StealthEX & CryptoDaily Weekly News Digest: ETFs, Tesla, Ethereum

February 1, 2024

Crypto World

Maciej Zerelik

Dive into the latest edition of the StealthEX x CryptoDaily weekly digest! Our goal is to provide you with a concise and clear summary of the major developments and movements in the cryptocurrency market. Keep yourself updated with the most recent and significant events in the world of crypto. Curious about the headline-grabbing stories this week? Let’s jump right in!

Fidelity’s FBTC Outshines GBTC in Bitcoin ETF Showdown

In a significant shift within the cryptocurrency market, Fidelity’s spot Bitcoin exchange-traded fund (ETF), FBTC, has outperformed the Grayscale Bitcoin Trust (GBTC) by attracting a remarkable $208 million in daily inflows. This development marks a pivotal moment, as Fidelity’s FBTC surpasses GBTC’s daily outflows for the first time since its inception.

The surge in FBTC’s daily inflows reached a peak of $208 million on January 29, overshadowing GBTC’s $192 million outflows on the same day. This shift indicates a growing investor preference for Fidelity’s offering over the long-established GBTC. The data, provided by Farside Investors and BitMEX Research, underscores a changing landscape in the Bitcoin ETF market.

Furthermore, the overall market for U.S. spot Bitcoin ETFs is heating up, with a combined volume of $994.1 million on January 29, nearly doubling GBTC’s volume. Leading the charge were BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, which together accounted for 78% of this volume.

This competitive environment has also sparked a ‘fee war’ among fund issuers, as they lower fees to attract investors. Major players like BlackRock, Fidelity, Valkyrie, and VanEck have joined this trend, further intensifying the competition in both U.S. and European markets.

Crypto Market Braces for Impact Ahead of FOMC Meeting

As the financial world turns its eyes towards the Federal Open Market Committee (FOMC) meeting, the crypto market is poised on the edge of potential volatility. Federal Reserve Chairman Jerome Powell is expected to maintain the current interest rates, but the mere anticipation of his speech is causing ripples in the crypto sphere.

On the eve of the FOMC meeting, the crypto market has started in the red, with Bitcoin dipping below $43,000. This downward trend is not unusual, as the market often experiences heightened volatility during these key financial events. The focus is particularly intense on Powell’s speech, as any hint of a rate cut in March could send the markets into a frenzy.

The current state of the U.S. economy, sitting in ‘Extreme Greed’ mode according to the Fear and Greed Index, adds another layer of complexity. Any indication of a rate cut could overheat an already fervent market. For the crypto market, this means traders should brace for a potentially rocky day, with Bitcoin already showing signs of returning to its trend line.

Choose StealthEX for Exchange and Buy Crypto

• User-Friendly — Simple and minimalistic interface for everyone.
• Fast and Private — Instant non-custodial cryptocurrency exchanges.
• Buy crypto with Credit Card.
• 1400+ coins and tokens are available for limitless, quick and easy exchanges.
• NO-KYC crypto exchanges — Buy cryptocurrency up to $700 without KYC!
• StealthEX crypto exchange app — Process crypto swaps at the best rates wherever you are.
• 24/7 Customer Support.

Earn from Each Exchange by Joining StealthEX Affiliate Program.
Become a partner right now and use affiliate tools:

• Public API — Earn from your wallet, aggregator, or exchange terminal.
• Referral Links — Recommend StealthEX to your audience.
• Exchange Widget — Built crypto exchange widget on any page of your website.
• Button — A perfect choice for traffic monetization.
• Banner — Track conversion and stats right in the personal cabinet.

U.S. Government Set to Auction $130M in Bitcoin from Silk Road Case

The United States government is preparing to sell a substantial amount of Bitcoin, valued at $130 million, which was seized in connection with the infamous Silk Road marketplace. This move comes after a court-approved forfeiture of 69,000 BTC related to the Silk Road case.

The sale, directed by the United States District Court for the District of Maryland, involves two lots of Bitcoin. The first lot comprises 2874.9 BTC, valued at $129 million, and the second lot includes 58.7 BTC, valued at $3.3 million. This decision follows a judgment made in August last year, which came into effect in December.

The Bitcoin in question was previously owned by Ryan Farace and Sean Bridges. Farace was convicted alongside his father for a money laundering conspiracy involving Xanax sales on the darknet. Bridges, a former U.S. Secret Service Special Agent, was deeply involved in the Silk Road investigations and was found to have stolen the Bitcoin.

