Cryptocurrency

“We estimate $220B of flows into spot-Bitcoin ETFs over next three years, multiples of what has already been experienced; Coinbase remains well positioned if we are correct,” analysts wrote in the note.Analysts maintained a Market Outperform rating on the stock.JMP analysts first voiced their optimistic view on the impact of a potential spot-Bitcoin ETF on the crypto market and Coinbase’s role within it in December 2023. Contrary to the prevalent belief that such an ETF would negatively affect exchanges like COIN, they anticipated an opposite effect. Notably, JMP believed this view was misguided and overlooked the crypto exchange’s unique position and evolving business model in the broader crypto ecosystem.Moreover, analysts and their team believe that the current activity and flows into Bitcoin ETFs are likely just “the tip of the iceberg.”“We estimate that after ~$10B in flows to date, two months into launch, flows will actually continue to grow materially from here over the next few years as the ETF approval is just the beginning of a longer process of capital allocation,” analysts wrote,In this light, the broker views Coinbase, and a handful of its peers, as “significant beneficiaries of the additional capital flows” expected to enter the space. With only a few firms possessing the necessary technical expertise and scale to facilitate entry and success for others in the digital asset space, JMP analysts see Coinbase “as currently well-positioned to participate in many areas of growth in an industry we estimate will grow by multiples over the next decade.” More

This bold forecast has, as expected, garnered interest and ignited some debate as to the impact of ETF inflows on the price of Bitcoin.Bitcoin has experienced a remarkable surge over the last year or so, with its price climbing steadily through 2023 before surging in late January and throughout February 2024. The long-awaited approval of Bitcoin Spot ETFs by the SEC in January helped its price rise. At the time of writing (11:45 am ET Wednesday, March 13, 2024), Bitcoin is trading around the $72,572 mark, up 71.35% for the year-to-date and 199% in the last 12 months. It hit a new all-time high of $73,679 earlier in Wednesday’s session.This significant rise in Bitcoin’s value has captured the attention of investors and financial experts once again, sparking discussions about the potential implications for the cryptocurrency market in the coming years.A Bitcoin ETF, or Exchange-Traded Fund, is a type of investment fund that tracks the price of Bitcoin and trades on traditional stock exchanges. Essentially, a Bitcoin ETF allows investors to gain exposure to Bitcoin without needing to directly hold the cryptocurrency. Instead, they can buy and sell shares of the ETF through their brokerage accounts, just like they would with any other stock.The creation of Bitcoin ETFs has been a significant development for the cryptocurrency market. It is a new way for traditional investors to participate in Bitcoin’s potential gains without the need to own and store the digital asset directly. Additionally, regulatory bodies’ approval of Bitcoin ETFs has been seen as a step towards mainstream acceptance.JMP Securities analysts estimate $220 billion flows into spot Bitcoin ETFs over the next three years. This is multiples of what has already been experienced.The firm has been quite bullish on the prospects of a spot Bitcoin ETF and the implications it would have on both the broader crypto market, and while they appreciate that there has already been a step-function in engagement in the industry following the ETF launches, the firm argues that the activity and flows experienced thus far is “likely still the tip of the iceberg.”“We estimate that after ~$10B in flows to date, two months into launch, flows will actually continue to grow materially from here over the next few years as the ETF approval is just the beginning of a longer process of capital allocation,” said JMP. “Our experience is that following the flow of funds is critical to price movements over time, and when barriers to investment are removed, in turn allowing incremental flows into an asset (or asset class), the potential multiplier on price can be tremendous.”As a result, the investment firm estimates $220 billion of incremental flows will come into the ETF over the next three years, which they believe “could also be quite impactful to Bitcoin’s price” given the multiplier on capital. “We estimate a current multiplier of ~25x, which on our flow estimate would equate to an incremental $280K per Bitcoin,” declared the firm.  More

The decrease in BTC production was attributed to a 52% month-over-month drop in transaction fees and a 9% increase in network difficulty, along with February’s shorter duration compared to January. Additionally, miners sold 60% of the BTC they produced in February, which was less than the 65% sold in January.The recent Bitcoin price rally took a slight pause on Tuesday, with the cryptocurrency currently down around 0.3% at $71,929. In the investment sphere, H.C. Wainwright noted that BTC ETFs in the U.S. experienced record inflows. Last week, these funds attracted over $2.2 billion in net inflows, surpassing the previous week’s record of $1.7 billion. This surge in interest has propelled BTC prices to new heights, with the cryptocurrency trading above $72,000 for the first time, following a breakthrough past its prior all-time high of $69,000 on the previous Tuesday.The firm also noted that BlackRock’s recent filings indicate plans to invest in Bitcoin ETFs, including its iShares Bitcoin Trust and other issuers’ ETFs. This move is part of a broader trend of institutional adoption, with BlackRock’s three funds—the Global Allocation Fund, Strategic Income Opportunities Fund, and Strategic Global Bond Fund—now able to allocate to spot BTC ETFs. H.C. Wainwright also highlighted that MicroStrategy has continued to invest in BTC, purchasing an additional 12,000 BTC for approximately $821.7 million.Last week, BTC’s price increased by 9.4%, nearly reaching its previous all-time high set in November 2021. The network hash rate grew by 8.0% week-over-week, while network difficulty remained unchanged. Despite the positive price movement of BTC, mining stocks experienced a 1.4% week-over-week decline.H.C. Wainwright echoed comments earlier today, stating that mining stocks’ recent underperformance represents a “compelling buying opportunity.” The firm attributes the underperformance to capital moving from mining stocks to spot BTC ETFs, concerns around miner revenues post-Bitcoin halving, and a correction after mining stocks outpaced BTC price gains in the fourth quarter of 2023. The firm maintains a positive outlook on the BTC mining sector, noting that miners significantly outperformed BTC in 2023. More

