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Daily Archives: January 25, 2024
Kari Lake is running for U.S. Senate from Arizona. The AZGOP tried to stop her. – NPR
Posted: January 25, 2024 at 11:26 am
Arizona Republican U.S. senate candidate Kari Lake, arrives for an evening rally with Republican presidential candidate former President Donald Trump, during the New Hampshire Republican presidential primary on Tuesday. David Goldman/AP hide caption
Arizona Republican U.S. senate candidate Kari Lake, arrives for an evening rally with Republican presidential candidate former President Donald Trump, during the New Hampshire Republican presidential primary on Tuesday.
The head of the Arizona Republican Party resigned Wednesday following the release of a surreptitiously recorded conversation of him seemingly trying to bribe Kari Lake to stay out of this year's U.S. Senate race.
A 10-minute audio recording, published by the Daily Mail of London on Tuesday, revealed a conversation between Lake, a Trump loyalist who unsuccessfully ran for governor of Arizona in 2022, and Arizona Republican Party Chair Jeff DeWit. In it, DeWit appears to offers Lake various deals to be put on a company payroll, or financial compensation in exchange for taking "a pause for a couple of years" from running for public office.
"There are very powerful people who want to keep you out, and what they're willing to do is put their money where their mouth is in a big way," DeWit said.
It's not illegal, or unheard of, for top party officials to attempt to clear the field of unfavorable candidates in order to pave the way for a preferred alternative. In the audio recording, DeWit raised concerns about Lake's ability to fundraise enough money to win the U.S. Senate race, as well as former President Donald Trump's ability to win another election and by association, Lake's own electability.
"I'm not even sure Trump can win again," DeWit said. "I don't know that he can win."
But DeWit also appeared well aware of the optics of attempting to buy off Lake, a MAGA firebrand with a national profile. In the recording, he repeatedly cast himself as a messenger for powerful people "back East" and asked for Lake's discretion.
"This conversation never happened," DeWit said.
"If you say no, which is fine, it's your choice, don't tell people," he added.
In this file photo, former Arizona State Treasurer Jeff DeWit steps into an elevator at Trump Tower on Nov. 15, 2016, in New York. Arizona Republicans selected DeWit to be the party's chairman in 2023. On Wednesday, he resigned amid a seeming bribery scandal with Republican U.S. senate candidate Kari Lake. Carolyn Kaster/AP hide caption
In this file photo, former Arizona State Treasurer Jeff DeWit steps into an elevator at Trump Tower on Nov. 15, 2016, in New York. Arizona Republicans selected DeWit to be the party's chairman in 2023. On Wednesday, he resigned amid a seeming bribery scandal with Republican U.S. senate candidate Kari Lake.
In a statement released Wednesday, DeWit accused Lake of being the Daily Mail's unidentified source. He denied he attempted to bribe Lake, and instead characterized the conversation as "an open, unguarded exchange between friends" that Lake recorded in a violation of his trust.
DeWit also said the audio recording provided to the Daily Mail was "selectively edited." By his own characterization, DeWit was advising Lake to postpone her U.S. Senate campaign and instead focus on running for governor again in 2026.
"It was a suggestion made in good faith, believing it could benefit both her future prospects and the party's overall strategy," DeWit said. "The release of our conversation by Lake confirms a disturbing tendency to exploit private interactions for personal gain."
DeWit went on to raise concerns that Lake may have a trove of secret recordings from conversations with other GOP officials, including Trump.
In this file photo from 2022, then-Arizona Republican gubernatorial candidate Kari Lake, right, speaks as former President Donald Trump listens during a rally in Oct. 2022, in Mesa, Ariz. Matt York/AP hide caption
In this file photo from 2022, then-Arizona Republican gubernatorial candidate Kari Lake, right, speaks as former President Donald Trump listens during a rally in Oct. 2022, in Mesa, Ariz.
"I question how effective a United States Senator can be when they cannot be trusted to engage in private and confidential conversations," he said.
Lake made it clear she has more recordings of conversations with DeWit in his statement, DeWit said Lake issued an ultimatum for him to resign Wednesday or "face the release of new, more damaging recordings."
A spokesperson for Lake's U.S. Senate campaign could not immediately be reached for comment. Lake, who has denied that she was the Daily Mail's source, publicly called for DeWit's resignation on Tuesday, telling KTAR that the audio was "reprehensible."
