Bitcoin rises 3% in a week as analysts expect longer-term uptrend: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Crypto World explores what it will take for the new spot bitcoin ETFs to survive in a crowded field.

Chapters:
00:00 – CNBC Crypto World, Feb 2, 2024
0:25 – Crypto rises
1:47- The headlines
4:20- What’s next for spot bitcoin ETFs?

For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-cred…

#CNBC
#CNBCTV

Bitcoin rises 3% in a week as analysts expect longer-term uptrend: CNBC Crypto World

Today crypto prices end the week higher as we enter a historically strong month for the crypto Market Genesis settles an SEC lawsuit over its role in The Gemini earn lending program and we take a deep dive into what it’ll take for the new spot Bitcoin ETFs to survive in a crowded

Field welcome to cnbc’s crypto world I’m TAA mckelle crypto assets finishing the week on an up note by noon Eastern Bitcoin Rose more than one % it’s trading at about $43,200 eth inched higher to trade at $2,300 and salana Rose nearly 4% to the $100 Mark for the

Week crypto prices are in the green outpacing the S&P 500 with Bitcoin up more than 3% and ether trading Higher by 2% salana however soared nearly 9% this week and those are all by around noon Eastern and that $100 level is key for salana it’s been poised for a breakout

Above that level to new High according to Wolf research along with other altcoins they’ve been coming on strong in recent months and chart analysts expect them to outperform near term now February is a historically strong month for both Bitcoin and eth Bitcoin has finished nine of the last 11 februaries

In the green and eth which hasn’t been around for as long has finished higher in six of the last seven but Bitcoin could see a little more consolidation here over the next month or two analysts tell me although there’s not much to worry about in terms of its longer term

Uptrend meanwhile e and altcoins are poised to take the Limelight in the next few weeks you had a very active January you saw those outsize rallies after the Bitcoin ETF approval but it really didn’t get much attention standard charted predicts it could rise 70% from current levels if it has the same pre-f

Uptrend that Bitcoin did okay let’s talk about the top stories cryptool lender Genesis has settled an SEC lawsuit over its part in the Gemini earn lending program agreeing to a $21 million fine that will be paid only if Genesis is able to fully repay customers in its bankruptcy according to documents filed

In bankruptcy court on Wednesday evening the settlement will allow the lender to focus on repaying customers and other creditors it will also help it avoid the costs and risks of Defending itself from an SEC lawsuit the week before Genesis filed for bankruptcy in January 2023 the SEC sued the crypto lender alleging that

It and crypto exchange Gemini illegally sold Securities to investors through their jointly managed crypto lending program Gemini earn Genesis did not admit or deny wrongdoing in the settlement agreement we reached out to dcg the parent company of Genesis for comment but didn’t hear back right away up next binance froze more than $4

Million worth of Ripple’s xrp tokens tied to this week’s more than $110 million exploit that’s according to this expost yesterday from the crypto exchange’s CEO Richard Tang where he noted that the exploit was flagged to exchanges Tang went on to write that binance will continue to support Ripple in their investigations and their

Efforts to retrieve back the funds including closely monitoring the majority of funds still in the exploiters external wallets in case they deposit to binance we told you on Wednesday that the tokens were stolen from a wallet belonging to Ripple’s executive chairman Chris Larsson who said that there had been a breach to his

Personal xrp accounts but not of Ripple itself finally three people have been charged by us officials with a Sim swap scam that reportedly drained more than $400 million in funds from FTX the Department of Justice alleges that between March of 2021 and April 2023 Robert Powell of Illinois Emily

Hernandez of Colorado and Carter Ron of Indiana conspired to carry out sim swaps then steal victims money including virtual currencies now the indictment doesn’t call out FTX by name but Bloomberg reports that the bankrupt exchange is in fact victim company one in the filing we reached out to FTX but haven’t received a

Response all right turning to bitcoin ETFs for our main story it’s been more than 3 weeks since the SEC approved the trading of these new products including those from Black Rock grayscale and Fidelity now it’s a high stakes battle for market share and customers a fight

That not all of the new funds May survive crypto world’s Talia Kaplan finds out how the Bitcoin ETF experiment has been playing out in real time check out this list of all the spot Bitcoin ETFs available on public markets seems like a lot right the sec’s decision to allow spot Bitcoin ETF back

On January 10th created a very crowded market for these products nearly overnight this is really the culmination of 10 years of work um investor support the grayscale team everybody’s been working tirelessly towards this outcome this is probably the most important moment in bitcoin’s history or at least

In the last 10 years it’s a huge unlock for for access to the space we think it’s an incredibly important moment 11 ETFs or etps coming to Market on one day is actually historic for the ETF industry you haven’t seen this kind of level of competition um on an exposure

