KEYTAKEAWAYS
- Japan’s FSA plans to recognize crypto assets as financial products and legalize crypto ETFs
- Wall Street’s extreme bearish bets on ETH reach record highs
- Public companies now hold nearly 3% of Bitcoin’s total supply
CONTENT
JAPAN’S FSA PLANS TO RECOGNIZE CRYPTO ASSETS AS FINANCIAL PRODUCTS AND LEGALIZE CRYPTO ETFS
According to Nikkei, Japan’s Financial Services Agency (FSA) is considering classifying crypto assets as financial products, similar to securities. This move aims to strengthen investor protection and require companies to disclose more detailed information. It may also pave the way for the approval of crypto-based exchange-traded funds (ETFs), further boosting crypto adoption and growth.
Analysis:
If Japan approves crypto ETFs, it could set a benchmark for the Asian market and attract more institutional investors. Since the U.S. has already approved Bitcoin ETFs, Japan following suit could accelerate the crypto market’s development in Asia and even influence other countries’ regulations.
WALL STREET’S EXTREME BEARISH BETS ON ETH REACH RECORD HIGHS
According to The Kobeissi Letter, short positions on Ethereum (ETH) have surged 500% since November 2024, increasing by 40% in just the past week. This marks an all-time high, showing Wall Street’s strong bearish sentiment toward ETH. On February 2, ETH dropped 37% within 60 hours, wiping out over $1 trillion from the crypto market.
Despite this, ETH has seen strong inflows since December 2024, totaling $2 billion, with a single-week high of $854 million. However, ETH is still about 45% below its 2021 all-time high, while Bitcoin keeps reaching new highs.
Analysis:
Although short positions are at record highs, money is still flowing into ETH, suggesting some investors are buying the dip. If ETH drops further, short covering could trigger a price rebound. Also, after Bitcoin reaches new highs, investors often shift focus to ETH and other major altcoins, which could support ETH’s recovery in the near future.
PUBLIC COMPANIES NOW HOLD NEARLY 3% OF BITCOIN’S TOTAL SUPPLY
Publicly traded companies worldwide now hold 622,735 BTC, worth about $59.82 billion at current prices. This accounts for 2.965% of Bitcoin’s total supply of 21 million.
Analysis:
With listed companies holding nearly 3% of Bitcoin, institutional confidence in BTC is growing. As more firms add Bitcoin to their balance sheets, its available supply decreases, tightening the market. With Bitcoin’s halving approaching in April, many expect reduced supply to drive prices higher. Institutions’ long-term holdings could further increase Bitcoin’s scarcity premium.