The leak of the conversation, which the Daily Mail reported took place in March 2023, comes ahead of a crucial juncture for the Arizona Republican Party. Trump will headline a fundraising rally for the Arizona GOP on Friday, the eve of the party's annual organizing meeting on Saturday.
The party will now have to choose a successor for DeWit, whose tenure as party chair has been marred by financial struggles following repeated statewide losses for the Republican Party under the previous chair, Kelli Ward.
Lake is the leading candidate to win the Republican nomination for U.S. Senate in Arizona, having already secured Trump's endorsement when she announced her candidacy last fall. Democratic Congressman Ruben Gallego is vying for his own party's nomination, while it remains unclear if incumbent Sen. Krysten Sinema a former Democrat turned independent will run for reelection.
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Kari Lake is running for U.S. Senate from Arizona. The AZGOP tried to stop her. - NPR
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NH primary plays outsized role in determining future of the Republican Party – NPR
Posted: at 11:25 am
Former President Donald Trump acknowledges supporters at the end of a campaign rally on Jan. 14 in Concord, N.H. Chip Somodevilla/Getty Images hide caption
Former President Donald Trump acknowledges supporters at the end of a campaign rally on Jan. 14 in Concord, N.H.
MANCHESTER, N.H. When New Hampshire voters head to the polls Tuesday, they will not only be picking a nominee.
Their choice between former President Donald Trump and his former U.N. ambassador, Nikki Haley, will also send a big signal about their feelings on the future of the party.
Luke Rose, a 26-year-old casino dealer, was bowling with co-workers at Yankee Lanes, a downtown Manchester bowling alley. Between turns, he described the way he views the conflict as being between what he calls the "MAGA idealism" of Trump and traditional conservative values of Haley.
He's convinced Trump's way will win out.
"The message that will be sent [on Tuesday] is that Trump has officially been chosen. He's the one," Rose predicted. "And beyond that, we have to prepare ourselves, whether we like it or not, for a MAGA America or a Biden America."
Luke Rose, 26, spends evening bowling with some friends in Manchester, NH on Jan. 21, 2024. Franco Ordoez /National Public Radio hide caption
Luke Rose, 26, spends evening bowling with some friends in Manchester, NH on Jan. 21, 2024.
The tightening race has thrown a spotlight on the identity crisis within the Republican party and the debate between populism and small-government conservatism.
Ever since Donald Trump rode down the escalator in Trump Tower, the Republican party has been struggling to figure out what it stood for.
The more establishment, anti-Trump, forces within the party have long been clamoring for this choice, said Alex Conant, who helped lead Senator Marco Rubio's presidential campaign in 2016.
The choice is between Trump who is the embodiment of the new wave of conservative populism and Haley who more represents the limited government wing of the party that also supports strong foreign policy.
Conant acknowledges the party has already moved so far away from its traditional values since Trump's rise.
"The New Hampshire primary is the last hurdle for Donald Trump to demonstrate that the Republican Party is a populist party now," Conant said. "And that the limited government, traditional conservatives that Nikki Haley represents do not have any real power within the party."
Former UN Ambassador Nikki Haley speaks to potential voters during a campaign stop in Hooksett, New Hampshire. Chip Somodevilla/Getty Images hide caption
Former UN Ambassador Nikki Haley speaks to potential voters during a campaign stop in Hooksett, New Hampshire.
The Trump campaign says there was never any doubt whose party it is.
Jason Miller, a senior advisor on the campaign says Trump has not only unified the base behind him, but he's also brought in new coalition of voters and expanded the party.
"What President Trump has done to show that the populism and working class Americans now side with the Republican Party," Miller said.
Phil Palker says he's one of those Americans. The 59-year-transportation worker, and former Coast Guard navigator, says Trump changed the party and he evolved with the former president.
Trump connects with voters like him in a way that no other politicians have before, Palker said.
"You know, I was pretty stagnant Republican," he said. "But ever since Donald Trump started running in 2015, I think his message is revealing to who the party is."
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NH primary plays outsized role in determining future of the Republican Party - NPR
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Biden: Its clear Trump will be Republican nominee – The Hill
Posted: at 11:25 am
After former President Trump secured a win in the GOP primary in New Hampshire on Tuesday night, President Biden set his sights on a 2020 presidential rematch.
