BlackRock's Bitcoin ETF Crosses 500,000 BTC Milestone

BlackRock's Bitcoin ETF Crosses 500,000 BTC Milestone

BlackRock's IBIT spot Bitcoin ETF has surpassed 500,000 BTC in assets under management, reaching nearly $50 billion within a year of trading. On Monday, net inflows of $338.3 million pushed the total to 500,380 BTC, representing about 2.38% of Bitcoin's total supply.

The growth has been attributed to institutional interest, with 24% of IBIT owned by institutions by the end of Q3 2024. Earlier this year when IBIT crossed the 250,000 BTC milestone, the CEO, Larry Fink, noted that this is the fastest-growing ETF in history.

Analysts predict IBIT could eventually hold 1 million BTC, a figure reminiscent of the 1 million BTC proposed for the US Bitcoin Strategic Reserve. The overall US spot Bitcoin ETFs are nearing 1.1 million BTC, which matches estimates of Satoshi Nakamoto's holdings.

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Crypto Crashes on South Korean Exchanges Amid Martial Law

Bitcoin’s price tumbled to $61,600 on South Korea's Upbit exchange following the president’s declaration of martial law. The announcement led to a sharp 33% drop in Bitcoin's value on Upbit before a partial recovery to around $88,600. This created an 8% discount compared to Bitcoin’s international price of $95,900.

Upbit’s trading volume surged 32% to $23 billion, while Bithumb, another South Korean crypto exchange, saw trading volumes increase by 20%. XRP also experienced extreme volatility, dropping by 52% before recovering to a 6.3% discount compared to global prices. The event created an inverse "Kimchi Premium," reversing the typical higher local pricing of cryptocurrencies in South Korea.

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Sonic Makes Final Preparations Before Mainnet Launch

Sonic Labs announced that its new Sonic layer 1 blockchain, separate from Fantom Opera, will launch soon after completing its first transaction block. Users will be able to swap their Fantom tokens (FTM) for "S" tokens at a 1:1 ratio as Sonic strives for superior network performance and transaction fees. The project is backed by the Fantom Foundation and aims to attract a huge user base.

Sonic will run on a proof-of-stake mechanism, allowing S holders to stake their tokens for rewards. The platform is designed to achieve transaction finality within 720 milliseconds, potentially competing with other high-speed EVM chains. Sonic’s upcoming airdrop will distribute 200 million S tokens for which users can still earn eligibility by using the upcoming dApps on the mainnet.

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Coinbase Cuts Ties with Firms Employing Ex-SEC Officials

Coinbase CEO Brian Armstrong announced that the company will no longer work with law firms employing ex-SEC officials involved in anti-crypto actions. The announcement specifically targeted Milbank, which recently hired former SEC Enforcement Division head Gurbir Grewal, a figure linked to lawsuits against Coinbase and other crypto companies.

He urged the crypto community to take similar steps, avoiding firms that have worked against the industry's growth. Armstrong also stressed the ethical issue of harming an industry without establishing clear rules. Coinbase’s decision reflects growing tensions between the crypto industry and regulators, especially as the SEC undergoes leadership changes.

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Data of the Day

Bitcoin exchange reserves have fallen to 2.46 million BTC, marking their lowest level in years. Since the US presidential election on November 5, more than 171,000 BTC have been withdrawn from exchanges, likely reflecting increased confidence among long-term holders. Exchange reserves have been declining since 2021, with investors moving funds into cold storage.

Glassnode data shows that Bitcoin's illiquid supply (e.g. held by long-term investors) has increased by 185,000 BTC in the past month, reaching a record high of 14.8 million BTC. This represents 75% of the current circulating supply of nearly 19.8 million coins. Despite tightening supply, Bitcoin fell about 2% below $94,000, leading to $578.6 million in trader liquidations over the past day.

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More Breaking News

• Privacy-focused Layer 1 blockchain Namada officially launches its mainnet, including a five-phase genesis rollout guided by community governance.
• Vitalik Buterin calls for improved privacy and security features in Web3 wallets and urges integration of these features across all wallets, not just specialized ones.
• XRP Ledger developers lower the base reserve for accounts from 10 XRP to 1 XRP amid a surge in XRP's price, which has risen over 400% this week.
• Crypto exchanges saw a sharp increase in average deposits in 2024, largely driven by institutional and corporate investors, with Binance leading in BTC deposits.
• Pump.fun hits an all-time high monthly revenue of over $93 million in November, reflecting a strong rebound in investor interest.
• The RSR price surged by 80% on Dec. 3, reaching a new yearly high of $0.0184, possibly due to rumors about advisor Paul Atkins potentially becoming SEC head.

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