Memecoins
Largest BlackRock Bitcoin ETF RoaringKitty Fuels Meme Coins
Key takeaways
- Blackrock’s IBIT has overtaken Grayscale’s GBTC as the largest Bitcoin ETF on the market.
- President Joe Biden vetoed a bill that would have made it easier for traditional banks to serve as custodians of crypto assets on behalf of their customers.
- Japanese crypto exchange DMM Bitcoin was hacked for approximately $308 million worth of bitcoin.
- This week, all eyes are on meme coins, as infamous Reddit user Keith Gill returned to trading GameStop.
Bitcoin (BTC) briefly crossed $70,000 on Monday after spending most of last week below that mark. However, it was BlackRock’s iShares Bitcoin Trust (I BITE) which made headlines after the reversal of Grayscale Bitcoin Trust (GBTC) as the largest spot Bitcoin exchange-traded fund (ETF) in terms of assets.
Additionally, US President Joe Biden vetoed a crypto bill passed by both houses of Congress and a Japanese crypto exchange was hacked for over $300 million worth of bitcoin. Meanwhile, Keith Gill, the man behind the meme-stock frenzy in 2021, fueled a rally of certain meme coins with its latest bet.
Blackrock’s IBIT is now the largest Bitcoin ETF
Just over four months after it began trading on January 11, BlackRock’s Bitcoin ETF has become the largest Bitcoin Spot ETF by assets, surpassing Grayscale’s GBTC for the top spot. At the end of May, IBIT’s assets stood at $19.5 billion while GBTC’s assets stood at $19.385 billion.
GBTC is the oldest fund, with Bitcoin investments converted to ETFs when the U.S. Securities and Exchange Commission authorized spot Bitcoin ETFs earlier this year. At that time, GBTC’s assets exceeded $24 billion.
However, as soon as other comparable products began trading, investors withdrew large sums of money from GBTC, resulting in net outflows of approximately $17.9 billion since January 11. In contrast, BlackRock’s IBIT reported substantial inflows, bringing in approximately $16.6 billion. this year, according to Farside Investors.
The fee disparity between Grayscale’s ETF and other Bitcoin ETFs from Blackrock, Fidelity and others played a crucial role in the competition Grayscale’s fund faced. For example, GBTC charges a 1.5% fee, while IBIT incurs a 0.25% fee. In particular, gray levels plans to soon launch an alternative spot Bitcoin ETF offering with lower fees under the BTC ticker.
President Biden Vetoes Crypto Bill
President Biden, as expected, vetoed a bill to repeal the SEC’s special regulations for crypto asset custodians. This SEC policy could pose significant challenges to traditional financial companies seeking to offer cryptocurrency custody services.
The White House had previously signaled its intention to veto the legislation. In a statement, President Biden expressed a desire to establish a balanced regulatory framework for digital assets under the authority of existing regulatory agencies.
According to Axios, critics noted that the deadline for Congress to review the SEC’s procedural actions under the Administrative Procedure Act had expired, and they argued that the policy did not constitute a rule, a point disputed by the Government Accountability Office.
Professional banking organizations have urged the president to support removing the rule, saying it would make cryptocurrency custody services prohibitive for traditional financial firms, ultimately disadvantaging their customers.
This move by the Biden White House follows a perceived reversal in crypto policy when various ether spot ETF deposits were approved late last month by the SEC after assuming that a rejection of these financial products was imminent.
Former President Donald Trump also reversed his initial stance on bitcoin and other crypto assets, going so far as to make a campaign promise to free the operator of the online market Silk Road, Ross Ulbricht, from prison. Ulbricht is serving a life sentence for operating a platform where illegal drugs and other illicit items were purchased using Bitcoin.
Over $300 million stolen from Japanese crypto exchange
On Friday, Japanese crypto exchange DMM Bitcoin announced a hack or “unauthorized leak” in which 4,502.9 bitcoins, valued at approximately 48.2 million yen, were stolen. This equates to approximately $308 million worth of bitcoins.
DMM Bitcoin assured its customers that their bitcoin deposits would be fully matched by purchases backed by its group companies, although no timeline was provided. The theft took place at 1:26 p.m. Tokyo time, coinciding with a transaction of 4,502 bitcoins seen on Bitcoin. blockchain.
In response, the exchange halted crypto withdrawals, spot market purchases, and new leveraged trading positions, while delaying yen-denominated withdrawals. DMM Bitcoin said further updates would be shared in a later announcement. According to blockchain analytics provider Elliptic, this incident ranks as the eighth largest cryptocurrency exchange hack in history and the largest since the $477 million theft from FTX in late 2022.
What to expect in the markets this week
A speculative surge has driven up the prices of some meme tokens and GameStop (GME) stocks Monday just hours after famed retail trader Keith Gill, famous for the 2021 GME short squeeze, revealed his latest bet on the stock. Using his alias “DeepF—ingValue” on Reddit, Gill shared his GME options positions on the r/Superstonk subreddit, revealing bets worth more than $115 million in stocks and $65 million in call options expiring on June 21.
Gill also passes by Kitty Roaring on YouTube and its most recent viral post sparked a rally, with cat-themed meme tokens such as POPCAT and MOG. Meanwhile, unrelated GME piece of money on the Solana network soared around 200%. Gill’s social media activity previously sparked similar rallies in Mayhighlighting his significant influence and impact on the market since his first GameStop analysis in 2019, which resulted in the January 2021 short squeeze.
While bitcoin has seen a sustained bull market throughout the year, the so-called altseason, referring to a rally in altcoins or non-bitcoin tokens, has yet to materialize. However, the frenzy around meme tokens shows that there is still plenty of speculation in the crypto market outside of bitcoin. Of course, it is worth noting that trading small-cap tokens in the crypto market often amounts to nothing more than a game of chance.