“It is now clear that Donald Trump will be the Republican nominee. And my message to the country is the stakes could not be higher. Our Democracy. Our personal freedoms — from the right to choose to the right to vote. Our economy — which has seen the strongest recovery in the world since COVID. All are at stake,” Biden said in a Tuesday message to voters.
While Biden didn’t appear on the ballot in the Granite State, he nonetheless won the Democratic primary, with more than half of the state’s voters writing in his name on their ballots. He thanked voters for the “historic demonstration” of commitment to democracy and urged independent voters and Republicans to “join us as Americans.”
“Let’s remember. We are the United States of America. And there is nothing — nothing — we can’t do if we do it together,” Biden’s message said.
The Hill/Decision Desk HQ called the GOP race in Trump’s favor just after polls closed around 8 p.m. local time. With more than 170,000 votes pledged to him, Trump earned 54.6 percent support, beating out the only remaining GOP challenger, Nikki Haley, who earned 43.4 percent support.
Following his win, the Trump campaign emailed a statement that claimed “this race is over!” He thanked voters for their support throughout “every single witch hunt, raid, indictment and arrest.” In a celebratory speech after his win, Trump mocked Haley for her post-primary speech in which she said the race wasn’t over yet.
In an interview with Fox News Digital, Trump urged the former South Carolina governor to suspend her campaign, because if she stays in, “We have to keep wasting money instead of spending on Biden.”
Despite losing to Trump in both Iowa and New Hampshire, Haley said she wasn’t giving up yet.
“New Hampshire is first in the nation. It is not the last in the nation,” she said Tuesday. “This race is far from over. There are dozens of states left to go.”
According to national polling averages, Trump has a 1.3-percent lead over Biden in a hypothetical general election match-up.
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Election 2024: Haley Heads Home to Keep Up Fight as Trump and Biden Look to Rematch – The New York Times
Posted: at 11:25 am
Nikki Haley, the former governor of South Carolina, on Tuesday defied calls to drop out of the race for the Republican nomination, vowing to fight on after a second straight defeat at the hands of former President Donald J. Trump.
In rousing remarks, Ms. Haley painted a picture of a country and a world in disarray, casting herself as the choice for voters dissatisfied with both President Biden and Mr. Trump. She set up an epic showdown with Mr. Trump in South Carolina, where she is lagging far behind Mr. Trump in polls despite a home-state advantage.
New Hampshire is first in the nation it is not the last in the nation, she said as a loud wave of cheers and applause broke out across the room. She added that the race was far from over.
She added, Were going home to South Carolina.
Borrowing signature lines from her stump speeches, Ms. Haley, a United Nations ambassador under Mr. Trump, noted how far she had come since the race opened, when she was polling at just over 2 percent. She congratulated Mr. Trump on what she described as a well-earned victory and declared that politics was not personal to her, but she also called herself a fighter.
And Im scrappy and now were the last ones standing next to Donald Trump, she added. Painting herself as an outsider, despite her insider rsum, she pledged to take on Mr. Trump and the political class behind him. She also took shots at the media, who she said saw his glide to the nomination as a foregone conclusion.
With the new urgency she has been flashing on the trail in the past week, Ms. Haley turned up the heat on the former president, the dominant front-runner in the Republican race, who is fighting 91 felony charges. Another Trump presidency would be just as bad for the country as another four years of Mr. Biden, she said.
She also took another dig at Mr. Trumps mental fitness and his 77 years of age, reminding voters how he had confused her for House Speaker Nancy Pelosi and accused her of not providing security at the U.S. Capitol on Jan. 6, 2021. Someone in her rambunctious audience, which occasionally shouted encouraging interruptions, yelled, Geriatric!
With Donald Trump, you have one bout of chaos after another, she said. This court case, that controversy, this tweet, that senior moment. You cant fix Joe Bidens chaos with Republican chaos.
In her final Granite State appearances before polls closed, Ms. Haley had rejected the suggestion that Republican voters had already solidly united behind the former president, and pledged not to end her bid no matter the result.
I didnt get here because of luck, she said at a polling site in Hampton, N.H., while flanked by supporters, including Gov. Chris Sununu, her top surrogate in the state. I got here because I outworked and outsmarted all the rest of those fellas. So Im running against Donald Trump, and Im not going to talk about an obituary.
Mr. Trump, speaking to supporters at his victory party, mocked Ms. Haley for speaking like she won. But she didnt win she lost, he added.
