Bitwise's Bitcoin Wallet Sees Donor Surge Amidst Grayscale Slowdown and Increased SEC Crypto Enforcement
Summary:
Bitwise's Bitcoin ETF wallet witnessed a surge in donations and inscriptions following its public disclosure. Meanwhile, the Grayscale Bitcoin Trust reported its lowest outflows, sparking hopes of an end to massive Bitcoin selling. In the backdrop, under Chairman Gary Gensler, the U.S. Securities and Exchange Commission has ramped up its crypto enforcement initiatives, surpassing the actions of previous chairmen. This information arrives as the SEC undertakes multiple enforcement actions targeting several prominent crypto firms.
The Bitcoin wallet of asset management company Bitwise saw a rush of contributions and inscriptions after it disclosed the public address. The Grayscale Bitcoin Trust, at the same time, experienced $429 million in withdrawals on January 24, the lowest rate since its establishment on January 11. Under the supervision of Chairman Gary Gensler, the United States Securities and Exchange Commission increased its crypto enforcement actions, as highlighted in a recent report.
Bitwise's Bitcoin ETF wallet witnessed an influx of inscriptions and donations shortly after they made the wallet's Bitcoin address public on January 24. There have been contributions and donations from investors and supporters accumulating inscriptions worth $6,083 and totalling over 16,000 inscriptions. These inscriptions comprise two RSIC airdrops, one Bitcoin Punk, one Bitcoin Burials, one Quadkey, and a couple more. Besides, the account also holds thousands of BRC-20 inscriptions.
While Bitwise's decision to publicly disclose their Bitcoin wallet was applauded by some, others criticized the company for employing a single key wallet instead of a more secure multi seg one.
Withdrawals from Grayscale's Bitcoin Trust (GBTC) have begun to slow, sparking hopes of an imminent halt to the sale of billion-dollar worth Bitcoin. GBTC outflows declined to $429 million on Jan. 24, the lowest since Grayscale's spot Bitcoin ETF launched on Jan. 11, marking a 33% drop in comparison to the rate at the beginning of the week on Jan. 22.
Bloomberg ETF analyst, Eric Balchunas, commented that the outflows from GBTC seemed to be on a declining trend, but cautioned that the number remained high. He had previously stated that there were too many variables to predict when the massive outflows from GBTC would cease. GBTC has lost 106,092 BTC, worth about $4.4 billion, over nine trading days.
The Securities and Exchange Commission of the United States under Chairman Gary Gensler has escalated enforcement actions against cryptocurrencies, surpassing previous chairmen, as per a January 24 report by litigation consulting firm, Cornerstone Research. In 2023, the SEC initiated 46 enforcement actions against crypto companies, more than twice the number in 2021, marking the highest level of enforcement actions over the past decade.
Notably, among the major cases brought by the SEC, crypto exchanges like Binance, Coinbase, and Kraken, as well as blockchain projects Terraform Labs and Ripple were targeted. These cases are underway at the time of this report.
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Published At
1/25/2024 2:45:49 PM
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