The upcoming sale is a significant step in resolving the fate of the 144,000 BTC seized from the Silk Road marketplace. It’s part of the U.S. government’s broader efforts to handle the assets obtained through the Silk Road investigations, which include early seizures from Ross Ulbricht, the mastermind behind Silk Road, and other significant Bitcoin seizures totaling approximately $9 billion as of 2023.

Tesla Maintains Strong Bitcoin Position in Q4 2023

Tesla, the renowned automotive and clean energy giant, has made a significant statement in the cryptocurrency world by holding onto its Bitcoin investments throughout the fourth quarter of 2023. According to its latest earnings report, the company did not engage in any buying or selling activities regarding its Bitcoin holdings during this period.

Tesla’s Bitcoin journey began in February 2021 with a bold investment of $1.5 billion, initially acquiring around 43,000 Bitcoins. Despite initially embracing Bitcoin as a payment method, Tesla later reversed this decision and reduced its holdings, selling 4,320 BTC in 2021 and offloading 75% of its remaining stake at a loss the following year.

As of the end of 2023, Tesla’s Bitcoin portfolio remains substantial, holding 9720 BTC, valued at approximately $184 million. This makes Tesla the fourth-largest publicly traded company in terms of Bitcoin holdings, trailing behind industry leaders like MicroStrategy, Galaxy Digital Holdings, and Marathon Digital Holdings.

The fourth quarter of 2023 marks the sixth consecutive quarter of no movement in Tesla’s Bitcoin holdings, demonstrating the company’s long-term commitment to its crypto investment. Despite selling 30,000 BTC in Q2 2022, Tesla’s decision to hold onto its remaining Bitcoin reflects a strategic approach to its investment in the cryptocurrency.

In terms of overall performance, Tesla reported a fourth-quarter revenue of $25.17 billion, a 3% year-over-year increase, though slightly below the target of $25.62 billion. The company’s automotive revenue rose to $21.56 billion, with a total of over 1.8 million deliveries in 2023.

Ethereum’s Dencun Upgrade Marks Success on Sepolia Testnet

Ethereum‘s development team has achieved a significant milestone with the successful deployment of the Dencun upgrade on the Sepolia testnet. This upgrade is a crucial step in Ethereum’s ongoing efforts to enhance its network’s efficiency and scalability.

The Dencun upgrade focuses on implementing proto-danksharding and more cost-effective data blobs, which are expected to significantly improve network storage capacity and reduce transaction costs. The smooth transition of the Sepolia testnet to the upgrade’s code changes marks a promising start, with no issues reported during the initial activation.

This successful deployment follows a series of tests, including a challenging rehearsal on the Goerli testnet on January 17, which encountered a bug within the Prysm client leading to a network split. However, developers quickly resolved the issue, ensuring the upgrade’s progress.

The Dencun upgrade is particularly important for Ethereum’s Layer 2 scaling solutions, as it aims to provide more secure support for scaling technologies like rollups and sidechains. This upgrade follows the Shapella upgrade, which enabled staked ETH withdrawals, and represents the most significant expansion of Ethereum’s core functionality since 2021.

One of the key benefits of the Dencun upgrade is its potential to address the rising transaction costs on Layer 2 networks. The upgrade proposes replacing gas-intensive calldata with blobs, offering a more cost-effective solution for on-chain data storage. This is crucial for maintaining scalability and efficiency as on-chain activity increases.

The final test for the Dencun upgrade is scheduled for February 7th on the Holesky testnet, with the mainnet launch date yet to be determined. The success of these tests will pave the way for Ethereum’s continued growth and development in the blockchain space.

Standard Chartered Anticipates Breakthrough in Ethereum ETFs

Standard Chartered has projected the approval of a spot Ethereum Exchange-Traded Fund (ETF) by May 23, 2024.

The anticipation of an Ethereum ETF has been building for some time, with investors eagerly awaiting a more regulated and accessible avenue to invest in Ethereum. Standard Chartered’s prediction comes amidst a wave of growing interest in cryptocurrency ETFs, which offer a bridge between traditional finance and the burgeoning world of digital currencies.

An Ethereum ETF would allow investors to gain exposure to Ethereum without the complexities of direct cryptocurrency ownership, such as wallet management and security concerns. This development is particularly significant as it opens the doors for institutional investors, who have been cautious about entering the crypto market due to regulatory and security issues.

The approval of an Ethereum ETF by regulatory authorities would not only validate the legitimacy of Ethereum as an investment asset but also potentially lead to increased adoption and integration of cryptocurrencies in mainstream finance. As the crypto community awaits this landmark decision, the potential for Ethereum’s growth and wider acceptance continues to soar.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.