On Wednesday morning, Ms. Haley is expected to speak during a Republican State Committee meeting in the Virgin Islands, which holds its contest on Feb. 8. She is then anticipated at a homecoming rally in Charleston, S.C., where her campaign has its headquarters.
A number of people close to Ms. Haley are encouraging her to keep going, many of whom are deeply opposed to Mr. Trumps becoming the nominee again.
Betsy Ankney, her campaign manager, released a memo early Tuesday morning shooting down suggestions that Mr. Trumps path to the nomination was inevitable. She pointed to the 11 of the 16 states that vote on Super Tuesday that have open or semi-open primaries that can include independent voters and are fertile ground for Nikki. Rushing through the departing crowds on Tuesday, Ms. Ankney said the campaign had also already assembled more staff members in place, though she declined to discuss further details.
Nevada will host a Republican caucus on Feb. 8, but Ms. Haley is not competing in that contest, instead participating in a Republican primary in the state two days earlier that awards no delegates.
Her campaign has bought over $1 million in television advertising from Tuesday through Feb. 6 in South Carolina, according to AdImpact, a media-tracking firm. It is part of what the campaign has announced will be a $4 million ad buy in the state.
And officials at her allied super PAC, Stand for America, said they, too, planned to forge ahead.
Mark Harris, the lead strategist for the PAC, said it was prepping television, mail and digital advertising in a get-out-the-vote effort that would look similar to the programs it had taken on in Iowa and New Hampshire, though as of Tuesday it had not yet made those investments.
Were running the outsider candidacy, so this was never going to happen all magically in one day, and so were going to keep pushing ahead, Mr. Harris said.
Since the summer, Ms. Haley has predicted that the Republican nominating contest would result in a showdown between her and Mr. Trump in her home state. Her outward confidence in that scenario has not faltered not after she failed to place second in Iowa, not after her top rival for No. 2, Gov. Ron DeSantis of Florida, dropped out and endorsed Mr. Trump, not after a slate of South Carolina legislators this week joined Mr. Trump on the stump in the final days of the New Hampshire race.
Her message to his allies and the news media: She has been here before.
I won South Carolina twice as governor, she told reporters Friday at a retro diner in Amherst. I think I know what favorable territory is in South Carolina.
But it has been 10 years since she was last on the ballot, and her state and her party have changed. Mr. Trump has solidified a loyal base there since he won South Carolina in the 2016 Republican primary over Ms. Haleys endorsement of his opponent, Senator Marco Rubio of Florida. Although Ms. Haleys affluent and more moderate Republican base along the coast and in Charleston remains intact, her grip on the Midlands has loosened. In the more conservative Upstate around Greenville, she is likely to have an even steeper uphill climb.
The daunting path ahead did not damp the enthusiasm among her supporters who gathered at her election watch party Tuesday at a hotel in Concord. Many were not from New Hampshire. Almost 100 students hailed from New York.
Despite the results, many described feeling exhilarated, optimistic and hopeful, believing that as the last Trump challenger standing in the Republican race, she would now have a greater chance to spread her message.
When the election results flashed on the television screens scattered throughout the room, few had been paying attention.
Im happy to hear that she is still going, said Allie Cable, 26, a department supervisor in the health care industry in Concord. Anything could happen.
Richard and Wendy Clymer, a Republican couple also from Concord, had missed the moment entirely. They had rushed into the event late after spending the day rallying support for Ms. Haley and encouraging voters to get to the polls. He saw the result as encouraging, even though the state went to Mr. Trumps column.
Mr. Clymer, 63, an engineer who had held a Haley sign outside a polling place for seven hours, recalled the moment when the results of his polling location were read aloud: Trump 467, Haley 739.
There was an audible gasp in the gymnasium like, Wow, this guy can be beaten, Mr. Clymer said.
Maggie Haberman and Kellen Browning contributed reporting.
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Why Trump’s critics see his New Hampshire win as a positive sign for 2024 – POLITICO – POLITICO
Posted: at 11:25 am
It was definitely not a good night for Donald Trump, Mike Madrid, a California GOP strategist and co-founder of the anti-Trump Lincoln Project, said.
By most metrics, the path to [stopping Trump] has become much clearer, Madrid said. The anti-Trump lane is discernible. Its palpable. Its big. Its something that we can work with in a real, meaningful way.
