Key takeaways
- Blackrock's IBIT has surpassed Grayscale's GBTC as the largest bitcoin ETF on the market.
- President Joe Biden vetoed a bill that would have allowed traditional banks to more easily act as custodians of crypto assets on behalf of their customers.
- Japanese cryptocurrency exchange DMM Bitcoin was hacked for approximately $308 million worth of bitcoins.
- This week, all eyes are on meme coins, as infamous Reddit user Keith Gill has returned to trading GameStop.
Bitcoin (btc) briefly surpassed $70,000 on Monday after spending most of last week below that mark. However, it was BlackRock's iShares Bitcoin Trust (That's going to go) that made headlines after toppling Grayscale Bitcoin Trust (GBTC) as the largest spot bitcoin exchange-traded fund (ETF) by assets.
Additionally, US President Joe Biden vetoed a cryptocurrency bill that passed both houses of Congress and a Japanese cryptocurrency exchange was hacked for over $300 million worth of bitcoins. Meanwhile, Keith Gill, the man behind the meme-stock frenzy in 2021, fueled a rally in some meme coins with his latest bet.
Blackrock IBIT is now the largest Bitcoin ETF
Just over four months since it began trading on January 11, BlackRock's bitcoin ETF became the largest Spot bitcoin ETF by assets, surpassing Grayscale's GBTC for the top spot. At the end of May, IBIT's assets stood at $19.5 billion, while GBTC's stood at $19.385 billion.
GBTC is the oldest fund, with bitcoin investments that became an ETF when the U.S. Securities and Exchange Commission allowed spot bitcoin ETFs earlier this year. At that time, GBTC's assets exceeded $24 billion.
However, as soon as other comparable products began trading, investors withdrew large sums of money from GBTC, generating approximately $17.9 billion in net outflows since January 11. In stark contrast, BlackRock's IBIT has reported substantial inflows, generating around $16.6 billion. this year, according to Farside Investors.
The disparity in fees between the Grayscale ETF and other bitcoin ETFs from Blackrock, Fidelity and others has played a crucial role in the competition Grayscale's fund has faced. For example, GBTC charges a 1.5% fee, while IBIT charges a 0.25% fee. In particular, grayscale plans soon launch an alternative spot bitcoin ETF offering with lower fees under the BTC symbol.
President Biden Vetoes Cryptocurrency Bill
President Biden, as expected, vetoed a bill aimed at repealing the SEC's special regulations for crypto asset custodians. This SEC policy could pose significant challenges for traditional financial companies seeking to offer crypto custody services.
The White House had previously expressed 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 axiosCritics noted that the time for Congress to review the SEC's prosecutorial 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 trade organizations urged the president to support eliminating the rule, claiming it would make cryptocurrency custody services prohibitively expensive for traditional financial firms, ultimately harming their customers.
This move by the Biden White House follows a perceived reversal in crypto policy as several spot ether ETF applications were filed. approved late last month by the SEC after it was assumed that rejection of these financial products was imminent.
Former President Donald Trump has also reversed his initial position on bitcoin and other crypto assets, even going so far as to make a campaign promise to free 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 crypto exchange DMM Bitcoin announced a hack or "unauthorized leak" during which 4,502.9 bitcoins, valued at approximately 48.2 million yen, were stolen. That translates to approximately $308 million worth of bitcoins.
DMM Bitcoin assured customers that their bitcoin deposits would be fully offset by acquisitions backed by its group companies, although it did not provide any timeline. The theft occurred at 1:26 p.m. Tokyo time, coinciding with a transaction of 4,502 bitcoins seen on Bitcoin. block chain.
In response, the exchange paused cryptocurrency withdrawals, spot market purchases, and new leveraged trading positions, while delaying yen-denominated withdrawals. DMM Bitcoin stated that more updates would be shared in a later announcement. According to blockchain analytics provider Elliptic, this incident ranks as the eighth largest cryptocurrency exchange hack in history and the largest since the $477 million FTX theft in late 2022.
What to expect in the markets this week
A speculative surge drove up the prices of some meme tokens and GameStop (GME) stocks on Monday, just hours after renowned 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 picks positions on the r/Superstonk subreddit, revealing bets worth more than $115 million in shares and $65 million in call options expiring on June 21.
Gill also passes roaring kitten on YouTube and her most recent viral post sparked a rally, tokenized by cat-themed memes like POPCAT and MOG. Meanwhile, unrelated GME same corner on the Solana network it shot up approximately 200%. Gill's social media activity previously sparked similar demonstrations in Mayemphasizing its significant influence and impact on the market since its initial analysis of GameStop in 2019, which culminated with the January 2021 short squeeze.
While Bitcoin has been in a sustained bull market all year, the so-called alt season, which refers to a rally in altcoins or tokens other than Bitcoin, has yet to materialize. However, the frenzy around meme tokens shows that there is still a lot of speculation 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.
