Bitcoin overtakes Silver, Solana will launch its second smartphone and Elon Musk reveals his personal crypto holdings. These stories and more, this week in crypto.
Bitcoin Slips After ETF Approval
Bitcoin’s price has plunged by more than 15% since the introduction of U.S. spot ETFs last week. Analysts reported one and a half billion dollars in outflows from the Grayscale Trust, speculating that investors who were previously benefiting from GBTC discounts, are now exiting the bitcoin market entirely rather than reinvesting into the new ETFs. With estimates of another $1.5 billion invested in GBTC in secondary markets, additional profit-taking may put further pressure on bitcoin’s price.
Bitcoin Tops Silver
Following SEC approval, the Bitcoin ETFs now hold nearly $30 billion in assets, far outpacing silver ETFs which have combined assets of about $11 billion. While Bitcoin is often called a digital version of gold, the only commodity that remains more popular is, well… gold – with roughly $95 billion in funds spread across 19 ETFs.
BlackRock Scooped Up Most Bitcoins
With investors piling into the new spot Bitcoin funds, CC15Capital reports that as of Friday, the nine new ETFs have purchased nearly 81,000 Bitcoins, currently worth nearly $3.5 billion, since their launch. BlackRock leads the way, amassing over 28,000 BTC for its iShares fund. Even after liquidating more than 50,000 bitcoins to cover the outflows mentioned earlier, Grayscale continues to manage the most Bitcoin among ETFs with its substantial holdings of 567,000 BTC.
New Crypto Smartphone by Solana
Solana plans to launch its second crypto smartphone, as a follow up to its first phone, Saga. The new phone will have new hardware and a cheaper price point, and aims to calm the secondary market for the limited supply of existing Saga phones. Initially struggling to find a market, Saga gained traction when traders discovered it included BONK tokens, after which the phones quickly sold out in a week.
Jamie Dimon Dismisses Bitcoin in Davos
Artificial intelligence has stolen the spotlight at Davos, supplanting cryptos as the dominant topic of conversation at the World Economic Forum. This shift underscores the surge in AI investments as the world’s biggest companies are pushing their AI products and services. On the forum, JPMorgan Chase CEO Jamie Dimon grabbed the opportunity to dismiss Bitcoin yet again, acknowledging blockchain’s potential while emphasizing that Bitcoin does nothing.
Coinbase’s Court Battle Resumes
In a case closely watched by the crypto industry, a Manhattan judge questioned Coinbase and the SEC about their conflicting definitions of securities. Judge Katherine Polk Failla heard arguments from both sides focusing on legal precedent defining securities. Coinbase has requested the dismissal of the lawsuit brought by the SEC.
Crypto Crime Declines
According to new research illicit cryptocurrency activity is declining overall despite a surge in ransomware incidents and cybercriminals receiving crypto payments. Chainalysis released its 2024 Crypto Crime Trends report which highlighted a decrease in funds sent to illicit cryptocurrency addresses, while noting an uptick in funds sent to sanctioned entities using stablecoins.
Musk Reveals Personal Crypto Holdings
Elon Musk has revealed his personal crypto holdings, as his social media platform X has received another money-transmitter license, with the aim to revolutionize payments. Musk confirmed he still owns Dogecoin, revealed that SpaceX continues to hold Bitcoin and Tesla also has just over 10,000 bitcoin worth nearly $500 million.
That’s what’s happened this week in crypto, see you next week.