On the surface, the results from Iowa and New Hampshire look just plain bad for the anti-Trump movement. A former president facing 91 criminal charges and splitting his time between the courtroom and the campaign trail won over 50 percent of the vote in both states. In New Hampshire, where the GOP field quickly shrunk to two, independent voters, whose exit polls showed broke overwhelmingly for Haley, were trumped by Trumps GOP base.
The next two contests offer even less hope for impeding Trumps march toward the nomination. Haley is not competing for delegates in Nevada. And Trump leads her by double digits in polls of her home state of South Carolina.
Leaders of the effort to warn voters about a second Trump term say that focusing on the primary is a lost cause. They argue that Trumps nomination is inevitable and that the focus should shift now to trying to defeat him in the general election.
Its all doom and gloom in the primary, said Charlie Sykes, a conservative Wisconsin political commentator. But this has been predictable for a long time now.
Trumps detractors point to data from Iowa and New Hampshire that show some warning signs for Trump, particularly among independents and more moderate Republicans. In New Hampshire, 64 percent of undeclared voters sided with Haley, according to exit polls.
Exit polls showed four out of 10 people who cast a ballot for Nikki Haley in New Hampshire said they did so out of distaste for Donald Trump. | Jamie Kelter Davis for POLITICO
A pre-caucus NBC News/Des Moines Register/Mediacom poll of voters in Iowa found that 43 percent of Haley supporters said they would back President Joe Biden over Trump.
And in New Hampshire, 46 percent of GOP primary voters said they would be dissatisfied if Trump became the GOP nominee, and 35 percent said they would not vote for him in November.
Exit polls also showed four out of 10 people who cast a ballot for Haley in New Hampshire said they did so out of distaste for Trump. And 94 percent of Haleys voters said they would be dissatisfied if Trump won the nomination.
Fully half of Iowas Republican caucusgoers said they did not identify as part of Trumps Make America Great Again movement. Even more 63 percent said the same in New Hampshire.
That significant chunks of voters from two disparate (though still overwhelmingly white) electorates showed similar resistance to Trump is encouraging to both Sykes and Madrid.
Looking at these numbers and Trumps general approval [ratings] amongst Republicans and also election results from the last three elections, they are all pointing in a direction of getting worse for Trump not better, Madrid said.
Fergus Cullen, a Never Trump Republican and former New Hampshire Republican Party chair who voted for Haley on Tuesday, called those statistics the best result from yesterday.
Citing the 35 percent of voters who said they wouldnt vote for Trump in the general election, Cullen said, Imagine if 35 percent of GOP elected officials said the same thing. Those of us who oppose Trump may not be able to prevent his renomination, but we should be able to prevent him from winning a general.
Still, Trump has defied political gravity before, and many Trump critics after he left office once believed he was unlikely to win renomination. Cullen said Trump does have some ability to find new voters and expand the electorate.
Even though Biden and Trump have declared the general election effectively underway, Haley has not. The former South Carolina governor has vowed to continue through Super Tuesday, where her campaign argues a slate of open and semi-open primaries will give her a fighting chance.
And some Never Trumpers arent ready to look ahead to the general election yet. They want her to keep going.
Theres tons and tons of ammunition for her to make the case that [Trump] is unfit to be president, said Gordon Humphrey, a former U.S. senator from New Hampshire who left the party after Trump won the nomination in 2016 and supported Haley in Tuesdays primary.
Yet Sean Van Anglen, a New Hampshire political consultant who was an early supporter of Trump in 2016 but voted for Haley this time, is already moving on. Van Anglen, who said hed consider leaving the presidential line blank on his November ballot rather than vote for Trump or Biden, is looking to put together an effort to aid down-ballot Republicans who he believes could suffer with Trump again at the top of the ticket.
We need to let the toddler run his temper tantrum out, Van Anglen said. Then let the adults come back into the room and take back control of our party and our country.
Jessica Piper and Steve Shepard contributed to this report.
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Why Trump's critics see his New Hampshire win as a positive sign for 2024 - POLITICO - POLITICO
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Bitwise publishes bitcoin ETF holdings address after on-chain sleuths uncover BlackRock’s – Blockworks
Posted: at 11:24 am
Bitwise has publicly disclosed the address of its bitcoin ETFs holdings.
