Bitcoin ETF Race Heats Up
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Today's Crypto Market News
Bitcoin ETF Ad War Officially Underway With Bitwise Campaign
Small ESG-Focused Crypto Asset Manager Is Another Late Entrant to Bitcoin ETF Race
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This episode was hosted by Noelle Acheson. “Markets Daily” is executive produced by Jared Schwartz and produced and edited by Eleanor Pahl. All original music by Doc Blust and Colin Mealey.
Audio Transcript: This transcript has not been edited and may contain errors.
Market Overview: December 19, 2023
It’s Tuesday, December 19th, 2023, and this is Markets Daily from CoinDesk. I'm Noelle Acheson, CoinDesk collaborator and author of the Crypto is Macro Now newsletter on Substack. Today, we'll discuss market movements, Bitcoin ETFs, interest rates, and more. Remember, CoinDesk is a news source and does not provide investment advice.
Crypto Market Performance
Crypto markets are showing strength after a period of weakness. As of 9 a.m. Eastern Time, Bitcoin is up 3.6% at $42,853, and Ether is up 3% at $2,221. Solana and Binance Coin are up 6%, Cardano is up 4%, and NEAR Protocol is up a significant 12%.
Macroeconomic Factors: European Inflation
Eurozone inflation data showed a steeper-than-expected month-on-month contraction of 0.6% in November for both headline and core CPI – the largest drop since March 2020. Annual headline inflation is down to 2.4%, and core inflation is at 3.6%. This softer-than-expected inflation data, however, hasn't eased the European Central Bank's cautious stance on interest rate cuts. ECB policymaker Yannis Stournaras stated they need to see inflation sustainably below 3% by mid-year before considering rate cuts.
Stock Market Performance
US stock indices saw muted movement yesterday as Fed officials pushed back against expectations of imminent rate cuts. The S&P 500 rose 0.5%, the Nasdaq climbed 0.6%, and the Dow Jones remained largely flat. European indices showed mixed results, while Asian markets experienced declines.
Commodities
Oil prices continue to rise amid Red Sea tensions, with Brent Crude up 1.8% yesterday. Gold prices remain relatively stable around $2,030 per ounce.
Bitcoin ETF Updates: An Ad War and an ESG Entrant
The Bitcoin ETF landscape is heating up. We are seeing the first advertisements for spot Bitcoin ETFs appear on platforms like X (formerly Twitter), signaling confidence from issuers about impending approval. This highlights that success will hinge on fees and marketing strategies.
7RCC, an ESG-focused fund manager, has filed for a spot Bitcoin ETF. This fund will include a mix of spot Bitcoin and carbon credit futures, offering a unique approach within the growing ETF market. This could broaden the appeal of Bitcoin to ESG investors and offer greater diversity in the ETF space.
The emergence of diverse Bitcoin ETF strategies, unlike the limited futures-based options in 2021, could lead to a broader investor base and potentially help Bitcoin transition from a “novel” asset to a mainstream portfolio diversifier.
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