To The Moon

Digital currency History.

On Wed, 10 Jan 2024, the Securities and Exchange Commission (SEC) finally granted approval to Spot Bitcoin ETF, after a 10-years tussle.

Backed by Wall Street, this key regulatory step is expected to drive significant investment in the digital currency.

In one big swipe (much to everyone’s surprise), the SEC approved all 11 Spot Bitcoin ETF applications, no holding back on any of the fund houses’ applications etc..

Up until this highly anticipated approval, only Bitcoin Futures ETFs had SEC’s approval.

The 11 institutions who received approvals and could start trading as early as Thu, 11 Jan 2024 are:

• Blackrock's iShares Bitcoin Trust (IBIT) - to be launched soon

• ARK 21Shares Bitcoin ETF (ARKB)

• WisdomTree Bitcoin Fund (BTCW)

• $Invesco Galaxy Bitcoin ETF(BTCO)$

• Bitwise Bitcoin ETF (BITB)

• VanEck Bitcoin Trust (HODL)

• Franklin Bitcoin ETF (EZBC)

• $Fidelity Wise Origin Bitcoin Fund(FBTC)$

• Valkyrie Bitcoin Fund (BRRR)

• $Grayscale Bitcoin Trust (BTC)(GBTC)$

• Hashdex Bitcoin ETF (DEFI).

On Wed, 10 Jan 2024 afternoon — the Chicago Board Options Exchange (Cboe) was the first to release new issue notifications for all the bitcoin ETF applicants that applied to trade on the exchange.

Shortly after, the SEC issued its confirmation on approval of the instruments.

By then, the US market has already gotten first-hand news of the approval via the rumour mills and began to run with the rumours since 11:15am. (see below)

There was just no turning back thereafter.

By the time market called it a day: (see above)

• DJIA: +0.45% (+170.57 to 37,695.73).

• S&P 500: +0.57% (+26.95 to 4,783.45).

• Nasdaq: +0.75% (+111.94 to 14,969.65).

US market continue to rise?

After Tue, 9 Jan 2024 false start — when SEC’s X (Twitter) account was compromised with a fake tweet being published about approval granted for Spot Bitcoin ETF, many thought that the prank would dampen market sentiments.

Thankfully, there was enough gas left in the tank to help stamp the downwards rally since trading began in the new year.

CPI - the other puzzle piece.

Question remains on whether US market will continue to rise on Thu, 11 Jan 2024, (against a backdrop of mixed forecast) with inflation report due out today.

• Wall Street has forecasted that US consumer price index (CPI) for December 2023 may rise by +0.1% to 3.2% YoY. This will be +0.1% high than November 2023 inflation of 3.1%. (see above)

• Less energy and food, US core CPI is expected to be 3.8% YoY, down -0.2% from November data of 4.0%.

• Is it safe to say that the Fed will defer to the core CPI data instead of CPI data?

• Unfortunately, the CPI actuals came in higher & lower than forecasts instead. (read below)

• CPI for December reported was 3.4% versus forecast of 3.2%. This is +0.3% higher than November CPI data of 3.1%.

• Core CPI for December reported was 3.9% versus forecast of 3.8%. Again this is -0.1% lower than Novermber core CPI data of 4.0%.

On Thu, 11 Jan 2024, US market has a violet reaction to the CPI data during morning trading. All 3 composite indexes fell like there is no tomorrow.

Things picked up for both Dow Jones and Nasdaq composite indexes after 12 noon — presumbly analysts have digested the data and realized that it is not “as dire as” it seems.

Core CPI is still falling.

If attention & resources are diverted towards the newly approved ETFs, then it will likely have an impact on the US market. Agree?

However, the no brainer that $Coinbase Global, Inc.(COIN)$ will rally did not materialize.

• US market downwards momentum dragged Coinbase lower.

• By the time market closed for Thursday, it lost -6.7% to $141.16 per share.

• At its 1-day lowest, it fell to $140.76.

• A quick glance at the 11 approval Spot Bitcoin ETFs shows too they some have fallen along with US market sentiments.

Is now the time to “buy the dip” before riding the next surfing wave ? Will Coinbase hit the $342 peak again?

My viewpoints : (mine & mine only)

Below are Coinbase’s potential advantages that may rally it back to its peak:

Increased Trading Volume:

• The spot Bitcoin ETF could lead to an influx of new investors into the cryptocurrency market, potentially driving up trading volume on platforms like Coinbase.

• The increased volume could translate into higher revenue for Coinbase through transaction fees.

Enhanced Brand Recognition:

• As a leading cryptocurrency exchange, Coinbase could benefit from the increased mainstream attention garnered by the launch of a spot Bitcoin ETF.

• This improved brand recognition could attract new users to the platform and strengthen its position in the market.

Custodial Opportunities:

• Some spot Bitcoin ETFs may choose Coinbase as their custodian, meaning Coinbase would be responsible for storing the underlying Bitcoin assets.

• This would provide Coinbase with additional fees and a secure asset base, further solidifying its financial position.

Expanding Customer Base:

• A spot Bitcoin ETF could appeal to a broader range of investors who prefer the convenience and regulatory oversight of an ETF.

• This could attract new investor segments to Coinbase, expanding its customer base and diversifying its revenue streams.

Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks.

• All in for $MARA, $RIOT, $COIN ? Read & discuss.

• INTC, AMD, APPL, AVGO - buy the dip this week?

• Opportunities to buy BA, TSM, TTE or others soon?

• $COIN & $RIOT will rally after Bitcoin ETF approved?

• Do you think US market will continue to rally today?

• Do you think Coinbase will rally back to its peak of $342 per share now that Spot Bitcoin ETF is approved?

Please give a “LIKe” and “Re-post” ok. Thanks. Rating is very important (to me).

Do consider “Follow me” and get firsthand read of my daily new post/s ok. Thanks.

@Daily_Discussion

@TigerPM

@TigerStars

@Tiger_SG

@TigerEvents

@enforcer @Sus93ct @Eno3108 @WilliamLu @Elizabeth Charlton