In a post on X, the company said that sharing the address was the first step toward increasing public transparency.
While the issuer is the first to make this type of announcement, that hasnt stopped internet sleuths from tracking down the addresses for other issuers, including Grayscale and BlackRock.
Read more: Lets pour one out for the first-day spot bitcoin ETF investors
Other sleuths have uncovered the addresses for VanEck, WisdomTree and Fidelity among others. Bitwise, prior to its public announcement, was also on that list according to a Jan. 22 post from Arkham on X.
The bitcoin ETFs had a rocky start following the much-anticipated approval from the Securities and Exchange Commission.
Grayscale, in particular, has seen huge outflows. Though some, as Blockworks previously reported, may stem from the FTX estate unloading its GBTC holdings.
GBTC has around $21 billion in assets, according to the firms website on Wednesday.
Read more: SECs X account fell victim to SIM swap attack
Volatility is no stranger to the bitcoin ETFs, which only received approval this month.
Prior to the SEC officially paving the way for the launches, an attacker was able to access the SECs official X account and make a fake ETF approval post. SEC Chair Gary Gensler then confirmed, via his X account, that the post was not sanctioned or made by the SEC.
The bitcoin ETFs were then approved the next day.
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Bitwise publishes bitcoin ETF holdings address after on-chain sleuths uncover BlackRock's - Blockworks
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Retail investors are worried bitcoin will plunge below $20000 this year, Deutsche Bank survey says – CNBC
Posted: at 11:24 am
Crypto skeptics aren't changing their tune just because they can now buy bitcoin exposure through an exchange traded fund, according to a Deutsche Bank survey. Since the launch of the ETFs on Jan. 11, bitcoin has fallen about 20% to roughly $39,000, according to FactSet. So far, institutions have been slow to adopt the new funds in portfolios and retail investors aren't entirely convinced they need to, London-based Deutsche Bank analyst Marion Laboure said in a note Tuesday. The bank polled 2,000 consumers across the U.S., U.K. and Europe after the Securities and Exchange Commission approved the ETFs earlier this month. It found that more than a third of respondents believe bitcoin will fall below $20,000 by the end of this year. Furthermore, more than half of participants indicated they believe a "major cryptocurrency" will collapse entirely in the next two years. Looking at bitcoin specifically, Deutsche said 39% of survey participants think it will stick around in the coming years, while 42% anticipate it will disappear. "The survey's results clearly indicate a lack of understanding of cryptocurrencies, as two-thirds of consumers possess minimal or no understanding of these digital assets," Laboure said. She added that the negative sentiment could be tied to past events, including the collapse of FTX in 2022 as well the SEC's lawsuits against Binance and Coinbase, two of the biggest exchanges in the world. The price of bitcoin rallied in the second half of last year, largely on market expectations that the U.S. would approve its first spot bitcoin ETFs this year, bringing the asset class legitimacy as well as an easy, convenient way for investors to add it to their holdings. Despite bitcoin's January sell-off, the crypto asset still has potential tailwinds in coming months, including an upcoming SEC decision on spot ether ETFs in May and the Bitcoin halving expected in April, Laboure wrote. "The crypto world is gradually moving towards greater institutionalization as traditional financial players (tradFi) enter the market," Laboure said. "Overall, the evolving ETF landscape and participations of institutional players are helping crypto mature into a more established asset class." CNBC's Michael Bloom contributed reporting.
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Retail investors are worried bitcoin will plunge below $20000 this year, Deutsche Bank survey says - CNBC
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Bitcoin ETF fee war spreads to Europe – Financial Times
Posted: at 11:24 am
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Simply sign up to the Exchange traded funds myFT Digest -- delivered directly to your inbox.
Visit our ETF Hub to find out more and to explore our in-depth data and comparison tools
Invesco and WisdomTree have slashed fees by more than 60 per cent on European bitcoin products as an unprecedented number of new exchange traded funds have become available to US investors.
The US Securities and Exchange Commission approved spot bitcoin ETFs this month from the likes of BlackRock, Fidelity and Invesco.
This has led to an unprecedented supply of new products for US investors, said Gary Buxton, Invesco head of ETFs for Europe, the Middle East and Africa, and Asia Pacific.
Previously such investors would have had to look to Canadian or European providers for exchange traded exposure to the cryptocurrency, experts said.
This article was previously published by Ignites Europe, a title owned by the FT Group.