On Monday, Bitcoin price touched a new record high of $72,910 as its meteoric rise shows no signs of stopping.BTC, by far the largest crypto asset, has won back investor attention following the approval of nearly a dozen fresh spot bitcoin exchange-traded funds (ETFs) earlier in the year, and optimism that the Federal Reserve may soon begin lowering interest rates.Investment in the top 10 U.S. spot bitcoin exchange-traded funds saw a slight dip to a two-week low in the week leading up to March 8, yet it still amassed nearly $2 billion, according to LSEG data.”Bitcoin has kicked off the week on a high note, pulling the entire crypto market up along with it,” said Nick Cawley, a strategist at DailyFX.With Bitcoin’s supply capped at 21 million coins, investors are scrambling to join the ongoing bull run before April’s “halving” event, which is set to further constrict supply.This event, occurring every four years, slashes the rate of new coins entering the market and the reward for mining them in half, historically giving Bitcoin’s price a boost.The Bitcoin price surge to a new all-time high came just after MicroStrategy Incorporated (NASDAQ:MSTR), an enterprise software maker founded by Michael Saylor, made another significant investment in the flagship cryptocurrency.According to filings with the SEC, the company purchased 12,000 BTC tokens for $821.7 million, marking its second-largest buy since it started investing in the crypto coin nearly four years ago.This latest investment boosts the company’s Bitcoin portfolio to approximately 205,000 tokens, valued at over $14 billion. The purchase carried out from Feb. 26 through March 10, was funded primarily by the proceeds of MicroStrategy’s recent $800 million convertible note sale.Under Saylor’s leadership, the business intelligence firm turned to Bitcoin in 2020 as a strategy to hedge against inflation and as an alternative to cash reserves.In the first quarter of 2024 alone, the company’s investment in Bitcoin exceeded $1 billion, surpassing half of the total spent last year. Since Saylor initiated Bitcoin acquisitions, the cryptocurrency’s value has soared by approximately 675%.Moreover, MicroStrategy’s venture into Bitcoin has notably rejuvenated its stock price, which has climbed over 1,000% since the strategic shift. The company’s market value now stands at about $25.7 billion, surpassing its peak in March 2000.The company’s average acquisition price per Bitcoin is now $33,706, with the latest batch purchased at an average of $68,477 per token.In the aftermath of its new Bitcoin investment, Canaccord Genuity analysts said the company’s aggressive Bitcoin buys “beget even more accretion” for MicroStrategy.The broker raised the target price on the stock to $1,810.While MicroStrategy primarily financed its Bitcoin acquisitions in the latter part of 2023 and the beginning of this year through equity sales via At the Market (ATM) offerings, the company chose to diversify its financing approach by leveraging its complete capital structure through the issuance of a convertible note, Canaccord analysts said.“Importantly, much like how putting debt to work can drive higher balance sheet returns on equity, purchasing this additional bitcoin via a convert has helped drive MSTR’s equity value premium relative to its BTC HODL to approximately 86% according to our sum of the parts (SOTP) analysis,” they wrote.“We also attribute this record-high premium to surging BTC spot where volatility drives more demand for MSTR options,” added analysts.They noted that MSTR’s practice of issuing equity at a premium to acquire more Bitcoin could positively influence its share price.This observation was made through a detailed analysis, which included a hypothetical scenario where the company sells $500 million in stock to purchase Bitcoin, benefiting from an 86% premium in its SOTP valuation.“The bottom line here, according to our analysis is that such a purchase drives ~$23 per share in price accretion,” Canaccord’s team wrote.“While small on a percentage basis, the fact that MSTR has created such a bitcoin acquisition model in the first place is noteworthy and that it is working, at least currently,” they added.Bitcoin prices are already up more than 70% this year, while MicroStrategy’s shares witnessed a triple-digit gain of 142% during that period. More

