Markets

Spot Bitcoin ETF’s Q1 Haul, Bankman-Fried Prison Sentence

Published

11 months ago

18 May, 2024

FinCrypt Staff

Spot Bitcoin ETF's Q1 Haul, Bankman-Fried Prison Sentence

Key Takeaways

Spot bitcoin ETFs racked up more than $12 billion in net inflows by the end of the first quarter, less than three months since the first such products began trading in January.
Former FTX co-founder and CEO Sam Bankman-Fried has been sentenced to 25 years in prison on fraud-related charges related to his time at the cryptocurrency exchange.
Cryptocurrency exchange KuCoin has been accused of violations of US anti-money laundering rules.
Coinbase failed in an attempt to dismiss the SEC’s case against it, and the case will go to trial.
Solana has fallen sharply following reports that FTX is divesting its holdings in Solana as part of its bankruptcy process.

Bitcoin (Bitcoin) began the week trading in the red, below $70,000, after remaining above that level for most of the previous week. The cryptocurrency closed the first quarter of the year with gains of around 68%, driven largely by spot bitcoin exchange traded funds which has accumulated more than $12 billion in net inflows since January.

Last week was huge for legal battles involving cryptocurrency companies. Former CEO of FTX Sam Bankman-Fried KuCoin was sentenced to 25 years in prison some 18 months after the defunct cryptocurrency exchange’s collapse, while KuCoin is the latest exchange to face charges related to anti-money laundering laws. Additionally, Coinbase (COIN) failed in an attempt to file a lawsuit in the U.S. Securities and Exchange Commission (SEC) against him rejected.

Bitcoin Spot ETF Net Inflows Reach $12 Billion

Eleven bitcoin spot ETFs approved by the SEC in January saw around US$ 12.1 billion in net inflows until the end of the first quarter. Blackrock iShares Bitcoin Trust (I BITE) was the big winner of the spot bitcoin ETF inflow rush, with around $13.9 billion entering the fund.

Higher fees have led to a massive exodus from Grayscale’s Bitcoin Trust (GBTC) with investors withdrawing nearly $14.7 billion from the fund. GBTC is the oldest and largest bitcoin fund, which was converted into an ETF in January. Grayscale filed a request for mini bitcoin ETF with a lower rate plan to curb some of these outflows.

Hashdex’s DEFI ETF, previously a bitcoin futures ETF and one of eleven approved by the SEC, was finally converted into a spot bitcoin ETF and began trading on March 27.

Sam Bankman-Fried convicted of FTX fraud

Bankman-Fried was served a 25-year prison sentence for his involvement in a monumental fraud scheme that led to the platform’s downfall in November 2022. In addition to the prison sentence, Bankman-Fried will undergo three years of monitored release and will be ordered to hand over more than $11 billion. This massive confiscation aims to reimburse defrauded FTX customers.

O FTX collapse It was precipitated by a liquidity crisis in November 2022 and revealed a tangled web of financial mismanagement, including the improper commingling of funds with its sister company, Alameda Research. This misuse of funds led to the exchange’s inability to respond to customer withdrawal requests, causing significant losses estimated at around $8 billion.

Although a bankruptcy plan promises FTX users a return up to 90% of your lost funds, the compensation will reflect the value of your assets at the time of the exchange collapse, not accounting for any potential increases in cryptocurrency values since then. Despite Bankman-Fried’s defense arguments for a more lenient sentence based on the possibility of full restitution, the judge maintained that the focus should be on the seriousness of the fraud committed.

Crypto Exchange KuCoin Accused of Violations of Anti-Money Laundering Rules

Cryptocurrency exchange KuCoin and its founding members face charges from the U.S. Attorney’s Office in the Southern District of New York for violating anti-money laundering rules and operating an unlicensed money transmitting business. The accusations bring to light the exchange’s significant role in the suspicious movement of funds, with more than $5 billion allegedly laundered through deposits and another $4 billion through withdrawals.

The platform was allegedly negligent in verifying customer identities and reporting potentially illicit activity. Such actions place KuCoin in a situation similar to that previously experienced by other cryptocurrency exchanges, such as BitMEX and Binance, who also faced legal challenges for similar reasons. KuCoin founders Chun Gan and Ke Tang are specifically accused of disguising the platform’s engagement with American users, thereby facilitating uncontrolled expansion and securing billions in daily transactions without adhering to US financial laws.

The indictment highlights the deliberate efforts of KuCoin and its founders to evade global financial regulatory measures by concealing the significant involvement of US traders on its platform. This strategy has reportedly allowed KuCoin to accumulate over 30 million customers worldwide and handle billions in daily trading volumes.

Coinbase Fails in Attempt to File SEC Lawsuit

On a Big blow to Coinbase, a US District Court judge denied the cryptocurrency exchange’s bid to have the SEC’s lawsuit against it dismissed. O The SEC lawsuit alleges that Coinbase violated securities laws by offering unregistered securities through its exchange and staking services.

Coinbase Chief Legal Officer Paul Grewal expressed readiness for the court’s decision in a thread on X, indicating the cryptocurrency exchange’s intention to continue contesting the SEC’s claims. Grewal also called on Congress to continue moving forward on cryptocurrency-specific legislation. However, the SEC welcomed the decision, emphasizing the continuity of traditional securities regulatory frameworks in the face of new technological domains such as cryptocurrency.

The lawsuit centers on the SEC’s accusation that Coinbase allowed the trading of crypto-tokens, which should have been registered as securities, without proper authorization. This case represents a critical moment in the SEC’s broader campaign to apply traditional securities law to digital asset companies, testing the limits of regulatory oversight in the crypto industry. The outcome of this legal battle could have far-reaching consequences for the way crypto assets are classified and regulated in the United States.

What to expect from the markets this week

All eyes will remain on the spot bitcoin ETFs for which investors appear to have found a renewed appetite. Furthermore, the potential for a Spot Ether ETF This year’s approval is still being monitored, with Bitwise chief investment officer Matt Hougan now revealing a preference for approval to take place in December, according to an interview with Forbes.

The chances of approval by the end of May continued to fall, now at 20%, according to prediction market Polymarket. Although the SEC is supposedly analyzing the legal classification of Ether (ETH) as a security, Blackrock (BLACK) CEO Larry Fink said such categorization would not preclude the approval of a spot ether ETF.

Elsewhere, it was reported that FTX has begun unloading its roughly $7.5 billion into Solana (SUN) as part of your bankruptcy case. Solana was trading sharply lower on Monday.

Source

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week