BlackRock Bitcoin ETF Effects Studied by Top Analysts: Three Outcomes

Experts at analytical firm K33 research summarized the first effects for midterm Bitcoin (BTC) performance that pushed the price of the first cryptocurrency higher in June 2023. Despite being rejected, spot Bitcoin (BTC) ETF filings have already changed the game for Bitcoin (BTC) bulls, the report says.

Largest inflows to futures ETPs, BTC basis rallies, open interest targets ATH: "BlackRock effect" gains traction

In June 2023, institutions injected the largest volume of liquidity into spot Bitcoin-based exchange-traded products (ETPs) since October 2021. Large inflows were registered simultaneously in America, Canadian and EU-registered products, K33 Research analysts say in their latest Ahead of The Curve report. The thesis was released today, on July 4, 2023.

The BlackRock effect is in full force in BTC

🔹June sees the largest net monthly inflows to BTC ETPs since Oct 2021
❗️BTC basis on CME surpasses 15%(!)
🔹CME OI nearing ATHs, seeing its 2-week volume surpass the turbulent post-FTX November dayshttps://t.co/yrRrzmWR5j pic.twitter.com/Z0gpHfZJ83

— K33 Research (@K33Research) July 4, 2023

The aggregated Bitcoin-denominated exposure of 22 BTC ETPs globally increased by 6.3% to 183,240 BTC during the last two weeks of June only, the report says. Researchers attributed this whopping upsurge to the "BlackRock effect," i.e., hype around spot Bitcoin ETF filings potentially being approved.

At the same time, the CME basis metric, which is usually interpreted as a reliable interest indicator, is surging rapidly. On CME, this metric spiked over 16%, which is the largest level in recent months.

The Bitcoin spot ETF frenzy is the main catalyst of this rally, the K33 Research team says:

CME's sentiment is closely related to the BTC ETF race, evident by the declining futures premiums on June 30, following SEC statements indicating that the current filings offered inadequate information on their SSAs. Sentiment again grew rosy following resubmitted filings with more comprehensive information.

As covered by U.Today previously, Marex Solutions' Ilan Solot stressed that the Bitcoin ETF filing campaign rebuilds trust in BTC as an asset, reduces complexity and risks for investors and makes investing in the orange coin more tax-optimized.

Bitcoin (BTC) price rejected at $31,300 for second time

Last but not least, the Open Interest metric on CME registered a two-week volume milestone. It almost reached the levels it touched amid the FTX collapse in mid-November 2022.

Meanwhile, BlackRock, the largest asset management company, refiled for a Bitcoin Spot ETF with the U.S. SEC. New documents are more detailed and comprehensive, a BlackRock statement says.

Related

Mon, 07/03/2023 - 20:10

BlackRock Re-Files for Bitcoin Spot ETF as BTC Price Approaches 2023 High

Alex Dovbnya

At the same time, Bitcoin (BTC) is attempting to stay above $31,000. It almost managed to conquer the $31,300 level but was rejected by bears yesterday.