Bitcoin Approaches All-Time High, Florida Eyes Bitcoin Reserve, and NBA Top Shot Sales Surge

Takeaways

• Fueled by positive market sentiment, the price of bitcoin exceeded $73,100, just shy of its all-time high: The Fed’s decision on rate cuts could further fuel a price increase, but bitcoin pulled back Thursday toward $70,000 amid a broader tech sell-off.
• US spot bitcoin ETFs recorded $870 million in inflows on Tuesday, led by BlackRock’s IBIT with $629 million: It’s believed that bitcoin’s swelling price might be contributing to investment in these funds.
• Florida CFO Jimmy Patronis has requested an evaluation of the feasibility of adding bitcoin to the state’s public pension funds: The state of Florida has typically shown keen interest in crypto initiatives, with Governor DeSantis having made proposals to allow businesses to pay tax in bitcoin in 2022.
• Hong Kong Exchanges and Clearing Ltd. (HKEX) will launch the “HKEX Virtual Asset Index Series” on November 15, providing reference prices for BTC and ETH during the Asian trading day: The indexes aim to offer transparency and support for virtual asset investment decisions in the region.
• Weekly sales of NBA Top Shot NFTs have hit a six-month peak, with 43,600 NFTs sold as of October 27, marking a 94% jump from the previous week: Renewed excitement from the season opener is driving the surge in activity after a slow offseason.

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Bitcoin Surges Past $73,000, Pulls Back on Thursday

Bitcoin climbed above $73,000 Tuesday, marking the first time it breached this level in over seven months. The renewed surge comes near the end of a strong year for bitcoin, partly driven by the SEC’s approval of spot bitcoin ETFs and anticipated rate cuts in the US. Tuesday was also reported to be bitcoin’s biggest trading day in months, as volumes skyrocketed. However, the price of bitcoin retreated Thursday, pulling back toward $70,000 as the broader tech market recorded mixed earnings results.

Federal Reserve decisions in particular have been playing a role in bitcoin’s recent rally, with bitcoin rising from around $54,000 in early September as expectations for a rate cut increased. A majority of analysts currently anticipate a 25 bps cut November 7, which could drop rates to the 4.5% to 4.75% range. If this comes to be, it would most likely add to the current bitcoin trading frenzy.

Some analysts are bitcoin to climb even higher before the end of the year as market conditions become more favorable. It could depend on numerous factors, and will most likely be influenced in some form by the results of the upcoming US presidential election.

US Spot Bitcoin ETFs Attract $870M in Inflows

US spot bitcoin ETFs saw a significant boost on Tuesday, drawing in $870 million in net inflows. This marked their third-highest daily inflow since launching in January. BlackRock’s IBIT led these figures with $629 million, followed by Fidelity’s FBTC with $133 million and Bitwise’s BITB with $52 million. Other spot ETFs also saw gains, including Grayscale’s mini Bitcoin trust at $29 million, VanEck’s HODL at $16 million, and Ark’s ARKB at $12 million. Grayscale’s GBTC was the only ETF to report outflows, with $17 million reported.

This surge in inflows aligns with bitcoin nearing its all-time high as investors prepare for potential market volatility ahead of the US elections. High inflows into investment products including ETFs typically indicate investor confidence in future market conditions.

Florida’s CFO Recommends Crypto Investments for State Pension Funds

Florida Chief Financial Officer Jimmy Patronis has requested that the State Board of Administration (SBA) review the potential benefits of including bitcoin in the state’s retirement funds. Patronis emphasized bitcoin’s ability to diversify Florida’s portfolio and act as a hedge against broader market volatility. He also lauded its ability to place financial control in the hands of its owners, rather than central banks, and made clear his intention to generate returns for citizens.

Patronis’s proposal echoes Florida’s recent interest in fostering a crypto-friendly economy under Governor Ron DeSantis. Since 2022, the state has been exploring crypto initiatives, with DeSantis advocating for businesses to pay taxes in bitcoin. Patronis cited similar moves in other states, including Michigan, Wisconsin, and Arizona, which have already begun integrating digital assets into pension funds.

HKEX to Launch Virtual Asset Index Series for BTC and ETH in November

Hong Kong Exchanges and Clearing Ltd. (HKEX) has announced the launch of the “HKEX Virtual Asset Index Series,” set to go live on November 15. This series will offer real-time reference prices for bitcoin and ethereum, focused on the Asian time zone.

HKEX’s CEO noted that the series aims to meet the growing demand in Asia for transparent virtual asset benchmarks, enhancing investor confidence and supporting Hong Kong’s position as a global financial hub. The indexes will be denominated in US dollars, and will leverage aggregated data from crypto exchanges.

HKEX has also recently introduced Asia’s first spot crypto ETFs. Despite initial excitement, trading volume for the ETFs has been in decline so far, with recent daily volume dropping to around $740,000 from a high of $4.73 million in October. This however should not be taken as a sign of these funds underperforming, as they are still in a nascent stage having launched so recently.

NBA Top Shot NFT Sales Surge as New Season Begins

The excitement of the new NBA season has fueled a substantial uptick in NBA Top Shot NFT sales. Weekly sales of the NFT collection reached 43,600 NFTs by the week ending Oct. 27, marking the highest weekly total since before the previous playoffs and representing a 94% jump from sales recorded last week.

Trading activity for the popular digital collectibles slowed significantly during the postseason and throughout the offseason, with weekly sales dipping to an average of around 26,000. The drop reflected a typical seasonal lull in interest. With fan interest in the digital collectibles now seemingly revived by the new season’s start, NBA Top Shot’s growth suggests that the league’s NFT strategy continues to effectively engage fans.

The uptick in interest comes as trading volumes in the NFT space as a whole have fallen, with a roughly 7% WoW dip in sales being logged at the start of the week.

-The Gemini Team