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Bitcoin ETFs' hot start seems largely driven by retail investors

Mar. 18, 2024

The Solana-based memecoin Book of Meme (BOME) has taken the crypto world by storm, securing an impressive $100 million in presales and propelling Solana to become the fourth-largest token by market cap.

The launch of spot Bitcoin ETFs has been met with great enthusiasm, attracting billions of dollars in just a few months. Surprisingly, data suggests that the majority of this demand is coming from retail investors rather than institutional players. The surge in retail investor interest in spot Bitcoin ETFs is a testament to the growing accessibility and mainstream acceptance of crypto investments.

Bitcoin is approaching a crucial milestone known as the halving, which has historically been preceded by a period of price volatility. As the event draws near, analysts are closely monitoring the market for signs of a potential “danger zone,” during which Bitcoin’s price has been known to experience significant retraces.

Today’s Newsletter

Bitcoin ETFs’ hot start seems largely driven by retail investors
Book of Meme secures $100m presale as Solana becomes 4th largest crypto
Bitcoin to enter pre-halving ’danger zone,’ but crypto CEOs remain bullish

Markets

Ticker

24hr

Bitcoin

-1.4%

-7.2%

Ethereum

-4%

-14%

L1s

2.4%

-2.2%

L2s

3.4%

-12.8%

DeFi

0.4%

-7.2%

Fear & Greed Index

Extreme Greed (77)

Extreme Greed (82)

Data powered by CoinGecko.

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Top Stories

BITCOIN

Bitcoin ETFs’ hot start seems largely driven by retail investors

BlackRock’s iShares Bitcoin Fund (IBIT), the largest of these ETFs, has an average trade size of around $13,000, indicating that nonprofessional investors are driving a significant portion of the fund’s growth. These ETFs allow individual investors to gain exposure to Bitcoin without the complexities of directly holding the asset.

Spot Bitcoin ETFs have opened the doors for a wider range of investors to participate in the crypto market by offering a familiar investment vehicle that can be traded through financial advisers or brokerage accounts. Prior to this, investors seeking exposure to Bitcoin had limited options, such as the Grayscale Bitcoin Trust (GBTC), which operated as a closed-end fund. The conversion of GBTC into an ETF, along with the introduction of new spot Bitcoin ETFs, has marked a significant milestone in the evolution of crypto investing, making it more accessible and mainstream. [coindesk]

MEME COINS

Book of Meme secures $100m presale as Solana becomes 4th largest crypto

Book of Meme’s meteoric rise can be largely attributed to its controversial presale model, which involves investors sending funds to a wallet address in exchange for a weighted distribution of tokens once the meme coin goes live. This approach, akin to crowdfunding, has proven to be a highly effective way to generate buzz and attract investment, despite the inherent risks associated with such a model.

The meme coin presale mania is not a new phenomenon in the crypto world, with numerous projects in the past attempting to capitalize on the hype surrounding memes and DeFi. However, the presale model employed by BOME has drawn both enthusiasm and criticism from the crypto community. While some investors have reaped substantial rewards, others, such as Ethereum educator Anthony Sassano, have cautioned against the potential dangers of sending money to random wallet addresses, citing the high risk of fraudulent activities. [cryptobriefing]

BITCOIN

Bitcoin to enter pre-halving ’danger zone,’ but crypto CEOs remain bullish

The Bitcoin halving, a quadrennial event that reduces the mining rewards by half, has often been viewed as a bullish catalyst for the token’s price. However, in the weeks leading up to the halving, Bitcoin has a history of entering a “danger zone,” characterized by steep price dips. According to pseudonymous crypto trader Rekt Capital, this pattern could repeat itself within the next week, potentially presenting a buying opportunity for savvy investors.

With the next halving scheduled for April 20, the crypto community is closely watching to see if history will repeat itself and if Bitcoin will continue its impressive bull run. The significance of the Bitcoin halving lies in its impact on the supply and demand dynamics of the world’s largest digital asset. As the mining rewards decrease, the supply of new Bitcoins entering the market slows down, potentially leading to increased scarcity and higher prices. [cointelegraph]