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US Spot Bitcoin ETFs See $158 Million in Net Inflows
U.S. spot Bitcoin ETFs saw net inflows of $158 million on Thursday, reversing from $52 million in outflows the previous day. Ark Invest and 21Shares' ARKB led with $81 million, followed by Fidelity’s FBTC with $49.88 million. All 12 Bitcoin ETFs recorded positive or neutral flows, bringing their total inflows to $17.6 billion since launching in January. Spot Ether ETFs saw $5.24 million in inflows, primarily from BlackRock’s ETHA fund. Meanwhile, Bitcoin's price rose to $63,550, driven by favorable macroeconomic signals, including a rate cut by the Federal Reserve and the Bank of Japan’s low-interest rates.
MicroStrategy Secures $1.01B for Bitcoin Acquisitions
MicroStrategy has completed a $1.01 billion offering of 0.625% convertible senior notes due in 2028, targeting institutional investors. The proceeds will be used to purchase Bitcoin and redeem $500 million in senior secured notes, freeing up collateral, including 69,080 BTC. The notes are unsecured, carry a 0.625% annual interest rate, and can be converted into cash or MicroStrategy stock. The initial conversion rate is set at $183.19 per share, a 40% premium over the stock's price as of Sept. 17.
Bhutan's $750M Bitcoin Mining Revenue Sets Blueprint for Developing Nations
Bhutan has set an example for developing nations by leveraging Bitcoin mining to bolster its economy, with its national investment arm, Druk Holding and Investments (DHI), holding 13,029 BTC, valued at approximately $780 million. This accounts for over 26.9% of Bhutan's 2023 GDP. As global debt challenges mount, some countries may look to Bhutan's strategy of using Bitcoin to ease fiscal pressures. Other nations, such as Paraguay, Venezuela, and Kenya, have potential to follow Bhutan's model, particularly with their abundant renewable energy resources. While political and regulatory challenges persist, Bhutan’s success illustrates how Bitcoin mining could provide a path to economic growth for smaller and developing nations.
Trading Desk Insights
Bitcoin extended its weekly rally, gaining 11% amid significant central bank activity. The U.S. Federal Reserve implemented rate cuts, while the Bank of England held steady, and the Bank of Japan decided against further hikes on Friday, a departure from their July decision that had previously triggered a downturn in crypto markets. Moving forward, macroeconomic indicators will play a critical role in shaping price action.
On the order books, sell offers are clustering between $64,000 and $65,000, while buy orders are consolidating between $61,000 and $62,000. Given the recent price surge, market activity appears somewhat overstretched, and we anticipate a potential pullback toward $61,000 in the near term.
Market sentiment remains broadly bullish, especially in light of the U.S. 2Y/10Y Treasury spread turning positive for the first time since June 2022, signaling optimism and a shift towards risk-on assets.
In the meme coin sector, cat-themed tokens have garnered significant attention, with inflows flocking to tokens like POPCAT, MEW, MOG, and CAT. Their smaller market caps compared to their dog-themed counterparts present enticing opportunities for high-risk, high-reward traders. The surge in liquidity and increased risk appetite could drive further demand for these niche assets in the coming months.
On the corporate front, MicroStrategy made another bold move. The company, known for being the largest corporate holder of Bitcoin, raised $1.01 billion through the sale of convertible senior notes to acquire more BTC. Between September 13 and 19, they added 7,240 BTC to their holdings for $458 million, at an average price of $61,750.
Meanwhile, equities pulled back slightly on Friday, paring gains from earlier sessions but still closing the week in positive territory. Market volatility is expected to persist, with the upcoming election looming large as the key factor shaping market movements.
Crypto Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
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Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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