First time reading? I’m Jordan, and this is The Bitcoin Minimalist. Every Tuesday & Thursday, we scour 100s of sources to bring you need-to-know Bitcoin insights.

Today we’re covering:

• El Salvador’s volcanic Bitcoin mining,

• Hash ribbons cross, signaling weak miners,

• Andrei Jikh confronts Dave Ramsey about Bitcoin,

• And everything else you need to know.

—Jordan

MAJOR INVESTMENT

Millennium Management Reveals $2 Billion Bitcoin ETF Portfolio

What’s happening: Millennium Management disclosed a $2 billion investment in spot Bitcoin ETFs, as revealed in a recent SEC filing. This portfolio represents 3% of the firm’s $64 billion fund.

Why it matters: This significant investment highlights the growing acceptance of Bitcoin ETFs among major financial institutions, signaling increased confidence in Bitcoin as a viable investment asset.

Investment details: Millennium’s Bitcoin ETF holdings span several leading firms, including BlackRock ($844M), Fidelity (over $800M), ARK21, Bitwise, and Grayscale. Other institutions like Hightower and JPMorgan Chase have also announced investments in Bitcoin ETFs recently.

Market impact: Bitcoin's price surged to $66,000, marking a 7% increase in 24 hours. The rising interest in Bitcoin ETFs from investment companies is possibly contributing to this bullish trend.

Broader context: Spot US Bitcoin ETFs went live approvals in January 2024 and have gained prominence quickly. Millennium's disclosure underscores the growing trend of Bitcoin ETFs in portfolios, including:

• The State of Wisconsin ($100 million) 

• Wells Fargo

• Susquehanna ($1.3 Billion)

• Pine Ridge ($205 Million)

WHAT WE’RE WATCHING

📊 CME Group plans to launch spot Bitcoin trading to meet Wall Street demand. This move aims to integrate traditional finance with Bitcoin, offering a regulated Bitcoin marketplace that’s more familiar to traditional investors. The initiative, still under discussion, could attract institutional investors interested in Bitcoin to regulated platforms.

💬 Bitwise (BITB) Asset Management's Hunter Horsley tweeted about speaking with a nation's sovereign wealth fund. He claims the country is involved in Bitcoin mining, sarcastically hinting at growing institutional interest: "Probably nothing."

📉 On-chain data shows Bitcoin Hash Ribbons have signaled miner capitulation, suggesting distress among miners. This metric, using 30-day and 60-day moving averages of hashrate, indicates a potential market bottom. Miners quitting could imply tightening revenues and low profitability.

💰 Wisconsin’s State Investment Board invested nearly $100 million in BlackRock's iShares Bitcoin Trust in Q1, purchasing 94,562 shares. This marks the first known significant state-level Bitcoin investment. The news led to a 1% increase at the time.

🪙 Oklahoma Governor Kevin Stitt has signed the 'Bitcoin Rights' bill into law, providing legal protections for Bitcoin mining and transactions. The bill allows residents to self-custody Bitcoin and mine it without a money transmitter license. It takes effect on November 1, 2024.

👔 Vanguard appoints Salim Ramji, a Bitcoin-friendly ex-BlackRock exec, as CEO. Ramji's past role in launching BlackRock’s spot Bitcoin ETF sparks speculation about potential policy shifts at Vanguard, which has so far opposed Bitcoin ETFs. This marks Vanguard's first-ever outsider CEO appointment.

📈 U.S. House to vote on the FIT21 bill next week, potentially swaying Senate support. Rep. Patrick McHenry emphasizes the importance of Democratic backing for crypto regulation, which could influence the bill's future.

EL SALVADOR

El Salvador Mines 474 Bitcoin Using Volcanic Geothermal Energy

What’s happening: El Salvador has mined 474 Bitcoin worth $29 million using geothermal energy from the Tecapa volcano since 2021.

Bitcoin mining details: El Salvador uses 1.5 MW from the Tecapa volcano's power plant for mining operations. The country’s total Bitcoin holdings now amount to 5,750 BTC, valued at approximately $354 million.

Government support: Despite criticism from global organizations, President Nayib Bukele remains committed to Bitcoin, announcing daily purchases and creating a tracker to view the country’s holdings live. His Bitcoin policies have gained significant support, contributing to his recent re-election victory.

The broader context: El Salvador’s decision to adopt Bitcoin as legal tender in 2021 marked a historic shift, as they became the first country to make Bitcoin legal tender.

POLL

TUESDAY’S POLL RESULTS

Should Biden remove the Chinese miners, or should the government stay out of the mining industry?

🚫 🇨🇳 - Ban Chinese miners  - 46.9%

🏛️ ≠ - Government should not be involved - 53.1%

🚫 🇨🇳 - Ban Chinese miners - “Immediately power surge their equipment” - Tom

IN THE LOOP

📈 Canaan Inc CEO Nangeng Zhang shared insights on Bitcoin mining efficiency and chip design improvements, predicting significant advancements in the next 3-5 years. He highlighted new opportunities in the Middle East and the convergence of Bitcoin mining with AI technologies. Canaan plans to release new ASIC products annually with over 20% efficiency gains.

📈 Paul Marino, Chief Revenue Officer at GraniteShares, believes the fourth Bitcoin halving in April, which cut the new issuance rate to 3.125 BTC every ten minutes, has sparked interest. Despite a recent price drop, he sees macroeconomic shifts and supply-demand factors suggesting a bullish future.

💼 Pine Ridge Advisers has invested $205 million in major U.S. Bitcoin spot ETFs, including BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund.

VIDEO

Andrei Jikh, a popular personal finance YouTuber with 2.34 million subscribers, confronts financial expert Dave Ramsey on Bitcoin and other financial topics.

Dave Ramsey is a famous American financial guru, author and syndicated radio host who has become one of the US’s most trusted sources for financial advice.

CHARTS & DATA

Hash Ribbons - The Bitcoin hash ribbons indicator was triggered (red triangle on bottom right of chart).

Hash ribbons attempts to find lows in Bitcoin’s price based on changes in mining power on the network.

It appears to have caught the bottom again this time, as Bitcoin hit $66,000 a day after the price was at $61,000 when the indicator went off.

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