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- 🥜 What makes Bitcoin valuable?
🥜 What makes Bitcoin valuable?
PLUS: Big BlackRock update
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What we’ve cooked up for you today…
🤯 BlackRock updates ETF
🤔 Why is Bitcoin valuable?
💸 Bitcoin wallet check
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:45am ET
Only the top 20 coins measured by market cap feature in this section
BLACKROCK UPDATES ETF 🏦
BREAKING: BlackRock adds 5 new APs to spot Bitcoin ETF including Goldman Sachs, Citadel, Citigroup
5 more TradFi players have joined the game.
BlackRock updated its Bitcoin ETF prospectus, adding 5 big Wall Street firms as authorised participants.
These firms include:
Goldman Sachs
UBS Securities
Citigroup Global Markets
Citadel Securities
ABN AMRO Clearing USA
Now you may be wondering what does “authorized participant” even mean? 🤷♀️
Well here’s the definition straight from BlackRock themselves:
An AP is a financial institution, often a bank, that dynamically manages the creation and redemption of ETF shares in the primary market.
This process adjusts the number of ETF shares outstanding and helps keep an ETF’s price aligned with the value of its underlying securities.
(and if that doesn’t make sense, here’s a video explaining what an AP does)
ETF analyst Eric Balchunas commented on the significance of this update:
“[These firms are] as Boomer as you can get. The fact that they ok being associated with this is another step in the mainstream-ification and legitimization of btc. BlackRock's name does a LOT of work to give them cover tho.”
But here’s the thing, two days ago, Goldman Sachs publicly expressed their disinterest in crypto…
That’s a little odd isn’t it? 🤨
“We do not think it is an investment asset class… We’re not believers in crypto.”
If they aren’t “believers” in crypto, then why are they assisting the ETF?
The takeaway here is that big Wall Street players now want a piece of that sweet Bitcoin pie. 🥧
Watch what they do, not what they say… 👀
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WHY IS BITCOIN VALUABLE? 🤔
How can Bitcoin be valuable if it doesn’t have any cash flows?
Skeptics such as Warren Buffett, Jamie Dimon and Vanguard CEO Tim Buckley often ask this question.
But Matt Hougan has the answer.
Matt Hougan is the Chief Investment Officer at Bitwise, the 4th largest Bitcoin ETF issuer.
Every week, Matt releases a market commentary memo.
In his latest, he broke down exactly why Bitcoin is valuable.
“Bitcoin offers a service that millions of people today evidently find valuable: the ability to hold wealth without relying on a centralized institution.”
It’s as simple as that.
There’s no other way to store significant wealth without relying on a financial institution.
Matt also outlines three key reasons for why Bitcoin adoption will continue to grow:
Trust in institutions is hitting historical lows 📉
Government debt is hitting historical highs 📈
29 countries are facing double-digit inflation 🌎
“Millions of people around the world deem the service bitcoin offers attractive… It’s reasonable to believe that more will want to partake of this service in the future.”
It all comes down to simple economics:
Bitcoin offers a service that millions of people want
And there is a limited supply of Bitcoin
“Price is where supply meets demand. It doesn’t get any simpler than that.”
BITCOIN WALLET CHECK 💸
Today we’ll be taking a look at the number of addresses with a non-zero balance.
It provides a high level overview of the Bitcoin network’s user base/activity.
But it’s important to understand that one wallet does not equal one user. A user can have many wallets.
What matters here is the trend of the chart.
Increasing number of addresses: increasing adoption levels 📈
Decreasing number of addresses: indicates users are selling their entire balance or consolidating wallets 📉
Immediately you can see how this chart has always been trending upwards.
A clear sign that the Bitcoin Network has expanded every single year.
However, every now and then, this metric dips. As Bitcoin approaches new all-time highs, some investors decide to take profits. (makes sense)
As of today there are 51,189,548 addresses with a positive balance.
Two weeks ago this metric was at 51,284,300 wallets.
That’s a decrease of 94,752 wallets.
But it isn’t anything to be worried about…
(unless we see this metric significantly decline over the coming months, then we can worry a little)
If you zoom out a little, the trend is clear:
The Bitcoin network has been growing every single year.
CRACKING CRYPTO 🥜
Solana scrambles to tackle failed transaction surge and user complaints. Solana blockchain engineers are racing to improve the network, while facing congestion and mounting failed transactions.
Terraform Labs and Do Kwon found liable for fraud in SEC case. Do Kwon and Terraform Labs were found liable for fraud in a civil trial with the SEC, which lasted roughly nine days.
Why BTC’s record monthly growth streak could be in jeopardy. Profit-taking among spot bitcoin ETF investors could contribute to a downward BTC price trend in April, one analyst notes.
Genesis Completes Redemption of GBTC Shares, Buys 32K Bitcoins with Proceeds. The company in February got permission from a New York bankruptcy court to sell approximately 36 million shares of Grayscale's Bitcoin Trust.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
Which crypto is currently the 4th largest, measured by market cap?(including stablecoins) |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) BNB 🥳
BNB is currently the 4th largest cryptocurrency with a market cap of $87 billion.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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