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ARK Invest Exits BITO ETF Position, Runes Generates $135 Million in 7-Day Fees, and More Crypto News

Fernanda T
Latest News
April 26 2024 2:59PM

Bitcoin price stability challenges record ETF outflows

Despite significant outflows totaling US$244.49 million from bitcoin ETFs this week, the price of Bitcoin has remained stable around US$64 thousand, showing a 1.01% increase over the last seven days. However, the correlation between bitcoin prices and ETF inflows has decreased, indicating a growing disconnect. Moreover, a substantial volume of Bitcoin (COIN:BTCUSD) and Ethereum (COIN:ETHUSD) options, valued at approximately $9.26 billion, expired this Friday, with minimal impact on market volatility.

Declining interest in spot Bitcoin ETFs with significant outflows

Spot Bitcoin exchange-traded funds (ETFs) are experiencing waning investor interest, evidenced by outflows of $218 million in the past day alone. On April 25, both BlackRock’s Bitcoin ETF (NASDAQ:IBIT) and Fidelity’s (AMEX:FBTC) saw negative flows, with the latter recording its first major outflow of $23 million. Other funds such as Grayscale (AMEX:GBTC) and 21Shares (AMEX:ARKB) also faced notable outflows of $139.37 million and $31.34 million, respectively. Despite this, ETFs have amassed net inflows exceeding $12 billion since January, suggesting a temporary slowdown, possibly due to speculation about the Federal Reserve’s monetary policy.

BNY Mellon invests in Bitcoin ETFs managed by BlackRock and Grayscale

The Bank of New York Mellon Corporation (NYSE:BK), one of the largest banks in the US, has acquired stakes in Bitcoin Exchange Traded Funds (ETFs) managed by BlackRock (NASDAQ:IBIT) and Grayscale (AMEX:GBTC), documents revealed by the recent Securities and Exchange Commission (SEC). Token purchases worth US$1.2 million highlight a significant strategic move by the bank towards digital assets, underlining the growing trend of traditional financial institutions venturing into the cryptocurrency market.

ARK Invest divests completely from the ETF ProShares Bitcoin Strategy

ARK Invest, led by Cathie Wood, has liquidated its position in the ProShares Bitcoin Strategy ETF (AMEX:BITO), selling the last 237,983 shares for $6.7 million through its Next Generation Internet ETF (AMEX:ARKW). The sale completes a short-term strategy begun last year when ARK purchased more than 4 million shares in anticipation of the approval of spot bitcoin ETFs in the US. Meanwhile, the ARK 21Shares Bitcoin ETF (AMEX:ARKB) became the fund’s top investment, representing 10.4% of its total value.

Metaplanet acquires Bitcoins in strategic investment

Metaplanet Inc., a Japanese investment and consulting company, completed the purchase of 97.85 Bitcoins for one billion yen (about US$6.25 million). Initially announced on April 8 and confirmed in an X post on April 24, the acquisition marks Metaplanet as the first publicly traded company on the Tokyo Stock Exchange to invest in Bitcoin (COIN:BTCUSD). This strategic decision reflects a commitment to digital assets and has coincided with an 81% increase in its share price since January.

Pantera Capital acquires discounted Solana tokens in FTX auction

Pantera Capital, in a strategic move, acquired an undisclosed amount of Solana (COIN:SOLUSD) tokens at a discount in an auction recently organized by the administrators of the bankrupt FTX. The company, along with industry giants like Galaxy Digital, purchased tokens at a reduced price of $64 each, a significant decrease from market values. This acquisition follows a fundraising by Pantera, aiming to invest up to $250 million in locked Solana tokens.

Runes generates $135 million in transaction fees in the first week on Bitcoin

The Runes tokenization standard was recently launched on the Bitcoin network and has already raised more than 2,129 bitcoins ($135 million) in transaction fees in its first week. Using Bitcoin’s UTXO model and the OP_RETURN opcode, Runes offers an efficient tokenization solution that allows the creation of tokens, such as memecoins, directly on the Bitcoin blockchain. Since its launch during Bitcoin’s fourth halving, the protocol has significantly contributed to increased transaction fees and activity on the network.

Luke Dashjr warns about exploitation of Bitcoin flaws by cryptoactive protocols

Luke Dashjr, one of the main developers of Bitcoin (COIN:BTCUSD), criticized the Runes protocol for exploiting fundamental design flaws in the blockchain. In a post on X on April 26, he highlighted the differences between Ordinals and Runes in their interaction with the network. While Ordinals utilize vulnerabilities in Bitcoin Core, Runes takes advantage of design flaws in the network itself. Dashjr, who has previously expressed concerns about these assets deviating from Bitcoin principles and increasing spam on the blockchain, has also proposed methods to filter Rune transactions to reduce their impact.

