Bitcoin ETFs Capture 75% of New Investments; YouTuber KSI in Crypto Controversy
Summary:
Recently approved Bitcoin exchange-traded funds (ETFs) are attracting 75% of new investments in the cryptocurrency, according to data from CryptoQuant. The uptake rate by institutional investors for these funds is ramping up, with BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Trust leading the market. Simultaneously, controversy has arisen in the crypto trading sphere with YouTube star KSI accused of a 'pump-and-dump' scam. Despite the controversy, the rapid inflow into Bitcoin ETFs continues, surpassing previous records in February.
Newly authorised Bitcoin exchange-traded funds (ETFs) are cornering the market for fresh investments in the cryptocurrency, absorbing 75% of inflow, data from CryptoQuant shows. The uptake rate of these funds is accelerating, which has also been accompanied by controversies. YouTube celebrity KSI has been embroiled in allegations of promulgating a 'pump-and-dump' scam with a particular token, which has caught the attention of crypto sleuths ZachXBT and Coffeezilla. A deceitful app mimicking Curve Finance has also surfaced on Apple's App Store, with Bitcoin surpassing the $1 trillion market cap on reaching a price over $50,000.
CryptoQuant's report indicates that the success of US spot Bitcoin ETFs is compelling, accounting for three-quarters of fresh Bitcoin investments. “Over 75% of recent Bitcoin investments are attributed to these ETFs," says CryptoQuant, adding, "Investment from them has grown by 2% of Bitcoin's total historical investment as evidenced by its actual market capitalisation."
The entry of billions into Bitcoin ETFs epitomises a keen demand from established investors. Tracking platform Apollo data suggests that $2.3 billion worth of 43,300 BTC has been drawn into US funds within the past 96 hours.
BlackRock's iShares Bitcoin Trust, holding over 105,000 BTC, and Fidelity's Wise Origin Bitcoin Trust with 79,752 BTC lead the pack.
Meanwhile, Olajide Olayinka Williams Olatunji, popularly known as KSI, is currently under scrutiny from ZachXBT and Coffeezilla. They claim KSI has been promoting the watch-to-earn venture XCAD Network (XCAD), alleged to be a 'pump-and-dump' scheme. Crypto investigator ZachXBT flagged KSI's promotional posts about his investments, juxtaposed with a screen capture of KSI dropping $850,000 in XCAD tokens.
KSI insists he harboured "no malicious intent to scam," saying he was simply inexperienced and enthusiastic about crypto. Coffeezilla countered that KSI's contrasting public and private actions are decidedly indicative of a 'pump and dump,' regardless of the outcome.
Rapid uptake of Bitcoin ETFs in February marks a notable trend, with spot Bitcoin (BTC) ETFs logging more net inflows in the last four days of trading than the entire month previously. Apollo data reveals that 43,300 Bitcoin, worth $2.3 billion at current values, has streamed into ten spot Bitcoin ETFs in the past four days alone.
This data emerges as four spot Bitcoin ETFs – excluding Grayscale – have joined the 'billionaire club.' The Bitwise Bitcoin ETF joins them, having surpassed the billion mark on February 14.
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Published At
2/15/2024 10:46:51 PM
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