Blockchain
Largest BlackRock Bitcoin ETF, RoaringKitty Powers Meme Coins
Key points
- Blackrock’s IBIT has overtaken Grayscale’s GBTC as the largest bitcoin ETF on the market.
- President Joe Biden has vetoed a bill that would have allowed traditional banks to more easily serve as custodians of crypto assets on behalf of their customers.
- Japanese cryptocurrency exchange DMM Bitcoin has been hacked with approximately $308 million worth of bitcoin.
- This week, all eyes are on meme coins, as infamous Reddit user Keith Gill has returned to trading GameStop.
Bitcoin (Bitcoin) briefly topped $70,000 on Monday, after spending much of last week below that mark. However, it was BlackRock’s iShares Bitcoin Trust (IBIT) who made headlines after toppling the Grayscale Bitcoin Trust (GBTC) as the largest bitcoin exchange-traded fund (ETF) in terms of assets.
Additionally, US President Joe Biden vetoed a cryptocurrency bill passed by both houses of Congress, and a Japanese cryptocurrency exchange was hacked over $300 million worth of bitcoin. Meanwhile, Keith Gill, the man behind the meme-stock frenzy in 2021, he fueled a rally in some meme coins with his latest bet.
Blackrock’s IBIT is now the largest Bitcoin ETF
Just over four months after it began trading on January 11, BlackRock’s bitcoin ETF has become the largest Spot Bitcoin ETF in terms of assets, surpassing Grayscale’s GBTC for first place. At the end of May, IBIT’s assets stood at $19.5 billion, while GBTC’s assets stood at $19.385 billion.
GBTC is the oldest fund, with bitcoin investments converted to ETFs when the U.S. Securities and Exchange Commission allowed spot bitcoin ETFs earlier this year. At the time, GBTC’s assets exceeded $24 billion.
However, as other comparable products began trading, investors pulled large sums of money out of GBTC, resulting in a net outflow of approximately $17.9 billion since January 11. In stark contrast, BlackRock’s IBIT saw substantial inflows, raising approximately $16.6 billion. this year, according to Farside Investors.
The disparity in fees between Grayscale’s ETF and other bitcoin ETFs from Blackrock, Fidelity and others played a crucial role in the competition that Grayscale’s fund faced. For example, GBTC charges a 1.5% fee, while IBIT charges a 0.25% fee. Specifically, Grayscale plans will soon launch an alternative offering of spot bitcoin ETFs with lower fees under the ticker BTC.
President Biden Vetoes Cryptocurrency Bill
President Biden, as anticipated, vetoed a bill aimed at overturning the SEC’s special regulations for crypto asset custodians. This SEC policy could pose significant challenges for traditional financial firms looking to offer cryptocurrency custody services.
The White House had already signaled its intention to veto the legislation. In a statement, President Biden expressed his desire to establish a balanced regulatory framework for digital assets under the authority of existing regulatory agencies.
According to Axios, critics noted that Congress’ time to review the SEC’s procedural action under the Administrative Procedure Act had expired and argued that the policy did not constitute a rule, a point disputed by the Government Accountability Office.
Banking industry organizations have urged the president to support eliminating the rule, arguing that it would make cryptocurrency custody services prohibitively expensive for traditional financial firms, ultimately disadvantaging their customers.
This move by the Biden White House follows a perceived reversal on crypto policy as various spot ether ETF applications were filed approved late last month by the SEC after deeming a rejection of these financial products imminent.
Even former President Donald Trump reversed his initial stance on bitcoin and other crypto assets, going so far as to do so make an election promise release convicted Silk Road online marketplace operator Ross Ulbricht from prison. Ulbricht is serving a life sentence for running a platform where illegal drugs and other illicit items were purchased using bitcoin.
More than $300 million stolen from Japanese cryptocurrency exchange
On Friday, Japanese cryptocurrency exchange DMM Bitcoin announced a hack or “unauthorized leak” in which 4,502.9 bitcoins, worth approximately 48.2 million yen, were stolen. This translates into bitcoins worth approximately $308 million.
DMM Bitcoin assured customers that their bitcoin deposits would be fully compensated through purchases supported by group companies, although no timeframe was given. The theft occurred at 1.26pm Tokyo time, coinciding with a 4,502 bitcoin transaction seen on Bitcoin blockchain.
In response, the exchange blocked cryptocurrency withdrawals, spot market purchases, and new leveraged trading positions, while also delaying yen-denominated withdrawals. DMM Bitcoin said further updates will be shared in a later announcement. According to blockchain analytics provider Elliptic, this incident is considered the eighth largest cryptocurrency exchange hack in history and the largest since the $477 million FTX theft in late 2022.
What to expect from the markets this week
A speculative surge has increased the prices of some meme tokens and GameStop (GME) shares on Monday, just hours after famed retail trader Keith Gill, of 2021 GME short squeeze fame, revealed his latest bet on the stock. Using his alias “DeepF—ingValue” on Reddit, Gill shared his GME options positions on the r/Superstonk subreddit, revealing bets worth more than $115 million in stocks and $65 million in call options expiring on June 21.
Gill also passes Kitty roaring on YouTube and his most recent viral post sparked a rally, with cat-themed meme tokens like POPCAT and MOG. Meanwhile, uncorrelated GME memetic currency on the Solana network it rose by around 200%. Gill’s social media activity previously sparked similar demonstrations in Mayhighlighting his significant influence and impact on the market since his initial analysis of GameStop in 2019, culminating in January 2021 short squeeze.
Although Bitcoin has experienced a prolonged bull market throughout the year, the so-called altseason, which refers to a rally in altcoins or non-bitcoin tokens, has not yet materialized. However, the frenzy around meme tokens shows that there is still a lot of speculation going on in the cryptocurrency market outside of bitcoin. Of course, it is worth noting that trading small-cap tokens in the cryptocurrency market is often nothing more than a game of chance.