Weekly Update: 1st of May
What happened between the 24th of April and the 1st of May?
Changpeng Zhao, former CEO and founder of cryptocurrency exchange Binance was sentenced to 4 months in jail, lower than many expected. Read more
39% of Canada’s institutional investors have exposure to cryptocurrency according to KPMG. Read more
BlackRock’s Bitcoin ETF IBIT had five days of zero inflow in a row as the net inflows of the ETF market turned red. Read more
Three Bitcoin and three Ether spot ETFs went live in Hong Kong, experiencing a meager net inflow of $6 million, also two applications for Bitcoin ETFs were filed in Australia. Read more
Changpeng Zhao receives a 4-month jail sentence
On the 30th of April, Changpeng Zhao (CZ), former CEO and founder of Binance, was sentenced to 4 months in jail after pleading guilty to violating laws against money laundering. On the 24th, news broke that US prosecutors recommended a sentence of 36 months, which is twice the recommendation of the federal sentencing guidelines of 18 months. US prosecutors stated it was to send a message to the industry that “the right choice, every time, is to comply with the law,". However, the judge found a four-month sentence more appropriate.
Digital Assets experience institutional adoption in Canada
A survey of KPMG found that institutional investors located in Canada significantly increased their holdings of cryptocurrency in 2023. According to the survey, 39% of the respondents had exposure to cryptocurrency, and of those, 75% owned cryptocurrency directly. This is an exciting development as in 2022, only 29% had exposure to digital assets. KPMG further suggests that cryptocurrencies are increasingly seen as an investable alternative asset class among such institutional investors.
Bitcoin spot ETF market slows down
Since April 24th, the Bitcoin spot ETF market saw a cooldown as inflows decreased, while Grayscale's GBTC ETF continued to witness notable outflows. This is most likely also the result of the high management fees that Grayscale still charges. A significant development in the past week was the end of BlackRock IBIT ETF's 71-day streak of uninterrupted inflows. On the 24th and the subsequent four trading days, IBIT saw no inflows or outflows.
ETF race in the Asia-Pacific starts
On April 30th, three Bitcoin and Ether spot ETFs started trading in Hong Kong. While market participants welcomed the city's opening to these ETFs, expectations remained modest. By the trading day's close, the Bitcoin and Ether spot ETFs had accumulated $4 million and $2 million, respectively. This is significantly lower compared to the first trading day in the US, where ETFs drew in over $655 million. Additionally, in Australia, DigitalX Ltd. and VanEck have submitted applications for a Bitcoin spot ETF, with expectations leaning toward approval before the close of 2024. This development may prompt other Asia-Pacific countries to explore their opportunities in digital assets.
In other digital assets news
The newly launched Runes project, a protocol that allows users to create fungible tokens on Bitcoin, makes up 68% of all Bitcoin transactions since its launch.
The first sat, the smallest denomination of a Bitcoin, in the fourth Bitcoin Halving block was sold for 33,3 Bitcoin, worth approximately $2.1 million.
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