Binance Withdraws from Nigeria amid Regulatory Pressure; Bitcoin Nears All-Time High as Grayscale's Holdings Drop
Summary:
Binance, a global cryptocurrency exchange, has decided to exit the Nigerian market due to regulatory issues, discontinuing all transactions in the Nigerian naira (NGN). Elsewhere, Grayscale’s GBTC Bitcoin holdings have dropped by 33% after converting to an ETF, but Bitcoin is nearing its Coinbase all-time high of $68,990. Meanwhile, MicroStrategy’s shares increased over 20% due in part to Bitcoin's rise in value. Despite these developments, Bitcoin has set a new record high against the euro, though it's down by 24% in Mexican pesos from its November 2021 peak.
Binance, a leading global cryptocurrency exchange, has decided to completely withdraw its services from Nigeria, terminating all transactions involving the Nigerian naira (NGN), due to regulatory pressures in the country. On another note, Grayscale's GBTC Bitcoin holdings have sharply decreased by 33% since its transition into a Bitcoin ETF. Concurrently, MicroStrategy shares enjoyed a surge over 20% on March 4 as Bitcoin's price exceeded $67,000.
Binance revealed on March 5 that they are suspending all NGN withdrawals after March 8. Following this date, outstanding NGN balances in Binance accounts will be automatically transitioned into the Tether (USDT) stablecoin per the company's announcement. This decision coincides with Binance's ongoing regulatory challenges in Nigeria.
Since Grayscale transformed into an ETF in mid-January, it's GBTC Bitcoin treasury has seen a reduction of nearly 33%, with 5,450 BTC or $368 million exiting the trust on March 4, marking the 36th consecutive day of outflows. This substantial withdrawal has reached a total of $9.26 billion since its ETF transition, data from BitMEX Research states. Earlier, Grayscale possessed approximately 620,000 BTC before changing the fund into an ETF.
Grayscale initiated its spot Bitcoin ETF, tendering investors the capability to redeem shares for Bitcoin, an option absent in the previous structure. Higher GBTC fees in comparison to other ETFs such as BlackRock's IBIT and Fidelity’s FBTC also attribute to this situation. Currently, the GBTC fund claims 420,682 BTC valued at an estimated $28.8 billion as per current market prices.
Regardless of consistent outflows, Bitcoin continues to surge, nearing its record high of $68,990 on Coinbase. Mirroring Bitcoin's surge, MicroStrategy (MSTR) share prices skyrocketed over 20% on March 4, reaching an intraday peak of $1,339. The price was later corrected, but stayed well above $1,260. With Bitcoin on track to surpass its previous peak, MicroStrategy’s shares are uplifted from the resultant momentum.
MicroStrategy reported an addition of 3,000 BTC to their balance sheet in February, increasing their total holdings to 193,000 BTC. Chairman Michael Saylor confirmed his, along with MicroStrategy's commitment to carry on Bitcoin investments indefinitely.
In additional news, Bitcoin (BTC) set a new record high against the euro, with the cryptocurrency reaching a multiyear high of $65,000. In Mexican pesos, BTC is currently worth 1.1 million, down around 24% from its November 2021 record of roughly 1.4 million pesos.
The information included in this article is not intended as investment advice or recommendations. Trading and investment moves come with inherent risks, and individuals should independently research and evaluate their decisions.
Published At
3/5/2024 4:02:49 PM
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