Multiple providers have lowered fees as the US market worked to find the new equilibrium between supply and demand and the resulting range of prices is considerably lower than existing tracking products in Europe, Buxton said.
Ark Investment Management had indicated it would price its US ETF at 0.8 per cent but instead launched with no fees for the first six months or until assets reach $1bn (920m). After that it will charge 0.21 per cent.
BlackRock investors will pay 0.25 per cent for its product, although early investors can access it at 0.12 per cent for the first year until assets reach $5bn.
The US price wars have settled at a level around 30 basis points, said HanETF chief executive Hector McNeil.
Below 30 bps, providers cant make money unless they attract billions of assets under management, McNeil said. He suspected most would not and would therefore close in the medium term.
WisdomTree and Invesco have reacted by cutting fees by over 60 per cent on European-listed bitcoin exchange traded products.
Fees on the $325mn WisdomTree Physical Bitcoin ETP will fall from 0.95 per cent to 0.35 per cent, while fees on the $137mn Invesco Physical Bitcoin ETP will drop from 0.99 per cent to 0.39 per cent.
Both changes were announced within days of each other and will come into effect before the end of the month.
Invescos US product will waive its fees for six months or when it reaches $5bn, at which point it will charge 0.39 per cent the same as the newly announced price on its European product.
WisdomTree Europe head Alexis Marinof said the launch of spot bitcoin ETFs in the US had captured a lot of attention in Europe.
Many investors arent aware that they have been able to access the same exposure through physically backed ETPs since 2019, Marinof said.
The launch of spot bitcoin ETFs in the US is helping the crypto market to evolve as the asset class continues to stake a claim for a place in client portfolios, he added.
In Europe virtually all digital assets exchange traded products are structured as exchange traded notes, rather than funds. Investors in ETNs own a debt security, while ETF shareholders owns a portion of a funds underlying assets.
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US-based ETF specialist VanEck has said it plans to be more aggressive in marketing its crypto products in Europe following the SEC decision.
Martijn Rozemuller, chief executive of VanEcks European business, said that as well as boosting investor interest in cryptocurrency, the SECs decision had probably helped VanEcks brand in Europe due to the media coverage of its bitcoin ETF.
US-listed products may be more liquid and therefore attract European investors, said 7IM senior investment manager Peter Sleep. This is because it is a bigger market and is not spread across multiple exchanges like in Europe, he says.
Spreads, tax and custody arrangements are also important considerations, said McNeil.
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope.com.
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Bitcoin ETF fee war spreads to Europe - Financial Times
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Bitcoin ETFs aren’t giving crypto a big boost just yet. Here’s where the new funds stand – CNBC
Posted: at 11:24 am
The newly launched bitcoin exchange-traded funds are showing early signs of success, but they have so far fallen short of being the massive boost for crypto some bulls predicted. The funds began trading Jan. 11 after receiving approval from the U.S. Securities and Exchange Commission, and ETFs from iShares ( IBIT ) and Fidelity Wise Origin ( FBTC ) have already raked in more than $1 billion of cash from investors in fewer than 10 trading days. Despite those quick milestones, reviews of the launches have been somewhat tepid. Citi analyst Alex Saunders said in a Jan. 19 note to clients that inflows "have disappointed the most optimistic of expectations." In his own Jan. 19 note, Barclays analyst Benjamin Budish deemed the first-week flows "marginally positive." The launches have also proved to be a "sell the news" event for bitcoin itself, which rallied late last year in anticipation of the approval. The price of bitcoin was trading below $41,000 Monday, down from more than $49,000 at one point on the launch day for the ETFs. BTC.CM= YTD mountain Bitcoin has retreated since the launch of the bitcoin ETFs. This fall comes after some crypto investors had cited the ETF launches as a catalyst that could propel bitcoin to $100,000 in 2024. The idea behind those predictions was that the ease of buying ETFs would attract new investors who were previously scared away from crypto. Aniket Ullal, head of ETF data and analytics at CFRA Research, described the launches as "a solid start, but not spectacular," and said it was difficult to get a good estimate on how the funds would do before the launch. "Nobody was quite sure what the demand was out of the gate. Because, obviously we know there was a lot of excitement around the launch, but how much of that would translate? And therefore I think there wasn't a good consensus of what a good outcome looks like," Ullal said. The flow data would look much stronger if the Grayscale Bitcoin