdings of 18,536 BTC at the end of June, it is likely that the latest acquisitions are around 1,500 BTC, bought in the $54,000 to $68,000 price range.

Previous Bitcoin Purchases

This isn’t the first time MARA has bought bitcoin outside of its mining production. In January 2021, MARA purchased $150 million worth of bitcoin. According to Salman Khan, the majority of the bitcoin on MARA’s balance sheet has come from their mining operations.

MARA’s Full HODL Strategy

MARA has decided to fully adopt a “HODL” strategy for its bitcoin treasury policy. This means they will keep all the bitcoin they mine and make additional strategic purchases periodically. Fred Thiel, MARA’s chairman and CEO, stated that this strategy shows their confidence in the long-term value of bitcoin. He believes that bitcoin is the best treasury reserve asset in the world and supports the idea of governments and corporations holding bitcoin as a reserve asset.

Reducing Bitcoin Sales

In 2023, MARA reduced the percentage of bitcoin sold from their production from 56% to 31% in 2024. This change was highlighted in a report by Bernstein, a research and brokerage firm. Before last year, MARA used to keep all their bitcoin. Given the current positive trends for bitcoin, including increased institutional support and a better macro environment, MARA is once again focusing on growing the amount of bitcoin they hold on their balance sheet.

Leveraging Balance Sheet and Capital Markets

Following their renewed strategy, MARA plans to use the existing cash on their balance sheet and capital markets to fund their operations. This means they are leveraging their financial strength to support their HODL strategy and further investments in bitcoin.

Expanding into Altcoin Mining

Last month, MARA announced that they are expanding into altcoin mining to diversify their revenue streams, especially after the Bitcoin halving. They have started using Kaspa application-specific integrated circuit (ASIC) miners since September 2023. This move is part of their strategy to grow beyond bitcoin and tap into the potential of other cryptocurrencies.

MARA’s Confidence in Bitcoin

MARA’s recent actions reflect their strong belief in the future of bitcoin. They see bitcoin as a crucial asset and are committed to holding and growing their bitcoin reserves. By adopting a full HODL strategy, reducing the percentage of bitcoin sold, and expanding into altcoin mining, MARA is positioning itself for long-term success in the cryptocurrency market.

Encouraging Others to Hold Bitcoin

Fred Thiel encourages other entities, including governments and corporations, to hold bitcoin as a reserve asset. He believes that bitcoin’s long-term value makes it an ideal choice for treasury reserves. MARA’s strategy and actions serve as a model for other companies considering similar moves.

MARA’s Strategic Bitcoin Acquisitions

MARA’s strategy involves making strategic bitcoin purchases during favorable market conditions. This approach allows them to maximize their bitcoin holdings and take advantage of lower prices. Their recent $100 million purchase is a testament to this strategy and their commitment to growing their bitcoin reserves.

Impact of Bitcoin’s Price Decline

Bitcoin’s recent price decline has provided an opportunity for MARA to increase their holdings. The strength of their balance sheet has enabled them to make significant purchases even during market downturns. This ability to buy low and hold for the long term is a key part of their HODL strategy.

Conclusion

MARA’s recent $100 million bitcoin purchase and their full HODL strategy demonstrate their strong belief in the future of bitcoin. By holding and strategically acquiring bitcoin, reducing sales, and expanding into altcoin mining, MARA is positioning itself as a leader in the cryptocurrency market. Their actions and strategy serve as a model for others, highlighting the potential of bitcoin as a treasury reserve asset.