Bitcoin’s long-time investors, who once prioritized self-custody, might be letting go of that control in favor of traditional finance options. Recently, a BlackRock executive disclosed that numerous early Bitcoin investors are discreetly trading portions of their holdings for ETFs, which offer access to enhanced wealth management resources.
Trustee and analyst Willy Woo states that data indicates a recent downturn in self-custody Bitcoin holdings, countering a 15-year trend as ETF popularity rises.
In this edition of Crypto Biz, we explore the movement of Bitcoin whales towards traditional finance, Ripple’s recent market activities, Galaxy Digital’s impressive Q3 results, and Wise’s interest in launching stablecoin products.
Bitcoin Whales Transitioning to Traditional Finance
Some of Bitcoin’s original supporters, having accumulated significant assets over time, are now choosing to exchange their direct ownership for BlackRock’s Bitcoin ETFs, forfeiting their private keys in return for entry into the conventional financial landscape.
BlackRock’s head of digital assets, Robbie Mitchnick, reported that the asset management firm has successfully executed over $3 billion in such transactions. Many early stakeholders are beginning to appreciate “the ease of managing their investments in connection with their current financial advisers or private banking relationships.”
Mitchnick notes that a recent modification by the US Securities and Exchange Commission, which allows the direct exchange of ETF shares for Bitcoin without the need for cash, has also propelled this transition.
Simultaneously, BlackRock’s iShares Bitcoin Trust (IBIT) holds a dominant position in the spot Bitcoin ETF landscape, now boasting over $88 billion in assets.
Bitcoin ETF Inflows
Source: Bitbo
Evernorth Plans a Public Offering and XRP Treasury Establishment
Evernorth Holdings, a digital asset firm supported by Ripple Labs, is preparing to go public via a merger with Armada Acquisition Corp. II. This merger aims to establish a new XRP-focused treasury.
The venture is projected to generate more than $1 billion, including $200 million originating from investments by Japan’s SBI Holdings, along with additional financing from Ripple, Kraken, Pantera Capital, and GSR. Upon completion, the organization will operate on Nasdaq with the ticker XRPN.
Asheesh Birla, the CEO of Evernorth, states that the objective is to “promote XRP utilization” in light of the rising interest in digital asset treasuries. Nonetheless, analysts warn of potential obstacles as prices for alternative coins continue to stagnate.
David Bailey, CEO of the Bitcoin treasury firm Nakamoto, remarked, “The narrative has become convoluted with toxic financing, failed altcoins being rebranded, and too many unsuccessful companies lacking vision.”
Evernorth
Source: Asheesh Birla
Galaxy Digital Reports Strong Earnings Amid Crypto Demand
Asset manager Galaxy Digital has declared robust third-quarter results fueled by increased trading activity and institutional demand for cryptocurrency services. The company disclosed a net income of $505 million, with adjusted earnings at $629 million due to successful operations and investments.
Galaxy Digital currently possesses $3.2 billion in equity, with $1.9 billion held in cash and stablecoins, while trading volumes escalated by 140% from the previous quarter. Notably, Galaxy facilitated a massive client sale of 80,000 BTC in July, which was valued near $9 billion, labeled part of the client’s broader estate planning approach.
Wise Explores Stablecoin Initiatives
Wise, a global payments platform, seems to be delving into stablecoin offerings as the company hires a digital asset product director with a focus on the sector. Matthew Salisbury, Wise’s product director, made the announcement in a LinkedIn update regarding a London-based position aimed at enhancing the firm’s digital asset growth.
“If you have experience developing wallets or payment solutions involving stablecoins and are interested in pursuing this at Wise, please apply via the listing or send me a direct message,” Salisbury indicated.
Stablecoins might represent a logical development for Wise, renowned for its cost-efficient international money transfers, currently enabling transactions to over 160 nations.
