"What Happened to Bitcoin ETF?" Newsletter: Franklin Templeton CEO Predicts New Adoption Wave

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Welcome to "What Happened to Bitcoin ETF?”

In this week's edition, we delve into the key highlights from June 3rd to June 7th. We offer a concise and engaging analysis of the ETF market. Here’s what you’ll find:

• AUM and Price Trends: Explore the changes in Assets Under Management (AUM) for U.S. and Hong Kong ETFs.

• BTC Holdings Fluctuations: Get insights into the weekly BTC flow dynamics.

• Future Outlook: A sneak peek into what’s coming next week.

Dive into the data with us and uncover the critical insights shaping the Bitcoin ETF landscape!

Weekly Bitcoin ETF in Numbers

• Total AUM of Bitcoin ETFs (as of June 7th):

  $60,965,253,537

  ₿881,981

• Total Weekly Net Flow (June 3rd~7th):

  +$3,067,774,620

  +₿21,838

• Top Weekly Performer:

  BlackRock (IBIT): +₿10,982

• Worst Weekly Performer:

  Grayscale (GBTC): -₿1,851

1/ Total AUM and ETF Price Dynamics:

Weekly AUM Overview:

As of June 7th, the total Assets Under Management (AUM) was $60,965,253,537. This represents an increase of $3,073,889,399 from a week ago.

Bitcoin price experienced a slight increase of 0.88% during the week. However, on June 7th, it slipped by 3% following the release of stronger-than-expected May nonfarm payroll data, which erased most of its gains from earlier in the week.

Despite this volatility, inflows into Bitcoin ETFs continued their streak, marking 19 consecutive days of inflows as of June 7th. The total inflow for just two days, June 4th and June 5th, recorded 1.3 billion USD, indicating sustained institutional interest in Bitcoin ETFs.

🇭🇰 Hong Kong ETF AUM Overview:

As of June 7th, the total Assets Under Management (AUM) was $290,054,000. This represents an increase of $41,069,000 compared to the AUM of $248,985,000 on May 31st.

OKX and Bybit withdrew their VASP license applications in Hong Kong because the Hong Kong authority requested exchanges operating without a VASP license in Hong Kong to cease operations by the end of May. This move signifies Hong Kong's commitment to enforcing stringent regulatory standards, which in turn fosters a more transparent and secure environment for crypto investors. As a result, Hong Kong's position to become a crypto hub in East Asia is accelerated by this regulatory clarity, attracting more institutional and retail investors to its crypto market.

Moreover, experts expect Hong Kong may allow staking for spot Ether ETFs as soon as this year. If implemented, this would make Hong Kong one of the first regions to offer such a product, further solidifying its status as a leading destination for cryptocurrency innovation and investment. This potential development underscores the region's proactive approach in adapting to and fostering advancements in the crypto sector, which could drive significant growth and interest in Hong Kong's crypto market.

2/ BTC Holdings Weekly Flow:

Ending Holdings on June 7 (WoW Change):

• GBTC (Grayscale): 285,106 BTC (-1,851 BTC)

• IBIT (BlackRock): 302,545 BTC (+10,982 BTC)🚀

• FBTC (Fidelity): 173,795 BTC (+9,641 BTC)

• ARKB (Ark 21Shares): 48,939 BTC (+1,764 BTC)

• BITB (Bitwise): 37,948 BTC (+1,177 BTC)

• HODL (VanEck): 10,153 BTC (+141 BTC)

• BRRR (Valkyrie): 8,600 BTC (+22 BTC)

• BTCO (Invesco Galaxy): 7,315 BTC (-55 BTC)

• EZBC (Franklin Templeton): 6,148 BTC (+0 BTC)

• BTCW (WisdomTree): 1,290 BTC (+16 BTC)

• DEFI (Hashdex): 178 BTC (0 BTC)

Total: 881,981 BTC (+21,838 BTC)

🇭🇰 Hong Kong ETF Holdings on June 7 (WoW Change):

• ChinaAMC (9042): 2,023 BTC (+456 BTC)

• Harvest Global (9439): 864 BTC (-32 BTC)

• Bosera Hashkey (9008): 1,189 BTC (+5 BTC)

Total: 4,076 BTC (+429 BTC)

• Note: All data sources are from the Bitcoin ETF Fund Flows.

3/ Looking Ahead:

Another wave of Bitcoin ETF adoption is on the horizon

Franklin Templeton CEO Jenny Johnson is optimistic about U.S. spot Bitcoin ETFs, noting that institutions are still in a "wait and see" mode, with significant sidelined capital ready to enter the market.

Johnson highlighted that we are currently in the first wave of early adopters, and she anticipates a second wave of larger institutions. Spot Bitcoin ETFs have already seen over $14.8 billion in net inflows since their launch on January 11, driving a 60% increase in Bitcoin’s price year-to-date.

Despite recent stagnation, SEC disclosures reveal that large investors still only make up 20% of the assets under management in these ETFs, indicating that most initial demand came from retail investors. This leaves room for significant institutional investment.

Franklin Templeton runs one of the smaller Bitcoin spot ETFs, holding about $440 million in Bitcoin with the lowest sponsor fee at 0.19%. They hope to attract fee-sensitive investors.

Bitwise executives believe Bitcoin ETFs are set for a substantial increase in demand as investors scale up their positions and new investors complete their due diligence.

Political support for crypto on Capitol Hill could also boost adoption. According to Bitwise CIO Matt Hougan, positive shifts in Washington, D.C., could drive the crypto market to new highs.

Bitcoin ETFs saw a significant comeback on last Tuesday with over $886 million in inflows, marking their second-best day yet. This signals a promising future for Bitcoin ETFs and highlights growing investor confidence.

