Bitcoin Whales Trade Keys for Financial Comfort Amid ETF Surge
Long-time Bitcoin holders are transitioning to ETFs, exchanging self-custody for the benefits of traditional finance as adoption grows.
Long-standing Bitcoin ( BTC ) whales, known for advocating self-custody, are increasingly leaning towards conventional finance. Recently, a BlackRock executive disclosed that numerous original Bitcoin holders are subtly exchanging parts of their spot holdings for exchange-traded funds (ETFs), thus accessing a wider range of wealth management resources.
Onchain data indicates that while ETFs and Bitcoin have typically catered to different demographics, the emergence of spot ETFs is affecting self-custody. Analyst Willy Woo noted that self-custodied Bitcoin has recently ended a 15-year upward trend amid growing ETF acquisitions.
This week, Crypto Biz focuses on Bitcoin whales’ shift towards traditional finance, Ripple’s current fiscal moves, Galaxy Digital’s robust Q3 reports, and Wise’s expansion into stablecoins.
Bitcoin Whales Embrace Traditional Finance
Some of Bitcoin’s pioneering investors, who’ve built significant portfolios over the years, are now exchanging their holdings for BlackRock’s Bitcoin ETFs. This transition signifies forfeiting their private keys for entry into the conventional financial sector.
Robbie Mitchnick, head of digital assets at BlackRock, stated that the firm has already enabled conversions worth over $3 billion. Many early Bitcoin holders are starting to appreciate “the convenience of aligning their holdings with their existing financial advisors or private banking connections.”
He further explained that this trend has escalated due to a recent US SEC rule change , which allows Bitcoin ETFs to engage in direct exchanges of shares for Bitcoin.
Currently, BlackRock’s iShares Bitcoin Trust (IBIT) dominates the spot Bitcoin ETF scene with over $88 billion in net assets.
Inflows into spot US Bitcoin ETFs have surged this year. Source:
Evernorth to Go Public and Establish XRP Treasury
Evernorth Holdings, a digital asset firm bolstered by Ripple Labs, intends to go public via a merger with Armada Acquisition Corp. II, paving the way for a forthcoming XRP ( XRP )-centered treasury firm.
The transaction is projected to yield over $1 billion, which includes a $200 million investment from Japan’s SBI Holdings. Ripple, Kraken, Pantera Capital, and GSR are also involved in this endeavor. Once completed, the new entity will trade on Nasdaq under the ticker XRPN.
CEO Asheesh Birla indicated that the firm aspires to “accelerate XRP adoption” as interest in digital asset treasuries grows. However, some analysts have warned that such treasuries could face challenges due to the sluggish performance of altcoins.
David Bailey, the CEO of Bitcoin treasury company Nakamoto, remarked, “Toxic funding, defeated altcoins being rebranded as DATs, and numerous failed entities lacking plans or vision have completely muddled the narrative.”
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Galaxy Digital Thriving in Bull Market
Asset manager Galaxy Digital announced impressive Q3 profits, driven by an increase in trading activity and rising institutional appetite for cryptocurrency services, including a substantial 80,000 BTC transaction for an unnamed client.
For the quarter, the firm registered net earnings of $505 million, with adjusted profits reaching $629 million due to benefits in digital asset ventures and investments. Galaxy now possesses $3.2 billion in equity assets, comprising $1.9 billion in liquid cash and stablecoins, while overall trading volumes surged 140% compared to the previous quarter.
As reported by Cointelegraph, Galaxy facilitated a sale of 80,000 BTC in July, valued around $9 billion at that time, as part of the investor’s broader estate planning strategy.
Wise Explores Stablecoin Expansion
The global payment firm Wise seems to be assessing the possibility of introducing stablecoin products, as it recruits a digital asset product lead focusing on stablecoins.
In a LinkedIn announcement, Matthew Salisbury, Wise’s product manager, noted the London-based role intended to facilitate the company’s venture into digital assets, and mentioned that ideal candidates should hold experience in business-to-consumer solutions within the digital asset arena.
“If you have developed wallets or payment systems based on stablecoins and wish to execute similar projects at Wise, please apply via the advertisement or message me directly,” Salisbury expressed.
Stablecoins could naturally follow for the London-headquartered organization, renowned for its economical international money transfer services. Wise currently manages transfers to over 160 nations.
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