During the period starting March 12, 2024 and ending on March 31, 2025, the entire sponsor fee will be waived for the first $1.5B of the Trust’s assets. If the Trust’s assets exceed $1.5B prior to March 31, 2025, the fee on assets over $1.5B will be 0.20%. All investors will incur the same sponsor fee, which is the weighted average of those fee rates. After March 31, 2025, the sponsor fee will be 0.20%.”We listen to our clients and understand the importance of continually reassessing our fee structures to align with their expectations and the dynamic nature of the market,” said Kyle DaCruz, Director, Digital Assets Product with VanEck.“This fee waiver reflects our dedication to providing competitive investment opportunities that meet the needs of investors, and we believe it may encourage even more investors to explore the potential of bitcoin as part of their investment strategy.”VanEck was the first established ETF issuer to file for a bitcoin-linked ETF in 2017 and its European arm currently manages 12 crypto ETPs. In addition to HODL, VanEck’s digital assets fund family includes the VanEck Ethereum Strategy ETF (EFUT), which provide futures-focused exposure to Ethereum, and the VanEck Digital Transformation ETF (DAPP), which provides access to companies driving the growth of the digital assets economy. VanEck also offers several digital assets-focused private vehicles for institutions and accredited investors.VanEck’s X (formerly Twitter) feed, @vaneck_us, is a go-to source for updates on the firm’s digital asset efforts, and the firm’s digital assets research team, led by Matthew Sigel, is a prolific producer of insights on this space. More

Bitcoin Depot will oversee the operation of these kiosks for Sopris Capital, a seasoned investment firm with two decades of experience. The program aims to leverage Bitcoin Depot’s operational expertise and integrate with BitAccess software, which offers features such as remote management, security, and compliance tools.Since its inception, the franchise program has facilitated the addition of over 100 BTM kiosk locations. Bitcoin Depot’s CEO, Brandon Mintz, expressed enthusiasm about the partnership, emphasizing the company’s goal to have the largest fleet of Bitcoin ATMs ever installed by the end of the year.The company’s services are designed to provide a seamless transition from cash to Bitcoin, allowing users to engage with the digital financial system for various transactions such as payments, remittances, online purchases, and investments. Bitcoin Depot currently boasts a significant market share in North America, with roughly 6,400 kiosk locations as of September 30, 2023.The information for this report is based on a press release statement from Bitcoin Depot Inc.As Bitcoin Depot Inc. (NASDAQ: BTM) expands its footprint in North America with new Bitcoin ATM installations, investors and stakeholders are closely monitoring the company’s financial health and stock performance. According to InvestingPro data, Bitcoin Depot has a market capitalization of $142.81 million, which reflects the current valuation of the company in the market.Despite the ambitious growth plans, the company’s stock has experienced high volatility, as indicated by an InvestingPro Tip, which could be a point of consideration for investors with a lower risk tolerance. Additionally, another InvestingPro Tip points out that Bitcoin Depot has been struggling with weak gross profit margins, with the last twelve months as of Q3 2023 showing a margin of 13.68%.The company’s revenue has seen a modest growth of 6.32% over the last twelve months as of Q3 2023, reaching $690.22 million. However, the price of the stock has decreased significantly over the past year, with a 1-year price total return of -75.71%, which could signal a potential buying opportunity for value investors, especially considering the InvestingPro Fair Value estimate of $3.64 USD, above the previous close price of $2.4 USD.For those interested in a deeper analysis, InvestingPro offers additional insights and tips on Bitcoin Depot. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to comprehensive metrics and expert recommendations. There are 9 more InvestingPro Tips available, which could further guide investment decisions regarding Bitcoin Depot.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

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As the cryptocurrency continues to rally, currently trading above the $72,000 mark, the firm recalled the words of Satoshi Nakamoto, who told another forum member debating Bitcoin in 2010, “If you don’t get it, I don’t have the time to try to convince you.”According to analysts at Bernstein, Bitcoin miners remain the best equity proxy to participate in the rally. “We are now more convinced about our $150K price for Bitcoin,” they said. “Bitcoin today is at $71K, we expected this to break out post halving. We built Bitcoin institutional flows in our estimates to arrive at Bitcoin price. We estimated $10Bn inflows for 2024 and another $60Bn for 2025. In the last 40 trading days since ETF launch on Jan 10, Bitcoin ETF inflows have crossed $9.5Bn already.”Analysts believe these are still the early days of Bitcoin’s integration into traditional asset portfolios.When it comes to miners, the firm prefers Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK) based on the fact they are the “largest ‘self-mining’ miners,” growing hash rate capacity into halving, they have the lowest cost of production within Bernstein’s listed universe, and as Bitcoin is held on their balance sheets with no debt. “Investors merely look at daily correlation of Bitcoin miners, only during days when they see Bitcoin rallying,” they added. “This selective periodic view is incomplete. Through cycle Bitcoin miners almost always outperform Bitcoin during bull-markets and almost always underperform Bitcoin during bear markets.” “Investors have to take a through-cycle view, and for us, we are still mid-way into the 2024-25 cycle and see every window of miner weakness as a buying opportunity,” the analysts added.Bernstein also believes that Bitcoin prices and transaction fees provide a cushion to miners into the halving event, while Bitcoin mining stocks are cheap. More