Spot Bitcoin ETFs See Net Outflows in August

Spot Bitcoin ETFs See Net Outflows in August

US spot Bitcoin ETFs recorded a net outflow of $94 million in August, ending an eight-day streak of positive inflows earlier in the month. The total net asset value of these ETFs dropped by over $4 billion, correlating with Bitcoin's declining price throughout the month. The largest outflows were seen in Grayscale's GBTC, which lost $70 million on the last trading day of August.

BlackRock's IBIT, despite being the industry leader, also saw its first outflows since May, contributing to the overall negative trend. The month’s volatility was highlighted by sharp fluctuations, with one day netting $250 million in inflows, while another saw a $237 million outflow. Meanwhile, spot Ethereum ETFs recorded no net inflows or outflows for the first time, indicating a slowdown in trading activity.

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Cardano Activates Chang Hard Fork Upgrade

Cardano's recent Chang hard fork has allowed ADA token holders to participate directly in the blockchain's governance, implementing CIP-1694 and establishing new governance bodies like the Constitutional Committee and Delegate Representatives. With this upgrade, the control over chain upgrades has shifted from Cardano’s founding entities to the community-led governance structure.

The upgrade will be fully operational within 90 days, following a phased rollout that started with an Interim Constitutional Committee. This shift aligns Cardano with other decentralized blockchains such as Tezos and Polkadot, though it remains one of the largest Layer 1 blockchains with on-chain governance. The Chang upgrade marks the next step in Cardano’s Voltaire era for complete decentralization.

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SEC Warns FTX Against Using Stablecoins to Repay Creditors

The SEC has cautioned the FTX estate against using stablecoins or other digital assets to repay creditors, signaling potential legal challenges. The FTX bankruptcy, led by CEO John Ray III, has explored several options for creditor repayment, including cash or stablecoins, but some creditors prefer in-kind distributions of crypto.

The US Trustee has also opposed a discharge provision that would protect FTX debtors from future legal actions, further complicating the bankruptcy proceedings. Administrative costs have surged, with fees exceeding $800 million, adding to the challenges of resolving the bankruptcy. FTX’s legal team has already dismissed the idea of restarting the exchange due to a lack of investor interest.

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Brazil Orders Google, Apple and Others to Block X

Brazil's Supreme Court has ordered internet service providers like Google and Apple to block access to the social media platform X, citing its failure to remove accounts spreading disinformation, with fines of up to 50,000 reais ($8,900) for users attempting to bypass the ban using VPNs. This decision affects Brazil’s population of 215 million, including about 10% who are involved in crypto and rely on X for updates.

The ruling follows a prolonged legal battle, during which X ignored earlier court orders to remove the flagged accounts. As a result, alternative platforms like Nostr and Bluesky, supported by X co-founder Jack Dorsey, have seen increased traffic. The court's decision underscores the Brazilian government's growing efforts to regulate content on social media platforms.

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Data of the Day

August 2024 saw a surge in cryptocurrency cyberattacks, with hackers stealing over $313 million across more than ten incidents, according to blockchain security firm PeckShield. The majority of these losses, approximately $293 million, resulted from phishing attacks, which continue to pose a significant threat to the security of digital assets.

The most substantial breaches included a $238 million theft of Bitcoin and a $55.4 million loss of Dai stablecoin, both resulting from phishing attacks. Other notable incidents include the Ronin Network exploit, which led to unauthorized transactions totaling $5.1 million despite some recovery efforts. The broader cryptocurrency industry has lost $1.21 billion to hacks and rug pulls year-to-date.

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More Breaking News

• OKX crypto exchange said its Singapore subsidiary received the full MPI license and it has also appointed a former MAS official as local CEO.
• A new FDU poll reveals that cryptocurrency owners favor Trump over Kamala Harris by 12 points in the upcoming presidential election.
• Telegram, had $400 million in digital assets at the end of 2023 and posted a $108 million operating loss, with 40% of its revenue coming from crypto activities.
• Ethereum co-founder Vitalik Buterin denied accusations of selling Ether for personal gain, stating that his sales were intended to fund crypto projects.
• Bitcoin mining firm Rhodium Enterprises, currently in bankruptcy, received court approval to choose between a $30 million loan or 500 Bitcoins.
• The Gnosis Chain community is reconsidering its gas token options following MakerDAO's rebrand to Sky and the introduction of the upgradeable USDS stablecoin.

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