JPMorgan has downgraded U.S. exchange Coinbase to neutral, stating that the launch of spot bitcoin exchange-traded funds (ETFs) that drove the crypto market's positive performance in 2023 could disappoint investors in 2024. Despite Coinbase's progress in important initiatives, the bank believes that 2024 could be more challenging for the exchange, which saw a 390% gain in its stock last year. The approval of spot bitcoin ETFs by the Securities and Exchange Commission (SEC) was expected to bring mainstream money into the cryptocurrency space, but JPMorgan warns that any disappointment with ETF fund flows could deflate the enthusiasm that has driven the cryptocurrency rally.

With the Bitcoin ETF becoming a classic sell-the-news event, we explore the market's risk appetite for tokens further out on the risk curve. There are some indicators alluding to ETH outperformance, as well as interesting divergences in altcoin price action relative to the majors.

According to reports from Finance News, Invesco Hong Kong has signed a memorandum of understanding with Huobi Financial to provide innovative investment strategies that combine virtual assets and traditional investment tools for retail and institutional investors. At the same time, these two Hong Kong enterprises will jointly explore the launch of a Bitcoin spot ETF in the Hong Kong market.

Since the spot Bitcoin ETF began trading in the United States on January 11, trading volume of the Bitcoin futures ETF ProShares Bitcoin Strategy ETF (BITO) has significantly decreased. According to data tracked by cryptocurrency exchange Coinbase, on Thursday, BITO stocks worth slightly over $500 million changed hands on the New York Stock Exchange, a 75% drop from the record of $2 billion set on January 11. According to data from ETF.com, BITO had a net outflow of over $270 million during the same period. Meanwhile, according to Coinbase data, 11 spot ETFs had a cumulative trading volume of $14 billion in the first week, exceeding all other ETFs launched in 2023. These funds have raised over $1.2 billion in investor funds within a week of their establishment.

According to CC15Capital data on January 20th, the Bitcoin spot ETF had huge trading volume today, with three of the top 20 ETFs in terms of trading volume being related to BTC, including GBTC, BITO (futures ETF), and IBIT. Excluding GBTC, the other nine spot ETFs have purchased 79,618 BTC within the approved six days.

According to BitMEX Research, on the 6th day of trading for Bitcoin spot ETF, Franklin had zero inflow on the 6th day. VanEck had a net inflow of $14.2 million on the 6th day, with a total inflow of $39.3 million; WisdomTree had an inflow of $2.9 million. Both had their best day of inflow after approval.

Bitcoin's price has dropped by 4.5% to reach its lowest level in a month at $40,800, following the approval of spot Bitcoin ETF products by the SEC. Despite the approval being seen as a milestone for the crypto industry, Bitcoin's price has not only failed to sustain its previous highs but has also witnessed a notable decrease. The recent unexpected downturn has left investors and market analysts grappling with the factors contributing to Bitcoin's decline and its potential ramifications for the broader cryptocurrency market. The decline may be due to traders' attention being focused elsewhere, as well as the situation surrounding Grayscale's Bitcoin Trust.

Michael Sonnenshein, CEO of Grayscale Investments, said that most of the 11 approved Bitcoin exchange-traded funds (ETFs) cannot survive. Many ETF issuers charge 0% fees for a limited time and then slightly increase fees. Most approved ETFs charge between 0.2% and 0.4%. However, Grayscale Bitcoin Trust ETF charges a fee of 1.5%. Sonnenshein listed several reasons for this fee, including that it is the largest Bitcoin fund, has a 10-year "successful operation" record, and has a diverse investor base. The reason why other ETF fees are lower is that these products have "no track record" and issuers are trying to attract investors through fee incentives. Sonnenshein believes that two to three spot Bitcoin ETFs "may achieve some critical mass" of managed assets, but others may withdraw from the market.

CEO of stablecoin company Circle, Jeremy Allaire, stated that tokenization adoption will continue to grow after the approval of the bitcoin ETF and Blackrock's recognition. He believes that financial companies may issue tokenized versions of their assets this year. It is stated that asset tokenization will become a part of financial companies' development this year. Tokenization technology involves creating a digital version of an asset and putting it into a blockchain, and it may grow this year due to its advantages over traditional financial processes.

US Bitcoin spot ETF was approved nearly a week ago. Yahoo Finance data compiled by TheBlock shows that on January 17th, the cumulative trading volume of 11 spot Bitcoin ETFs exceeded $11.1 billion on the fourth trading day. Meanwhile, Hong Kong, which is determined to become the center of global virtual assets and Web3 and has repeatedly released positive signals for Bitcoin spot ETFs, has also added some expectations to the market. Some institutions told reporters that more than ten fund companies are actively preparing to launch spot ETFs in Hong Kong, of which seven or eight have entered the actual promotion stage and will work with partners to strive to promote the landing of Hong Kong spot ETFs as soon as possible in the coming months. <br>