Bitcoin's burden of ETF 🤔🏋️♀️
Bitcoin's price rollercoaster: ETF hype to a $9,000 whale. SEC delays Ethereum ETF verdict. Bitcoin ETFs reign supreme in assets. Trump reject CBDCs and Ronaldo faces crypto lawsuit.
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What is happening with the Bitcoin price?
The whole ETF frenzy first took Bitcoin to a two-year peak of $49k and then back to $45k and now it's around $41k.
Read this: Tears follow Euphoria 😔😭
Over the past week, Bitcoin has seen a 10.8% decrease.
Even briefly hit $40k Today.
Why? Grayscale Investor's Profit Taking
After converting into a spot Bitcoin ETF, GBTC has seen over $1.5 billion in outflows, with a potential total of $3 billion expected.
As the approval happened, many GBTC investors saw an opportunity. They started selling their GBTC shares, expecting to switch to cheaper spot ETFs.
Why Grayscale matters?
The cumulative trading total of all spot bitcoin ETFs hit $13.7 billion, with $1.9 billion traded on Thursday alone.
Grayscale's fund contributed about 50% of the volume since the new spot ETF products started trading.
JPMorgan Analysts predict further downward pressure on Bitcoin's price, particularly if investors in Grayscale's spot ETF continue profit-taking.
The bank estimates an additional $10 billion outflow.
These outflows might compel GBTC to reduce its fees, currently at 1.5%, which is high compared to other spot Bitcoin ETFs.
And there's a whale activity
A $9,000 drop in Bitcoin’s price last week might be linked to the sale by a single whale.
The whale bought 100,000 BTC during Bitcoin’s 2021 peak, worth $4.8 billion.
They sold after Bitcoin reached $49,000 last week, breaking even and potentially gaining a $100 million profit.
TTD Delayed ⏳
The SEC has delayed its decision on Fidelity's spot Ethereum ETF proposal until March 5.
Ethereum is now trading at $2,463 - A 2.8% dip.
Why the delay? The SEC needs more time to consider the proposed rule change and related issues.
Fidelity filed for the Ethereum Fund in November, highlighting a court ruling challenging the SEC's rejection of spot crypto ETFs while allowing futures-based products.
The SEC will use this extended period to decide whether to approve, disapprove, or initiate further proceedings.
Fidelity and BlackRock, both investment giants are competing for a spot Ethereum ETF, following the launch of ether futures ETFs.
And who else?
Some industry experts infer that the SEC’s allowance of futures-based ETFs indicates a view of Ethereum similar to Bitcoin, possibly not treating it as a security.
Read this: The year of ETH?
Read this: Ethereum's Deja Vu? ✊✌️
Meanwhile Fidelity becomes second spot bitcoin ETF issuer to hit $1 billion of inflows.
TTD Numbers 🔢
Spot Bitcoin ETFs now hold a whopping $27.5 billion, dethroning silver's $11.5 billion AUM (Assets Under Management).
Among commodity-focused US ETFs, only gold ETFs, valued at approximately $95 billion, exceed Bitcoin ETFs in popularity.
Impact of Grayscale Conversion: The conversion of the Grayscale Bitcoin Trust into an ETF contributed significantly to the high AUM in Bitcoin ETFs.
It created the largest Bitcoin ETF overnight.
Read this: Who's got what?❓
Why it matters? The success of Bitcoin ETFs highlights Bitcoin's growing role as a reserve product and the high demand for Bitcoin exposure in financial markets.
BlackRock's Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has reached $1 billion in assets under management (AUM) in just one week since its launch👇
“I will never allow the creation of a central bank digital currency.”
Trump said this during a campaign stop in Portsmouth, New Hampshire.
His declaration against CBDCs was met with cheers and applause.
Trump joins other Republicans like Ron DeSantis, Vivek Ramaswamy, Tom Emmer, and Ted Cruz in opposing a U.S. CBDC.
Emmer introduced a bill to ban a U.S. CBDC, and similar moves were made by Cruz and in North Carolina.
Trump recently won the Iowa Republican primary, with DeSantis and other candidates like Vivek Ramaswamy trailing behind.
Who elese is cheering for Trump? After dropping out post-Iowa caucus, Ramaswamy is now endorsing Trump.
Current Federal Reserve Position: The Federal Reserve has no concrete plans for a CBDC; the focus has been on investigating and testing the concept.
SEC enforcer John Reed Stark says:
Binance users have filed a class-action lawsuit against Cristiano Ronaldo for promoting the crypto exchange.
But its not easy going against CR7.
Ronaldo's address in Saudi Arabia is a mystery, and traditional service methods haven't worked. These "elusive" plaintiffs argue their plan complies with international agreements and ensures Ronaldo actually gets the message.
So, their latest move? X (formerly Twitter), email, and a dedicated website.
Plaintiffs have created a website to publish case materials, which will be sent to Ronaldo’s verified X accounts and the email addresses of his U.S. legal counsel.
Ronaldo partnered with Binance in mid-2022 for a series of NFTs.
The lawsuit, filed in November 2023, alleges Ronaldo promoted unregistered securities in collaboration with Binance without necessary disclosures.
Other Celebrities, crypto endorsements, and their legal woes:
TTD Surfer 🏄
Flowdesk has raised a $50 million Series B round from Cathay Innovation, Ripple, Bpifrance and others.
Reddit is reportedly planning to launch its (IPO in March, with the company expected to sell about 10% of its shares.
The European Union has reached a provisional agreement to expand AML and counter-terrorist financing laws to include the crypto sector.
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The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.