Coinbase's Bitcoin Supply Hits Nine-Year Low; Binance Faces Tax Evasion Charges; BlackRock's ETF to Outpace Grayscale's GBTC
Summary:
Bitcoin supply on Coinbase has reportedly reached nine-year lows, suggesting ongoing Bitcoin accumulation. Meanwhile, Binance's tax evasion charges from the Nigerian government mount, and a BlackRock ETF is set to outperform Grayscale's Bitcoin Trust ETF within weeks. Lastly, BlackRock's spot Bitcoin ETF may exceed Grayscale's GBTC in holdings by April 11.
Coinbase's Bitcoin inventory has dropped to levels last seen nine years ago, indicative of continuous acquisition of the dominant digital coin. At the same time, the Nigerian government is under scrutiny as Binance faces allegations of tax evasion. Additionally, the Bitcoin exchange-traded fund (ETF) offered by BlackRock could soon eclipse that of Graskell's Bitcoin Trust ETF within the coming three weeks, as per recent ETF inflow figures.
Bitcoin's value soared above the $70,000 mark on March 25, as Bitcoin inventories on the digital currency platform Coinbase dwindled to levels not seen since nine years ago, a sign of continued Bitcoin acquisition. The leading digital asset momentarily traded above $71,000, as per Cointelegraph statistics, demonstrating a daily increase of over 6%. While this happened, the Bitcoin reserves on Coinbase dropped to 344,856 BTC the preceding week, as shown by Glassnode information. All in all, as of March 25, Bitcoin reserves across all exchanges dwindled to 1.92 million BTC, the lowest in three years. Experts interpret this as a signal of the escalating demand for BTC following the authorization of multiple ETFs in January.
Despite widespread withdrawals from the Grayscale Bitcoin Trust, other spot ETFs continue to demonstrate robust demand. As Cointelegraph indicated, extensive accumulation via BlackRock's ETF may see the asset manager outperform Grayscale in a matter of weeks.
According to reports from a local source, a Binance executive has reportedly evaded detention by the Nigerian authorities using a counterfeit passport. Simultaneously, other reports claim the Nigerian government has instigated criminal charges against the exchange for evading tax. Local media report that these charges were filed at the Federal High Court in Abuja on the first day of the week.
Nadeem Anjarwalla is reported to have caught a flight out of Abuja on a Middle East airline, despite his British passport, that he used to enter Nigeria, remaining in the custody of Nigerian officials.
Anjarwalla, Binance's African regional manager, along with Gambaryan, a US citizen who heads Binance's criminal investigations team, were detained upon landing in Nigeria on February 26. The Nigerian government has imposed stringent actions against individuals and entities linked to Binance crypto exchange involved in terror finance and money laundering.
The holdings of BlackRock's Bitcoin (BTC) ETF could potentially outstrip Grayscale's GBTC within the next three weeks. As of March 22, BlackRock's Bitcoin ETF reported holdings of 238,500 BTC—valued at $15.5 billion at current rates. Simultaneously, it has witnessed an average daily intake of roughly $274 million, equivalent to about 4,120 new Bitcoins being added to the fund every day.
On the other hand, Grayscale's Bitcoin Trust currently holds an estimated 350,252 BTC—valued at $23 billion at prevailing prices. Over the past two weeks, it has experienced an average daily outbound flow of roughly $277 million, or about 4,140 BTC.
Barring any major changes in the inflow and outflow rates, BlackRock could outpace Grayscale in total Bitcoins held by April 11.
This article does not serve as an investment guide or make any endorsements. All investment or trading moves involve risk, and readers should make inquiries on their own before making a decision.
Additional contributions from Geraint Price, Sam Bourgi, and Felix Ng.
Published At
3/25/2024 11:13:25 PM
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