Bitcoin ETFs Trigger BTC Relocation; Fake ID Service Bypasses KYC Checks; Futures Trading Benefits
Summary:
Bitcoin exchange-traded funds (ETFs) have caused a shift of over $1 billion in Bitcoin (BTC) from miners' wallets to exchanges within the first two days of trading. Meanwhile, a new service, OnlyFake, that generates fake identification documents allegedly capable of bypassing crypto exchange Know Your Customer (KYC) checks has emerged. ProShares, an exchange-traded fund company, reports that the advent of spot Bitcoin ETFs has increased futures trading.
Bitcoin exchange-traded funds (ETFs) have prompted miners to relocate more than $1 billion worth of Bitcoin (BTC) from their wallets to exchanges within just two days of trading. A new enterprise is on the market that provides artificial identification documents, which some claim are capable of breaching cryptocurrency exchange Know Your Customer (KYC) procedures. In the meantime, contrary to popular belief, the establishment of on-the-spot Bitcoin ETFs has boosted Bitcoin futures trading, according to an executive from ProShares.
Following the introduction of Bitcoin ETFs in the US, a tremendous amount of Bitcoins – surpassing $1 billion – has been shipped from miners' digital wallets to exchanges in the initial two days of trading. This monumental movement was captured in the recent Bitfinex Alpha market analysis, which used on-chain data. The report spotlighted the massive influx of Bitcoin being transported to exchanges from miners on the very same day, following the approval of Bitcoin ETFs, marking a six-year peak in outflows from miners.
The report also indicated that one-day outflow exceeding 3,500 Bitcoin set a new record since May 2023. The Bitcoin miner reserve has also plunged to its smallest quantity since June 2021, reaching just 1.826 million Bitcoin left.
A new business, OnlyFake, is claiming to create false identification documents using artificial intelligence, which purportedly can pass through cryptocurrency exchange KYC procedures. For just $15, the website offers convincing counterfeit driver’s licenses and passports from 26 countries all over the globe. Accepted payment methods include diverse cryptocurrencies through Coinbase’s business payment service.
Several OnlyFake clients allegedly confirmed on a Telegram channel that they successfully utilized the fake IDs to pass KYC checks on different cryptocurrency exchanges and financial service providers. This could potentially benefit ill-intentioned individuals aiming to cover their true identities, making them harder to locate for law enforcement.
Despite the escalating popularity of spot ETF trading, ProShares, the entity behind Bitcoin Strategy ETF (BITO), a futures-based product, asserts that their futures product is still witnessing considerable trade volumes. The company's global investment strategist, Simeon Hyman, said that spot Bitcoin products are actually improving the futures market.
This article does not comprise any investment advice or recommendations. Every investment and trading move involves a certain level of risk, and readers should conduct their own thorough research when making a decision.
Published At
2/6/2024 2:34:01 PM
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