Day one ever now the ETF providers are looking ahead to figure out how to drive investment in their product over their competitors one way to do that by lowering fees most of the approved ETFs have fees of between1 n% and 3% but grayscale stands out at 1 and a 12%

Speaking with CNBC from the world economic forum annual meeting in Davos grayscale CEO Michael sonen shine defended the higher fee pointing to his firm being the largest Bitcoin fund having a 10-year track record of operating successfully and having a diversified investor base son and shine also said he thinks most of the approved

Bitcoin ETFs won’t survive and he isn’t the only asset manager that feels that way I do think a few won’t make it um but what I do expect to happen is that uh financial advisors and other in institutions will probably move towards the other managers that they have

Contracts with and sales agreements with so that’s going to be a one of the factors uh typically the way that advisors and money allocators work is they like to choose two or three different managers that run the similar style ETF or or or the same ETF so

Usually one bucket is you know the big manager that everybody knows which is you know like like the black rocks and the fidelities of the world and then the other bucket is usually the niche experts in the space we do believe there will be consolidation but it’s going to

Take time I feel that almost every one of our peers in the space will give it at least a year it was a great idea they saw the opportunity it made sense right this is what every client has been asking for and so they thought it will

Be fine and I know a lot of them have had operational challenges we haven’t but I think that they’re giving it a try and you know I I respect that but I do believe we’ll have a much smaller Universe of competitors this time next year so which are most likely to succeed

Well Sylvia jablonsky of defiance ETF says it could depend on a couple of things one having an existing client base like grayscale could help as many investors wouldn’t want to sell their Holdings and take a tax hit two it could simply be a matter of scale and budget

Take black rock the investment Giants ETF just hit $2 billion in assets under management D Blonsky says as long as the ETF provider can break even they will continue to exist another big factor for the year will be the price of Bitcoin directly following the approval of spa

Bitcoin ETFs in the US the price of Bitcoin shot up above $49,000 and then quickly came back down trading as low as the $38,000 level in recent days and the ETFs have followed suit since launching all the ETFs are down between 5 and 8 1 12% as of

February 1st along with a broad selloff in Bitcoin and other cryptocurrencies I think what happened was a lot of people got excited and tried to front run the ETFs launching so that drove the price of Bitcoin up a little bit higher than it should have been so when the ETFs

Launched the price of Bitcoin definitely came down following that first day in addition to that we’re still not seeing the full effects of a Bitcoin ETF just yet financial advisors are still looking at this asset class still looking at the ETFs themselves and trying to decide when’s a good opportune time to put

Their clients in I do believe that that will be coming in the next 3 to six months we’re very excited that Bitcoin uh uh now is in the ETF rapper and therefore very accessible at very low prices um what we do have and you know there was speculation beforehand will

This be a sell on the news uh we said yes and then we were hearing that so much that we thought well maybe not well it turns out that FTX is I guess it’s nearly a billion dollars in gbtc has been sold as the Bitcoin ETF has come

Out and I think that’s been part of the pressure I do think there’s sell on the news because I thought I think some people expected it to hold uh a a little more than it has uh but this has not Disturbed our point of view at all we

Think this is one of the most important Investments of our lifetime we’re very happy to be uh a part of this movement providing more access to bitcoin these ETFs are also competing to convince people that they’re a better investment over just buying Bitcoin itself for me I think the biggest

Negative implication is that the core promise for me of crypto of Bitcoin is this idea of self- custodial products where you have ownership of your own money that is the whole dream of the technology is people being in control of their own money and these ETFs while

They are great they are the creation of a financial instrument where someone else owns your money and you have access to it in the form of you know this publicly traded share on on this Stock Exchange another potential drawback these ETFs are limited to stock market

Hours while crypto can be traded 24/7 I think also you know as we start to think about Bitcoin if we do see you know huge amounts of investment into these ETFs there’s obviously a scarcity of the underlying asset as well so that’s something we don’t need to worry about

Today but something to consider on the forward for me I think the positive aspect is the breadth of the market that it can focus on so what’s next in 2024 now that spot Bitcoin ETFs are trading all eyes are on whether the SEC will Greenlight an ether ETF the agency is

Due to give decisions on those applications beginning in May Black Rock Invesco Arc and Vanek are among the firms in line for approval as well as grayscale which is seeking to convert its existing ethereum trust into an ETF now just because Bitcoin ETFs won approval in January that doesn’t

Guarantee ether ETFs will two I look at what we did this week is it’s cabin to one non-security commodity uh called Bitcoin like we’ve had gold spot exchange traded products and silver exchange traded products in the past and approved in the past this is cabin just to that one non-security commodity

Token okay that’s all for crypto world this week but we’ll be back again on Monday and we’ll see you then