4/ What’s Hot This Week?:

Bitcoin Hedge Fund Shorts Signal Potential Short Squeeze

Key Points:

• Record High in Bitcoin Hedge Fund Shorts

• Potential for a short squeeze if Bitcoin's price rises dramatically

Amid Friday’s downturn, as Bitcoin declined to $68,450, the latest Commitments of Traders (COT) report from the Commodity Futures Trading Commission (CFTC) indicates that hedge funds are placing substantial bets against Bitcoin.

This rise in net short positions shows a significant shift in market sentiment among hedge funds, betting heavily on a decline in Bitcoin’s price. Such bearish outlooks from institutional players can influence broader market sentiment, leading to increased volatility and downward pressure on BTC prices.

However, if Bitcoin’s price rises dramatically, hedge funds with significant short positions could face substantial financial losses, potentially triggering a short squeeze where the rapid price increase forces short sellers to buy back their positions to limit losses, further driving up Bitcoin's price.

5/ This Week’s Bitcoin Mindset:

The Common Traits Between Bitcoin and the Top Stocks of the Last Decade

I got inspired by Brian Feroldi's tweet (@BrianFeroldi) about his insights on the common traits of 15-baggers. Over the past ten years, several stocks have surged over 15 times in value, including Amazon, Meta, Tesla, Chipotle, and Netflix. Here's what these stocks share with Bitcoin:

1. B2C Services: These companies provide valuable services to millions of customers. Similarly, Bitcoin's potential customer base includes the entire global population of 8 billion people.

2. High Revenue Growth: Sustaining annual revenue growth rates of over 20% for decades. For instance, Bitcoin miners' daily revenue soared from $2 million ten years ago to $80 million in 2024 (+1900%).

3. Organic Word-of-Mouth Marketing: These companies thrived without extensive marketing efforts. Bitcoin users worldwide naturally act as marketers.

4. Top-of-Mind Brand: Just as Tesla is synonymous with electric cars, Chipotle with Mexican food, and Netflix with streaming services, Bitcoin is the leading name in cryptocurrencies.

5. Pricing Power: These companies can raise prices without losing customers. Similarly, despite significant increases in transaction fees, people continue to use Bitcoin.

6. Future Growth Opportunities: Amazon aims to sell everything, Netflix to bring joy to everyone, Tesla to transition the world to clean energy. Bitcoin’s mission? To provide better money for all.

7. Widening Moat: Bitcoin excels in network effects, switching costs, production cost competitiveness, differentiation, and brand power, outpacing all other cryptocurrencies.

8. Organic Growth: Core business growth is the main driver, with acquisitions playing a minor role. Bitcoin’s growth isn't driven by sidechains, DeFi, meme coins, or NFTs but by the Bitcoin network itself.

A Final Thought

Even great companies see their stock prices drop by 50%, receive sell recommendations, and get caught in various controversies. Bitcoin has been declared "dead" over 400 times, dropped more than 70% from its peak each cycle, and constantly faces rumors of crises.

Remember, value and price do not always move in tandem. It’s crucial to invest based on value, not just price.

6/ 🐦 Hot Tweet of the Week

1) There is no easy path.

2) Has the China-led bull run begun, thanks to Bybit?

🍫CRYPTO CRUMBS ON THE TRAIL 🍫

Dive into this week's crunchy bites of important news, serving up the freshest updates and insights from the crypto world.

Here's what's on the menu:

1. Bitcoin Premium in South Korea Increases, Reflecting Strong Local Demand – Markets and Prices Bitcoin News

   After falling below $70,000, bitcoin has stabilized above the $69,000 mark. In contrast, South Korea has seen a notable rise in the premium...

2. 'A Very Big Opportunity'—Crypto Suddenly Braced For A 'Tremendous' China Earthquake After Bitcoin, Ethereum And ...

   Bitcoin and crypto investor Brock Pierce has said it's only a matter of time before China reopens its digital doors to crypto...

3. Anthony Scaramucci Says President Biden Won’t Lose Election on ‘Capricious Whims’ of Gary Gensler

   SkyBridge Capital founder Anthony Scaramucci believes President Joe Biden will pander to the crypto community even if it's against the...

4. Arthur Hayes Outlines Crypto Trading Strategies For 2024 Bull Market: 'It's Pretty Simple'

   Bitcoin billionaire and co-founder of BitMEX, Arthur Hayes revealed his trading strategies for this year's cryptocurrency bull...

5. MicroStrategy's Michael Saylor Makes Bitcoin 'Satoshi' Statement: Details By U.Today

   U.Today - Michael Saylor, the chairman of MicroStrategy and a prominent advocate for Bitcoin, recently made a compelling statement about the...

That’s it for today; stay tuned for more updates and insights in our next edition!

Stay charged,

SmashFi Team

P.S. - Follow me on X (@brianhoonjong) for daily doses of insightful updates on Bitcoin ETFs and beyond! 🚀🐦

Learn how to become an “Intelligent Investor.”

Warren Buffett says great investors read 8 hours per day. What if you only have 5 minutes a day? Then, read Value Investor Daily.

Every week, it covers:

• Value stock ideas - today’s biggest value opportunities 📈

• Principles of investing - timeless lessons from top value investors 💰

• Investing resources - investor tools and hidden gems 🔎

You’ll save time and energy and become a smarter investor in just minutes daily–free! 👇

Subscribe now with one click.

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“What Happened to Bitcoin ETF?” Newsletter: Dissecting the daily crypto craze with sharp insights and electrifying updates.

Disclaimer: This newsletter is for the brainy and the brave. It's for informational purposes only and not a substitute for investment advice. Always do your own research.