Marathon Digital doubles hash rate target to 50 EH/s after strategic acquisition

Marathon Digital (NASDAQ:MARA), a leading Bitcoin miner, raised its hash rate target for this fiscal year to 50 EH/s, driven by the acquisition of a 200-megawatt mining center from Digital Applied. Initially, the company aimed to reach 37 EH/s, but now foresees a 100% increase in its mining power. Fred Thiel, CEO of Marathon, said the updated goal is achievable without the need for additional capital, thanks to the recent acquisition and investment in advanced technology. The increasing difficulty of mining has not deterred the company’s ambitions, which continues to expand despite market challenges.

Shiba Inu’s Shibarium Network announces hard fork for improvements

Shiba Inu’s (COIN:SHIBUSD) Shibarium network is scheduled for a hard fork on May 2, with the aim of improving user experience and reinforcing its infrastructure. This update will introduce new features to speed up transactions and stabilize fees during peak usage, as well as improve security.

Jiritsu Network Launches Innovative Asset Tokenization Platform

Jiritsu Network, a leader in verifiable computing, announced the launch of Jiritsu Layer 1, a platform built on Avalanche subnet technology and based on Zero-Knowledge Multi-Party Computation (ZK MPC). This innovative system aims to revolutionize the way complex real-world assets such as private equity and real estate are represented and transacted on the network. With the initial collaboration with Everready Group, Jiritsu begins checking more than $20 million in inventory daily, highlighting Everready’s commitment to accuracy in supply chain management. This launch not only improves transaction transparency and security but also sets new standards for asset management in the digital era.

Consensys sues SEC for attempted excessive regulation of Ethereum

Consensys, an influential supporter of the Ethereum network, is suing the US SEC, alleging that the agency is trying to improperly extend its regulatory authority over Ethereum, which is the second largest blockchain by market capitalization. This move is part of a growing trend of cryptocurrency entities in the US that are challenging what they see as overly strict regulations. The lawsuit argues that despite previous SEC statements indicating that Ethereum (COIN:ETHUSD) is not a security, the agency is now attempting to regulate the cryptocurrency under that classification.

Senator Elizabeth Warren questions tools against illegal use of cryptocurrencies

Senator Elizabeth Warren, along with Senator Bill Cassidy, sent a letter to US Attorney General Merrick Garland and the head of the Department of Homeland Security, Alejandro Mayorkas, asking about the tools needed to combat the use of cryptocurrencies in crimes child sexual exploitation. The senators point out that digital assets have become the preferred method of payment in criminal activities related to child abuse, highlighting the urgency of improving laws and detection tools to effectively combat these crimes. The letter asks agencies to specify the additional resources they need to address this growing challenge.

New EU legislative package strengthens cryptoactive regulation

The European Parliament recently approved strict measures to combat money laundering involving crypto assets. The new legislative package obliges crypto asset service providers (CASPs) to increase transparency in transactions with self-hosted wallets and imposes restrictions on the use of anonymous cryptocurrencies. In addition, a central agency will be created to develop regulatory standards. Measures include enhanced due diligence for transactions below 1,000 EUR and stricter KYC procedures for higher amounts. The legislation aims to mitigate risks of financial crimes and aligns with the recommendations of the International Financial Action Task Force (FATF), despite there being criticisms about the lack of sufficient data to justify the new rules.

Eminem revives crypto celebrity trend with new ad

After a period of downturn due to the collapse of FTX, celebrities are slowly returning to promoting cryptocurrencies. A recent example is Eminem, who lent his voice to an ad for Crypto.com, which he announced on X and scheduled to debut during an NBA playoff game at Crypto.com Arena. The ad, which will also be shown at Formula 1 and UFC events, uses the slogan “Fortune favors the brave,” previously associated with actor Matt Damon.

OpenDelta raises $2.15 million for Bitcoin-based stablecoin

OpenDelta, a stablecoin innovator, has raised $2.15 million in its seed round of funding, led by 6th Man Ventures, CEO Konstantin Wünscher announced. The startup aims to employ Bitcoin to support a stablecoin pegged to fiat currencies. Called USDO, it promises to maintain its value in dollars, using Bitcoin as collateral. This project places OpenDelta at the forefront of decentralized finance on the Bitcoin platform, particularly the new Runes trend, with plans to launch the token in May in a closed beta.