#Write2Earn Factors that will benefit Bitcoin in 2024 and beyond include the recent inflows into Bitcoin ETFs and the resurgence of on-chain activity. Exchange-traded- funds (ETFs) raked in $542 million as of last Friday as on-chain activity influenced by Bitcoin Ordinals re-incentivizes miners ahead of the 2024 Bitcoin halving.Grayscale Investments said these factors position the asset to surge given their strength now compared to previous halvings.BTC Flashes Strong Pre-Halving SignalsPrevious halvings have been preceded by or concurred with external events. The 2012 halving coincided with lower European economic confidence aid a debt crisis. The 2016 Initial Coin Offering surge boosted prices, while COVID-19 increased prices when before the 2020 halving event as people feared inflation from money printing.Bitcoin price halvingBitcoin’s Price Around BTC Halvings | Source: GrayscaleFast forward to 2024, at least three factors position Bitcoin to increase in 2024 before the imminent April Bitcoin halving and beyond. These include the demand shock caused by institutions buying Bitcoin for their ETFs, the increase in on-chain activity in February, and the incentivization of miners.Inflows into US ETFs have risen to $9 billion since they launched in January, according to data compiled by Bloomberg. Institutions have accumulated approximately 19,200 BTC in the past few weeks, with half a billion dollars worth of BTC purchased on Feb. 9, 2024. Investor demand fuels the creation of more ETF shares, which causes more BTC purchases.Bitcoin Ordinals Props Miners’ RevenuesApril’s halving reduces $BTC released per mined block. This reduction preserves the asset’s value but also means miners will earn less revenue from the mined coins. Therefore, they are taking several measures to survive, including selling #BTC reserves and competing for Bitcoin transaction fees.Last year, the phenomenon of Bitcoin Ordinals, an innovation that embeds digital files on units of Bitcoin called Satoshis, helped miners cope with increasing Bitcoin Network difficulty. At times since their launch, Ordinals transactions have been responsible for over 20% of miner revenue.bitcoin median fee ordinalsBitcoin Median Transaction Fee (3 Months) | Source: GlassnodeThe median fee miners earned from transactions increased from $5.17 on Dec. 12, 2023, to a three-month peak of $24.96 in four days. The increase coincided with the announcement of a new Carnival inscription service by OKX on Dec. 14, 2023.Ordinals have also contributed to a surge in on-chain activity as developers started exploring projects. On-chain analysis revealed the number of addresses with robust activity increased to 891,692 as of 11, 2024. Grayscale predicts the recent ecosystem’s expansion, suggesting that future developer activity will increase bitcoin fees and strengthen its market position further.“While it has long been heralded as digital gold, recent developments suggest that Bitcoin is evolving into something even more significant. Propelled by a surge in onchain activity, bolstered by significant market structure momentum, and underscored by its inherent scarcity, Bitcoin has shown its resilience,” #GRAYSCALE said.BeInCrypto contacted #michaelsaylor , a prominent Bitcoin supporter, for comment but had yet to hear back at publication.#TrendingTopic

In a significant stride towards realizing a potential spot bitcoin exchange-traded fund (#ETF ), prominent financial firms including Grayscale, Ark Investments, Valkyrie, and VanEck have recently filed their Form 8-As. This crucial step represents a milestone in the regulatory process, signaling the firms' readiness to trade on an exchange once their proposed products receive approval.This series of filings closely follows Fidelity's submission of its Form 8-A, with the collective actions occurring just days before the Securities and Exchange Commission (SEC) faces a critical decision regarding the approval or disapproval of a spot bitcoin ETF.Grayscale, a key player in the crypto investment space, is seeking to transform its flagship GBTC fund into a spot bitcoin ETF. The move follows a significant legal victory in August, mandating the SEC to re-evaluate Grayscale's bid for a spot bitcoin ETF. Other major firms such as BlackRock and Fidelity have also expressed their interest in launching spot bitcoin ETFs over the past year.A spokesperson from Grayscale expressed their commitment, stating, "At Grayscale, we continue to work collaboratively with the SEC to uplist GBTC to NYSE Arca as a spot bitcoin ETF. #GRAYSCALE remains ready to operate GBTC as an ETF upon receipt of regulatory approvals."The industry is experiencing heightened anticipation for the potential approval of a spot bitcoin ETF, a groundbreaking development if granted by the SEC. In a strategic move, ETF issuers, including #BlackRock and #Fidelity , amended their registration forms in late December, with BlackRock designating Jane Street Capital and JP Morgan Securities LLC as authorized participants.In recent weeks, issuers have been diligently addressing the intricacies of potential spot bitcoin ETFs. Discussions have encompassed creation and redemption models, identification of authorized participants, and considerations related to hard forks.As the momentum builds towards regulatory decisions, it is noteworthy to add that the Grayscale ETF is highly likely to receive approval either tonight or, if not, by the latest, on January 9, 2023. This potential development adds an extra layer of excitement to the already dynamic landscape of the evolving crypto investment sphere.#BTC $BTC $ETH $ICP

Michael Sonnenshein, CEO of Grayscale Investments, has made a compelling case to the US Securities and Exchange Commission (SEC) for the swift approval of listed options on Bitcoin spot exchange-traded funds (ETFs). According to insights from Foresight News, Sonnenshein emphasizes the transformative potential of options in empowering investors and fostering Bitcoin price discovery.
Understanding Listed Options: Enhancing Trading Dynamics
Listed options are derivative contracts traded on national options exchanges in the United States. These contracts offer investors the ability to buy or sell Bitcoin at predetermined prices (exercise prices) within specified timeframes (expiration dates). Sonnenshein contends that introducing listed options for Bitcoin spot ETFs will equip investors with powerful tools to navigate market fluctuations and achieve their investment goals effectively.
Promoting Transparent Valuation: The Role of Price Discovery
Sonnenshein underscores the significance of listed options in facilitating Bitcoin price discovery. Price discovery, the process by which market participants establish an asset's fair value through supply and demand dynamics, stands to benefit from increased activity and liquidity in the options market. By engaging in sophisticated trading strategies, investors contribute to a more transparent and efficient valuation of Bitcoin.
Enhancing Flexibility and Risk Management
Listed options offer investors unparalleled flexibility and risk management capabilities. Through strategic utilization of options contracts, investors can tailor their exposure to Bitcoin according to their risk appetite and investment objectives. Whether seeking to capitalize on price appreciation or mitigate downside risk, options enable investors to construct diversified portfolios and optimize returns while managing risk effectively.
Driving Market Maturity: Embracing Financial Innovation
Sonnenshein's advocacy for listed options on Bitcoin ETFs reflects the growing institutionalization and maturity of the cryptocurrency market. As traditional financial institutions and regulators increasingly engage with digital assets, there is a growing recognition of the need for sophisticated financial instruments to accommodate diverse investor preferences. The integration of listed options could mark a pivotal step towards mainstream adoption of Bitcoin as a legitimate investment vehicle.

A Milestone in Cryptocurrency Evolution
Michael Sonnenshein's push for listed options on Bitcoin ETFs represents a significant milestone in the evolution of the cryptocurrency market. By advancing investor empowerment and promoting price discovery, the integration of listed options stands to unlock new opportunities for participation and value creation. As regulatory discussions progress, the approval of listed options could herald a new era of innovation and growth in the cryptocurrency ecosystem.

#GRAYSCALE #SEC #Write2Earn