Trust (GBTC) was excluded. The fund had more than $28 billion in bitcoin when it was converted from an over-the-counter trust to an ETF, but it has seen more than $2 billion of outflows since then. Some outflows were expected from GBTC, due to its higher cost relative to other funds and the fact that it regularly traded at a large discount to its net asset value as an over-the-counter product. That discount likely attracted arbitrage players who used the ETF launch as an opportunity to close out their trade. "It's not out of line with expectations. Considering that their fees are way higher than the other ones, I don't think it's that bad," Ullal said. All of the other new funds are seeing inflows, even if some are trailing far behind the likes of IBIT and FBTC. While the first week for the funds may not have met some outsize expectations, early inflows have been quite large by ETF standards. For comparison, only two ETFs that launched in 2023 ended the year with more than $1 billion in net inflows, according to FactSet, and both of those launched in the first half of the year. Just eight new funds ended the year with more than $500 million in net inflows. Trading volume has also been strong, a sign that the funds should have staying power. "$12B of cumulative trading volume in 4 trading days is a 'successful launch'. Yesterday, all Bitcoin ETFs combined traded $2.2Bn, IBIT traded $340Mn. In comparison, SPDR Gold ETF (GLD) trades ~$1.2bn daily," Bernstein analyst Gautam Chhugani said in a Jan. 18 note to clients. Another thing to keep in mind when evaluating new ETFs is that a launch does not mean all financial advisors are able to buy the funds on day one. Some brokerage platforms have rules around metrics such as track record and trading volume that need to be met before new funds are added. "If bitcoin prices stay fairly stable, I do feel like [there] could be longer term demand here as asset managers get into the brokerage firms and advisors get more comfortable with it," Ullal said.
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Bitcoin ETFs aren't giving crypto a big boost just yet. Here's where the new funds stand - CNBC
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Why Bitcoin’s ‘relentless’ selling will end in weeks – DLNews
Posted: at 11:24 am
Bitcoin has tumbled almost 20% since BlackRock, Fidelity, and other firms launched their long awaited spot Bitcoin exchange-traded funds. Although, the cryptocurrency slightly recovered over the past 24 hours.
Analysts at crypto research firm K33 Research explain the reasons for the decline and why market participants can expect the selling pressure to ease soon.
Less than two weeks after they launched, new Bitcoin ETFs have seen nearly $1 billion in net inflows but that hasnt been enough to keep Bitcoins price up.
Structural factors, CME futures outflows, and spot selling are likely to blame, K33s head of research Anders Helseth and senior analyst Vetle Lunde wrote in a report Monday.
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Open interest at CME Group, the largest Bitcoin futures venue in the world, has declined by 28% among entities that havent issued a Bitcoin ETF, the report said.
Open interest reflects the total number of outstanding futures contracts held by market participants.
The market is experiencing structural selling, K33 said.
CME traders unsurprisingly [reduced] exposure following the ETF launch the firm said, and this could continue until it drops another 35% back to its 2023 average.
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Bitcoin is also experiencing spot selling pressure, as traders who entered well ahead of the ETF launch are now taking profit, the analysts said.
Grayscales GBTC which converted into a spot ETF is particularly relevant to current price action. The ETF has seen nearly $4 billion in outflows since January 11.
The report blamed some of these flows on the FTX bankruptcy estate, which likely exited its position, worth around $1 billion.
Market participants arbitraging GBTC are likely also closing their trades, the analysts said.
Outflows from GBTC are relentless but will, over time, dwindle, they wrote. Structural effects should play out with less intensity shortly, stabilising Bitcoins price as we enter February, the analysts added. Reduced exposure on CME will likely play out rapidly as we approach Fridays January futures settlement.
Bitwises chief investment officer Matt Hougan, who was previously CEO at ETF analytics firm ETF.com and chairman at events firm inside ETFs, echoed K33s assessment.
This is an ETF expectations-led sell-off, he posted on X. The market front-ran the ETF approval by piling into both spot Bitcoin and Bitcoin derivatives. It expected larger net flows into ETFs than weve gotten so far, and is now unwinding that bet.
Just as the market overestimated the short-term impact of ETFs, it is underestimating the long-term impact, he added.
Tom Carreras is a markets correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews.com
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Why Bitcoin's 'relentless' selling will end in weeks - DLNews
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