Bank of America backs 4% crypto allocation cap, ending adviser restrictions and adding bitcoin ETF coverage: report https://t.co/us6kliaHsW ...

ETF Market Dynamics - Outflows from Bitcoin ETFs are small relative to the massive inflows over the past 18 months, representing only a couple percentage points [1] - Ethereum ETFs have experienced approximately $25 billion outflows, warranting close attention [2] - A significant portion of the outflows is attributed to the basis trade, a strategy favored by hedge funds [3] - The basis trade, involving selling front-month futures contracts and buying spot at the same time, offered an annualized yield that has fluctuated, reaching 20% at times but now below 5% [4][5] - Decreased interest in the basis trade is driving money out of these ETFs, while retail investors and long-term investment advisors continue to buy [5] - The ETF space is experiencing aggressive growth, with inflows exceeding $1 trillion this year [15] Crypto Regulation and Taxation - Uncertainty surrounding regulatory clarity from the SEC and CFTC has been a concern for institutional investors in crypto ETFs and crypto investing [7] - Tax changes, including guidance from the IRS on "good income" versus "bad income," are expected to reshape the crypto landscape [6][8] - The tax treatment of staking yield, where assets are locked up to contribute to the network in return for in-kind Ethereum, is currently unclear [9][10] - Crypto ETFs are starting to allow for staking yield, but some institutional investors are hesitant due to potential tax implications [10] ETF Product Innovation - Hundreds of new crypto ETFs with different variations, leverage, and yield plays are expected to launch [12] - "Manufactured yield" products, using derivatives to generate high yields (sometimes over 80%), are gaining popularity [12][13] - Active ETFs, including "boomer candy" products offering downside protection, are growing rapidly, with legacy asset managers entering the market [13][14] - Goldman Sachs is acquiring a company specializing in buffer products, indicating a significant move into the active ETF space [14][15]

Core Viewpoint - Bitcoin experienced a relief rally during Thanksgiving Week, rising approximately 7%, potentially signaling the start of a more substantial rebound supported by the Federal Reserve's possible interest rate cuts in December [1][4]. Group 1: Bitcoin Market Dynamics - The NEOS Bitcoin High Income ETF (BTCI), valued at $820.5 million, offers a significant income stream with a 30-day SEC yield of 28.36%, making it an attractive option for investors [2]. - The recent liquidation of tens of billions in long bitcoin positions has put pressure on the market, but a potential rate cut by the Fed could improve the situation [3][4]. - The current market pullback is attributed to uncertainty regarding the Federal Reserve's actions rather than a decline in underlying demand for bitcoin [4][5]. Group 2: Investment Implications - BTCI's income stream is not heavily reliant on Federal Reserve policy, but bitcoin's price movements are influenced by factors such as dollar weakening and lower real yields [5]. - As interest rates fall, traditional cash investments like CDs and money markets may become less attractive, prompting risk-tolerant investors to consider BTCI [6]. - The structural demand for bitcoin, combined with improving liquidity, suggests that the cryptocurrency may still be in a bull market despite recent drawdowns [6].

blackrock pulled $2.347b from ibit and $1.038b from etha in november. largest bitcoin etf holder reducing exposure after 2x gains means the accumulation phase ended. $3.4b leaving in 30 days creates structural overhang that bounces can't overcome until q1 2026 flows turn positive. ...

The CNB governor said allocating about 2.5% of reserves to a Bitcoin ETF would offer a return similar to raising U.S. equity exposure from 38% to 50%, but with less additional volatility. He added that if the bank had allocated 5% to BTC over the past decade, annual returns would have risen by roughly 3.5 percentage points, though overall portfolio volatility would have nearly doubled. https://t.co/tNDTu2TWjAWu Blockchain (@WuBlockchain):Czech National Bank (CNB) has announced the establishment of a pilot d ...

Group 1 - The dividend rate for Strategy's preferred stock issue under the ticker STRC is set to rise to either 10.75% or 11%, which may not be favorable for MSTR stockholders and could impact the bitcoin price negatively [1] - The stock market rally is described as uneven, with Nvidia's earnings boosting optimism in the tech sector, while Bitcoin is nearing a 7-month low amid ETF outflows [4] - Strategy may face a potential payout of $1 billion in 2027 as Bitcoin prices decline, indicating financial pressures related to cryptocurrency market fluctuations [4] Group 2 - The current market conditions suggest that Bitcoin is experiencing a significant downturn, hitting a 6-month low, which is attributed to a hawkish stance from the Federal Reserve [4] - There are indications that Strategy's falling stock price could be leveraged for profit through a bear call spread, suggesting potential trading strategies in response to market conditions [4] - The cryptocurrency tracker is expected to offer an attractive payoff if it trends lower, indicating strategic trading opportunities in the current market environment [2]

Tech investor Cathie Wood's investment firm remains bullish on crypto and AI, adding shares of Google, Coinbase, and a Bitcoin ETF on Tuesday. https://t.co/bYX1uwQcwQ ...

Cathie Wood's Ark Invest Loads Up on Google, Coinbase, Circle and Bitcoin ETF Shares► https://t.co/hBfWO3XBmC https://t.co/hBfWO3XBmC ...

NEWS: Texas becomes the first state to purchase Bitcoin.They acquired 57 $BTC through BlackRock’s spot Bitcoin ETF for a total of $5M. https://t.co/beIXCHMy1H ...

RT Bitcoin Magazine (@BitcoinMagazine)JUST IN: 🇺🇸 Texas becomes first state to purchase $10 million of BlackRock's spot #Bitcoin ETF, according to the Texas Blockchain Council. https://t.co/2b2nURZVid ...