🔴 ETFs Strain Bitcoin | This Week in Crypto – Jan 22, 2024

Bitcoin overtakes Silver, Solana will launch its second smartphone and Elon Musk reveals his private crypto holdings. These tales and extra, this week in crypto.

Bitcoin Slips After ETF Approval

Bitcoin’s price has plunged by greater than 15% for the reason that introduction of U.S. spot ETFs final week. Analysts reported one and a half billion {dollars} in outflows from the Grayscale Belief, speculating that buyers who have been beforehand benefiting from GBTC reductions, at the moment are exiting the bitcoin market completely relatively than reinvesting into the brand new ETFs. With estimates of one other $1.5 billion invested in GBTC in secondary markets, further profit-taking could put additional strain on bitcoin’s value.

Bitcoin Tops Silver

Following SEC approval, the Bitcoin ETFs now hold nearly $30 billion in belongings, far outpacing silver ETFs which have mixed belongings of about $11 billion. Whereas Bitcoin is usually referred to as a digital model of gold, the one commodity that is still extra well-liked is, nicely… gold – with roughly $95 billion in funds unfold throughout 19 ETFs.

BlackRock Scooped Up Most Bitcoins

With buyers piling into the brand new spot Bitcoin funds, CC15Capital reports that as of Friday, the 9 new ETFs have bought practically 81,000 Bitcoins, at the moment price practically $3.5 billion, since their launch. BlackRock leads the best way, amassing over 28,000 BTC for its iShares fund. Even after liquidating greater than 50,000 bitcoins to cowl the outflows talked about earlier, Grayscale continues to handle probably the most Bitcoin amongst ETFs with its substantial holdings of 567,000 BTC.

New Crypto Smartphone by Solana

Solana plans to launch its second crypto smartphone, as a observe as much as its first cellphone, Saga. The brand new cellphone can have new {hardware} and a less expensive value level, and goals to calm the secondary marketplace for the restricted provide of current Saga telephones. Initially struggling to discover a market, Saga gained traction when merchants found it included BONK tokens, after which the telephones shortly offered out in every week.

Jamie Dimon Dismisses Bitcoin in Davos

Artificial intelligence has stolen the spotlight at Davos, supplanting cryptos because the dominant matter of dialog on the World Financial Discussion board. This shift underscores the surge in AI investments because the world’s greatest firms are pushing their AI services and products. On the discussion board, JPMorgan Chase CEO Jamie Dimon grabbed the chance to dismiss Bitcoin but once more, acknowledging blockchain’s potential whereas emphasizing that Bitcoin does nothing.

Coinbase’s Court docket Battle Resumes

In a case intently watched by the crypto business, a Manhattan judge questioned Coinbase and the SEC about their conflicting definitions of securities. Decide Katherine Polk Failla heard arguments from either side specializing in authorized precedent defining securities. Coinbase has requested the dismissal of the lawsuit introduced by the SEC.

Crypto Crime Declines

In accordance with new analysis illicit cryptocurrency exercise is declining general regardless of a surge in ransomware incidents and cybercriminals receiving crypto funds. Chainalysis released its 2024 Crypto Crime Trends report which highlighted a lower in funds despatched to illicit cryptocurrency addresses, whereas noting an uptick in funds despatched to sanctioned entities utilizing stablecoins.

Musk Reveals Private Crypto Holdings

Elon Musk has revealed his personal crypto holdings, as his social media platform X has acquired one other money-transmitter license, with the goal to revolutionize funds. Musk confirmed he nonetheless owns Dogecoin, revealed that SpaceX continues to carry Bitcoin and Tesla additionally has simply over 10,000 bitcoin price practically $500 million.

That’s what’s occurred this week in crypto, see you subsequent week.