Weekly Update: 13th of November
What happened between the 6th and 13th of November?
- Fueled by the significant inflow of the US Bitcoin spot ETFs, Bitcoin continues to set new all-time highs as it surpasses $90,000. Read more
- US Senator Lummis reaffirmed her plans to establish a strategic Bitcoin reserve, outlining a bill that proposes to acquire 1 million Bitcoin in five years. Read more
- In just eleven months, BlackRock’s Bitcoin ETF surpasses its gold ETF in assets under management, holding over $32 billion in assets. Read more
- Collapsed digital assets exchange FTX sues exchange Binance and former CEO and founder Changpeng Zhao for $1.8 billion. Read more
Bitcoin continues to break all-time highs
Since Donald Trump’s election victory, Bitcoin has surged, reaching new all-time highs almost daily. Currently, its all-time high has been set above $90,000. This momentum is strengthened by substantial net inflows into U.S. Bitcoin spot ETFs, with November 6th alone seeing over $600 million in net inflows. The following day, a record-breaking $1.4 billion poured into the market, led by BlackRock’s IBIT, which alone accumulated more than $1.05 billion over two days. We anticipate this trend will continue as investors capitalize on Trump’s firm support for the digital assets sector.
Proposed plan to make Bitcoin a strategic reserve
On the 6th of November, US Senator Cynthia Lummis reaffirmed her plans to establish a strategic Bitcoin reserve following Donald Trump’s election victory. Senator Lubbis announced this plan in July, intending to reduce the national debt and supercharge the U.S. dollar. In the proposal, Senator Lubbis proposes that the US Treasury has to acquire 1 million Bitcoins, approximately 5% of the supply, over five years as this mirrors the size and scope of the gold reserves held by the United States. Although support for the bill has grown, especially after Representative Ro Khanna endorsed the initiative and emphasized Bitcoin's strategic value. However, it remains unlikely that Bitcoin will become a designated strategic asset in the short term. Nonetheless, it's extremely exciting to see that the concept is already gaining traction.
BlackRock’s Bitcoin ETF surpasses its gold ETF
On the 8th of November, after eleven months of trading, BlackRock’s Bitcoin ETF (IBIT) surpassed its Gold spot ETF (IAU) in assets under management, holding approximately $34 billion. This is a notable achievement as IAU has been trading since 2005, illustrating the remarkable success the Bitcoin ETF has been enjoying. Although it’s an incredible achievement, IBIT still has a long way to go to surpass the biggest gold ETF, the SPDR Gold shares hold $76 billion worth of gold at the current price. However, we do think IBIT can surpass this mark, especially as we also believe that Bitcoin can surpass gold’s market capitalization. Read more about this in our Bitcoin vs Gold article.
FTX sues Binance and Changpeng Zhao for $1,8 billion
A Delaware court filing dated November 10 disclosed that the estate of the collapsed digital asset exchange FTX sued Binance and its founder and former CEO Changpeng Zhao, also known as CZ, for $1.8 billion. In 2021, Binance, CZ, and others exited their investment in FTX and its U.S.-based entity, West Realm Shires, selling stakes of 20% and 18.4%, respectively, back to FTX and Alameda Research. The FTX estate claims that Alameda and FTX were insolvent at the time of purchase and could not afford the transaction. Consequently, the estate is classifying the purchase as a fraudulent transaction and is seeking a clawback of the funds.
In other digital assets news
- Stablecoin issuer Tether expanded into the commodity trading market as it facilitated the transport of 670,000 barrels of crude oil.
- Business software firm MicroStrategy’s Bitcoin portfolio surpasses $20B, resulting in a return on investment of over 100%.
- Layer 1 network Near plans to build the world’s largest 1.4T parameter open-source AI model, attracting massive attention from investors due to the AI hype.
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