U.S.-listed Bitcoin exchange-traded funds (ETFs) witnessed a staggering $4.6 billion in trading volume on their debut day, according to LSEG data. Eleven spot Bitcoin ETFs, including offerings from Grayscale, BlackRock, and Fidelity, entered the market, triggering a fierce competition for market share. Grayscale, BlackRock, and Fidelity dominated trading volumes. The regulatory approval from the SEC spurred intense competition among issuers, leading to fee reductions below industry standards. Bitcoin's price surged to its highest since December 2021. Analysts estimate varied flows, with Bernstein predicting gradual growth to $10 billion in 2024, while others suggest $50 billion to $100 billion in 2023 alone. The approval may pave the way for innovative crypto ETFs, though some caution that the broader investment community still views cryptocurrencies as risky.
Chaos ensued as the official SEC Twitter account falsely announced the approval of spot Bitcoin ETFs, triggering market speculation and excitement. SEC Chair Gary Gensler quickly clarified the tweet, attributing it to a hack of the @SECGov X/Twitter account. The incident adds a twist to the ongoing saga of Bitcoin ETF approvals, with the SEC previously resisting due to concerns about market manipulation. Despite the retraction, the agency is expected to announce approvals soon, with major players like Grayscale and BlackRock in the mix. The episode raises questions about cybersecurity practices at the SEC and adds an ironic touch to the regulatory landscape.
I went into SEC v. Coinbase hearing thinking $COIN would, on this motion, win dismissal of SEC's primary claims (concerning trading) but maybe not staking and broker claims. I left thinking COIN would win full dismissal. Snippet below and full note here: https://t.co/UfjiByMLzS https://t.co/7Y2Z93Nrwt pic.twitter.com/yLUUEwdVkl
— Elliott Z. Stein (@NYCStein) January 19, 2024
A recent Chainalysis report reveals a 29% decrease in crypto crime in 2023, with stolen funds from scams dropping by almost a third compared to 2022. FTX, following Sam Bankman-Fried's conviction, played a significant role in the decline. Illicit revenue, overall, plummeted by over 54%. The report indicates stolen cryptocurrency accounted for 0.34% of total on-chain transactions, totaling $24.2 billion in 2023, down from 0.42% ($39.6 billion) in 2022. The decrease in 2022 was attributed partly to FTX creditor claims. While Bitcoin remains the top cryptocurrency, stablecoins now dominate illicit transactions. Despite a decline in theft, criminal activities like ransomware and darknet market operations saw increased revenues. Additionally, concerns raised by Senator Elizabeth Warren regarding crypto's role in terrorism financing and a UN report highlighting a rise in money laundering through online casinos in East and Southeast Asia add to the complex landscape of crypto-related crimes.
In a recent Sotheby's auction, the digital art piece "Genesis Cat," part of the Taproot Wizards project using the Bitcoin blockchain's Ordinals protocol, sold for an impressive $254,000. The 1-of-1 special edition artwork by Taproot Wizards' artist Francisco "FAR" Alarcon surpassed its estimated value by over 12 times. This sale contributes to the growing popularity of NFT-like creations on the Ordinals protocol. The broader auction, titled "Ordinals Curated Sale," featured 19 lots from 11 artists, collectively bringing in $1.1 million. Notably, Lot 17, named "Black Rare Sat 20,159,999,999,999," set a record for a "Rare Satoshi," fetching $165,100. The success of Ordinals inscriptions has drawn comparisons to the NFT craze on the Ethereum blockchain. Despite concerns about blockchain congestion, these Bitcoin-based digital art transactions continue to captivate the art and crypto communities.
Since the approval of Bitcoin ETFs, investors have withdrawn over $2 billion from the Grayscale Bitcoin Trust (GBTC). Notably, FTX's bankruptcy estate played a major role, liquidating 22 million shares, accounting for a significant portion of the outflow, totaling close to $1 billion. The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission triggered high expectations, but Bitcoin's price has declined. FTX's completion of the substantial sell-off could potentially alleviate selling pressure, considering bankruptcy estate liquidations are rare events. The article explores how FTX capitalized on the price disparity between Grayscale trust shares and the net asset value of underlying bitcoin, ultimately shaping the post-approval landscape.
The bankruptcy estate of FTX, the collapsed crypto exchange, is set to sell over 22 million units of Grayscale Investment's GBTC (Grayscale Bitcoin Trust) – a substantial portion of the recently converted GBTC spot bitcoin ETF. As one of the ten spot bitcoin ETFs recently approved by the SEC, GBTC is in a competitive landscape for new investments. Grayscale, having launched the trust product in 2013, managed over $28 billion in assets as of January 10. The potential sale of all 22 million GBTC units by FTX's estate, valued at $40.69 per share, could amount to approximately $907 million. The article delves into the significance of this massive sell-off and its potential impact on recent GBTC selling activity, highlighting the complexities surrounding FTX's estate and the broader cryptocurrency market. Axios attempted to gather insights from relevant parties but received no responses for comment.
Crypto.com's report reveals a 34% surge in global cryptocurrency owners, reaching 580 million by the end of 2023. Bitcoin holders grew by 33% to 296 million, constituting 51% of all crypto owners. BTC adoption was driven by ETFs and the Bitcoin Ordinals protocol. Ethereum ownership rose by 39% to 124 million, forming 21% of the global crypto owner base, attributed to liquid staking post Ethereum's Shanghai Upgrade. The report underscores the impact of institutional interest on Bitcoin and Ethereum adoption.
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