OUTFLOW ALERT

GBTC Outflows Put Pressure on BTC Price

GBTC Outflows: Grayscale's GBTC faces a significant outflow surge. Since converting to an ETF, it has lost over $2.2 billion USD worth of BTC. This coincides with new spot bitcoin ETFs' launch, signaling a shift in investor preference.

FTX's Impact: The bankrupt crypto exchange FTX has reportedly offloaded approximately 22 million GBTC shares, valued at nearly $1 billion. This significant reduction in GBTC holdings by FTX is a major contributor to the fund's outflows and may be influencing Bitcoin's recent price movements.

Shift to New ETFs: Contrasting GBTC's outflows, BlackRock and Fidelity Investments experienced substantial inflows into their bitcoin ETFs, totaling almost $1.8 billion. This likely indicates a reallocation of some of GBTC’s assets towards newer ETFs with more competitive fees.

Market Dynamics: Despite the net outflows from GBTC, overall trading volumes in crypto investment products reached $11.8 billion last week, about seven times the 2023 weekly average.

🔒 Samourai Wallet, along with 25 unaffiliated Bitcoin companies, responded to FinCEN's proposed rules on Bitcoin mixing. The companies argue they are overly broad and harm user privacy. The rules equate basic cybersecurity practices with suspicious activities, potentially affecting legitimate financial transactions. Samourai Wallet advocates for less invasive measures, emphasizing the rule's potential to unjustly infringe on financial privacy and legitimate use of cryptocurrencies.

🔍 The fourth Bitcoin halving brings new challenges with reduced subsidies. This pivotal event emphasizes transaction fee revenue, potentially altering the Bitcoin ecosystem unlike past halvings.

📈 Nine spot Bitcoin ETFs swiftly accumulate 100,000 BTC in a week. The rapid acquisition of BTC by the US Bitcoin ETFs outpaces MicroStrategy's 300-days it took to reach the same mark.

📉 There was a significant drop in daily spot crypto exchange volumes. With ETFs now trading, more Bitcoin trading volume may shift to the US ETFs rather than spot Bitcoin markets.

🌐 Bitwise begins disclosing BTC addresses. The company posted the Bitcoin address that holds the fund’s bitcoins. This is a shift towards better transparency in U.S. Bitcoin ETFs.

🔁 Core Scientific is relisted on NASDAQ after overcoming bankruptcy. The Texas-based bitcoin miner, with operations in five U.S. states, has restructured, reducing $400 million in debt. This recovery aligns with renewed investor interest in bitcoin mining.

SEC Bitcoin ETF Approval Reshapes the Monetary Landscape

SEC's Bitcoin ETF Approval: The SEC's approval of bitcoin ETFs significantly impacts the U.S. financial landscape. This move makes it challenging for the U.S. to ban bitcoin, ensuring its enduring role in the monetary system.

Impact on U.S. Policy: The presence of large financial entities in the bitcoin market increases lobbying power, making restrictive policies on bitcoin less likely. Bitcoin ETFs attract mainstream investors, further embedding bitcoin in U.S. financial markets.

Do you think FTX's selling of Grayscale (GBTC) ETF shares is the cause of Bitcoin's price fall despite ETF approval?

👍 Yes - 90.9%

👎 No - 9.1%

📚 Cornell University has approved a pioneering Bitcoin-focused degree, led by student Ella Hough. Her interdisciplinary study spans multiple fields, culminating in a thesis on Bitcoin's global impact, set to be showcased at Cornell.

🚀 A new visualization reveals Bitcoin ETFs rapidly amassed over 100,000 BTC in just a week. This surge highlights a strong institutional interest in Bitcoin.

🔓 A Canadian judge ruled freezing protesters' crypto donations unconstitutional. The Federal Court found no national emergency to justify the government's use of emergency law in 2022 against trucker protests.

🌍 NASDAQ's report reveals $3.1 trillion in illicit funds flowed globally in 2023. Highlighting financial crime's vast scale, the report notes the absence of Bitcoin and crypto in facilitating these crimes, focusing on cash's role in drug and human trafficking, terrorist financing, and fraud.

🚨 Trezor reports a security breach affecting 66,000 users' contact details. The breach, traced to a third-party support portal, could expose users to phishing attacks. Despite this, no user funds or recovery seeds were compromised.

“Investors who want outperformance will allocate to #Bitcoin, those who continue to fight it will just get left behind.”

12,200 BTC - The number of BTC that left the GBTC fund yesterday. Outflows on-chain are usually the actual trades from the previous day.

12,000 BTC - The average amount of BTC that the ETFs are buying each day.

83 - The number of days left until the 2024 Bitcoin halving.