Bitcoin’s long-term investors, once strong advocates for self-custody, are gradually parting with their keys for the comforts offered by traditional finance. A recent statement from a BlackRock executive highlighted that some of Bitcoin’s founding holders are shifting portions of their holdings into exchange-traded funds (ETFs), thereby broadening their access to wealth management solutions.
While ETFs and spot Bitcoin have previously catered to different demographics, recent on-chain data indicates that the emergence of spot ETFs might be jeopardizing self-custody. Analyst Willy Woo noted that the volume of self-custodied Bitcoin has recently declined after a 15-year growth streak, aligning with a surge in ETF usage.
In this week’s summary, we delve into Bitcoin whales’ transition towards traditional finance, Ripple’s recent market activities, Galaxy Digital’s impressive Q3 results, and Wise’s potential entry into the stablecoin market.
Bitcoin Whales Embrace Traditional Finance
The adopters of Bitcoin, who have accumulated significant holdings, are now exchanging their spot assets for BlackRock’s Bitcoin ETFs. Such a transition entails relinquishing control over their private keys but enhances their integration into the traditional financial ecosystem.
Robbie Mitchnick, BlackRock’s head of digital assets, mentioned that the firm has already facilitated over $3 billion in these transactions. He emphasized that many early Bitcoin investors are beginning to appreciate the ease of consolidating their positions within established financial advisement or bank relationships.
This change has been expedited by a recent adjustment from the U.S. Securities and Exchange Commission allowing direct in-kind transactions for Bitcoin ETFs, enabling funds to exchange ETF shares directly for Bitcoin instead of cash.
At the same time, BlackRock’s iShares Bitcoin Trust (IBIT) remains the leading entity in the spot Bitcoin ETF space, boasting over $88 billion in assets.
Inflows into Spot US Bitcoin ETFs Soared
Inflows into spot US Bitcoin ETFs have surged this year. Source: Bitbo
Ripple-Backed Evernorth Going Public
Evernorth Holdings, a digital asset entity supported by Ripple Labs, is set to become public through a merger with Armada Acquisition Corp. II, facilitating the establishment of a new company focused on XRP treasury management. This merger could yield over $1 billion, with $200 million secured from Japan’s SBI Holdings. Additional funding is expected from Ripple, Kraken, Pantera Capital, and GSR. Once finalized, the new firm will be listed on Nasdaq under the symbol XRPN.
Asheesh Birla, the CEO, expressed optimism about accelerating XRP adoption in light of increasing interest in digital asset treasuries. However, analysts have cautioned about potential challenges such treasuries might encounter as altcoin valuations continue to lag.
David Bailey, CEO of the Bitcoin treasury company Nakamoto, remarked, “Toxic financing, failed altcoins rebranded as DATs, too many failed companies with no plan or vision. It’s totally muddled the narrative.”
Evernorth’s Strategic Plans
Source: Asheesh Birla
Galaxy Digital Thrives in Market Surge
Galaxy Digital recently announced robust earnings for Q3, driven by surging trading volumes and heightened demand from institutions for cryptocurrency services. The firm executed a striking transaction of 80,000 BTC for an undisclosed party.
The report showed net earnings of $505 million, with adjusted totals reaching $629 million, attributed to successful digital asset operations and investments. Galaxy now oversees $3.2 billion in equities, including $1.9 billion in cash and stablecoins, with trading activity increasing by 140% compared to the prior quarter.
Galaxy Digital’s Q3 Results
Source: Galaxy
Wise Exploring Stablecoin Initiatives
The global financial platform Wise appears to be venturing into stablecoin products by hiring a director specializing in digital assets. This new position will assist the company in expanding its digital financial solutions.
Matthew Salisbury, Wise’s product director, shared this opportunity via LinkedIn, emphasizing the preference for candidates with backgrounds in consumer-focused digital asset products. “If you’ve built wallets and/or payments solution based on stablecoins and now wish to continue this journey at Wise, please check the ad or DM me,” he wrote.
Stablecoins seem to be a natural progression for Wise, which is well-known for its efficient cross-border money transfers.
Wise’s Recruitment Announcement
Source: Matthew Salisbury
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